Why Context Is King: How Copilot’s Agent Builder Quietly Transformed AI Usage

One of the most important factors in being successful with AI use is being able to feed your selected tool the right contextual information. This is why Microsoft 365 Copilot, being directly connected to your existing Microsoft 365 ecosystem data, has a significant leg up in many business AI scenarios.

No place is Microsoft's focus on the value of context clearer than the way Agent Builder (or Copilot Studio Lite) has evolved to allow users to create their own simple declarative agents directly from the Copilot Chat interface. From very simple beginnings, over the last couple of years, the Knowledge capabilities of this builder have expanded to allow you to granularly define the context your agent will have available.

Whereas early on we talked about creating the right prompt, now your focus should be having a conversation with the right context. An agent is an easy way of achieving this, and this is actually a far more natural approach to getting the best out of Copilot for most users.

Where else do you feel Copilot has most quietly and impactfully improved? Which features should users go back to take a second look at?

First posted on Linkedin on 02/03/2026 -> View Linkedin Post Here