🔒 Guided

Pre-launch preview. Authorised access only.

Incorrect code

Guided by A Guide to Cloud
Explore AB-900 AI-901
Guided AB-730 Domain 1
Domain 1 — Module 1 of 6 17%
1 of 21 overall

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

Welcome to Copilot: AI at Work

Microsoft 365 Copilot is your AI assistant built into the apps you use every day. Here's what it actually does, how it works, and why everyone's talking about it.

What is Microsoft 365 Copilot?

☕ Simple explanation

Imagine you hired a brilliant assistant who’s read every email, document, and chat message in your company — but only the ones YOU have access to.

That’s Copilot. You ask it something like “What did our team discuss about the budget last week?” and it finds the answer across your emails, Teams chats, SharePoint files, and calendar — then gives you a summary in plain English.

It works inside the apps you already use: Word, Excel, PowerPoint, Outlook, and Teams. No new software to learn. No coding required.

The most important thing to remember: Copilot can only see what you can see. Your permissions are its permissions.

Microsoft 365 Copilot is a generative AI assistant integrated across Microsoft 365 applications. It combines large language models (LLMs) — the same type of AI behind ChatGPT — with your organisation’s data stored in Microsoft Graph.

When you send a prompt to Copilot, an orchestration layer retrieves relevant data from Microsoft Graph (your emails, files, chats, calendar, and contacts), grounds the LLM’s response in that data, and returns a contextual answer. This process is called Retrieval Augmented Generation (RAG).

Critically, Copilot operates within the signed-in user’s existing permission boundaries. It does not have elevated access — it can only surface data the user already has rights to view. Your organisation’s data never leaves the Microsoft 365 trust boundary and is not used to train foundation models.

Meet the teams you’ll follow

Throughout this course, you’ll learn through four organisations — each using Copilot to solve real business challenges:

TeamWho They AreWhat They Need
📢 BrightLoop MarketingDigital agency, 80 people. Ava Chen leads the marketing teamFaster campaigns, better content, trend analysis
🏭 Horizon LogisticsSupply chain company, 300 people. Marcus Webb runs operationsStreamlined reports, meeting recaps, workflow efficiency
👥 Oakfield HealthcarePrivate hospital group, 500 staff. Dana Okafor directs HREmployee onboarding, policy management, training materials
💰 Peak SolutionsB2B tech sales, 120 people. Jordan Park leads the sales teamCustomer communications, pipeline reviews, proposal drafts
ℹ️ Why four different organisations?

The AB-730 exam tests your ability to use Copilot in business contexts, not just memorise features. By seeing how marketing, operations, HR, and sales teams each use Copilot differently, you’ll be better prepared for scenario-based questions.

You’ll also meet their colleagues along the way: Tomas and Leah at BrightLoop, Kenji and Fatima at Horizon, Sam and Dr. Anika at Oakfield, and Raj and Chloe at Peak Solutions.

How Copilot works — the simple version

Here’s the flow every time you use Copilot:

  1. You type a prompt — a question or instruction in everyday language
  2. Copilot checks your data — it queries Microsoft Graph for relevant emails, files, chats, and calendar events
  3. The AI generates a response — grounded in YOUR data, not generic internet answers
  4. You review and refine — Copilot drafts, you decide what’s good enough

Key concept: Copilot doesn’t “know” things on its own. It reads your data at the moment you ask and generates a response. Your prompts and responses are stored as interaction history in your Exchange mailbox (subject to your org’s retention policies), but your data is not used to train Microsoft’s AI models. Copilot can also build personalised memory from your conversations — more on that in Module 20.

What makes Copilot different from ChatGPT?

ChatGPT vs Microsoft 365 Copilot — key differences
FeatureChatGPT (consumer)Microsoft 365 Copilot
Data sourceInternet + what you paste inYour M365 data + internet (optional)
Knows your workNo — no access to your work dataYes — reads your emails, files, chats, calendar
Built into appsSeparate website/appInside Word, Excel, Teams, Outlook, PowerPoint
Data privacyConsumer-gradeEnterprise — your data stays in your tenant
PermissionsNot applicableRespects your existing M365 permissions
💡 Real-world: Ava's first day with Copilot

Ava Chen at BrightLoop Marketing used to spend Monday mornings catching up on weekend emails. Now she opens Copilot Chat and types:

“Summarise all emails I received over the weekend about the Q3 campaign. Highlight anything that needs my action.”

In 30 seconds, Copilot surfaces 14 emails, pulls out 3 action items, and even identifies that Tomas shared a draft campaign brief she hasn’t opened yet.

What happened behind the scenes: Copilot queried Microsoft Graph for Ava’s recent emails, filtered by the keyword “Q3 campaign,” summarised the content, and identified action-oriented language. It could only find emails Ava has access to — if someone BCC’d her boss but not her, Copilot wouldn’t see it either.

Where you’ll find Copilot

Copilot lives inside the apps you already use:

  • Microsoft 365 Copilot Chat — the standalone experience at m365copilot.com, in Teams, or in the M365 app
  • Word — draft, rewrite, summarise
  • Excel — analyse data, create formulas, build charts
  • PowerPoint — create presentations from prompts or documents
  • Outlook — draft replies, summarise threads, coach your tone
  • Teams — meeting summaries, chat catch-ups, action items

You’ll explore each of these in detail in the next module.

🎬 Video walkthrough

🎬 Video coming soon

Welcome to Copilot: AI at Work — AB-730 Module 1

Welcome to Copilot: AI at Work — AB-730 Module 1

~8 min

Flashcards

Question

What is Microsoft 365 Copilot?

Click or press Enter to reveal answer

Answer

An AI assistant built into Microsoft 365 apps (Word, Excel, PowerPoint, Outlook, Teams) that uses large language models combined with your organisation's data via Microsoft Graph to generate contextual, permission-aware responses.

Click to flip back

Question

What is Microsoft Graph?

Click or press Enter to reveal answer

Answer

The API layer that connects all your Microsoft 365 data — emails, files, chats, calendar events, contacts, and sites. Copilot queries the Graph to find information relevant to your prompt.

Click to flip back

Question

Does Copilot store or learn from your organisation's data?

Click or press Enter to reveal answer

Answer

Copilot does NOT use your data to train AI models. However, it DOES store your prompts and responses as interaction history in your Exchange mailbox (subject to retention and eDiscovery policies). Copilot can also build personalised memory from conversations. Your data stays within the Microsoft 365 trust boundary.

Click to flip back

Question

What is Retrieval Augmented Generation (RAG)?

Click or press Enter to reveal answer

Answer

A technique where the AI retrieves relevant data from your organisation (via Microsoft Graph) and uses it to ground its response — making answers specific to your context rather than generic.

Click to flip back

Knowledge Check

Knowledge Check

Ava at BrightLoop asks Copilot: 'What did the client say about the logo redesign?' Copilot responds with details from an email thread. How did Copilot find this information?

Knowledge Check

Marcus at Horizon Logistics is worried that Copilot might access confidential board meeting documents he doesn't have permission to view. Is his concern valid?

Knowledge CheckSelect all that apply

Which TWO statements about Microsoft 365 Copilot are TRUE? (Select two)


Next up: Copilot works differently in each M365 app. Let’s explore what it can do in Word, Excel, PowerPoint, Outlook, Teams, and Copilot Chat.

Next →

Copilot Across Your M365 Apps

Guided

I learn, I simplify, I share.

A Guide to Cloud YouTube Feedback

© 2026 Sutheesh. All rights reserved.

Guided is an independent study resource and is not affiliated with, endorsed by, or officially connected to Microsoft. Microsoft, Azure, and related trademarks are property of Microsoft Corporation. Always verify information against Microsoft Learn.