You’re hearing the word “agent” everywhere lately… and if you’re not deep in AI, it can feel like the tech industry suddenly invented a new buzzword overnight.

So let’s simplify it. 👇

What is an AI agent?

At its simplest:

👉 An agent is software that can take actions to achieve a goal.

Not just answer questions. Not just generate text.

It has automated logic and prediction rules/algorithms enough that it can “decide” what steps to take and actually “do” things within systems.

Think:

• looking up information
• updating records
• sending emails
• triggering workflows
• completing multi-step tasks

That’s the key difference between AI that talks and AI that acts.

I recently explained it to my 8-year-old who said “like an undercover robot agent”. I laughed and said “yeah, kinda”. Or a travel agent, or a service agent.

So where does Copilot fit?

Tools like Microsoft Copilot are actually AI agents.

They:

• understand requests
• access information
• perform actions across applications

When you chat with Copilot, and ask it to summarise meetings, draft responses, analyse data, or pull information together, it’s acting as an “agent” helping you complete work.

What about Copilot Studio?

Microsoft Copilot Studio is the tool that lets organisations customise and build their own agents.

You can:

• connect internal systems
• add company knowledge
• define actions the agent can take
• automate processes

So instead of a generic assistant, you get an agent that understands your business.

And where does Power Automate come in?

Some automations built in Microsoft Power Automate are now considered agents too.

Why? Isn’t it just the chat bots? No

Because modern flows can:

• observe triggers
• reason about next steps
• call AI
• perform actions across multiple systems

When automation starts making decisions and coordinating work, it moves from simple workflow → agent behaviour.

What is an “agentic application”?

An agentic app is simply:

👉 An application where AI agents help run parts of the process.

Instead of users manually navigating every step, the app includes agents that:

• gather information
• make recommendations
• execute actions
• coordinate workflows

Think of it as apps evolving from tools → assistants → collaborators.

Why the term is confusing right now

Some industries already use the word agent.

For example:

• travel agents ✈️
• customer service agents ☎️
• real estate agents 🏡
• (Secret agents?) 🕵️‍♀️

So when AI talks about agents, some people trip over the term in reference to specific industries.

But remember, that technically, they aren’t competing with the term. They’re joining the ranks. It just means:

👉 “software” (in place of a person) that can act on your behalf inside digital systems (the way traditional human-agents industries to).

Why you’re hearing it everywhere

The term comes from the super exciting AI concept of “autonomous agents” systems that can independently plan and take actions.

As AI capabilities improved, vendors started building products around that idea.

Now:

• copilots
• autonomous workflows
• intelligent automation
• AI assistants

…are all being grouped under the umbrella of AI agents.

The short version

If you remember just this:

• 🧠 AI model → generates answers
• 🤖 Agent → uses AI + tools to take actions
• 🏢 Agentic app → software designed around agents doing work

That’s the shift we’re seeing across modern platforms.

Curious, has the term “agent” made AI clearer for your organisation… or more confusing? 🤔

#ArtificialIntelligence #AIAgents #Copilot #Automation #DigitalTransformation #PowerPlatform #FutureOfWork

Kim Brian

Modern Applications and Power Platform Solutions Architect at Velrada

Technical Consultant Helping organizations unlock the full potential of their Microsoft efficiency tools.

Feel free to share your thoughts or connect with me to discuss AI or Microsoft efficiencies