Microsoft Copilot Studio expands AI agent capabilities

Microsoft Copilot Studio is expanding its capabilities for AI agent development through new integration methods for data management and communication.

Using the Model Context Protocol (MCP) server, developers can connect Copilot Studio to Dataverse to build inventory management agents. This approach utilizes metadata, such as table and column descriptions, to provide agents with semantic context, allowing them to understand data relationships without extensive manual instruction. The MCP server enables agents to query live Dataverse tables, check stock levels, and trigger workflows.

Additionally, Copilot Studio can be configured to send and receive SMS messages by integrating with Dynamics 365 Contact Center. By connecting a messaging provider like Twilio, users can deploy agents—such as a hotel concierge—that interact with customers directly via mobile text messaging.