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Guided AB-730 Domain 1
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AB-730 Study Guide

Domain 1: Understand Generative AI Fundamentals

  • Welcome to Copilot: AI at Work Free
  • Copilot Across Your M365 Apps Free
  • How Context Shapes Copilot's Answers Free
  • Chat vs Agents: Two Ways to Work Free
  • Data Safety, Privacy & AI Risks Free
  • Verifying AI Outputs: Your Quality Check Free

Domain 2: Manage Prompts and Conversations by Using AI

  • Crafting Effective Prompts Free
  • Referencing the Right Resources Free
  • Saving and Sharing Prompts
  • Scheduling Prompts That Run Themselves
  • Managing Your Copilot Conversations
  • Agent Store vs Building Your Own
  • Building Your First Agent
  • Configuring and Sharing Agents

Domain 3: Draft and Analyze Business Content by Using AI

  • Creating Documents and Communications
  • Working with Existing Documents
  • Moving Insights Between M365 Apps
  • Copilot in Meetings: Before, During & After
  • Copilot Pages: Your Collaboration Canvas
  • Copilot Memory and Instructions
  • Exam Prep: Scenario Capstone

AB-730 Study Guide

Domain 1: Understand Generative AI Fundamentals

  • Welcome to Copilot: AI at Work Free
  • Copilot Across Your M365 Apps Free
  • How Context Shapes Copilot's Answers Free
  • Chat vs Agents: Two Ways to Work Free
  • Data Safety, Privacy & AI Risks Free
  • Verifying AI Outputs: Your Quality Check Free

Domain 2: Manage Prompts and Conversations by Using AI

  • Crafting Effective Prompts Free
  • Referencing the Right Resources Free
  • Saving and Sharing Prompts
  • Scheduling Prompts That Run Themselves
  • Managing Your Copilot Conversations
  • Agent Store vs Building Your Own
  • Building Your First Agent
  • Configuring and Sharing Agents

Domain 3: Draft and Analyze Business Content by Using AI

  • Creating Documents and Communications
  • Working with Existing Documents
  • Moving Insights Between M365 Apps
  • Copilot in Meetings: Before, During & After
  • Copilot Pages: Your Collaboration Canvas
  • Copilot Memory and Instructions
  • Exam Prep: Scenario Capstone
Domain 1: Understand Generative AI Fundamentals Free ⏱ ~10 min read

Chat vs Agents: Two Ways to Work

Copilot Chat is your general-purpose assistant. Agents are specialists. Learn the difference, when to use each, and why you might want to create your own agent.

Two ways to use AI at work

☕ Simple explanation

Think of it like phoning a general helpline vs calling a specialist.

Copilot Chat is the general helpline. You can ask it anything — summarise emails, draft a document, find information. It’s flexible, smart, and knows about all your work data. But it doesn’t have deep expertise in any one area.

An agent is a specialist. It’s been trained on specific knowledge (like your company’s HR policies or product catalogue) and given specific instructions (like “always respond in a friendly tone and only answer questions about employee benefits”). It does one thing really well.

When to create your own agent: When you find yourself asking Copilot the same type of question over and over, or when a team needs consistent, specialised answers from a specific set of documents.

Microsoft 365 Copilot offers two distinct interaction models:

Copilot Chat — a general-purpose AI assistant that queries across all your Microsoft 365 data via Microsoft Graph. It handles any prompt type: summarisation, drafting, data retrieval, analysis. Its strength is flexibility and breadth of access.

Agents — purpose-built AI assistants configured with specific knowledge sources, instructions, and capabilities. Agents are scoped to particular domains (e.g., HR policies, product FAQs) and follow defined behavioural rules. They run within Copilot Chat or Teams but operate as distinct personas.

The key architectural difference: Copilot Chat uses your full M365 context dynamically. Agents add a layer of curated knowledge and behavioural instructions on top of the base Copilot capabilities.

Chat vs Agent — side by side

Copilot Chat vs Agents — key differences
FeatureCopilot ChatAgent
PurposeGeneral-purpose assistantSpecialist for a specific task or topic
KnowledgeAll your M365 data + web (if enabled)Specific sources you configure (SharePoint sites, files, web URLs)
InstructionsNone — responds to whatever you askCustom rules (tone, scope, limitations)
ConsistencyDifferent users may get different stylesSame behaviour every time, for everyone
Setup requiredNone — just start typingCreate and configure (no coding needed)
SharingEach person uses their own CopilotShare one agent with your whole team

When to use each

Use Copilot Chat when…

  • You have a one-off question across your work data
  • You need to find something that could be in emails, chats, or files
  • You want to draft something from scratch
  • You’re exploring — not sure exactly what you need yet

Use an agent when…

  • You have a repeating task that many people do (new hire questions, product FAQs)
  • You need consistent answers from a specific set of documents
  • You want to share a customised AI experience with your team
  • You want to control the scope — keep the AI focused on one topic
💡 Real-world: Dana's onboarding dilemma

Dana at Oakfield Healthcare gets 30+ questions a week from new hires: “Where’s the dress code policy?” “How do I book annual leave?” “What’s the Wi-Fi password?”

She tried using Copilot Chat, but each new hire had to formulate their own questions and sometimes got answers from the wrong documents.

Solution: Dana created an Onboarding Agent — scoped to the HR SharePoint site, with instructions like “Only answer questions about Oakfield employee policies. Be friendly and concise. If you’re not sure, direct them to HR.”

Now every new hire gets the same consistent, accurate experience. Sam (the training coordinator) loves it because it freed up 3 hours a week of answering repetitive questions.

Why create your own agent?

Here are the most common reasons businesses build agents:

ReasonExample
Reduce repetitive questionsHR onboarding bot answers the same 50 questions
Standardise team responsesSales team uses an agent to draft consistent proposal emails
Scope to specific dataLegal agent only references approved policy documents
Save setup timeInstead of explaining context every prompt, the agent already knows
Share expertiseOne person builds it, the whole team benefits

Exam tip: The exam often presents scenarios where someone is using Copilot Chat for a task that would be better served by an agent (or vice versa). The key test: is this a one-off question (Chat) or a repeating need for consistent, scoped answers (Agent)?

Built-in agents you should know

Microsoft includes several pre-built agents and templates:

Pre-built agents (ready to use from the Agent Store):

  • Researcher — helps you research topics in depth using web and work data (requires M365 Copilot license)
  • Analyst — focuses on data analysis and visualisation (requires M365 Copilot license)

Agent templates (starting points for building your own):

  • Prompt Coach — template for building a prompting assistance agent
  • Writing Coach — template for building a writing improvement agent
  • Meeting Coach — template for building a meeting preparation agent

You’ll learn more about finding agents in the Agent Store and building your own in Domain 2.

🎬 Video walkthrough

🎬 Video coming soon

Chat vs Agents — AB-730 Module 4

Chat vs Agents — AB-730 Module 4

~8 min

Flashcards

Question

What is the key difference between Copilot Chat and an agent?

Click or press Enter to reveal answer

Answer

Copilot Chat is a general-purpose assistant that queries all your M365 data. An agent is a purpose-built specialist with specific knowledge sources, instructions, and a defined scope. Chat = flexible. Agent = focused.

Click to flip back

Question

When should you create your own agent?

Click or press Enter to reveal answer

Answer

When you have a repeating task, need consistent answers from specific documents, want to share a customised AI experience with your team, or need to control the scope of AI responses to a particular topic.

Click to flip back

Question

What is the Agent Store?

Click or press Enter to reveal answer

Answer

A marketplace within Microsoft 365 where you can find pre-built agents (like Researcher, Analyst, Prompt Coach) and agents shared by others in your organisation. Check here before building from scratch.

Click to flip back

Question

Do you need coding skills to create a Copilot agent?

Click or press Enter to reveal answer

Answer

No. Agents are created using natural language descriptions or templates in Copilot Studio's lite experience. You configure them through a visual interface — no code required.

Click to flip back

Knowledge Check

Knowledge Check

Jordan at Peak Solutions notices his sales reps ask the same Copilot questions every week: 'What's our pricing for the Enterprise tier?' 'What are our differentiators vs Competitor X?' Each rep gets slightly different answers because they phrase questions differently. What should Jordan do?

Knowledge Check

Ava needs to quickly find out what was discussed about the Q4 budget in yesterday's Teams meeting. She's never asked this kind of question before and doesn't expect to again. Which is the BETTER choice?

Knowledge CheckSelect all that apply

Which of the following is a characteristic of a Copilot agent? (Select TWO)


Next up: Copilot works with your data — but how does it keep that data safe? Learn about privacy, security, and how data protection shapes what Copilot can tell you.

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How Context Shapes Copilot's Answers

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Data Safety, Privacy & AI Risks

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