AI Agents: What They Are and How They Will Transform Our Work 2025

It’s Monday morning. The alarm went off hours ago, but the coffee hasn’t quite done its magic yet. You glance at your to-do list, already feeling the weight of the day ahead. Maybe there’s a stack of returns waiting for your approval, a pile of shipping invoices to review, or urgent updates that need to go out to your team in the field. And let’s not forget the endless IT support requests that always seem to pop up.

What if you could take a breath, sip your second cup of coffee, and let someone—or something—handle these tasks for you? That’s where AI steps in. With a simple command, an AI agent can take care of these responsibilities, giving you the space to focus on what really matters: leading your team and planning for the future.

Imagine having a virtual project manager by your side, ready to tackle tasks ranging from reconciling financial statements to closing the books. Microsoft 365 Copilot is already helping people handle everything from repetitive daily chores to sparking creativity on new projects. Now, by integrating with AI agents, it’s opening doors to even greater possibilities—making work smoother, faster, and more effective.

These agents don’t take breaks. They can work tirelessly to review customer returns, catch mistakes in shipping invoices, and help your business avoid costly supply-chain errors. Need detailed instructions for your technicians? An agent can sift through massive amounts of product data and deliver clear, step-by-step guidance. Overwhelmed IT help desk? These agents can open, manage, and close tickets, all while keeping context and memory intact.

“Think of agents as the new apps for an AI-driven world,” says Jared Spataro, Microsoft’s Chief Marketing Officer for AI at Work. “We’re constantly expanding their abilities to address the biggest pain points at work and deliver real results.”

With AI agents, your workday doesn’t have to feel like a constant race against time. Instead, it can be an opportunity to focus on what you love about your job—and maybe even enjoy that second cup of coffee in peace.

What Are Agents, Really?

Imagine having a partner who doesn’t just assist you but actually works alongside you—or even takes over tasks entirely. That’s what agents do. These advanced tools powered by generative AI go beyond traditional assistants. They’re not just helpers; they’re problem-solvers, taskmasters, and specialists who can handle both simple queries and complex, multi-step assignments. What makes them truly unique is their ability to be customized with specific expertise.

Think about this: You could create an agent that knows every detail about your company’s product catalog. It could effortlessly draft detailed responses to customer inquiries or compile product information for an important presentation. It’s like having a colleague who’s always prepared and never forgets the details.

Now imagine another agent that takes things even further. This one doesn’t just assist; it acts on your behalf. For example, it could handle sales orders, giving you the freedom to focus on building meaningful relationships with clients. By delegating routine tasks to these agents, you can not only save time but also increase productivity across industries like manufacturing, research, finance, and retail. It’s a win-win—saving time and cutting costs while you focus on what truly matters.

If you’re using tools like Microsoft 365 or Dynamics 365, you already have access to ready-made agents. But the real magic happens when you create custom agents in Copilot Studio, tailored to meet your specific needs.

Picture this: You’re a salesperson with ambitious quarterly targets. Copilot works as your reliable assistant, drafting emails, summarizing meetings you missed, and helping you craft a flawless sales pitch. Meanwhile, your purpose-built agent is in the background, tirelessly finding new leads for you to pursue. Together, they make an unstoppable team—Copilot handles the daily grind, and your customized agent helps you hit those end-of-quarter goals.

With agents, it’s not just about working harder; it’s about working smarter. They’re not just tools—they’re your allies in achieving success, freeing you to focus on what truly makes a difference.

AI Agents: A New Era of Getting Things Done

AI agents are set to revolutionize the way we work, shifting from tools that assist to partners that truly collaborate. They offer more than just value—they promise to reshape how tasks are accomplished in our daily lives.

While agents aren’t exactly new, they’ve come a long way. Microsoft has been deeply involved in their evolution, even creating a multi-agent library last year for developers worldwide. This groundwork has paved the way for what agents can achieve today. But what’s really exciting is how recent advancements in large language models (LLMs) are making these tools accessible to everyone—not just tech experts. The pairing of agents with LLMs has transformed AI into something more than just a tool; it’s now a partner you can rely on.

“People don’t just want AI to give them words—they want it to do things,” says Ece Kamar, managing director of Microsoft’s AI Frontiers Lab. And she’s right. If AI is to solve real-world problems, it needs to truly understand our world, adapt to changes, and take action when necessary.

At their core, agents are like an extra layer on top of language models. They observe, gather information, and provide input to the model, which then crafts an action plan. Agents can communicate this plan to the user—or, with permission, act on it autonomously. This dynamic partnership between agents and models is what makes generative AI tools so powerful.

To unlock their full potential, agents need three key elements: memory, entitlements, and tools.

Memory: Making Interactions Seamless

Imagine having a conversation where every time you spoke, the other person forgot everything you said before. Frustrating, right? That’s what agents without memory are like. For agents to be truly helpful, they need continuity—they must remember context across interactions.

“AI doesn’t naturally carry context like we do,” explains Sam Schillace, Microsoft’s deputy chief technology officer. “It’s like watching a stop-motion animation where every frame is isolated, and your brain does the work of connecting them. The clay figure doesn’t move on its own.”

To address this, Schillace and his team are working on methods called chunking and chaining. This involves breaking down interactions into manageable pieces and linking them by relevance, much like our own memory works. For example, an agent working on a specific project can group all related conversations together, so when you ask for an update, it knows exactly where to look.

Entitlements and Tools: Secure and Efficient Actions

For agents to act effectively, they need the right access—secure and with your permission. This could include knowing who your manager is or accessing software like Teams or PowerPoint to complete tasks on your behalf. Without these entitlements and tools, their ability to help is limited.

By integrating memory, entitlements, and tools, AI agents are becoming smarter and more autonomous. They’re not just assistants—they’re collaborators, ready to adapt, learn, and take action in ways that feel natural and seamless.

This isn’t just about technology—it’s about a new way of working, where AI feels less like a machine and more like a trusted ally, helping you achieve more with less effort.

How to Use and Build Agents for Work

Creating and using agents in Microsoft 365 Copilot is easier than you might think—no coding expertise required. Imagine building something as effortlessly as you’d create a spreadsheet or presentation. That’s the power of Copilot Studio.

You don’t have to be a developer to build agents either. With just a few steps, you can connect these agents to your business data—like emails, reports, or customer management systems—so they can perform tasks and deliver valuable insights. It’s like having a colleague who’s always ready to help, without needing to be trained.

Soon, even more agents will be at your fingertips. For example, Interpreter in Teams can translate speech in real-time during meetings, even simulating your voice if needed. Meanwhile, the Employee Self-Service Agent will simplify everyday tasks like IT troubleshooting or checking HR benefits. And with Copilot Studio, you can customize these agents to fit your organization’s needs perfectly.

In Microsoft Dynamics 365, agents are set to revolutionize workflows in sales, supply chain, finance, and customer service. Imagine how much smoother daily operations could be with an agent handling repetitive tasks while you focus on strategy and problem-solving.

Even SharePoint is stepping up its game. Every SharePoint site will soon come with a built-in agent tailored to your company’s content. Need to find project details buried deep in a schedule or summarize a product memo? These agents can retrieve exactly what you need in seconds, saving you hours of digging through documents.

For developers, the possibilities are even greater. With the Azure AI Agent Service, you can build and scale agent-powered apps to automate complex workflows like order processing or syncing customer data. The service provides tools like Visual Studio Code and GitHub for seamless integration, giving you the flexibility to create powerful solutions.

OpenAI’s new o1 series models add another layer of sophistication. These models enable agents to tackle complex tasks by breaking them into steps. Picture an IT help desk agent gathering all the information needed to solve a problem, analyzing attempted solutions, and then crafting a detailed plan. It’s like having an expert on call 24/7.

Even LinkedIn is getting in on the action. Its first agent is designed to assist recruiters, making the hiring process faster and more efficient.

With agents, the future of work is here. They’re not just tools—they’re partners that help you work smarter, solve problems faster, and free up time for what truly matters. Whether you’re a professional looking for efficiency or a developer eager to create, agents are ready to transform the way you work.

AI Agents: A New Era of Getting Things Done

AI agents are set to revolutionize the way we work, shifting from tools that assist to partners that truly collaborate. They offer more than just value—they promise to reshape how tasks are accomplished in our daily lives.

While agents aren’t exactly new, they’ve come a long way. Microsoft has been deeply involved in their evolution, even creating a multi-agent library last year for developers worldwide. This groundwork has paved the way for what agents can achieve today. But what’s really exciting is how recent advancements in large language models (LLMs) are making these tools accessible to everyone—not just tech experts. The pairing of agents with LLMs has transformed AI into something more than just a tool; it’s now a partner you can rely on.

“People don’t just want AI to give them words—they want it to do things,” says Ece Kamar, managing director of Microsoft’s AI Frontiers Lab. And she’s right. If AI is to solve real-world problems, it needs to truly understand our world, adapt to changes, and take action when necessary.

At their core, agents are like an extra layer on top of language models. They observe, gather information, and provide input to the model, which then crafts an action plan. Agents can communicate this plan to the user—or, with permission, act on it autonomously. This dynamic partnership between agents and models is what makes generative AI tools so powerful.

To unlock their full potential, agents need three key elements: memory, entitlements, and tools.

Memory: Making Interactions Seamless

Imagine having a conversation where every time you spoke, the other person forgot everything you said before. Frustrating, right? That’s what agents without memory are like. For agents to be truly helpful, they need continuity—they must remember context across interactions.

“AI doesn’t naturally carry context like we do,” explains Sam Schillace, Microsoft’s deputy chief technology officer. “It’s like watching a stop-motion animation where every frame is isolated, and your brain does the work of connecting them. The clay figure doesn’t move on its own.”

To address this, Schillace and his team are working on methods called chunking and chaining. This involves breaking down interactions into manageable pieces and linking them by relevance, much like our own memory works. For example, an agent working on a specific project can group all related conversations together, so when you ask for an update, it knows exactly where to look.

Entitlements and Tools: Secure and Efficient Actions

For agents to act effectively, they need the right access—secure and with your permission. This could include knowing who your manager is or accessing software like Teams or PowerPoint to complete tasks on your behalf. Without these entitlements and tools, their ability to help is limited.

By integrating memory, entitlements, and tools, AI agents are becoming smarter and more autonomous. They’re not just assistants—they’re collaborators, ready to adapt, learn, and take action in ways that feel natural and seamless.

This isn’t just about technology—it’s about a new way of working, where AI feels less like a machine and more like a trusted ally, helping you achieve more with less effort.