AI Agents in Microsoft 365: A Simple Guide to Agent Governance
Part of: AI Learning Series Here
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Summary originally generated with Microsoft Copilot
As AI agents become more common in the workplace, especially within Microsoft 365, it’s crucial to manage them securely and effectively.
AI agents are transforming how we work—automating tasks, improving decision-making, and enhancing collaboration. But with great power comes great responsibility. The recently published (last week) Microsoft’s Agent Governance Whitepaper lays out a roadmap for IT teams to do just that—without overwhelming complexity. This is not the only guideline out there but it is the first that Microsoft officially produces as a governance framework that organizations can innovate confidently while keeping data secure and operations compliant.
Everyone involved in AI Agent deployments should read this one in full, but here’s a breakdown of the key ideas on it:
What Are AI Agents and Why Do They Matter?
AI agents in Microsoft 365 help automate tasks, answer questions, and improve productivity. They can be built using tools like:
- SharePoint (based on stored content)
- Copilot Studio Agent Builder (for conversational templates)
- Full Copilot Studio (for advanced logic and integrations)
- Pro Developer Tools (for custom-built agents)
The paper, goes on to differentiate the use of agents by different types of users, which is pretty universal:
- End Users: Non-technical staff using simple tools.
- Makers: Tech-savvy users building more complex agents.
- Developers: Experts creating advanced, secure solutions.
Why Governance Is Essential
Governance ensures agents are safe, compliant, and effective. Microsoft outlines three main types of controls:
- Tool Controls: Limit what agent-building tools can do.
- Content Controls: Manage what data agents can access.
- Agent Management: Monitor agent usage, performance, and lifecycle.
These controls are managed through platforms like the Microsoft 365 Admin Center, Power Platform Admin Center, and Microsoft Purview.
Security and Compliance Tools
Microsoft provides several tools to keep agents secure:
- Microsoft Purview: Automatically detects and protects sensitive data.
- Data Loss Prevention (DLP): Blocks agents from accessing confidential files.
- Communication Compliance & Audit Logs: Tracks agent interactions to ensure ethical and legal use.
- eDiscovery: Helps with legal investigations by reviewing agent activity.
Cost Management Options
Organizations can choose between:
- Prepaid licenses: Fixed cost for predictable usage.
- Metered billing: Pay-as-you-go based on actual use.
This flexibility helps manage budgets while scaling agent deployment.
Getting Started: A 3-Phase Approach
Here’s the 3-Phase Approach that Microsoft recommends in their project approach:
| Phase | Focus | Key Actions |
|---|---|---|
| Phase 1: Build a Champion Team | Start small with IT leadership | – Form a small IT team to test Agent Builder – Assign licenses and permissions – Create the first organization-wide agent |
| Phase 2: Train and Expand | Educate and empower departments | – Train departments on safe agent building – Launch proof-of-concept agents – Establish a Center of Excellence for governance |
| Phase 3: Deploy and Monitor | Scale responsibly | – Identify and train departmental agent makers – Set up billing meters and sharing controls – Monitor usage and spending |
With the right team, tools, and guardrails, enterprises can unlock real value of AI Agents securely and responsibly.
Resources:
As I mentioned, I encourage you to read the entire paper at: Agent Governance Whitepaper
- Read my many other blog posts on AI Agents Here
- Mastering Agent Governance Episode 6: Getting Started with Agent Governance
- YouTube: (3 month old, but good!) Copilot Agents Governance – 1 Hour Overview
- Microsoft AI Agents Webinars – Microsoft Adoption
- Good 3 Part Read on Microsoft Community Hub: AI Agents Overview by ShivamGoyal03
Have questions ?
Please feel free to reach out if you have questions. Happy to answer anything I can.
I work with an amazing team of professionals at Dell Technologies Services.