In this post, we'll look at a new Copilot-powered app-building experience in Microsoft Copilot Cowork and changes to how Copilot Studio agent identities are governed through Microsoft Entra.
Build Power Platform apps through conversation in Microsoft Copilot Cowork
Making app development easier has never been the difficult part. Controlling where those apps are built, what data they can access, and how they are governed at scale is often the bigger challenge.
Microsoft is previewing a new app-building experience in Microsoft Copilot Cowork that allows users to create Power Platform apps through natural-language conversations. Apps created in Cowork can also be opened and further developed in Microsoft Copilot Studio, where a similar experience is expected to become available in the coming weeks.
Apps created through these experiences remain subject to existing connector, environment, security, compliance, and sharing policies. Published apps are also visible in the Microsoft 365 admin center, providing administrators with visibility into applications created through Copilot.
Microsoft is also routing makers to isolated personal developer environments rather than shared environments. Policy enforcement is applied when apps are created, and organizations that have not enabled environment routing will have this behavior automatically applied for apps created through these experiences.
The preview is available through the Microsoft Copilot Frontier Program for users with a Microsoft 365 Copilot license and access to Cowork. Organizations planning to enable the feature should also review the Copilot Credits and usage-based billing requirements associated with building and running these apps.
Rollout began on September 8, 2026, and was expected to complete by September 14, 2026. Eligible organizations should already see the experience available. If it is not yet visible, check Message Center post MC1469329 for the latest status.
More information:
- Build apps in Copilot Cowork
- Manage Copilot Cowork for your organization
- Copilot Credits Guide
- Understand usage-based billing and cost management for Copilot Credits
Migrate Copilot Studio agents to Microsoft Entra Agent ID
Microsoft has started rolling out self-service migrations from legacy app-registration identities to Microsoft Entra Agent ID for Copilot Studio agents. The change applies to agents created before May 2026, which may still be using the older identity model.
The migration brings agent identities into the broader Microsoft Entra governance framework. Administrators gain audit logging, lifecycle management capabilities, and integration with Microsoft Entra ID Governance. Connector permissions are also exposed as API permissions on the agent identity, allowing Entra and Microsoft 365 administrators to review what an agent can access without switching to the Power Platform admin center.
Another notable change is support for Microsoft Entra Conditional Access policies. Organizations can apply controls such as network location requirements, device compliance policies, and risk-based access restrictions directly to agent identities.
Microsoft recommends identifying eligible agents and migrating them in small batches while validating channels, connectors, flows, and integrations after each migration. Administrators should also review sign-in logs and Conditional Access results as part of the validation process.
Migration rollout started on August 24, 2026. Organizations using Copilot Studio should review Message Center post MC1462458 and identify any agents created before May 2026 that may still be using legacy app-registration identities.
More information:
Both updates point in the same direction. Microsoft is making it easier for users to create apps and agents while moving governance, identity management, and visibility closer to the controls administrators already use elsewhere in Microsoft 365 and Microsoft Entra.
Neither announcement introduces a fundamentally new capability. Instead, the focus is on reducing friction around creation while ensuring that applications, agents, permissions, and identities remain visible and manageable at scale. As Copilot and Power Platform adoption continues to grow, changes like these may prove just as important as the user-facing features they support.
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