This post is a part of the AB-620: Designing and Building Integrated AI Agent Solutions in Copilot Studio Exam Prep Hub.
This topic falls under these sections:
Plan and configure agent solutions (30–35%)
   --> Create and monitor agent flows in Copilot Studio
      --> Add input and output parameters

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.

Introduction

One of the key capabilities of Microsoft Copilot Studio is enabling agents to exchange information with users, workflows, Power Automate flows, connectors, REST APIs, child agents, and enterprise systems. This exchange of information is made possible through input and output parameters.

Input parameters allow an agent to receive the information necessary to perform a task, while output parameters allow the agent to return the results of that task for use in subsequent conversation steps or workflows.

Well-designed parameters make agents more reusable, modular, reliable, and easier to integrate with enterprise systems.

For the AB-620 certification exam, you should understand how input and output parameters work, how they are used within Copilot Studio, Power Automate, connectors, and REST APIs, and the best practices for designing parameter-driven agent flows.

What Are Parameters?

A parameter is a named piece of information that is passed into or returned from an action, flow, API, or agent.

Parameters allow different components to communicate without hardcoding values.

Examples include:

• Customer ID
• Order number
• Product name
• Employee ID
• Email address
• Approval decision
• Invoice amount
• Support ticket number

Parameters make workflows flexible and reusable.

Input Parameters

An input parameter is information supplied to an action before it executes.

The action requires this information to complete its work.

Examples:

• Customer ID
• Product SKU
• Reservation date
• Ticket number
• Email address
• Employee ID

Without required input parameters, many actions cannot execute successfully.

Output Parameters

An output parameter is information returned after an action completes.

Examples:

• Customer name
• Ticket status
• Confirmation number
• Order total
• Error message
• Success flag
• Appointment time
• Generated document URL

Output parameters allow the conversation or workflow to continue using the returned information.

How Parameters Flow Through an Agent

A typical sequence is:

1. User submits a request.
2. Agent gathers required inputs.
3. Inputs are passed to an action.
4. Action executes.
5. Output parameters are returned.
6. Agent uses outputs in later conversation steps.

Example:

User:
“Check the status of order 54321.”

Input parameter:

• Order Number = 54321

Connector executes lookup.

Output parameters:

• Status = Shipped
• Delivery Date = Friday
• Tracking Number = 998877

The agent presents the results naturally to the user.

Sources of Input Parameters

Input values can come from multiple sources.

User Input

Collected directly during conversation.

Example:

“What is your employee ID?”

Conversation Variables

Previously collected values can be reused.

Example:

Customer ID gathered earlier in the conversation.

Entity Recognition

The AI extracts values automatically.

Example:

“Schedule a meeting tomorrow at 3 PM.”

Parameters extracted:

• Date
• Time

System Values

Generated automatically.

Examples:

• Current date
• Current time
• User identity
• Environment information

Previous Actions

Outputs from one action often become inputs for another.

Example:

Action 1 returns:

• Customer ID

Action 2 uses:

• Customer ID

This chaining enables sophisticated workflows.

Types of Parameters

Common parameter types include:

Text (String)

Examples:

• Customer name
• Email address
• Product name

Number

Examples:

• Quantity
• Invoice total
• Age

Boolean

Examples:

• Approved
• Active
• Completed

Possible values:

• True
• False

Date and Time

Examples:

• Appointment date
• Purchase date
• Deadline

Currency

Examples:

• Order amount
• Invoice balance
• Refund amount

Arrays (Lists)

Examples:

• Product list
• Employee list
• Search results

Objects

Complex data structures containing multiple fields.

Example:

Customer

• Customer ID
• Name
• Email
• Address
• Status

Objects simplify passing related information together.

Required vs Optional Parameters

Required Parameters

Must be supplied before execution.

Example:

Customer ID

Without it, the lookup cannot proceed.

Optional Parameters

Improve flexibility but are not mandatory.

Example:

Preferred language

The workflow can continue even if omitted.

Parameter Validation

Input values should always be validated.

Validation checks may include:

• Required fields
• Correct format
• Numeric ranges
• Date validity
• Allowed values
• Maximum length
• Minimum length

Proper validation reduces execution errors.

Example Validation

User enters:

Email = john@email

Validation detects an invalid email format.

The agent asks:

“That doesn’t appear to be a valid email address. Could you enter it again?”

This improves user experience.

Default Values

Optional parameters may have default values.

Example:

Language = English

If the user provides no language preference, the workflow uses the default.

Using Parameters in Power Automate

Power Automate flows commonly receive input parameters.

Examples:

Inputs:

• Employee ID
• Purchase Amount
• Department

Flow performs approval.

Outputs:

• Approved
• Approver Name
• Approval Date

The outputs are returned to Copilot Studio.

Using Parameters with Connectors

Connectors require parameters for operations.

Example:

SQL query

Inputs:

• Customer ID

Outputs:

• Customer record

Example:

Outlook connector

Inputs:

• Recipient
• Subject
• Body

Outputs:

• Success
• Message ID

REST API Parameters

REST APIs use parameters in several ways.

Path Parameters

Example:

GET /customers/{CustomerID}

CustomerID is a path parameter.

Query Parameters

Example:

GET /orders?status=Open

Status is a query parameter.

Request Body

POST operations often send parameters in JSON.

Example:

{
 "Name":"John",
 "Department":"Finance"
}

Using Output Parameters

Output values may be used to:

• Display results
• Make decisions
• Trigger another action
• Update variables
• Call another connector
• Generate Adaptive Cards
• Start approvals

Outputs often drive the next stage of a workflow.

Chaining Parameters

Complex workflows often chain outputs into subsequent inputs.

Example:

Action 1

Input:

• Customer Email

Output:

• Customer ID

↓

Action 2

Input:

• Customer ID

Output:

• Orders

↓

Action 3

Input:

• Order Number

Output:

• Shipment Status

This creates intelligent multi-step automation.

Error Handling

Missing or invalid parameters should be handled gracefully.

Examples:

Missing required value

Agent:

“I’ll need your employee number before I can continue.”

Invalid date

Agent:

“Please enter a valid future date.”

Good error handling improves usability.

Security Considerations

Sensitive parameters require additional protection.

Examples:

• Passwords
• Tokens
• Credit card numbers
• Personal information
• Medical records

Best practices include:

• Encrypt sensitive data.
• Limit parameter visibility.
• Apply least privilege.
• Avoid logging confidential values.
• Validate all external input.
• Follow organizational DLP policies.

Parameter Naming Best Practices

Good parameter names should be:

• Descriptive
• Consistent
• Simple
• Easy to understand

Good examples:

• CustomerID
• EmployeeEmail
• PurchaseAmount
• OrderNumber

Poor examples:

• Value1
• Temp
• InputA
• DataX

Designing Reusable Parameters

Reusable components should:

• Use standardized parameter names.
• Minimize required inputs.
• Return consistent outputs.
• Follow organizational naming conventions.
• Document expected values.
• Validate all inputs.

Reusable parameters simplify enterprise integration.

Common Mistakes

Avoid:

• Poor parameter names
• Missing validation
• Hardcoded values
• Returning excessive data
• Inconsistent naming
• Missing required inputs
• Ignoring null values
• Exposing sensitive information

Best Practices

• Clearly define all inputs and outputs.
• Validate every input.
• Use descriptive names.
• Prefer reusable parameter structures.
• Return only necessary information.
• Handle missing values gracefully.
• Protect confidential parameters.
• Document expected formats.
• Use consistent naming across flows.
• Test all parameter scenarios before deployment.

Exam Tips

For the AB-620 exam, remember these key points:

• Input parameters provide information needed to execute actions.
• Output parameters return results for later use in conversations and workflows.
• Parameters can originate from users, variables, previous actions, entities, or system values.
• Connectors, Power Automate flows, child agents, and REST APIs all use parameters extensively.
• Required parameters must be supplied before execution, while optional parameters improve flexibility.
• Validate inputs to reduce execution errors and improve user experience.
• Outputs often become inputs for later actions in multi-step workflows.
• Sensitive parameters should be protected through appropriate security controls.
• Use descriptive naming conventions to improve maintainability.
• Well-designed parameters make agents modular, reusable, and easier to integrate.

Practice Exam Questions

Question 1

A Copilot Studio action retrieves customer information from a CRM system. Which value is most likely to be an input parameter?

A. Customer ID

B. Customer Name

C. Account Balance

D. Support Ticket Status

Correct Answer: A

Explanation: The Customer ID is supplied to the action so it can locate the correct customer record. The other values are typically returned as outputs.

Question 2

What is the primary purpose of an output parameter?

A. To authenticate a connector

B. To return information after an action completes

C. To publish an agent

D. To configure security roles

Correct Answer: B

Explanation: Output parameters return the results of an action, allowing the agent or workflow to use that information in subsequent steps.

Question 3

Which source can automatically provide input parameters through natural language understanding?

A. Connection references

B. Environment variables

C. Entity recognition

D. Audit logs

Correct Answer: C

Explanation: Entity recognition extracts structured values such as dates, times, locations, and names directly from user conversations.

Question 4

Why should required input parameters be validated before executing an action?

A. To improve dashboard reporting

B. To increase API quotas

C. To reduce licensing costs

D. To prevent execution errors caused by missing or invalid data

Correct Answer: D

Explanation: Validation ensures that required information is complete and properly formatted before an action is executed.

Question 5

A Power Automate flow returns an approval result to Copilot Studio. What type of parameter is the approval decision?

A. Input parameter

B. Environment variable

C. Output parameter

D. Authentication token

Correct Answer: C

Explanation: The approval decision is produced by the flow and returned to Copilot Studio, making it an output parameter.

Question 6

Which parameter type would be most appropriate for representing whether a purchase request has been approved?

A. Boolean

B. Currency

C. Date

D. Array

Correct Answer: A

Explanation: Approval status is naturally represented as a Boolean value (True or False).

Question 7

A workflow retrieves a Customer ID from one action and uses it in the next action to retrieve recent orders. What design pattern is being used?

A. Environment isolation

B. Parameter chaining

C. Adaptive Card rendering

D. Authentication delegation

Correct Answer: B

Explanation: Parameter chaining uses the output of one action as the input to another, enabling multi-step business processes.

Question 8

Which naming convention is considered the best practice for parameters?

A. Value1

B. TempData

C. CustomerID

D. InputA

Correct Answer: C

Explanation: Parameter names should be descriptive, meaningful, and consistent to improve readability and maintainability.

Question 9

Which type of REST API parameter is typically embedded directly within the URL path?

A. Request body parameter

B. Path parameter

C. Output parameter

D. Header parameter

Correct Answer: B

Explanation: Path parameters are incorporated directly into the endpoint URL, such as /customers/{CustomerID}.

Question 10

Why should organizations avoid logging sensitive input parameters such as passwords or personal information?

A. It improves conversation speed.

B. It simplifies API development.

C. It reduces connector licensing costs.

D. It helps protect confidential information and supports security and compliance requirements.

Correct Answer: D

Explanation: Sensitive parameters should be protected from unnecessary exposure to reduce security risks and comply with privacy regulations and organizational governance policies.

Go to the AB-620 Exam Prep Hub main page