April 28th, 2025

Microsoft Copilot Studio ❤️ MCP

Ever wished your AI agents could tap into live data or execute actions beyond their built-in capabilities? Enter Model Context Protocol (MCP)—a game-changer for integrating external tools and data sources directly into your Copilot Studio agents.

🧠 What is MCP?

Think of MCP as a universal adapter for AI applications. It standardizes how AI models access external tools, APIs, and knowledge bases. By leveraging MCP, you can:

  • Easily connect to data sources: Whether it’s a custom internal API or an external data provider, MCP enables smooth and reliable integration into Copilot Studio.

  • Access a marketplace of existing servers: Tap into a growing library of pre-built, MCP-enabled connectors available in the marketplace.

  • Utilize flexible action capabilities: MCP servers can dynamically provide tools and data to agents, enhancing flexibility while reducing maintenance and integration costs.

🔄 MCP vs. Connectors: Better Together

You might be wondering: When should I use MCP, and when should I use traditional connectors? Will MCP replace connectors?

MCP servers are made available to Copilot Studio using connector infrastructure. This means they can employ enterprise security and governance controls such as Virtual Network integration, Data Loss Prevention controls, multiple authentication methods—all of which are available in this release—while supporting real-time data access for AI-powered agents.

So, MCP and connectors are really better together. MCP extends the capabilities of connectors, allowing for more dynamic and flexible integrations, while connectors provide the robust infrastructure and security features that enterprises rely on.

🧪 Dive into the Lab

We created a lab to give you a hands-on understanding of MCP and how it works with Microsoft Copilot Studio. This lab walks you through:

  • Deploying an MCP Server: Learn how to set up a server that can handle your data, models, and interactions.

  • Creating a Custom Connector: Use the connector infrastructure to link your MCP server with Copilot Studio.

  • Integrating with Copilot Studio: Add your MCP server as an action within Copilot Studio, enabling your agents to access the tools and data provided by the server.

By the end of the lab, you’ll have a Copilot Studio agent that tells jokes by fetching them from your MCP server—a fun and practical way to understand the integration process.

🎯 Get Started Today

Ready to get started? Dive into the lab and start exploring the possibilities of integrating MCP with Microsoft Copilot Studio. Watch the video tutorial to see how it all works

Author

April Dunnam
Principal Power Platform Advocate

April Dunnam is a Principal Cloud Advocate at Microsoft, focused on helping organizations adopt low-code and AI solutions with Power Platform. She simplifies complex tech for both developers and business users and shares insights through community contributions and global speaking engagements

Daniel Laskewitz
Senior Power Platform Advocate

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