5.2 Creating an Agent from a Template
Key Takeaways
- Create an agent from a template by selecting New agent in the left pane of Microsoft 365 Copilot, then choosing a template under Start with a template.
- Templates arrive preconfigured with a description, instructions and prompts, so customisation starts from a working agent rather than a blank one.
- Agent Builder saves changes automatically; the agent exists only after you select Create in the upper-right corner, and Go to agent opens it.
- The Configure tab accepts a 30-character name, a 1,000-character description, 8,000 characters of instructions, and up to 20 knowledge sources.
- Choose Agent Builder for an individual or small team using existing Microsoft 365 content, and Copilot Studio for broader audiences, multi-step workflows, or custom connectors.
5.2 Creating an Agent from a Template
Quick Answer: In Microsoft 365 Copilot, in the left pane select New agent. Under Start with a template, select the template you want. Use natural language to update the agent's name, description and instructions, then use the Configure tab to add an icon, knowledge sources and capabilities. Changes save automatically; select Create in the upper-right corner to create the agent, then Go to agent to chat with it.
Candidates who have built an agent once still lose marks here, because they remember the describe-it-conversationally route and not the template route. The blueprint names the template route explicitly — "create an agent by using a template" — so that is the click path to memorise.
Three Routes Into Agent Builder
Selecting New agent in Microsoft 365 Copilot offers three ways to proceed. Knowing all three is what makes the template steps stick, because the exam distinguishes between them.
| Route | How you start | When to use it |
|---|---|---|
| Natural language (recommended by Microsoft) | Describe the agent conversationally; Agent Builder configures name, description, instructions, knowledge and prompts for you | You know what you want the agent to do but not how to phrase instructions |
| Skip to configure | On the New agent page select Skip to configure, which opens the Configure tab directly | You want deterministic manual control from the first keystroke |
| Start with a template | Pick a prebuilt template for a known use case | A template already matches the job — the fastest route |
The Documented Template Steps
- In Microsoft 365 Copilot, in the left pane, select New agent.
- Under Start with a template, select the template you want to use.
- Using natural language, provide information to update and enhance the agent, including the agent name, description and instructions.
- On the Configure tab, add an icon, knowledge sources and capabilities.
Changes are saved automatically as you work. When you are satisfied with the agent's behaviour and content, select Create in the upper right corner. After creation, select Go to agent to chat with it; afterwards you reach it again from the left navigation pane in Copilot.
On the Exam: The entry point is New agent in the left pane, and the template chooser is labelled Start with a template. Options routing the user through a right-hand rail, an "Agents tab", or the Microsoft 365 admin center are distractors — the admin center manages agents that already exist, it does not author them.
What a Template Actually Gives You
Templates are not empty shells. Each arrives preconfigured with a description, instructions and prompts, applying Microsoft's design guidelines and industry best practices. You can use one as-is or customise it — most commonly by adding the knowledge sources and capabilities a generic template cannot assume, because those are specific to your organization. The business case is time: your effort goes into the logic that is particular to your team rather than into scaffolding.
The Fields You Are Filling In
The Configure tab is the same for every route, and its limits are worth knowing because scenario items sometimes hinge on them.
| Field | What it does | Limit |
|---|---|---|
| Name | Descriptive, unique name for the agent | 30 characters |
| Description | Helps the model identify when to use the agent; also shown in the app catalog | 1,000 characters |
| Instructions | Directs the agent's behaviour, tasks and how it completes them | 8,000 characters |
| Knowledge | SharePoint sites, folders, files, or Copilot connectors | Up to 20 knowledge sources |
| Starter prompts | Show colleagues what the agent supports | No minimum |
| Icon | Generate with AI, browse the library, or upload a PNG | 192x192, 1 MB |
Two capabilities can be toggled on: code interpreter (shown as Create documents, charts, and code) and image generator (shown as Create images). The Model section sets a default response mode — Auto, Quick response, or Think deeper — which users can override with the model selector.
Testing Before You Share
After you create your agent, test it on the Try it tab. The Try it experience becomes available once the agent has a name, description and instructions, and it behaves according to those instructions like a published agent. A few features are deliberately absent there: you cannot share prompts, give feedback, or @mention other agents until the agent is created.
An agent that has never been tested is an agent that will embarrass you in front of colleagues. Exercise it against three kinds of question:
| Test | What you are checking | A failure looks like |
|---|---|---|
| A question the knowledge clearly answers | Grounding works and citations point at the right file | A correct-sounding answer with no citation |
| A question just outside the knowledge scope | The agent declines instead of improvising | A confident answer invented from general model knowledge |
| A question that violates the instructions | The guardrails hold | The agent ignores its own boundaries |
The second test matters most. An agent whose instructions say "answer only from the attached policy library" but which happily answers general questions has not been scoped tightly enough — tighten the instructions, then retest.
When a Template Is Not Enough: Copilot Studio
Agent Builder and Microsoft Copilot Studio both create agents, but Microsoft draws the line by audience, deployment scope, functionality and governance.
| Agent Builder in Microsoft 365 Copilot | Copilot Studio | |
|---|---|---|
| Access point | The Microsoft 365 Copilot app | The separate Copilot Studio web portal |
| User type | Information workers | Makers and developers |
| Target audience | Individuals or small teams | Department, organization, or external customers |
| Agent type | Lightweight question-and-answer agents using organizational knowledge | Multi-step workflows and business-system integration |
| Distinctive features | Natural-language authoring; respects user permissions to Microsoft 365 data | Broad and external publishing, approvals and branching, custom connectors, autonomous capabilities, lifecycle management |
| Managed through | Microsoft 365 admin center | Power Platform admin center |
Choose Agent Builder to create an agent quickly for yourself or a small team from existing content. Choose Copilot Studio when the audience is broader or the agent needs multi-step workflows, custom integrations, or tighter deployment control. You are not locked in either way — an agent built in Microsoft 365 Copilot can be copied to Copilot Studio later, preserving its core configuration and instructions.
When creating a declarative agent in the Microsoft 365 Copilot Agent Builder, what is the operational distinction between the 'Describe' tab and the 'Configure' tab?
Where does a business user begin when creating an agent from a template in Microsoft 365 Copilot?
What does an Agent Builder template supply before any customisation?