Microsoft Copilot Studio is a tool that lets businesses build their own AI-powered chatbots — called virtual agents — to handle customer questions automatically, without requiring programming expertise. It was rebranded from Power Virtual Agents in November 2023 and now uses generative AI to hold more natural conversations with customers.

Originally launched as Power Virtual Agents in December 2019, the platform was rebranded as Microsoft Copilot Studio on November 15, 2023, adding generative AI capabilities (using Azure OpenAI GPT models) alongside the existing rule-based conversation design. Virtual agents built with the platform can handle frontline customer interactions — answering questions, looking up account information, and processing routine requests — and escalate to a human agent when needed. Published case studies include the Miami Dolphins (97% conversation resolution rate) and Rabobank (approximately 80,000 automated calls per month). Copilot Studio integrates natively with Dynamics 365 Customer Service and Contact Center.