Navigating Your Options: M365 Copilot vs. Copilot Studio vs. AI Studio

Choosing the right tool for your business use case can significantly impact the efficiency and success of your project. This guide will help you determine whether to use M365 Copilot, Copilot Studio, or AI Studio .

M365 Copilot:

Purpose: Enhances productivity within Microsoft 365 applications by leveraging AI to assist with tasks such as drafting emails, summarizing documents, and generating insights. Limited to the functionalities provided within Microsoft 365 apps.

Ideal For:

• Users who need AI assistance directly within their daily Microsoft 365 workflows.
• Enhancing productivity within Microsoft 365 apps.
• Automating repetitive tasks and improving user efficiency.
• Leveraging built-in AI capabilities without extensive customisation.
• Users who need quick, out-of-the-box solutions.
• Requires minimal setup and configuration.

Use Cases:

• Automating email responses in Outlook.
• Generating reports and summaries in Excel.
• Creating content drafts in Word.
• Recapping and summarising meetings in Teams.
• N.B. Requires extensive prompt engineering for more complex use cases

Example : Imagine you are a project manager who needs to send weekly status updates to your team. Using M365 Copilot, you can automate the creation of these updates by pulling data from various sources like Excel sheets and project management tools, and then drafting an email in Outlook. This saves you time and ensures consistency in your communications.

Copilot Studio:

Purpose: Allows customization and extension of Copilot capabilities to fit specific business needs. It enables the creation of tailored AI solutions that integrate with Microsoft 365. Provides a low code environments for simple development and construction. Abstracts prompt engineering away from end users.

Ideal For:

• Businesses that require customized AI solutions within the Microsoft 365 ecosystem.
• Building custom AI-driven experiences within Microsoft 365.
• Extending the capabilities of M365 Copilot with custom plugins and integrations.
• Creating conversational AI solutions tailored to specific business needs.

Use Cases:

• Developing custom chatbots for customer service.
• Integrating third-party services and data sources into Microsoft 365 ecosystem.
• Creating advanced automation workflows that span multiple applications.
• N.B Can be integrated with AI studio for more complex AI/ML use case(s)

Example: Suppose you are an IT manager who wants to create a custom chatbot to assist employees with common IT issues. Using Copilot Studio, you can build a chatbot that integrates with your existing IT service management system, allowing employees to get quick answers and submit tickets directly from Teams. This improves efficiency and reduces the workload on your IT support team.

AI Studio:

• Purpose: Provides a platform for developing, training, and deploying custom AI models. It offers more flexibility and control over AI development compared to Copilot Studio. Offers more flexibility and customisation compared to M365 Copilot but requires technical expertise to set up and manage.
• Ideal For:
• Advanced users and developers who need to build and deploy bespoke AI models beyond the M365 Copilot or Copilot Studio Capabilities.
• Businesses looking to create unique AI-driven solutions.

• Building and deploying AI models using Azure's advanced capabilities.
• Handling complex AI tasks that require custom model training and deployment.
• Integrating AI solutions across various platforms and services beyond Microsoft 365.

Use Cases:

• Advanced knowledge mining across disparate internal and external sources and summarization
• Creating image and speech recognition applications.
• Virtual Avatars
• Building AI solutions that require high scalability and performance.

Example: A custom Copilot for a retail company could revolutionize user experience by offering personalized shopping assistance, real-time inventory updates, and seamless customer support. For instance, customers could inquire about product availability, receive tailored recommendations based on their browsing and purchase history, and get instant answers to their questions about returns or shipping. The Copilot could also assist with placing orders, tracking deliveries, and notifying customers about exclusive deals and promotions. Utilizing AI Studio’s natural language processing and machine learning capabilities, this Copilot would provide a highly personalized and efficient shopping experience, enhancing customer satisfaction and loyalty.

Microsoft 365 Copilot overview | Microsoft Learn

Official Microsoft Copilot Studio documentation - Microsoft Copilot Studio | Microsoft Learn

What is Azure AI Studio? - Azure AI Studio | Microsoft Learn