Copilot Studio: Add Agents Seamlessly to Model-Driven Apps Side Pane

Key insights

• Copilot Studio Agent Integration: Embedding a Copilot Studio agent into a Model-Driven App's side pane allows users to access conversational AI directly within Microsoft Power Apps, improving productivity and user experience as the agent stays visible and context-aware while navigating records.


• No-Code/Low-Code Agent Building: The Copilot Studio Agent Builder offers a simple, declarative interface for creating agents using natural language. This makes it easy for non-developers to build and customize AI agents without advanced coding skills.


• Wide Connector Support: Agents can use over 1,400 pre-built connectors from the Power Platform ecosystem. This enables integration with third-party services, custom connectors, and automation of complex workflows through Power Automate flows.


• SDK-Based Secure Embedding: The latest method uses the Microsoft 365 Agents SDK, providing robust and secure embedding of agents into app side panes. This replaces older methods like DirectLine and supports features such as service principal tokens.


• Simplified Setup Process: To add an agent, users create and test it in Copilot Studio, then integrate it into the app's side pane using designer tools. Deployment is streamlined, allowing ongoing monitoring and refinement based on user feedback.


• Enhanced Contextual Capabilities: New protocols like MCP (Model Context Protocol) enable richer native access to external data sources inside Copilot Studio agents. This improves contextual understanding and allows more advanced interactions within Model-Driven Apps.

Introduction: Embedding Copilot Studio Agents in Model-Driven Apps

Microsoft’s ongoing advancements in the Power Platform ecosystem have made it easier than ever to enhance productivity within model-driven applications. In a recent YouTube video demonstration, Angeliki Patsiavou showcased how to embed a Copilot Studio agent directly into a Model-Driven App’s side pane. This approach utilizes the Client API, combining web resources such as HTML and JavaScript to integrate the agent alongside business records. As a result, users can interact with AI-powered assistance without leaving their workflow, which is especially valuable for customer service representatives and other multitasking roles.

The demonstration was part of the Microsoft Power Platform community call in March 2025, highlighting both the practical setup and the broader impact of this technology. With Microsoft’s latest updates, the integration process has become more streamlined, offering organizations new ways to empower their teams and automate routine tasks.

Understanding the Technology

At its core, embedding a Copilot Studio agent into a Model-Driven App’s side pane means placing conversational AI where users need it most—right within their business applications. These agents are built using the Copilot Studio Agent Builder, a tool designed to allow users to create, test, and deploy AI assistants with little to no coding experience. The side pane serves as a persistent, context-aware interface that remains accessible as users navigate through various records, ensuring that helpful insights and automation are always within reach.

The integration leverages Microsoft’s robust Power Platform, enabling agents to not only answer questions but also automate processes, fetch data, and even execute workflows directly from the app’s interface. This combination of accessibility and functionality represents a leap forward in how organizations can use AI to support their staff.

Key Advantages and Practical Benefits

One of the most significant benefits of this integration is the seamless user interaction it provides. By embedding the agent in the side pane, users receive instant, AI-driven support without needing to switch between different applications or browser tabs. This uninterrupted workflow can save time and reduce errors, particularly in fast-paced environments.

Moreover, the Copilot Studio Agent Builder offers a declarative, natural language approach to agent creation. This means that even those without advanced technical skills can design and deploy agents that address their team’s specific needs. In addition, the platform supports a wide range of connectors—over 1,400 in total—including both third-party and custom services. As a result, organizations can automate complex workflows and improve operational efficiency directly from the agent interface.

Nevertheless, these advantages come with certain tradeoffs. While no-code tools make agent creation accessible, more complex requirements may still demand custom development. Balancing ease of use with depth of capability remains a key challenge for many teams.

Steps to Integration: From Creation to Deployment

The process of adding a Copilot Studio agent to a Model-Driven App’s side pane begins with designing the agent itself. Using the builder, creators outline the agent’s capabilities, integrate relevant connectors, and define the flows it will execute. Once the agent is ready, it is thoroughly tested within Copilot Studio to ensure reliability and effectiveness.

Next, integration is accomplished via the Microsoft 365 Agents SDK, which provides a secure and robust method for embedding the agent. App designers then configure the side pane within Power Apps to host the agent, tailoring the user experience to their organization’s workflow. Finally, after deployment, ongoing monitoring and refinement are essential to ensure the agent continues to meet user needs and adapt to evolving business processes.

It is important to note that while the SDK-based integration is now the preferred method, it requires a solid understanding of app design and security practices. Teams must weigh the benefits of deeper integration against the resources required for setup and maintenance.

Recent Innovations and Challenges

The June 2025 update to the Copilot Studio Agent Builder introduced a more intuitive, declarative interface, making agent creation faster and more accessible. This shift reduces reliance on traditional coding, opening the door for a broader range of users to participate in AI solution development. Meanwhile, the introduction of the Microsoft 365 Agents SDK has replaced older, less secure methods, offering better support for features like service principal tokens and native app embedding.

Additionally, the expanded connector ecosystem now allows agents to execute Power Automate flows and access a wide variety of external data sources. This increased flexibility, however, comes with the challenge of managing security and data governance. Organizations must carefully balance the convenience of broad automation with the need to protect sensitive information.

Finally, new protocols such as the Model Context Protocol (MCP) are enhancing the ability of agents to understand and act upon contextual data within the app. While these innovations create powerful new possibilities, they also introduce complexity that requires ongoing training and support for both users and administrators.

Conclusion: Balancing Innovation and Usability

Embedding Copilot Studio agents in Model-Driven Apps marks a significant step forward in integrating AI-driven assistance into everyday business tools. The combination of accessible agent building, powerful automation, and seamless integration has the potential to transform how teams work and interact with data. However, organizations must remain mindful of the tradeoffs between simplicity and customization, as well as the challenges associated with security and ongoing support.

As Microsoft continues to evolve the Power Platform, the balance between innovation and usability will remain central. For now, the streamlined approach to embedding agents promises to drive productivity and unlock new opportunities across a range of industries.

Keywords

Copilot Studio agent add Model-Driven App side pane integrate Copilot Studio with Model-Driven App customize side pane in Power Apps add AI agent to Model-Driven App side panel Copilot Studio integration tutorial Model-Driven App AI assistant setup