Agent (Copilot)
A configured AI assistant built in Copilot Studio — combines an LLM with knowledge sources, actions, and channels to act on Dynamics 365 data.
An agent in the modern Microsoft AI vocabulary is a configured AI assistant — typically built in Copilot Studio — that combines an LLM (Azure OpenAI under the hood) with knowledge sources (Dataverse, SharePoint, websites, documents), actions (operations it can perform via connectors), and channels where it publishes (Teams, web, Power Pages, Omnichannel, WhatsApp). Agents converse with users, retrieve grounded answers from knowledge, take actions on systems including Dynamics 365, and hand off to humans gracefully when stuck. Microsoft uses agent as the umbrella term for this class of AI; older terminology included "bot" (Power Virtual Agents) and "Copilot extension". For Dynamics 365, custom agents extend the embedded copilots with customer-specific knowledge and actions.