How to Use the NEW Agent Builder in Microsoft Copilot - Build an AI Agent in Minutes (2026)

A step-by-step tutorial on how to use the NEW Agent Builder in Microsoft Copilot (Fall 2026) to create your own custom AI agent in just minutes. I’ll show you how to build an agent from scratch, give it instructions, connect it to your own content and knowledge sources, and test it directly inside Copilot. In this example, I’ll build a practical onboarding agent so you can see exactly how Agent Builder works and how quickly you can create something useful without writing code. Any M365 license can create agents, but for the full WorkIQ and SharePoint integration, you'll need M365 Copilot Premium: https://www.microsoft.com/en-us/copilot/pricing/enterprise What you'll learn 🛠️ How to open and use Agent Builder in Microsoft Copilot 🤖 How to create a new custom AI agent 📝 How to write clear instructions for your agent 📚 How to ground your agent with files and organizational knowledge 🧩 How to add Skills and Knowledge to your agent 💬 How to add useful starter prompts 🧪 How to test and refine your agent 🚀 How to publish, share, and use your new agent in Copilot 📊 How to see analytics on your agent’s usage If you’ve wanted to build your own AI agent but thought it sounded complicated, the new Agent Builder makes the process much easier. ⏱️ Table of Contents 00:00 Introduction 00:13 Creating your agent 03:06 Updating instructions 03:41 Adding skills 05:12 Specifying knowledge 05:44 Customizing prompts 06:14 Addin the icon 06:38 Testing it out 07:41 Sharing and publishing 08:41 IT Admin 09:21 Monitoring your agent NOTE: This is a personal project and the opinions expressed in this video are my own, not those of my employer (Microsoft) 🔔 Subscribe to my Channel: https://aka.ms/MikeYouTubeSubscribe *Connect with me on Social: X: https://twitter.com/mtholfsen LinkedIn: https://www.linkedin.com/in/miketholfsen Instagram: https://www.instagram.com/mtholfsen Pinterest: https://www.pinterest.com/miketholfsen TikTok: https://www.tiktok.com/@mtholfsen #MicrosoftCopilot #Agents #Microsoft365