2026 Agent Workflows for M365 Copilot Demos

What's Changed Since This Session

How to Build This Today

The session showed you a fundamental grounding demo: The Richard Harbridge originally showed Copilot for Microsoft 365 using a 'water quality report' file in a SharePoint repository. Prompting 'create a presentation from [that file]' grounded Copilot in the file's content (headings, context), using an LLM to reword/summarize into a drafted PowerPoint presentation with slides. Here's how you'd build that same thing today.

The Microsoft 365 ecosystem has undergone a massive paradigm shift since mid-2024. The fundamental update in April 2026 is the transition from single-pass AI "assistants" to autonomous, multi-step "agents" powered by GPT-5.4 Thinking. You no longer paste a simple file URL and receive an instant, often unrefined, slide deck.

Today, this workflow is executed through a sophisticated pipeline involving SharePoint Agents for data retrieval, Work IQ for organizational context, and Agent Mode in PowerPoint for collaborative synthesis. This exhaustive guide outlines the exact, click-by-click configuration required to replicate and enhance the session's demonstration.

Phase 1: Preparing the SharePoint Knowledge Source

In 2024, Copilot simply parsed the text of a linked document. By April 2026, SharePoint document libraries utilize embedded AI agents to manage retrieval-augmented generation (RAG). Before opening PowerPoint, the source document and its host environment must be properly configured.

Ensure the 'water quality report' is formatted using native Microsoft Word Styles. Use Heading 1 and Heading 2 to structure the document. Agent Mode relies heavily on these semantic tags to understand document hierarchy and determine logical slide breaks.

Verify that the Word document is strictly under the 24 MB file size limit. Copilot in PowerPoint is optimized for files below this threshold; exceeding it will trigger internal truncation protocols, resulting in an incomplete presentation.

Next, navigate to the specific SharePoint Online Modern site housing the report. Every SharePoint site and document library now automatically includes a "ready-made agent".5 This agent is automatically scoped to understand the content within that specific site.

Site administrators must ensure that Tenant graph grounding with semantic search is enabled for the site. This setting utilizes cutting-edge internal retrieval tools, allowing the agent to obtain a greater volume of context from the water quality report with significantly higher precision.

If the water quality report contains charts or graphs detailing pH levels, you no longer need to extract the data manually. The April 2026 update introduces Embedded Image Understanding. Declarative Agents can now interpret visual elements directly from .docx, .pptx, and .pdf files, extracting actionable insights from screenshots and diagrams to ground the presentation.

Phase 2: Building a Custom Grounding Agent

Quick Win: Do not rely on the default site-wide ready-made agent if your SharePoint site contains a decade of archived, outdated environmental reports. The AI may hallucinate by pulling obsolete data. Instead, build a custom agent strictly isolated to the current year's water quality folder.

Navigate to copilotstudio.microsoft.com and log in. Select the button to Create a new agent.

Open the agent's Knowledge page and select Add knowledge. Under the Featured section of the dialog, select SharePoint.

Paste the exact URL of the specific SharePoint document library containing the target water quality report. Provide a highly detailed description for the agent, as this description acts as a prompt for generative orchestration when it searches for files. Select Add to agent to finalize the knowledge source.

To guarantee strict data grounding, you must restrict the agent's external access. Select the three dots (...) next to your new SharePoint source and select Edit. Navigate to Advanced settings.

Crucially, turn off the Web Search toggle. Navigate to the Generative AI settings and turn off Use general knowledge. This strict configuration forces the Copilot agent to return a "no response" error if it cannot find the answer directly within your approved water quality report, eliminating the risk of external hallucinations.

Phase 3: Launching Agent Mode in PowerPoint

With the data source secured, the UI workflow for generating the presentation requires a new approach. The top-ribbon instant generation buttons have been largely replaced by continuous chat interfaces.

Open the Microsoft PowerPoint desktop client, Mac client, or web application. Initiate a Blank Presentation.

If your organization utilizes a standard corporate .potx presentation template, you must open this specific template file before engaging the AI. Initiating Copilot within an active template forces the AI to automatically map the generated content, layouts, and typography to your official corporate branding.

Locate the Copilot button, which is now positioned in the lower right-hand corner of the application screen. Click this icon to open the Copilot chat pane.

Inside the chat pane's input box, click the Add content (+) button. From the resulting drop-down menu, select Agent Mode. Agent Mode provides access to the GPT-5.4 Thinking models, allowing Copilot to work alongside you, actively making changes while reasoning through complex logic.

Phase 4: Executing the Iterative Synthesis Dialogue

Type the grounding command into the prompt box: Create presentation from file.

A file-picking interface will overlay the chat. Select your configured water quality report from the list of suggestions. If it does not immediately surface, utilize the search box to query your custom SharePoint agent.

Click the Submit (arrow) button to execute the request.

Unlike the instantaneous generation shown in the 2024 session, the 2026 process is highly iterative. The GPT-5.4 Thinking model will pause and generate clarifying questions in the chat pane. Copilot will explicitly ask you to define the target audience, the desired presentation style, and any specific image generation preferences.

You must provide context. Reply to the agent with specific parameters, such as: "Focus entirely on the chemical analysis summary. Target the narrative for the executive board. Maintain a highly professional tone and do not generate decorative background images."

Copilot will process these parameters and generate a structured, text-based outline within the chat interface.

Quick Win: Do not skip the outline review. The key to high-quality output in 2026 is strategic intervention during the outline phase. Instruct the agent to move sections, combine points, or emphasize specific findings before it ever touches a slide canvas.

Once you approve the logical flow of the outline, explicitly instruct Copilot to generate the slides. The agent will then render the full presentation onto your branded template.

If you permitted the agent to generate supplementary visuals, any slides containing AI-generated images will have an "AI-generated" watermark automatically appended to their speaker notes. This metadata allows compliance teams to verify the origin of the content via the Content Credentials site.

Phase 5: Elevating Content with Work IQ and Code Interpreter

The most profound enhancement in the 2026 architecture is the introduction of Work IQ. Work IQ acts as an intelligence layer that connects signals across your entire Microsoft 365 ecosystem. It operates seamlessly through three layers: Data, Memory, and Inference.

When Agent Mode synthesizes your water quality report, it inherently accesses the Work IQ layers. If the report briefly mentions a "Phase 2 Remediation Plan," the Inference layer automatically connects this entity to your recent Teams meetings, Outlook emails, and Planner tasks regarding Phase 2.6

Copilot can seamlessly enrich the presentation's speaker notes with real-time status updates from these external conversations, delivering deep semantic understanding without requiring you to manually link a dozen different chat threads.

Furthermore, environmental reports are rarely standalone documents. They are often accompanied by raw data files. The April 2026 rollout introduces the Code Interpreter for Chat Search Results.

If you have a CSV file containing raw water sample metrics stored in the same SharePoint library, Copilot can discover and analyze it via enterprise search without you needing to manually upload it to the chat. You can simply prompt: "Run a calculation on the raw sample CSV to find the average pH trend, and generate a new slide visualizing this metric." Copilot's code interpreter will execute the calculation and generate the chart autonomously.

Phase 6: Post-Generation Delivery and Governance

Once the slides are finalized, the delivery mechanisms have been heavily optimized. When sharing the finalized presentation via the OneDrive share dialog in File Explorer, Windows users can now leverage Copilot to generate a file summary instantly.

This allows you to append the key takeaways of the water quality report directly into the share notification email. Recipients can grasp the core insights immediately, without needing to open the full PowerPoint file.

From an administrative perspective, this entire workflow is now strictly governed. Admins manage the security and deployment of these features through the Agent 365 control plane and the Microsoft Purview integration.

Purview integration provides visibility into oversharing risks and enforces Data Loss Prevention (DLP) protocols directly on Copilot interactions. If the water quality report contains highly classified compliance data, Purview ensures that the generated presentation adheres to the exact same sensitivity labels and access restrictions as the source document, preventing accidental data leakage across the organization.

Licensing Quick Reference

The recommended 2026 approach requires specific licensing tiers to access Agent Mode, Work IQ, and advanced governance controls. The following table outlines the current pricing and packaging structure available as of April 2026.