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| 1 | +# Microsoft Copilot Product & Platform Decision Guide - Overview |
| 2 | + |
| 3 | +> How to choose between `Microsoft 365 Copilot`, `Copilot Studio`, and `Azure AI Foundry (Azure AI Studio)` for your scenario. |
| 4 | +
|
| 5 | +Costa Rica |
| 6 | + |
| 7 | +[](https://github.com) |
| 8 | +[](https://github.com/) |
| 9 | +[brown9804](https://github.com/brown9804) |
| 10 | + |
| 11 | +Last updated: 2025-08-18 |
| 12 | + |
| 13 | +---------- |
| 14 | + |
| 15 | +<details> |
| 16 | +<summary><b>List of References</b> (Click to expand)</summary> |
| 17 | + |
| 18 | +- [AI strategy & decision tree](https://learn.microsoft.com/azure/cloud-adoption-framework/scenarios/ai/strategy) - Cloud Adoption Framework |
| 19 | +- [Which Copilot is right for your org](https://learn.microsoft.com/copilot/microsoft-365/which-copilot-for-your-organization) - Microsoft 365 Copilot |
| 20 | +- [Choose the right agent solution](https://learn.microsoft.com/microsoft-365/agents-sdk/choose-agent-solution) - Copilot Studio vs SDKs vs Azure AI |
| 21 | +- [Copilot Studio overview](https://learn.microsoft.com/microsoft-copilot-studio/fundamentals-what-is-copilot-studio) - Copilot Studio |
| 22 | +- [Declarative agents tool comparison](https://learn.microsoft.com/microsoft-365-copilot/extensibility/declarative-agent-tool-comparison) - Declarative Agents |
| 23 | +- [Extensibility planning guide (agents for M365 Copilot)](https://learn.microsoft.com/microsoft-365-copilot/extensibility/planning-guide) - Extensibility Planning |
| 24 | +- [Training path: Build a foundation to build AI agents & extend M365 Copilot](https://learn.microsoft.com/training/paths/build-foundation-extend-microsoft-365-copilot/) - Training Path |
| 25 | + |
| 26 | +</details> |
| 27 | + |
| 28 | +<details> |
| 29 | +<summary><b>Table of Content</b> (Click to expand)</summary> |
| 30 | + |
| 31 | +- [Where to start?](#where-to-start) |
| 32 | +- [Quick decision tree](#quick-decision-tree) |
| 33 | +- [Copilot Studio vs Azure AI Foundry Azure AI Studio](#copilot-studio-vs-azure-ai-foundry-azure-ai-studio) |
| 34 | +- [Implementation considerations security, data, networking](#implementation-considerations-security-data-networking) |
| 35 | +- [FAQ](#faq) |
| 36 | + - [Q1. Is Copilot Studio only for chat?](#q1-is-copilot-studio-only-for-chat) |
| 37 | + - [Q2. When do I prefer Azure AI Foundry?](#q2-when-do-i-prefer-azure-ai-foundry) |
| 38 | + - [Q3. Can I extend Microsoft 365 Copilot with my own domain agent?](#q3-can-i-extend-microsoft-365-copilot-with-my-own-domain-agent) |
| 39 | + |
| 40 | +</details> |
| 41 | + |
| 42 | +> [!IMPORTANT] |
| 43 | +> This is a practical `selection guide` synthesized from Microsoft Learn. For official canonical guidance (which evolves), always verify the linked docs: [AI Strategy decision tree](https://learn.microsoft.com/azure/cloud-adoption-framework/scenarios/ai/strategy) and [Which Copilot is right for you](https://learn.microsoft.com/copilot/microsoft-365/which-copilot-for-your-organization) |
| 44 | +
|
| 45 | +## Where to start? |
| 46 | + |
| 47 | +1. **Clarify the goal**: productivity in M365 apps, a custom line-of-business agent, or a full-blown AI app/platform? |
| 48 | +2. **Match to service model**: **SaaS (Copilots)** for speed, **PaaS (Azure AI)** for control, **IaaS** for maximum customization. Read more about it here [Implementation considerations security, data, networking](#implementation-considerations-security-data-networking) |
| 49 | + |
| 50 | +## Quick decision tree |
| 51 | + |
| 52 | +> [!TIP] |
| 53 | +> |
| 54 | +> - If you need: → choose `Microsoft 365 Copilot`. |
| 55 | +> - `in‑app AI in Word/Excel/PowerPoint/Teams with enterprise protections` |
| 56 | +> - If you need: → choose `Copilot Studio`. |
| 57 | +> - a `custom business agent` (low-code) |
| 58 | +> - `multi‑channel` (Teams/web) |
| 59 | +> - automation with `Power Platform` |
| 60 | +> - quick time‑to‑value |
| 61 | +>- If you need: → choose `Azure AI Foundry (Azure AI Studio)/ Azure Open AI`. |
| 62 | +> - a `developer platform` for `RAG` |
| 63 | +> - multi‑agent patterns |
| 64 | +> - `model choice` |
| 65 | +> - evaluations |
| 66 | +> - deep integration |
| 67 | +>- If you simply want: → `Microsoft Copilot (consumer)` |
| 68 | +> - a `web-grounded personal assistant` (not for sensitive work data) |
| 69 | +
|
| 70 | +<img width="846" height="1048" alt="ai-chat-decision-flow drawio" src="https://github.com/user-attachments/assets/480e0fe1-017c-47c2-a3b1-c8c4064c8ddb" /> |
| 71 | + |
| 72 | +Click here to [access the diagram](./docs/ai-chat-decision-flow.drawio) |
| 73 | + |
| 74 | +<details> |
| 75 | +<summary><b>More details</b> (Click to expand)</summary> |
| 76 | + |
| 77 | +| Scenario | Choose | Why this fits | Key notes | |
| 78 | +| --------------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | -------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | |
| 79 | +| Employees want AI in **Word/Excel/PowerPoint/Outlook/Teams** with enterprise-grade protections | **Microsoft 365 Copilot** | Natively integrated experiences; work & web chat; governed by M365 controls | Requires org licensing; respects Microsoft Graph permissions. | |
| 80 | +| Build a **custom agent** quickly, connect business data, **automate** flows, publish to **Teams or web** | **Copilot Studio** | Low-code authoring, topics, knowledge sources, **agent flows**, Power Automate | Great for fusion teams; supports channels via Azure Bot Service.| |
| 81 | +| Develop a **RAG** app or **multi-agent** solution with fine control over models, evals, safety, and infra | **Azure AI Foundry (Azure AI Studio)** | Unified SDK/APIs, integrates Azure OpenAI & Cognitive Services, deep ops control | Best for pro-code; aligns with PaaS patterns in CAF. | |
| 82 | +| Extend M365 Copilot with **task-specific agents** using declarative tools | **Agents for M365 Copilot** (via Copilot Studio & SDKs) | Purpose-built extensions that run inside M365 Copilot orchestrator | See tool comparison & planning guide. | |
| 83 | +| Personal, **non-sensitive** queries with image creation | **Microsoft Copilot (consumer)** | Free web-grounded assistant | Don’t use for confidential work content. | |
| 84 | + |
| 85 | +</details> |
| 86 | + |
| 87 | +## Copilot Studio vs Azure AI Foundry (Azure AI Studio) |
| 88 | + |
| 89 | +| Dimension | **Copilot Studio** | **Azure AI Foundry (Azure AI Studio)** | |
| 90 | +| --------------------- | ------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------- | |
| 91 | +| **Audience** | Fusion teams, citizen developers | Pro-code developers | |
| 92 | +| **Approach** | **Low-code SaaS** agent builder with topics, knowledge, **agent flows**, plugins | **PaaS** development platform with unified SDKs/APIs, RAG, multi-agent, evals | |
| 93 | +| **Typical use** | Helpdesk bots, HR/IT FAQ, approvals, guided flows, Teams agents | Custom RAG apps, multi-agent orchestration, domain copilots with bespoke logic | |
| 94 | +| **Data & connectors** | Prebuilt/custom plugins, Power Platform connectors; Azure AI Search supported as knowledge | Bring your own data stores; Azure AI Search, vector DBs; full orchestration control | |
| 95 | +| **Channels** | Publish to **Teams**, web, channels via Azure Bot Service | You host and expose services; integrate into custom apps, Teams, M365 via SDKs | |
| 96 | +| **Governance** | Power Platform governance, DLP, environment controls | Azure governance (RBAC, VNets, Private Link), CI/CD, responsible AI reviews | |
| 97 | +| **When to pick** | Rapid time-to-value; low-code; align with Power Platform ops | Need model choice, fine-grained data/infra control, complex pipelines & testing | |
| 98 | + |
| 99 | +## Implementation considerations (security, data, networking) |
| 100 | + |
| 101 | +> [!TIP] |
| 102 | +> |
| 103 | +> -  Need fastest productivity impact across M365? `Choose SaaS (M365 Copilot/Copilot Studio).` |
| 104 | +> -  Building a domain copilot or RAG API with enterprise controls? `Choose PaaS (Azure AI Foundry).` |
| 105 | +> -  Must run in tightly isolated environments or custom GPU stacks? `Choose IaaS.` |
| 106 | +> -  Unsure? Start on `PaaS for speed + control; move edge cases to IaaS if required.` |
| 107 | +
|
| 108 | +<details> |
| 109 | +<summary><b>More details</b> (Click to expand)</summary> |
| 110 | + |
| 111 | +| Dimension |  Microsoft Copilots |  Azure AI Foundry |  Self-managed on VMs/Kubernetes | |
| 112 | +|---|---|---|---| |
| 113 | +| Service model fit | Fastest path to value for productivity and common copilots | High control and customization for app/platform copilots | Maximum flexibility for bespoke/regulated builds | |
| 114 | +| Primary use cases | M365 Copilot, Copilot Studio solutions, plugin/Graph-powered automations | RAG apps, domain copilots, tool-use/orchestration, API integrations | Custom model hosting, air‑gapped or non-PaaS constraints, specialized GPUs | |
| 115 | +| Speed to value | Minutes to days | Days to weeks | Weeks to months | |
| 116 | +| Customization depth | Low–medium (prompts, plugins, Graph connectors) | High (Prompt Flow, tools/functions, agents, vector/RAG, custom APIs) | Full stack (models, infra, networking, storage, schedulers) | |
| 117 | +| Model choice | Microsoft-hosted models inside M365 | Azure OpenAI, Azure AI model catalog (OSS/commercial), bring-your-own endpoints | Any model you deploy/manage (open‑source or licensed) | |
| 118 | +| Data readiness & access | Govern via Microsoft Graph permissions, sensitivity labels, Purview; minimize oversharing | Plan grounding stores (Azure AI Search, Cosmos DB, Storage); index and chunking strategy | You design data paths, stores, and indexing end‑to‑end | |
| 119 | +| Networking & isolation | Tenant/Service boundary managed by Microsoft | Private Link, VNet integration, Managed VNets, regional isolation | Full VNet/subnet control, firewalls, proxies, private DNS | |
| 120 | +| Egress control | Built-in guardrails, limited customization | Private endpoints, NSGs, UDRs, forced tunneling; restrict outbound to PaaS | You own all egress/policy controls | |
| 121 | +| Safety & content filtering | Built-in safety filters and enterprise policies | Azure AI Content Safety, safety system prompts, abuse monitoring options | DIY or integrate third‑party safety stack | |
| 122 | +| Compliance & data residency | Inherits Microsoft enterprise compliance in M365 | Choose Azure regions; align with org policies and regulators | Fully your responsibility to implement and evidence | |
| 123 | +| Identity & access | Entra ID + Microsoft Graph; Power Platform DLP | Entra ID (RBAC), Managed Identity, Key Vault, Azure Policy | Your IAM, secrets, RBAC, and policy framework | |
| 124 | +| Cost model | Per user/feature licensing | Consumption-based (tokens, search, storage, inference) | Infra + software + ops (VMs/GPU/K8s + licenses) | |
| 125 | +| Scaling & ops | Microsoft manages | Azure platform-managed with quotas and SLAs | You provision, scale, patch, monitor | |
| 126 | +| Governance & lifecycle | Power Platform environments, DLP policies, solution packaging | Azure Policy/Blueprints, DevOps pipelines, IaC (Bicep/Terraform) | Your SDLC, IaC, change control, audits | |
| 127 | +| Risks / trade‑offs | Less deep customization; feature roadmap dependency | Service quotas/limits; more components to secure | Highest ops burden; capacity planning and reliability on you | |
| 128 | + |
| 129 | +</details> |
| 130 | + |
| 131 | +<img width="858" height="1546" alt="image" src="https://github.com/user-attachments/assets/702b07f1-4a92-4e76-82ef-601aec91c9ea" /> |
| 132 | + |
| 133 | +From [AI Strategy decision tree](https://learn.microsoft.com/azure/cloud-adoption-framework/scenarios/ai/strategy) |
| 134 | + |
| 135 | +## FAQ |
| 136 | + |
| 137 | +### Q1. Is Copilot Studio only for chat? |
| 138 | + |
| 139 | +> It builds `agents` (beyond simple chat) that can call flows, connect to data, and act across channels (Teams/web). Please read more about it here [Copilot Studio overview](https://learn.microsoft.com/microsoft-copilot-studio/fundamentals-what-is-copilot-studio) |
| 140 | +
|
| 141 | +### Q2. When do I prefer Azure AI Foundry? |
| 142 | + |
| 143 | +> When you need `RAG/multi-agent`, model choice, evaluations, and deep integration/testing under your DevOps and networking controls. |
| 144 | +
|
| 145 | +### Q3. Can I extend Microsoft 365 Copilot with my own domain agent? |
| 146 | + |
| 147 | +> Yes, use `agents` (declarative) and related SDKs; see the tool comparison and planning guidance. Please read more about here [Declarative agents tool comparison](https://learn.microsoft.com/microsoft-365-copilot/extensibility/declarative-agent-tool-comparison), [Extensibility planning guide (agents for M365 Copilot)](https://learn.microsoft.com/microsoft-365-copilot/extensibility/planning-guide). |
| 148 | +
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| 152 | + <p>Refresh Date: 2025-08-18</p> |
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