Build 2025: Microsoft 365 Copilot Tuning to Improve Custom AI Agents

Microsoft is making it easier for organizations using Microsoft 365 Copilot to create custom AI agents that better suit their needs, with no coding skills required. At its Build 2025 developer conference this morning, the company announced Microsoft 365 Copilot Tuning, which will be available in June via the Microsoft 365 Copilot Tuning Early Adopter Program.

Microsoft 365 Copilot Tuning will be integrated within Copilot Studio, the company’s web-based portal for creating AI agents that, according to Microsoft, is already being used by more than 230,000 organizations. These custom agents can be built using the over 1,900 AI models available in Azure AI, which organizations can fine-tune for their specific needs. Microsoft also guarantees that it doesn’t use customer data to train the foundation models powering these custom AI agents. Otherwise, organizations are free to bring their own model for prompts and generative answers.

“With Copilot Tuning, you can use your company data, workflows, and processes to train models and create agents that perform domain-specific tasks with a high degree of accuracy using Copilot Studio—no coding required,” explained Jared Spataro, Chief Marketing Officer, AI at Work at Microsoft. “For example, a legal firm can create an agent to reflect its unique voice and expertise—automating document creation and even drafting arguments that blend institutional knowledge with client-specific context to help build the strongest case possible. Or a consulting company can tune agents for specific industries based on subject-matter expertise.”

According to Microsoft, its customers created over 1 million custom agents across SharePoint and Copilot Studio during the last quarter, a number that was up 130% compared to the previous one. If there’s clear momentum for AI agents, Microsoft now wants to make them full-fledged members of a team that can interact with each other.

With Multi-agent orchestration, which is launching in preview in Copilot Studio today, organizations can allow agents to share their data and accomplish tasks together. “For example, multiple agents can collaborate across HR, IT, and marketing to help onboard a new employee,” Spataro explained.

To make it easier for Microsoft 365 admins to track agent identities and manage their lifecycle and permissions, Microsoft is also launching Microsoft Entra Agent ID in preview today. This will allow admins to see all AI agents created using Copilot Studio and Azure AI Foundry and know at a glance what information those agents can access inside their organization.