An AI agent is a software system that uses AI, typically built on a large language model, to reason about a goal, make decisions and take multi-step actions to achieve it. Unlike a traditional chatbot that follows scripted conversation paths, an AI agent can break down a task, decide which steps to take, retrieve information from connected systems, and complete actions with limited step-by-step human instruction.
How AI agents work
An AI agent typically combines a language model for reasoning and natural language understanding with the ability to call external tools, APIs or systems to take action, such as looking up a customer record or updating a database. Microsoft's Copilot Studio allows businesses to build custom agents using a low-code interface, connecting them to Dataverse, Power Automate and external systems such as Business Central, so the agent can act on real business data rather than only holding a conversation.
How UK businesses use AI agents
- A customer service team deploys an AI agent that can look up an order status, check delivery dates and update a customer record, resolving routine queries without human involvement.
- An IT helpdesk uses an AI agent to triage support tickets, gather diagnostic information and either resolve common issues automatically or escalate to a human technician with full context already captured.
- A sales team uses an AI agent built in Copilot Studio to answer product and pricing questions by querying live Business Central and Dataverse data during a conversation.
- A finance team uses an AI agent to flag unusual transactions for review, drawing on patterns in historical data rather than requiring a person to check every entry manually.
How Advantage helps businesses build AI agents
Advantage scopes and builds practical AI agents for specific, well-defined business processes, with appropriate human oversight built in for higher-risk decisions. We focus on agents that genuinely reduce workload on repetitive tasks rather than chasing AI for its own sake.
Frequently asked questions
What is the difference between an AI agent and a chatbot?
A traditional chatbot typically follows pre-scripted conversation flows and answers questions. An AI agent goes further, using AI to reason about a goal, make decisions and take multi-step actions, such as retrieving data, calling other systems or completing a task, often with limited need for step-by-step human instruction.
Can AI agents work without human oversight?
Most business AI agent deployments today include human oversight at key decision points, particularly for actions with financial, legal or customer-facing consequences. Fully autonomous agents acting without any human checkpoint remain less common in regulated or risk-sensitive business processes.
How does Microsoft support building AI agents?
Microsoft provides Copilot Studio for building custom AI agents with a low-code interface, alongside Azure AI Foundry for developers building more advanced, custom agent architectures. Pre-built Copilot agents are also embedded within Dynamics 365 and Microsoft 365 applications for specific business functions.
