AB-900, Agentic AI, AI, Microsoft Certification

Create an agent (AB-900 Exam Prep)

 
This post is a part of the AB-900: Microsoft 365 Copilot and Agent Administration Fundamentals Exam Prep Hub.
This topic falls under these sections:
Perform basic administrative tasks for Copilot and agents (25–30%)
   --> Perform basic administrative tasks for agents
      --> Create an agent

Note that there are 10 practice questions (with answers) at the end of each section to help you solidify your knowledge of the material. Also, there are 4 practice tests with 30 questions each available from the hub's main page below the exam topics section.

(Microsoft 365 Copilot & Agent Administration Fundamentals)

Agents in the Microsoft 365 Copilot ecosystem are AI-powered assistants that extend Copilot’s capabilities by focusing on specific tasks, organizational knowledge, or business processes. Creating an agent involves defining its purpose, selecting its data sources, configuring its behavior, and publishing it so users can interact with it securely within Microsoft 365 apps.

This topic is central to understanding how administrators and power users enable tailored AI experiences using tools such as Microsoft Copilot Studio and the broader Microsoft 365 ecosystem.

1. What an agent is in Microsoft 365

An agent is a configurable AI experience built on top of Microsoft Copilot that can:

  • Answer domain-specific questions (HR, IT, finance, etc.)
  • Perform guided tasks (ticket creation, policy lookup, onboarding steps)
  • Use organizational data securely (SharePoint, Microsoft Graph, Dataverse)
  • Follow defined instructions and guardrails

Agents can be:

  • Declarative agents (configured with minimal or no-code settings)
  • Custom agents (built and extended in Copilot Studio)
  • Embedded agents (used within apps like Teams or Microsoft 365 Copilot experiences)

2. Where agents are created

Agents can be created in several Microsoft 365-aligned environments:

a. Copilot Studio

The primary tool for building and customizing agents.

Key capabilities:

  • Define agent purpose and instructions
  • Connect knowledge sources
  • Add actions (Power Automate, APIs)
  • Test and publish agents

b. Microsoft 365 Copilot experience

Admins can enable or manage prebuilt or organizational agents that appear in Copilot surfaces.

c. Power Platform environment (under the hood)

Agents often rely on Power Platform components such as:

  • Dataverse
  • Connectors
  • Power Automate flows

3. Prerequisites for creating an agent

Before creating an agent, ensure:

  • Appropriate licensing (Copilot and/or Copilot Studio access)
  • Permissions in the Power Platform environment
  • Access to organizational data sources (e.g., SharePoint sites)
  • Governance policies configured in Microsoft Purview

4. Key steps to create an agent

Step 1: Define the agent purpose

  • Identify the business scenario
  • Determine scope (e.g., HR helpdesk, IT support, sales assistant)

Step 2: Configure instructions

  • Provide system-level behavior guidance
  • Define tone, boundaries, and response rules
  • Specify what the agent should NOT do (important for compliance)

Step 3: Add knowledge sources

Common sources include:

  • SharePoint sites
  • Microsoft Graph data
  • Uploaded documents
  • Structured data (Dataverse tables)

Step 4: Add actions (optional)

Actions extend agent capability:

  • Create tickets in service systems
  • Trigger workflows via Power Automate
  • Query external APIs

Step 5: Test the agent

  • Validate responses in Copilot Studio test environment
  • Check grounding accuracy and hallucination risk
  • Adjust prompts or data sources

Step 6: Publish and share

  • Publish to organizational catalog
  • Assign user or group access
  • Make available in Microsoft 365 Copilot or Teams

5. Governance and control considerations

When creating agents, administrators must ensure:

  • Data access aligns with Microsoft 365 security policies
  • Sensitive data is protected using Purview labels and DLP rules
  • Only authorized users can access specific agents
  • Activity is monitored through Microsoft 365 admin and compliance tools

Agents inherit security trimming, meaning users only see data they already have permission to access.

6. Common exam focus points

You should understand:

  • Difference between Copilot and custom agents
  • Role of Copilot Studio in agent creation
  • Data sources used by agents (SharePoint, Graph, connectors)
  • Publishing and access control methods
  • Governance and compliance alignment

Practice Exam Questions (10)

1. Which tool is primarily used to build and customize Microsoft 365 Copilot agents?

A. Microsoft Teams Admin Center
B. Copilot Studio
C. Microsoft Entra ID
D. SharePoint Admin Center

Answer: B
Copilot Studio is the primary platform for creating and configuring custom Copilot agents, including instructions, knowledge sources, and actions.

2. What is the primary purpose of defining instructions when creating an agent?

A. To assign licenses to users
B. To configure data retention policies
C. To control agent behavior and response style
D. To enable Power BI integration

Answer: C
Instructions define how the agent behaves, including tone, boundaries, and response rules.

3. Which data source is commonly used by agents for organizational knowledge?

A. Microsoft Paint files
B. SharePoint sites
C. Windows Registry
D. Local desktop folders

Answer: B
SharePoint is a primary structured knowledge source used by Copilot agents.

4. What is a key benefit of adding actions to an agent?

A. They replace Microsoft 365 licensing requirements
B. They allow agents to execute workflows and integrate systems
C. They disable security trimming
D. They remove the need for testing

Answer: B
Actions enable agents to perform tasks such as triggering Power Automate flows or calling APIs.

5. Which platform component is commonly used behind agent workflows?

A. Dataverse
B. Windows Defender Firewall
C. Internet Information Services (IIS)
D. Microsoft Paint

Answer: A
Dataverse is often used as part of the Power Platform foundation supporting agents.

6. What happens when an agent is published?

A. It becomes available to assigned users or groups
B. It deletes previous versions automatically
C. It disables Copilot globally
D. It removes SharePoint permissions

Answer: A
Publishing makes the agent available for consumption based on assigned access controls.

7. What principle ensures users only see data they are allowed to access through an agent?

A. Data duplication
B. Security trimming
C. Token caching
D. Load balancing

Answer: B
Security trimming ensures agents respect existing Microsoft 365 permissions.

8. Which Microsoft service helps enforce compliance for data used in agents?

A. Microsoft Purview
B. Microsoft Edge
C. Windows Update
D. Azure DevTest Labs

Answer: A
Microsoft Purview provides governance, labeling, and compliance controls for data used in AI systems.

9. What is the first recommended step when creating a new agent?

A. Publish the agent immediately
B. Define the agent’s purpose and scope
C. Assign users to the agent
D. Add external APIs

Answer: B
Defining purpose ensures the agent is scoped correctly before configuration begins.

10. Where can agents be made available to end users after creation?

A. Only in Power BI dashboards
B. Only in Outlook desktop client
C. Across Microsoft 365 Copilot and integrated apps like Teams
D. Only in Azure portal

Answer: C
Agents can be deployed across Microsoft 365 Copilot experiences and integrated apps such as Teams.

Go to the AB-900 Exam Prep Hub main page

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