Microsoft Dataverse Empowers Intelligent Agent Ecosystems with Next-Level Data, Knowledge, and AI Tools

Microsoft Dataverse integrates data, knowledge, and AI tools to support intelligent agent ecosystems. New Copilot Studio features enable smarter workflows and seamless business data use.

Categorized in: AI News Operations
Published on: May 21, 2025
Microsoft Dataverse Empowers Intelligent Agent Ecosystems with Next-Level Data, Knowledge, and AI Tools

Microsoft Dataverse: Enhancing Agent Ecosystems

Microsoft Dataverse offers a comprehensive set of data, knowledge, and AI tools that empower organizations to build and manage effective agent ecosystems. With Microsoft Build 2025 underway, many new features for Microsoft Copilot Studio have been announced, and at the core of these capabilities is Dataverse — a secure, scalable platform that extends agents with enterprise data.

As agents take on more complex, business-critical roles, they require a combination of tools:

  • Data tools to manage human-agent collaboration on specific business workflows.
  • Knowledge tools to provide the right context when it’s needed.
  • AI tools to enable advanced reasoning and customizable actions.

Dataverse integrates all three, powering the data, context, and intelligence agents need to improve business processes using AI. Recent updates focus on enhancing agent interactions and performance, whether you’re orchestrating workflows, grounding agents in enterprise knowledge, or enabling smarter agent behavior.

Data Tools to Operate Human-Agent Teams for Specific Business Processes

Dataverse: The Operational Database for Agents

Dataverse acts as the operational database that stores and manages business and operational data across your agent ecosystem. This allows Microsoft Copilot Studio creators to deploy agents that handle adaptive, logic-driven tasks at scale, while humans maintain oversight.

Features like AI-powered Dataverse search, Tools, prompt columns, and the Model Context Protocol (MCP) create a seamless environment where generative AI operates directly on your business data.

For example, prompt columns let you add AI-generated values within Dataverse tables. If you have a product review table, you can set a “Sentiment” column to generate AI evaluations like “Positive” or “Negative” based on the review text. This allows dynamic business logic driven by natural language prompts.

Think of human-agent teams where people lead workflows and agents perform specific tasks. An Invoice Processing Agent might capture structured data for later review, while a claims processing system uses autonomous agents for intake, chat assistants for user interaction, and human approvers for final decisions. Dataverse provides the trusted data platform supporting this collaboration.

Dataverse Model Context Protocol Server

The Dataverse MCP server, now in public preview, transforms structured Dataverse data into interactive, queryable knowledge for Copilot Studio agents. It enables agents to:

  • Query tables and schemas using structured or natural language queries.
  • Search and chat over data to provide contextual answers without complex setup.
  • Create or update records in Dataverse with schema-aware integrity.
  • Generate outputs grounded in real business context, like summaries or sentiment evaluations.

Connecting your Dataverse environment through MCP lets agents reason across your data, take informed actions, and produce meaningful results while respecting data models and access controls.

Enterprise Data Integration Across Copilot Studio, Microsoft Fabric, and Microsoft 365 Copilot

Dataverse Knowledge in Copilot Studio, Now Generally Available

Agents rely on quality knowledge, and Dataverse knowledge powers this by connecting structured and unstructured data from across your organization—including Dynamics 365, Power Platform, and external systems—into a unified knowledge network. Recent improvements include support for multi-line text and file type columns.

Use Near-Real-Time Data Warehousing with Microsoft Fabric

Dataverse data is pre-indexed for near-real-time analytics. Whether the data comes from Dynamics 365, custom Power Apps, or agent interactions, it’s securely stored and instantly available for analysis. By linking Dataverse with Microsoft Fabric through the Power Apps maker portal, you can unlock deeper insights with minimal setup.

To improve secure data access, Mirrored Dataverse in Fabric is entering public preview in June 2025.

Dynamics 365 Data Now Available in Microsoft 365 Copilot

Users can now query and act on Dynamics 365 data—such as contacts, leads, and cases—directly within Microsoft 365 Copilot. This integration combines business and productivity data, allowing faster insights and actions without switching apps. Currently in private preview, this feature offers a unified Copilot experience for CRM and Microsoft Office data.

Knowledge Tools to Retrieve the Right Context at the Right Time

The knowledge platform in Microsoft Copilot Studio, powered by Dataverse, lets organizations use their own data—like local files and Dataverse tables—as knowledge sources to create intelligent, context-aware agents. Recent enhancements make it easier to unify and operationalize knowledge across your agent ecosystem.

New Knowledge Sources and Connectors

Agent reach expands with new connectors for Snowflake, SAP, Databricks, Confluence (cloud only), OneDrive for Business, and SharePoint Lists. Salesforce, Zendesk, and ServiceNow now support unstructured content such as knowledge base articles. Dataverse and uploaded files support image extraction, multilingual content, and querying embedded tables.

Azure AI Search is now generally available as a knowledge source, improving information retrieval within Dataverse’s Retrieval Augmented Generation (RAG) architecture.

Enhanced Power Platform Connector SDK

The enhanced Power Platform connector SDK, now in preview, simplifies bringing structured external data into Power Apps, Dataverse, and Copilot Studio. Connectors built with this SDK expose full tables and metadata, enabling makers to bind data directly to app controls and ground Copilot agents with business data.

For example, a Databricks connector (public preview in June 2025) built using this SDK lets makers surface tables automatically. Copilot Studio can then answer questions based on this data without manual setup.

AI Tools to Enable Complex Reasoning and Customizable Actions

Centralized Tools Hub in Copilot Studio

Copilot Studio’s new Tools tab centralizes reusable functionalities. Agents can now take actions in external systems in addition to reading data. Six tool types will roll out to public preview in June 2025:

  • Model Context Protocol: Connects to knowledge servers and data sources within Copilot Studio.
  • Agent flows: Automate repeatable workflows.
  • Computer use: Enables agents to interact with web and desktop apps.
  • Custom connectors and REST APIs: Connect to third-party systems beyond prebuilt connectors.
  • Prompts: AI-powered instructions with support for Power Fx expressions to perform data transformations.

New Autonomous Agents to Put to Work Faster

Building autonomous agents from scratch takes time. To accelerate deployment, three new managed agents are available in preview in Copilot Studio’s Create tab:

  • Document Processor Agent: Automates document workflows by monitoring email inboxes, extracting key info, exporting structured data, and routing for human validation with notifications.
  • Customer Brief Agent: Generates executive briefs by pulling from your business data ahead of client meetings.
  • Lead Manager Agent: Acts as a top-of-funnel assistant, managing inbound leads autonomously.

These agents help you get started quickly and scale faster.

These updates mark significant progress in building, scaling, and managing intelligent agents with Dataverse at the core. With deeper integrations, smarter tools, and ready-to-use agent templates, Copilot Studio is a practical platform for business-ready AI.

For more information and to explore these new capabilities, consider watching relevant sessions from Microsoft Build 2025, such as:

  • Building safe and reliable Microsoft Copilot Studio agents
  • GenAI for Enterprise: Intelligent Apps and Agents with Dataverse & MCP
  • Enhancing Agent Management Controls for AI-Ready Enterprises
  • Unlock your Dataverse data with secure and powerful search
  • Agents in action: Document processing 2.0
  • Tools for agents
  • Dataverse for agents
  • Knowledge in Copilot Studio

Copilot Studio lets you build your own agents or enhance Microsoft 365 Copilot with custom agents. You can try it for free.

For those interested in AI-powered automation and operational tools, Complete AI Training offers relevant courses and resources to help you get started.