Visual Framework

Interactive decision trees to guide Microsoft AI technology selection.

Use these diagrams after working through the Decision Framework and Evaluation Criteria. They reinforce the nine critical questions and are designed to support workshops, architecture reviews, and executive readouts.

Diagram Index
Complete Decision Flow
Persona-Based Flow
Data Grounding Decision
Complexity Assessment Flow
Budget & Timeline Tradeoffs
Governance & Compliance Path
Multi-Agent Orchestration
Upgrade Paths
Lifecycle Check
IQ Layer Selection

Diagram Index

Diagram	Purpose	Maps To Framework
1. Complete Decision Flow	End-to-end technology selection	Phase 2: Q1-Q9 - All nine critical questions
2. Data Grounding Decision	Data strategy and knowledge sources	Phase 2: Q4 - Data grounding patterns
3. Persona-Based Flow	Selection by role and skill level	Phase 2: Q2 - Build approach + Scenarios
4. Complexity Assessment	Technical complexity evaluation	Evaluation Criteria: Complexity
5. Budget & Timeline	Cost and time-to-production paths	Evaluation Criteria: Budget & Time
6. Governance & Compliance	Security and compliance requirements	Evaluation Criteria: Governance
7. Multi-Agent Orchestration	Multi-agent patterns and frameworks	Quick Reference: Orchestration Complexity
8. Upgrade Paths	Migration and progressive enhancement	Implementation Patterns: Progressive Enhancement
9. Lifecycle Check	Pre-flight readiness gate	Evaluation Criteria: Lifecycle & Operational Readiness
10. IQ Layer Selection	Knowledge grounding domain selection	Capability Model: The Three Libraries

Complete Decision Flow

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Start: Need AI Solution]) --> Q1{User interaction
pattern?} Q1 -->|Conversational/Chat UI| UI_Path[UI-Based Agent] Q1 -->|Autonomous/Event-driven| Auto_Path[Autonomous Agent] Q1 -->|API/Headless Service| API_Path[Headless Service] UI_Path --> Q2{Where will users
interact?} Q2 -->|M365 apps only| M365[M365 Copilot] Q2 -->|Teams + custom| Q3{Build approach?} Q2 -->|Multi-channel| Q3 Q3 -->|Low-code| Studio[Copilot Studio] Q3 -->|Pro-code| Q4{Primary platform?} Q4 -->|M365-centric| SDK[M365 Agents SDK] Q4 -->|Azure-centric| Q4Azure{Need custom UI
protocol?} Q4Azure -->|Yes| AGUI[Agent Framework + AG-UI
Preview] Q4Azure -->|No| Foundry[Microsoft Foundry - Azure] Auto_Path --> Q5{Build approach?} Q5 -->|Low-code| StudioAuto[Copilot Studio
with Event Triggers] Q5 -->|Pro-code| Q6{Primary workflow type?} Q6 -->|Enterprise integration| LogicApps[Azure Logic Apps
AI Agent Workflows
Preview] Q6 -->|Custom orchestration| Foundry API_Path --> Q7{Hosting preference?} Q7 -->|Managed PaaS| AgentService[Foundry Agent Service] Q7 -->|Self-hosted| Foundry Q7 -->|Local/Edge| WinAI[Microsoft Foundry - Windows
Local] M365 --> DataQ{Need custom data?} Studio --> DataQ StudioAuto --> DataQ SDK --> DataQ AGUI --> DataQ Foundry --> DataQ LogicApps --> DataQ AgentService --> DataQ DataQ -->|M365 data| GraphConn[Graph Connectors] DataQ -->|Documents| AISearch[Azure AI Search
Agentic retrieval - ACL/labels] DataQ -->|Structured data| VectorDB{Vector DB choice?} DataQ -->|Analytics data| Fabric[Microsoft Fabric] DataQ -->|No grounding| DirectDeploy VectorDB -->|Global scale NoSQL| CosmosDB[Cosmos DB
IVF/HNSW/DiskANN] VectorDB -->|Relational, OSS| PostgreSQL[PostgreSQL
pgvector] VectorDB -->|SQL Database Engine| SQLFamily{Where does
SQL run?} SQLFamily -->|Cloud PaaS| AzureSQL[Azure SQL Database
VECTOR type
ANN Index Preview] SQLFamily -->|Lift-and-shift PaaS| SQLMI[Azure SQL MI
VECTOR type
ANN Index Preview] SQLFamily -->|On-prem / VM| SQLServer[SQL Server 2025
VECTOR type
ANN Index Preview] SQLFamily -->|Fabric-native| SQLFabric[SQL database in Fabric
VECTOR type
ANN Index Preview] GraphConn --> DeployConfig AISearch --> DeployConfig CosmosDB --> DeployConfig PostgreSQL --> DeployConfig AzureSQL --> DeployConfig SQLMI --> DeployConfig SQLServer --> DeployConfig SQLFabric --> DeployConfig Fabric --> DeployConfig DirectDeploy --> DeployConfig DeployConfig[Configure Deployment] --> Q8{Deployment needs?} Q8 -->|M365 Copilot| Deploy_M365[Publish to M365 Copilot] Q8 -->|Teams| Deploy_Teams[Publish to Teams] Q8 -->|Web/Mobile| Deploy_Web[Web/Mobile Channels] Q8 -->|Multiple channels| Deploy_Multi[Multi-channel:
10+ channels via SDK] Q8 -->|Azure service| Deploy_Azure[Azure Container Apps/
App Service/AKS] Deploy_M365 --> Monitor[Monitor & Govern] Deploy_Teams --> Monitor Deploy_Web --> Monitor Deploy_Multi --> Monitor Deploy_Azure --> Monitor Monitor --> End([Production]) style M365 fill:#004578,color:#fff style Studio fill:#004578,color:#fff style StudioAuto fill:#004578,color:#fff style SDK fill:#4b2070,color:#fff style Foundry fill:#a52617,color:#fff style AGUI fill:#4b2070,color:#fff style LogicApps fill:#004578,color:#fff style AgentService fill:#a52617,color:#fff style WinAI fill:#004578,color:#fff ```

Validation Summary

Last Validated: February 2026

UI-Based Agents (GA unless noted)

Technology	Action Safety	Proactive	Description
M365 Copilot	🔒 User-in-the-loop always	🔄 Reactive only	Conversational chat in M365 apps (docs)
Copilot Studio	⚠️ Actions can execute (add approval workflows)	🔄 Reactive (conversational) or ✅ Autonomous (event triggers)	Low-code, 13+ channels (docs)
M365 Agents SDK	⚠️ Custom action safety design	✅ Proactive capable	Pro-code, 10+ channels, C#/JS/Python, BYO orchestrator (docs)
Microsoft Foundry (Azure)	⚠️ Autonomous planning loops	✅ Proactive capable	Custom UI deployment (docs)
Agent Framework + AG-UI (Preview)	⚠️ Approvals via AG-UI middleware	✅ Proactive capable (inherits host orchestration)	Protocol bridges agents to web/mobile UI with SSE streaming, backend tool rendering, shared state, and CopilotKit components (docs)

Autonomous Agents

Technology	Action Safety	Proactive	Description
Copilot Studio (with event triggers)	⚠️ Actions can execute	✅ Autonomous (event-driven)	Event triggers: SharePoint, OneDrive, Planner, Recurrence (docs)
Logic Apps AI Agent Workflows (Preview)	⚠️ Autonomous execution	✅ Proactive (event-driven)	1,400+ connectors (docs)
Microsoft Foundry (Azure) Agent Service	⚠️ Autonomous planning loops	✅ Proactive capable	Custom orchestration (docs)

API/Headless Services (GA)

Technology	Action Safety	Proactive	Description
Foundry Agent Service	⚠️ Autonomous planning loops	✅ Proactive capable	REST API, managed PaaS (docs)
Microsoft Foundry (Azure)	⚠️ Autonomous planning loops	✅ Proactive capable	REST API deployment (docs)

Vector Databases

Technology	Status	Capabilities
Cosmos DB	GA	IVF, HNSW, DiskANN algorithms (docs)
PostgreSQL pgvector	GA	Extension 0.7.0 (docs)
Azure SQL Database	GA (ANN Index Preview)	Native VECTOR type, VECTOR_DISTANCE, DiskANN index, 1,998 dims, LangChain + Semantic Kernel integrations (docs)
Azure SQL MI	GA (ANN Index Preview)	Same SQL Database Engine; requires Always-up-to-date or SQL Server 2025 update policy (docs)
SQL Server 2025	GA (ANN Index Preview)	Native VECTOR type, float32/float16, on-prem or VM (docs)
SQL database in Fabric	GA (ANN Index Preview)	Fabric-native SQL with VECTOR type, same engine capabilities (docs)

Persona-Based Flow

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Who are you?]) --> P1{Your role?} P1 -->|End user| User[Use M365 Copilot] P1 -->|Business maker| Maker{Dev support?} P1 -->|Developer| Dev{Focus area?} P1 -->|Data scientist/analyst| DS{Primary workload?} P1 -->|Integration specialist| IntSpec[Azure Logic Apps
AI Agent Workflows
Preview] Maker -->|No devs| MakerStudio[Copilot Studio] Maker -->|Occasional help| MakerPlus[Studio + Custom Actions] Dev -->|M365 integration| DevM365[M365 Agents SDK] Dev -->|Azure services| DevAzure[Microsoft Foundry - Azure] Dev -->|Multi-agent orchestration| DevOrch[Agent Framework] Dev -->|Multi-platform| DevChoice{Skill level?} Dev -->|Autonomous agents| DevAuto{Event-driven?} Dev -->|Custom UI streaming| DevAGUI[Agent Framework + AG-UI
Preview] DevChoice -->|Mid-level| DevStudio[Copilot Studio
+ Custom Actions] DevChoice -->|Senior| DevSDK[M365 SDK or Foundry] DevAuto -->|Yes| DevLogic[Logic Apps
AI Agent Workflows
Preview] DevAuto -->|Custom orchestration| DevFoundry[Microsoft Foundry - Azure
+ Agent Service] DS -->|Analytics/BI| DSFabric[Fabric Data Agents
Preview] DS -->|ML/Custom models| DSFoundry[Microsoft Foundry - Azure] User --> UserEnd([Start using Copilot]) MakerStudio --> MakerEnd([Build in Studio]) MakerPlus --> MakerPlusEnd([Studio + code]) DevM365 --> DevM365End([Build with SDK]) DevAzure --> DevAzureEnd([Build in Foundry]) DevOrch --> DevOrchEnd([Multi-agent workflows]) DevStudio --> DevStudioEnd([Studio with code]) DevSDK --> DevSDKEnd([Full code solution]) DevLogic --> DevLogicEnd([Event-driven agent]) DevFoundry --> DevFoundryEnd([Custom agent]) DevAGUI --> DevAGUIEnd([Custom streaming UI]) DSFabric --> DSFabricEnd([Data agent]) DSFoundry --> DSFoundryEnd([ML pipeline]) IntSpec --> IntSpecEnd([Enterprise workflows]) style User fill:#0b6a0b,color:#fff style MakerStudio fill:#004578,color:#fff style MakerPlus fill:#004578,color:#fff style DevM365 fill:#4b2070,color:#fff style DevAzure fill:#4b2070,color:#fff style DevOrch fill:#4b2070,color:#fff style DevLogic fill:#004578,color:#fff style DevFoundry fill:#a52617,color:#fff style DevAGUI fill:#4b2070,color:#fff style DSFabric fill:#8c5e00,color:#fff style DSFoundry fill:#a52617,color:#fff style IntSpec fill:#004578,color:#fff ```

Validation Summary - Persona-Based Flow

Last Validated: January 28, 2026

End User (GA)

Technology	Description	Documentation
M365 Copilot	Built-in AI in M365 apps, no setup required	M365 Copilot

Business Maker (GA)

Technology	Description	Documentation
Copilot Studio	Low-code platform, no dev support needed	Copilot Studio
Copilot Studio + Custom Actions	Low-code with occasional developer support for custom connectors/flows	Custom Actions

Developer (GA unless noted)

Technology	Description	Documentation
M365 Agents SDK	Pro-code for M365-centric solutions, C#/JavaScript/Python, 10+ channels, BYO orchestrator	M365 Agents SDK
Microsoft Foundry (Azure)	Pro-code for Azure-centric solutions, custom models, full control	Microsoft Foundry
Microsoft Agent Framework	Microsoft’s investment direction - Next-gen multi-agent orchestration framework (5 patterns: Sequential, Concurrent, Handoff, Group Chat, Magentic). Use instead of Semantic Kernel (maintenance mode). Works with M365 SDK or standalone.	Agent Framework
Agent Framework + AG-UI	Protocol layer for web/mobile clients, supports SSE streaming, backend tool rendering, human approvals, shared/predictive state, and CopilotKit components.	AG-UI Integration
Copilot Studio + Custom Actions	Mid-level developers, low-code with custom code extensibility	Copilot Studio Extensibility
Logic Apps AI Agent Workflows (Preview)	Event-driven autonomous agents, 1,400+ connectors	Logic Apps Agent Workflows

Data Scientist/Analyst

Technology	Description	Documentation
Fabric Data Agents (Preview)	Analytics/BI focus, Python SDK, evaluation capabilities, Power BI/semantic models	Fabric Data Agents \| Python SDK
Microsoft Foundry (Azure)	ML/custom models, full AI/ML pipeline control	Microsoft Foundry

Integration Specialist

Technology	Description	Documentation
Logic Apps AI Agent Workflows (Preview)	Enterprise integration focus, 1,400+ connectors, workflow automation	Logic Apps Overview \| AI Agent Workflows

Data Grounding Decision

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Need to ground AI]) --> Q1{Where is
your data?} Q1 -->|M365 only| M365Data{Data type?} Q1 -->|Azure only| AzureData{Data type?} Q1 -->|Both| Hybrid{Primary
location?} Q1 -->|Analytics platform| FabricData[Microsoft Fabric] M365Data -->|SharePoint, OneDrive| Graph[Microsoft Graph Connectors] M365Data -->|Teams messages| GraphTeams[Graph Connectors] M365Data -->|Custom M365 app| GraphCustom[Custom Graph Connector] AzureData -->|Documents, PDFs| Q2{File count?} AzureData -->|Structured DB| DB{Database?} AzureData -->|Unstructured| Blob[Blob Storage with AI Search] Q2 -->|Under 10,000 files
Simple setup| FileSearch{Platform?} Q2 -->|Production scale
Custom chunking| Search[Azure AI Search] Q2 -->|Multimodal content| ContentUnderstanding[Azure AI Content Understanding
with AI Search
Preview] FileSearch -->|Azure Agent Service| AgentFileSearch[Agent Service File Search
Auto chunk and embed] FileSearch -->|Copilot Studio| StudioKnowledge[Studio Knowledge Base
Up to 1,000 files
SharePoint or OneDrive] DB -->|Global scale, NoSQL| Cosmos{Vector algorithm?} DB -->|Relational, OSS| Postgres[PostgreSQL with pgvector] DB -->|SQL Database Engine| SQLFamily{Where does
your SQL run?} SQLFamily -->|Cloud PaaS| AzureSQL[Azure SQL Database
VECTOR type, DiskANN
ANN Index Preview] SQLFamily -->|Lift-and-shift PaaS| SQLMI[Azure SQL MI
VECTOR type
ANN Index Preview] SQLFamily -->|On-prem / VM| SQL[SQL Server 2025
VECTOR type
ANN Index Preview] SQLFamily -->|Fabric-native| SQLFabric[SQL database in Fabric
VECTOR type
ANN Index Preview] Cosmos -->|Flat index| CosmosIVF[Cosmos DB IVF] Cosmos -->|Graph-based| CosmosHNSW[Cosmos DB HNSW] Cosmos -->|Disk-optimized| CosmosDiskANN[Cosmos DB DiskANN] Hybrid -->|M365 primary| HybridM365[Graph with BYOK] Hybrid -->|Azure primary| HybridAzure[AI Search with Graph API] FabricData --> Q3{Access method?} Q3 -->|Direct platform access| FabricPlatform[Fabric Lakehouse and Warehouse
OneLake with SQL endpoint] Q3 -->|Conversational agent| FabricAgent[Fabric Data Agents
Preview] Graph --> Platform{Which
platform?} GraphTeams --> Platform GraphCustom --> Platform AgentFileSearch --> Platform StudioKnowledge --> Platform Search --> Platform ContentUnderstanding --> Platform CosmosIVF --> Platform CosmosHNSW --> Platform CosmosDiskANN --> Platform Postgres --> Platform AzureSQL --> Platform SQLMI --> Platform SQL --> Platform SQLFabric --> Platform Blob --> Platform HybridM365 --> Platform HybridAzure --> Platform FabricPlatform --> Platform FabricAgent --> Platform Platform -->|M365 Copilot| PlatformM365([Use built-in]) Platform -->|Copilot Studio| PlatformStudio([Configure Studio]) Platform -->|M365 SDK| PlatformSDK([Code integration]) Platform -->|Microsoft Foundry Azure| PlatformFoundry([Configure Foundry]) Platform -->|Logic Apps| PlatformLogicApps([MCP Server
Connector]) style Graph fill:#004578,color:#fff style AgentFileSearch fill:#004578,color:#fff style StudioKnowledge fill:#4b2070,color:#fff style Search fill:#004578,color:#fff style ContentUnderstanding fill:#006192,color:#fff style CosmosIVF fill:#004578,color:#fff style CosmosHNSW fill:#004578,color:#fff style CosmosDiskANN fill:#004578,color:#fff style Postgres fill:#004578,color:#fff style AzureSQL fill:#004578,color:#fff style SQLMI fill:#004578,color:#fff style SQL fill:#004578,color:#fff style SQLFabric fill:#8c5e00,color:#fff style FabricPlatform fill:#8c5e00,color:#fff style FabricAgent fill:#8c5e00,color:#fff ```

Validation Summary - Data Grounding Decision

Last Validated: February 6, 2026

M365 Data Sources (GA)

Technology	Capabilities	Documentation
Microsoft Graph Connectors	M365 data sources (SharePoint, OneDrive, Teams)	Graph Connectors Overview

Document Processing - File Search (GA)

Technology	Capabilities	Documentation
Foundry Agent Service File Search Tool	Built-in file search with automatic parsing, chunking (800 tokens/400 overlap), embedding (text-embedding-3-large), keyword + semantic search, reranking. Supports up to 10,000 files per vector store (max 512 MB/file). Two modes: Basic (Microsoft-managed) vs Standard (BYO Azure AI Search + Blob Storage). Supported formats: .doc, .docx, .pdf, .pptx, .py, .md, .txt, .json, .html, .java, .cs, .cpp, and more. Service handles entire ingestion automatically.	Agent Service File Search
Copilot Studio Knowledge Base	File upload from local/OneDrive/SharePoint. Supports .doc, .docx, .ppt, .pptx, .pdf, .xls, .xlsx, .txt, .md, .html, .csv, .xml. Max 512 MB per file. Direct uploads allow up to 500 files per agent, while SharePoint/OneDrive document sources now support up to 1,000 files (GA Oct 6, 2025). Automatic chunking and vectorization into Dataverse with semantic indexing. OneDrive/SharePoint: Auto-sync (updates reflected automatically) vs Upload: Static files. SharePoint: User-scoped permissions (only files user has access to).	Copilot Studio Knowledge \| File Upload \| SharePoint Files \| Use up to 1000 files

Document Processing - Production Scale (GA)

Technology	Capabilities	Documentation
Azure AI Search	Document indexing, full-text search, vector search, hybrid queries, custom chunking strategies (fixed-size, variable-size, Document Layout skill). Requires manual setup of indexers, skillsets, chunking strategy. Production-scale scenarios with millions of documents.	AI Search Overview \| Chunking Strategies

Document Processing - Multimodal (Preview)

Technology	Capabilities	Documentation
Azure AI Content Understanding	Multimodal processing (documents/images/audio/video), RAG-ready Markdown output, AI Search custom skill integration, built-in chunking, standard/pro modes. API version: 2025-05-01-preview.	Content Understanding Overview \| Multimodal Search

Structured Databases - Vector Search (GA)

Technology	Status	Capabilities	Documentation
Cosmos DB Vector Search	GA	IVF/HNSW/DiskANN algorithms, NoSQL & MongoDB vCore APIs	Cosmos DB Vector Search
PostgreSQL pgvector	GA	Extension version 0.7.0, HNSW/IVF indexes	PostgreSQL Vector Search
Azure SQL Database	GA (ANN Index Preview)	Native VECTOR type, VECTOR_DISTANCE, DiskANN index, 1,998 dims, LangChain + Semantic Kernel connectors	Azure SQL AI
Azure SQL Managed Instance	GA (ANN Index Preview)	Same SQL Database Engine; requires Always-up-to-date or SQL Server 2025 update policy	SQL MI Update Policy
SQL Server 2025	GA (ANN Index Preview)	Native VECTOR data type, float32 (1,998 dims)/float16 (3,996 dims)	SQL Server Vector
SQL database in Fabric	GA (ANN Index Preview)	Fabric-native SQL with VECTOR type, same engine as Azure SQL Database	SQL database in Fabric

Analytics Platform (GA with Preview features)

Technology	Status	Capabilities	Documentation
Microsoft Fabric Platform	GA	Direct knowledge source access via Lakehouse (Delta tables, Spark), Warehouse (T-SQL), OneLake (ADLS Gen2 APIs), KQL databases. Microsoft Foundry (Azure) integration for RAG	Fabric Overview \| Microsoft Foundry (Azure) FAQ
Fabric Data Agents	Preview	Analytics data grounding (warehouses, lakehouses, Power BI semantic models, KQL databases), Copilot Studio connected agents, Foundry Agent Service integration	Fabric Data Agents \| Copilot Studio Integration

MCP Integration (Preview)

Technology	Capabilities	Documentation
Logic Apps MCP Server	Standard logic apps as remote MCP servers, 1,400+ connectors, OAuth 2.0 auth, Streamable HTTP/SSE transports	Logic Apps MCP Server \| API Center Integration

When to Use File Search vs Azure AI Search

Solution	Use When	Cost
File Search (Agent Service/Copilot Studio)	Up to 10,000 files, simple setup (no manual indexer/chunking config), automatic embedding, suitable for smaller document sets, internal knowledge bases, rapid prototyping	Included in Agent Service consumption or Copilot Studio credits
Azure AI Search	Production scale (millions of documents), custom chunking strategies required, advanced features (analyzers, scoring profiles, faceting), complex indexing pipelines, enterprise search	Dedicated AI Search tier (Basic ~$75/mo to S3 ~$3K/mo)

Complexity Assessment Flow

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Assess Use Case]) --> Q1{How many
data sources?} Q1 -->|1| Simple Q1 -->|2 to 3| Q2{Workflow
complexity?} Q1 -->|4 or more| Complex Q2 -->|Linear| Medium Q2 -->|Branching| Complex Simple[Low Complexity] --> S_Tech{Skills?} S_Tech -->|Makers| S_M365[M365 Copilot with Graph] S_Tech -->|Devs| S_Studio[Copilot Studio] Medium[Medium Complexity] --> M_Tech{Skills?} M_Tech -->|Makers| M_Studio[Copilot Studio] M_Tech -->|Devs| M_SDK[Studio with Custom Actions] Complex[High Complexity] --> C_Tech{Need custom
models?} C_Tech -->|No| C_SDK[M365 Agents SDK] C_Tech -->|Yes| C_Foundry[Microsoft Foundry Azure] S_M365 --> Timeline1[Days to deploy] S_Studio --> Timeline2[1 to 2 weeks] M_Studio --> Timeline3[2 to 4 weeks] M_SDK --> Timeline4[1 to 2 months] C_SDK --> Timeline5[2 to 3 months] C_Foundry --> Timeline6[3 to 6 months] style Simple fill:#0b6a0b,color:#fff style Medium fill:#8c5e00,color:#fff style Complex fill:#a52617,color:#fff ```

Budget & Timeline Tradeoffs

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Project Constraints]) --> Q1{AI setup
budget?} Q1 -->|Existing M365| M365Only[M365-Only Path] Q1 -->|USD 200 to 500 per month| Starter[Starter Budget] Q1 -->|USD 1K to 5K per month| Growth[Growth Budget] Q1 -->|USD 5K or more per month| Enterprise[Enterprise Budget] M365Only --> M365T{Timeline?} M365T -->|Days| M365_Fast[M365 Copilot Chat
0 addl cost included with M365
Instruction-based agents] M365T -->|1 to 2 Weeks| M365_Med[M365 Copilot with Graph
0 addl cost
Knowledge grounding] M365T -->|1 Month or more| M365_Slow[Declarative Agents
0 addl cost or PAYG
Custom instructions and data] Starter --> StarterT{Timeline?} StarterT -->|1 to 2 Weeks| S_Fast[Copilot Studio PAYG
USD 200 to 500 per month avg
USD 0.01 per credit, low-code] StarterT -->|1 to 2 Months| S_Med[Studio with AI Builder
USD 200 to 500 per month
Document processing] StarterT -->|3 or more Months| S_Slow[Logic Apps AI Workflows
Approx 200 to 400 per month
Preview, event-driven] Growth --> GrowthT{Timeline?} GrowthT -->|2 to 4 Weeks| G_Fast[Copilot Studio Capacity
200 or more per month prepaid
25K credits per pack] GrowthT -->|1 to 3 Months| G_Med[M365 SDK with Azure Basic
USD 1 to 3K per month
Custom agents, Azure hosting] GrowthT -->|3 to 6 Months| G_Slow[Microsoft Foundry Azure Starter
USD 1 to 5K per month
PAYG tokens with AI Search Basic] Enterprise --> EntT{Timeline?} EntT -->|4 to 8 Weeks| E_Fast[Foundry Serverless
Approx 5 to 15K per month est
PAYG with AI Search Standard] EntT -->|3 to 6 Months| E_Med[Foundry with Agent Service
USD 10 to 30K per month est
Managed orchestration] EntT -->|6 or more Months| E_Slow[Foundry PTU with Premium
30K or more per month
PTU reservation with S2 or S3 Search] style M365_Fast fill:#0b6a0b,color:#fff style M365_Med fill:#0b6a0b,color:#fff style S_Fast fill:#0b6a0b,color:#fff style G_Fast fill:#0b6a0b,color:#fff style G_Med fill:#0b6a0b,color:#fff style E_Med fill:#0b6a0b,color:#fff style M365_Slow fill:#8c5e00,color:#fff style S_Med fill:#8c5e00,color:#fff style G_Slow fill:#8c5e00,color:#fff style S_Slow fill:#9a4300,color:#fff ```

Validation Summary - Budget & Timeline Tradeoffs

Last Validated: January 28, 2026

M365-Only ($0 AI infrastructure add’l)

Solution	Monthly Cost	Documentation
M365 Copilot Chat	Free (included) with eligible M365 subscription	Web-grounded chat and instruction-based agents (docs)
M365 Copilot + Graph Connectors	$30/user/month M365 Copilot license	Graph Connectors included at no extra charge (docs)
Declarative Agents	$0 or PAYG	Instruction-based or public-web grounded = $0; shared tenant data = PAYG (docs)

Starter ($200-500/mo)

Solution	Monthly Cost	Documentation
Copilot Studio PAYG	$200-500/mo (typical)	$0.01 per Copilot Credit (docs)
AI Builder	Included in Power Platform	Document processing (invoices, receipts, contracts) (docs)
Logic Apps AI Workflows (Preview)	$200-400/mo (typical)	Consumption pricing, event-driven agents (docs)

Growth ($1K-5K/mo)

Solution	Monthly Cost	Documentation
Copilot Studio Capacity Packs	$200/month per 25,000 credits	Prepaid (docs)
M365 SDK + Azure	$600-2.3K/mo	SDK free; Azure hosting (App Service ~$100-300/mo) + Azure OpenAI PAYG (~$500-2K/mo tokens) (docs)
Microsoft Foundry (Azure) Starter	$1-5K/mo estimate	PAYG tokens + AI Search Basic (~$75/mo) (OpenAI pricing) \| (AI Search pricing)

Enterprise ($5K+/mo)

Solution	Monthly Cost	Documentation
Foundry Serverless	$5-15K/mo	PAYG tokens at scale + AI Search Standard S1 (~$250/mo) (docs)
Foundry + Agent Service	$10-30K/mo	Managed orchestration PaaS + AI Search S2 (~$1K/mo) (docs)
Foundry PTU + Premium	$30K+/mo	PTU reservations (50+ PTUs minimum) + AI Search S2/S3 (docs)

Timeline Estimates

Timeline	Use Case	Example Scenario
Days	M365 built-in features, no development	(scenarios)
1-2 Weeks	Low-code platforms (Copilot Studio Employee Self-Service, Logic Apps)	(HR Knowledge Base scenario)
1-3 Months	Custom agents with SDKs, moderate complexity	(Customer Support scenario)
3-6 Months	Microsoft Foundry (Azure) custom solutions, complex orchestration	(evaluation-criteria)
6+ Months	Enterprise-scale with PTU, fine-tuning, advanced patterns

Cross-Tier: Unified Pre-Purchase (P3)

Organizations running workloads across both Copilot Studio and Microsoft Foundry can purchase Agent Commit Units (ACUs) in a single pool starting at ~$19K/year. This eliminates separate procurement for each platform and is best for “Better Together” architectures that span Growth and Enterprise tiers. See Evaluation Criteria: Budget and Agent Pre-Purchase Plan.

Cost Calculation Notes

M365 per-user costs ($30/user/month) NOT included in bands - these are AI infrastructure costs only
Estimates assume moderate usage (not high-scale production)
Azure consumption highly variable based on tokens, requests, storage
PTU (Provisioned Throughput Units) require Azure Reservations for cost optimization

Sources

Copilot Studio Licensing (Updated: 2025-11-05)
M365 Copilot Cost Considerations (Updated: 2025-11-25)
Azure OpenAI Pricing (Updated: 2025)
Azure AI Search Tiers (Updated: 2025-11-06)
Logic Apps AI Agent Workflows (Preview, Updated: 2026-02-19)
AI Builder Overview (Updated: 2026-01-14)

Governance & Compliance Path

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Governance Requirements]) --> Q1{Data residency
requirement?} Q1 -->|M365 tenant only
Strict boundary| R1[M365 Tenant Boundary] Q1 -->|Azure region
Configurable| R2[Azure Region Control] Q1 -->|Flexible
Multi-region OK| R3[Flexible Residency] R1 --> Q2{Built-in DLP
sufficient?} Q2 -->|Yes, inherit M365| G1[M365 Copilot
M365 Boundary with DLP] Q2 -->|Need custom agents| G2[Copilot Studio
Power Platform Governance] R2 --> Q3{Network
isolation?} Q3 -->|VNet with private
endpoints required| G3[Microsoft Foundry Azure
VNet with Private Endpoints] Q3 -->|Managed runtime
with VNet needed| G4[AI Agent Service
Full Azure Governance] Q3 -->|Power Platform
governance sufficient| G5[AI Builder
Power Platform DLP] R3 --> Q4{Development
model?} Q4 -->|Enterprise workflows
with integration| G6[Logic Apps Standard
Azure RBAC with VNet] Q4 -->|Multi-channel
custom agents| G7[M365 Agents SDK
Custom Auth with Hosting] Q4 -->|Orchestration
library only| G8[Agent Framework
Host inherited governance] style G1 fill:#0b6a0b,color:#fff style G2 fill:#004578,color:#fff style G3 fill:#004578,color:#fff style G4 fill:#004578,color:#fff style G5 fill:#8c5e00,color:#fff style G6 fill:#004578,color:#fff style G7 fill:#4b2070,color:#fff style G8 fill:#a52617,color:#fff ```

Validation Summary: Governance & Compliance Path

Last Validated: January 2026

M365 Tenant Boundary Technologies

Technology	Action Safety	Proactive	Data Grounding/Memory/Analytics	Key Governance Features	Documentation
M365 Copilot (GA)	✅ User-in-the-loop (drafts only)	❌ Reactive only	Grounding only (M365 Graph per-request), no extractable memory	M365 trust boundary, auto DLP/sensitivity labels, user-scoped permissions, Purview audit, no training on tenant data	M365 Copilot Security
Copilot Studio (GA)	⚠️ Actions execute (flows/connectors)	✅ Autonomous (event triggers)	Grounding + Dataverse persistence (transcripts, variables), full analytics	Power Platform RBAC + DLP, environment-level governance, connector controls, ⚠️ web search leaves boundary, ⚠️ dual auth (user/service)	Copilot Studio Security

Azure Region Control Technologies

Technology	Action Safety	Proactive	Data Grounding/Memory/Analytics	Key Governance Features	Documentation
Microsoft Foundry (Azure) (GA)	⚠️ Tool calling with autonomous planning	✅ Proactive (Azure Functions, Logic Apps)	Grounding + BYO thread storage (Cosmos DB), Azure Monitor + OpenTelemetry	Azure RBAC (control + data plane), VNet + private endpoints, managed identity, CMK optional, ⚠️ API key OR Entra ID (Entra recommended)	Microsoft Foundry security
AI Agent Service	⚠️ Autonomous with action tools (Logic Apps, Functions, MCP)	✅ Proactive (event triggers)	BYO thread storage (Cosmos DB), Azure Monitor project-scoped	Full RBAC (project + resource), VNet + private endpoints, BYO storage, no public egress by default, container injection for VNet	Agent Service Security
AI Builder (GA)	Varies by model type	❌ Reactive	Dataverse storage	Power Platform DLP, Dataverse RBAC, environment location	AI Builder Governance

Flexible Residency Technologies

Technology	Action Safety	Proactive	Data Grounding/Memory/Analytics	Key Governance Features	Documentation
Logic Apps Standard (GA)	⚠️ Autonomous execution (workflows)	✅ Proactive (event-driven, 1,400+ connectors)	Workflow state + connector data	Granular Azure RBAC, VNet + private endpoints (Standard), managed identity, Customer Lockbox, FedRAMP/HIPAA/ISO 27001	Logic Apps Security
M365 Agents SDK (GA)	⚠️ Custom design (full developer responsibility)	✅ Proactive (custom event handling)	Custom (developer implements)	Custom auth (MSAL, Entra ID), hosting platform RBAC, ⚠️ delegated OR application permissions, self-hosted = full network control	M365 SDK Auth
Agent Framework (GA)	Inherits from host app	Inherits from host app	Inherits from host app	No built-in governance (library only), inherits from hosting platform	Agent Framework

Key Decision Criteria:

M365 tenant boundary required → M365 Copilot (strict) or Copilot Studio (custom agents)
Azure region control + VNet isolation → Microsoft Foundry (Azure) or Foundry Agent Service
Enterprise workflow automation → Logic Apps Standard
Custom multi-channel agents → M365 Agents SDK (full control, full responsibility)
Orchestration library only → Agent Framework (no built-in governance)

Multi-Agent Orchestration

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Need Multi-Agent?]) --> Q1{Pattern Type?} Q1 -->|Connected agents
Mesh A2A| Connected[Connected mesh pattern] Q1 -->|Sequential or parallel
workflows| Workflows[Agent Workflow Orchestration] Q1 -->|Event triggers| EventDriven[Event-Driven Agents] Connected --> C_Platform{Platform?} C_Platform -->|Low-code| C_Studio[Copilot Studio Preview
Agent2Agent A2A
Decentralized Mesh] C_Platform -->|Azure| C_Foundry[Microsoft Foundry Azure GA
Connected agents
Sub-agent delegation] Workflows --> W_Framework{Framework?} W_Framework -->|Microsoft| W_AgentFW[Microsoft Agent Framework GA
Sequential, Concurrent, Handoff, Magentic] W_Framework -->|Open source| W_SK[Semantic Kernel
Sequential, Concurrent, Group Chat
Handoff, Magentic] W_Framework -->|Bring your own| W_SDK[M365 Agents SDK
Integrate Agent Framework or SK] W_Framework -->|Third-party state| W_LangGraph[LangGraph Third-Party
State graphs] EventDriven --> E_Type{Event source?} E_Type -->|Enterprise systems| E_Logic[Logic Apps Preview
AI Agent Workflows
MCP Server
Single agent event triggered] E_Type -->|Azure events| E_Functions[Azure Functions
Agent Service
Single agent event triggered] E_Type -->|Custom events| E_Custom[Event Grid with Foundry
Event routing to agents] C_Studio --> Note1[Can connect Fabric Data Agents
as data grounding participants] C_Foundry --> Note2[Fabric Data Agents can integrate
as connected agents] C_Studio --> Deploy1([Deploy]) C_Foundry --> Deploy2([Deploy]) W_AgentFW --> Deploy3([Deploy]) W_SK --> Deploy4([Deploy]) W_SDK --> Deploy5([Deploy]) W_LangGraph --> Deploy6([Deploy]) E_Logic --> Deploy7([Deploy]) E_Functions --> Deploy8([Deploy]) E_Custom --> Deploy9([Deploy]) style Connected fill:#0b6a0b,color:#fff style Workflows fill:#8c5e00,color:#fff style EventDriven fill:#4b2070,color:#fff ```

Validation Summary: Multi-Agent Orchestration

Last Validated: January 2026

Connected Agents / Sub-Agent Pattern

Technology	Status	Capabilities	Documentation
Copilot Studio	Preview	Agent2Agent (A2A) decentralized mesh, Connected agents, child agents, handoffs	Connected Agents
Foundry Agent Service	GA	Multi-agent workflows with orchestration patterns	Agent Workflows
Fabric Data Agents	Preview	Consumed by other agents for data grounding (NOT orchestrator)	Fabric Integration

Agent Workflow Orchestration

Technology	Status	Orchestration Patterns	Documentation
Microsoft Agent Framework	GA	Microsoft’s investment direction - Sequential, Concurrent, Handoff, Magentic (C#, Python)	Agent Framework
Semantic Kernel	Maintenance mode	Sequential, Concurrent, Group Chat, Handoff, Magentic (use Agent Framework for new projects)	Semantic Kernel Agents
M365 Agents SDK	GA	BYO orchestrator (integrate Agent Framework or third-party)	M365 SDK
LangGraph	Third-party	State graph management for complex workflows	Third-party framework

Event-Driven Agents (Single Agent Triggering)

Technology	Status	Event Handling	Documentation
Logic Apps AI Agent Workflows	Preview	Event triggers + MCP Server (triggers SINGLE agent, NOT multi-agent orchestration)	Logic Apps Workflows
Azure Functions + Agent Service	GA	Event-driven single agent invocation (event routing, NOT coordination)	Agent Service
Event Grid + Foundry	GA	Event routing to trigger agents independently (NOT orchestration)	Azure Event Grid

Key Distinctions:

Connected/Mesh: Agents discover and invoke each other (A2A) or delegate to sub-agents
Workflow Orchestration: Sequential/parallel/concurrent agent coordination patterns
Event-Driven: Single agent triggered by events (NOT multi-agent orchestration)

Upgrade Paths

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Start: Low-Code Agent]) --> Q1{Need more
capability?} Q1 -->|No| Stay[Copilot Studio
Standard] Q1 -->|Yes| Q2{What kind of
capability?} Q2 -->|Better Reasoning/LLM| Path1[Enhance
BYO Model - Foundry
Preview] Q2 -->|Complex Orchestration| Path2[Extend
Handoff to Agent Service
Preview] Q2 -->|Custom UI/Protocol| Path3[Migrate
M365 Agents SDK
or Foundry] Path1 --> Result1([Copilot Studio
+ Specialized Model]) Path2 --> Result2([Copilot Studio UI
+ Azure Agent Brain]) Path3 --> Result3([Full Pro-Code
Solution]) style Stay fill:#004578,color:#fff style Path1 fill:#8c5e00,color:#fff style Path2 fill:#a52617,color:#fff style Path3 fill:#4b2070,color:#fff ```

Validation Summary: Upgrade Paths

Last Validated: January 2026

Progressive Enhancement Mechanisms

Mechanism	Status	Description	Documentation
BYO Model	Preview	Swap default Copilot Studio model for a specialized Foundry model (1,900+ options)	BYO Model
Agent Handoff	Preview	Copilot Studio delegates to Foundry Agent Service for complex tasks	Connect to a Foundry agent
Shared Knowledge	GA	Both Copilot Studio and Custom Apps can consume the same Azure AI Search index	Azure AI Search

Using This Guide

How to navigate: Start with Complete Decision Flow for end-to-end guidance, or jump to specific sections: Persona-Based Flow (by role), Data Grounding (data architecture), Complexity Assessment (effort estimate), Budget & Timeline (cost/time), Governance Path (compliance), or Multi-Agent (orchestration).

Diagram conventions: Diamonds = decisions, Rectangles = technologies, Circles = start/end. Colors: Blue = Microsoft core, Purple = developer tools, Green = low complexity, Orange = medium complexity, Red = high complexity/enterprise.

Next Steps

Detailed comparisons:
→ Feature Comparison

Real-world examples:
→ Scenarios

Evaluate readiness:
→ Evaluation Criteria

Lifecycle Check

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([Start: Pre-Flight Check]) --> Q0{Technology status?} Q0 -->|GA| GA_Path[✅ Production-safe] Q0 -->|Preview / RC| Preview_Path[⚠️ Plan for change] Q0 -->|Deprecated| Dep_Path[🚫 Identify successor] GA_Path --> Timeline{Retirement date
within horizon?} Preview_Path --> Timeline Dep_Path --> Successor{Successor
identified?} Timeline -->|No deadline| Proceed[✅ Proceed to
Decision Framework] Timeline -->|Deadline exists| Urgency{Go-live BEFORE
deadline?} Urgency -->|Yes| Proceed Urgency -->|No| Migrate[⚠️ Build on successor
or migrate first] Successor -->|Yes| Migrate Successor -->|No| Block[🚫 Block. Research
successor path] Migrate --> Proceed style GA_Path fill:#1a6b3c,color:#fff style Proceed fill:#1a6b3c,color:#fff style Preview_Path fill:#8b6914,color:#fff style Migrate fill:#8b6914,color:#fff style Dep_Path fill:#8b1a1a,color:#fff style Block fill:#8b1a1a,color:#fff ```

Active Deadlines (as of March 2026):

azure-ai-inference SDK → retires May 30, 2026 (successor: openai SDK)
Assistants API → sunsets Aug 26, 2026 (successor: Foundry Agents Service / Responses API)
Bot Framework → retired Dec 31, 2025 (successor: M365 Agents SDK)

IQ Layer Selection

View as static Mermaid diagram

```mermaid %%{init: {'theme':'dark'}}%% flowchart TD Start([What knowledge
does the agent need?]) --> Domain{Primary data domain?} Domain -->|Enterprise docs,
files, blobs, indexes| FIQ[Foundry IQ
Preview] Domain -->|M365 collaboration
emails, meetings, chats| WIQ[Work IQ
Preview] Domain -->|Analytics, semantic
models, dashboards| FBIQ[Fabric IQ
Preview] Domain -->|Multiple domains| Multi[Combine IQ layers] FIQ --> FIQ_Detail[Azure AI Search
knowledge bases via MCP
ACL + Purview labels] WIQ --> WIQ_Detail[MCP server catalog
Mail, Calendar, Teams,
SharePoint, OneDrive] FBIQ --> FBIQ_Detail[Fabric Data Agents
OneLake, Power BI,
semantic models] Multi --> Combine[Each IQ layer is
standalone. Agents
can query 2 or 3] Combine --> FIQ_Detail Combine --> WIQ_Detail Combine --> FBIQ_Detail FIQ_Detail --> License1[Azure consumption] WIQ_Detail --> License2[M365 Copilot license required] FBIQ_Detail --> License3[Fabric capacity F2+] style FIQ fill:#264f78,color:#fff style WIQ fill:#4a3278,color:#fff style FBIQ fill:#783228,color:#fff style Multi fill:#1a6b3c,color:#fff style Combine fill:#1a6b3c,color:#fff ```

Key distinction: These three IQ layers are not interchangeable. Foundry IQ knowledge sources cannot be used in Copilot, and Copilot knowledge sources cannot be used in Foundry IQ. Choose based on data domain, not brand preference.

Last Updated: January 28, 2026
Next: Evaluation Criteria - Score complexity, skills, budget, and governance after selecting a path

Visual Framework

Table of contents

Diagram Index

Complete Decision Flow

Validation Summary

UI-Based Agents (GA unless noted)

Autonomous Agents

API/Headless Services (GA)

Vector Databases

Persona-Based Flow

Validation Summary - Persona-Based Flow

End User (GA)

Business Maker (GA)

Developer (GA unless noted)

Data Scientist/Analyst

Integration Specialist

Data Grounding Decision

Validation Summary - Data Grounding Decision

M365 Data Sources (GA)

Document Processing - File Search (GA)

Document Processing - Production Scale (GA)

Document Processing - Multimodal (Preview)

Structured Databases - Vector Search (GA)

Analytics Platform (GA with Preview features)

MCP Integration (Preview)

When to Use File Search vs Azure AI Search

Complexity Assessment Flow

Budget & Timeline Tradeoffs

Validation Summary - Budget & Timeline Tradeoffs

M365-Only ($0 AI infrastructure add’l)

Starter ($200-500/mo)

Growth ($1K-5K/mo)

Enterprise ($5K+/mo)

Timeline Estimates

Cross-Tier: Unified Pre-Purchase (P3)

Cost Calculation Notes

Sources

Governance & Compliance Path

Validation Summary: Governance & Compliance Path

M365 Tenant Boundary Technologies

Azure Region Control Technologies

Flexible Residency Technologies

Multi-Agent Orchestration

Validation Summary: Multi-Agent Orchestration

Connected Agents / Sub-Agent Pattern

Agent Workflow Orchestration

Event-Driven Agents (Single Agent Triggering)

Upgrade Paths

Validation Summary: Upgrade Paths

Progressive Enhancement Mechanisms

Using This Guide

Next Steps

Lifecycle Check

IQ Layer Selection