Forum Discussion
Limitation of Copilot agent development in M365 developer tenants
Hi. You do need the MS 365 Copilot License to allow your agent to search your Microsoft Graph, meaning only with this license bound to your user, the Copilot is allowed to read your data in e. g. SharePoint, Outlook etc.
For development you can set up in Power Platform Admin Center different kinds of environments like sandbox, default, developer (your actual environment) and production.
You can then in the Power Platform Admin Center create under Licensing a pay-as-you-go billing plan and assign this to the environment of your choice. Lastly under Copilot Studio in PPAC you need to assign your agent to that specific environment.
This worked for me well.
- Gurdev SinghOct 27, 2025Iron Contributor
Thank you, Alsiesta.
I ultimately used the setup below for my learning.
- M365 Copilot Billing policy to allow me to use Copilot agents
- Copilot Studio trial license
- Power Platform trial environment with a Dataverse database.
This has served me well, as I was able to develop various types of agents connected to SharePoint, public websites, and Dataverse tables and experiment with them. Initially, I was a bit sceptical about using a billing policy connected to my Azure subscription. However, since my developer work has limited usage, the Azure charges are negligible.
However, I am still unsure if my setup gets me the usage of 'semantic index, aka vector embeddings index' and whether this still requires the full M365 Copilot license.
Overall, the setup has met my development needs.