Glossary of Microsoft Copilot terms

Agent

A focused version of Microsoft Copilot with its own instructions, knowledge and sometimes tools, built for a specific job.

Agent 365 (Microsoft Agent 365)

Microsoft's control plane for discovering, governing and securing agents across an organisation. Included with Microsoft 365 E7 or available separately.

Agent Builder

The no-code tool inside Microsoft Copilot for building declarative agents with natural language, knowledge sources and starter prompts.

Agent Registry

The inventory of agents in the Microsoft 365 admin centre, with actions such as approve, block and reassign owner.

Analyst

A built-in agent for data analysis that reasons step by step and can run Python, showing its working.

Copilot Chat (Microsoft Copilot Chat)

The chat experience included with eligible Microsoft 365 plans, grounded in the web and in content you provide. Formerly Microsoft 365 Copilot Chat.

Microsoft Copilot connector

A connection that brings content from another system (for example a ticketing or document system) into Microsoft 365 so Microsoft Copilot and agents can use it.

Copilot Cowork

An agentic system in Microsoft Copilot that carries out multi-step tasks across Microsoft 365, asking for approval before sensitive actions. Generally available since 16 June 2026 and, as of October 2026, billed by usage in Copilot Credits.

Copilot Credits

The unit used to meter usage-based Microsoft Copilot services, such as Cowork and some agent scenarios.

Microsoft Copilot Studio (Microsoft Copilot Studio)

Microsoft's low-code studio for building, publishing and managing agents and workflows.

Copilot Studio workflow

An automation built in Copilot Studio, similar to a Power Automate cloud flow, that can run on its own or as a tool for an agent.

Declarative agent

An agent defined by instructions, knowledge and capabilities that runs on Microsoft Copilot's own orchestrator and models. Agent Builder creates these.

Enterprise data protection (EDP)

Microsoft's contractual and technical commitments that apply to prompts and responses when you sign in with a work account.

Facilitator

A Teams meeting agent that takes live notes, tracks the agenda and answers questions in the meeting chat.

Frontier

Microsoft's early-access programme for preview Microsoft Copilot features. Frontier features can change or be withdrawn.

Grounding

Giving an AI model specific source material, such as your files or the web, so its answers are based on that material.

Hallucination

When an AI model produces plausible but incorrect content, such as an invented reference or figure.

Harness

In Copilot Studio, the engine that runs an agent or workflow: the GitHub Copilot harness, the standard harness or the Microsoft Copilot chat harness.

Microsoft Copilot

The current name for Microsoft 365 Copilot and its app, renamed by Microsoft in September 2026. As of October 2026, the licence is still often called the Microsoft 365 Copilot licence.

Microsoft Graph

The Microsoft 365 service that connects your emails, files, meetings, chats and people, which Microsoft Copilot uses for work data grounding.

Microsoft Purview

Microsoft's data security and compliance tools, including sensitivity labels, retention, audit and eDiscovery.

Power Automate cloud flow

An automation that runs a trigger and a series of actions across apps and services.

Prompt

The instruction or question you give Microsoft Copilot. Microsoft suggests four parts: goal, context, source and expectations.

Prompt Gallery

A library in Microsoft Copilot of Microsoft-provided prompts and prompts you or your team have saved.

Researcher

A built-in agent for deep, multi-step research across the web and your work content, producing cited reports.

Sensitivity label

A Microsoft Purview label that classifies and can protect content. Microsoft Copilot inherits and respects these labels.

Skill

A specialised capability that Cowork, and Agent Builder in preview, can load to carry out a type of task.

Spending policy

An admin setting that grants access to a usage-based service such as Cowork and sets credit limits for users or groups.

Work IQ

Microsoft's intelligence layer that lets Microsoft Copilot and agents reason over organisational data, content and tools.

See a term used in practice: Which Microsoft Copilot do I have?, Your first agent and Governance and licensing basics.