Microsoft adds native app building to Copilot Studio

Microsoft said it is adding the ability to build apps natively in Copilot Studio in a move that aims to bring apps, agents and workflows together integrated with enterprise governance.

The company also said that it is expanding access to natural-language app creation in Copilot Cowork. Microsoft said native app building in Copilot Studio will roll out in public preview in the days ahead and app building in Copilot Cowork will launch as a Frontier preview for eligible Microsoft 365 Copilot users.

For Microsoft, the bet is that enabling enterprises to give people the ability to spin up applications connected to enterprise data and systems with governance can win. Apps created on Copilot Studio are integrated with Microsoft Entra identity and connector policies with visibility via Microsoft 365 admin tools.

The broader play is that Microsoft wants to be a key context layer for enterprises as they deploy agents. Microsoft CEO Satya Nadella said on the company's fourth quarter earnings call that there's "a tremendous opportunity to turn customers' workflows, domain knowledge, and accumulated judgment into AI systems that learn and improve with every usage."

Microsoft also noted that usage-based billing applies to building and running apps and customers should model governance, consumption and returns as they expand access to app creation. Microsoft is looking to expand access and participation in building agentic apps while acknowledging that enterprises are concerned about sprawl, budgets and returns.

Key points about the Microsoft updates: