If you’re considering building a custom copilot with Microsoft Copilot Studio, you’re probably already excited about the possibilities. And rightfully so—it’s a chance to create an AI assistant that’s tailored to your organisation’s specific needs. Whether it’s helping with repetitive admin tasks, making complex data easier to access, or providing quick answers to common questions, a custom copilot can make a big impact.
But before jumping in, it’s worth taking a step back to plan. Building something that works well—something your team actually finds useful—requires more than just clever tech. It’s about understanding your team’s challenges, preparing your data, and ensuring everything fits into the way you work.
This guide walks you through what to think about before you start, with practical tips to help you get it right the first time.
Why build a custom copilot?
Every organisation has its own way of working. A custom copilot lets you design an AI assistant that fits into your processes, your systems, and your culture.
For example, your copilot could:
- Answer repetitive questions that clog up your IT or HR helpdesk.
- Speed up manual, time-consuming tasks like generating reports or approving expenses.
- Help employees find the right data, faster, without wading through documents or emails.
It’s about creating something that feels less like a tool and more like a teammate—saving your people time and frustration while helping your business run smoother.
Start with real problems
The first step? Get specific about what you need your copilot to do. Instead of saying, “We want AI,” think about the daily headaches your teams deal with:
- Are employees struggling to find the latest policies or procedures in the employee handbook, like parental leave or workplace safety guidelines?
- Do managers frequently field repetitive questions like, “What’s our process for reporting an incident?” or “Where do I find the dress code policy?”
- Could frontline workers benefit from instant access to operational manuals, checklists, or training materials during their shifts?
- Are outdated or hard-to-navigate handbooks causing frustration and delays in getting answers to common questions?
Focus on a handful of high-impact problems where a copilot could make an immediate difference. This keeps the project focused and ensures you’re solving real issues, not just adding another piece of tech.
Designing for success
A well-designed custom copilot is intuitive, responsive, and aligned with how your organisation works. Every interaction with the copilot should feel seamless, solving problems and simplifying workflows.
Mapping user interaction flows helps create a logical structure for your copilot. For example, if an employee needs to understand the steps for submitting an expense report or finding their department’s approval policy, the copilot should provide step-by-step guidance, link to the relevant forms or guidelines, or escalate to the finance team for complex queries. These clear pathways reduce confusion and save time.
The tone of your copilot is just as important. A professional services firm might prefer a formal tone, while a creative agency might choose something more conversational and friendly. The copilot should feel like an extension of your organisation’s culture, reinforcing your brand’s identity.
Fallback options are essential for when the copilot doesn’t have the answer. Whether redirecting to a knowledge base or connecting with a live agent, these safety nets maintain a positive user experience.
Preparing your data
Let’s get this out of the way: a copilot is only as good as the data it has to work with. If your data is messy, outdated, or hard to access, the copilot’s performance will reflect that.
Here’s how to get your data in shape:
- Organise your knowledge sources: Clean, well-labelled SharePoint libraries or other data sources make it easier for the copilot to retrieve accurate information quickly.
- File size limits: Copilot Studio can only process SharePoint files under 3MB for generative answers due to memory constraints. If your annual report, compliance manual, or other documents exceed this size, divide them into smaller, topic-specific sections. For example, instead of uploading a full compliance manual, create separate documents like “Workplace Safety (WHS)” or “Parental Leave Policy.” This ensures smooth integration and better performance.
- Keep content updated: If policies, procedures, or resources change, ensure the copilot’s knowledge base is refreshed to reflect those updates. Stale or outdated content can lead to incorrect answers and frustrate users.
- Align with user language: Ensure the terminology in your documents matches how your team speaks and asks questions. For example, if employees say “sick leave” but your documents refer to it as “medical leave,” consider including both terms to help the copilot interpret queries better.
- Define access permissions: Check that permissions for your knowledge sources are aligned with Copilot’s usage. If a critical SharePoint library is restricted to certain users, it may prevent the copilot from delivering relevant answers to others.
Setting up the environment
Your copilot doesn’t exist in a vacuum—it’s part of your organisation’s ecosystem. To make sure it works seamlessly, you’ll need to prepare the environment:
- Platform compatibility: Ensure tools like Microsoft Teams or SharePoint are configured to support custom apps.
- Role-based access: Not every employee needs the same access. Permissions should reflect user roles, so the copilot only delivers relevant information to the right people.
- Scalability: Think beyond today. If your organisation grows or your needs change, the copilot should be able to adapt—whether that means handling more users, integrating with new systems, or expanding its features.
- Integrations: If your copilot needs to pull data from HR platforms, CRMs, or ticketing systems, make sure those connections are set up and tested.
Testing and Iterating
No copilot is perfect out of the box. Testing is where you refine it and make sure it delivers on expectations.
- Simulate Real Scenarios: Test how the copilot handles common queries and edge cases.
- Get Feedback: Involve end users early and listen to their suggestions. They’ll spot usability issues you might miss.
- Improve Continuously: After launch, monitor how the copilot is used and where it struggles. Use this data to keep improving its performance over time.
Acknowledge the Limitations
While custom copilots are powerful, they’re not magic. Here are a few realities to keep in mind:
As powerful as a copilot can be, it’s not a magic wand. Understanding its limitations helps you set realistic expectations:
- Data Quality Matters: If your data is incomplete or poorly organised, the copilot’s answers will reflect that.
- Dynamic Responses: AI doesn’t always respond the same way, which might take users some getting used to.
- Complex Integrations: Setting up workflows with third-party systems can require extra time and resources.
Conclusion
A custom copilot has the potential to transform how your organisation works. With tools like Microsoft Copilot Studio, you can create something that truly fits your team—helping with the everyday tasks that slow people down or making customer interactions smoother.
But here’s the thing: it’s not always a straight road. Building a custom copilot takes thought, preparation, and a bit of trial and error. By getting your data in order, thinking through the design, and being ready to refine as you go, you’ll create something that really delivers for your team.
Ready to get started with a custom copilot?
Creating a custom Copilot can transform how your organisation works—solving real problems, streamlining workflows, and supporting your team in the moments that matter. If you’re ready to take the next step, we’re here to help.
Let’s work together to design a Copilot that’s tailored to your organisation’s needs. Get in touch today to get started!
Learn more about Microsoft 365 Copilot