🚀 Copilot Studio Update: Actions Are Now Tools! 🛠️

Hey y'all, quick edition to the Digest. If you've been building copilots with Copilot Studio, you might have noticed a small but significant change: “Actions” are now called “Tools.” This rename might seem cosmetic at first glance, but it reflects a broader vision for how Copilot agents interact with your data, apps, and workflows.

📅 When Did This Happen?

The rename from Actions to Tools began rolling out in July 2025 across all environments. You may have already seen the updated “Tools” tab in your Copilot Studio experience.

🔄 What Changed?

• Actions are renamed to Tools

• Actions tab is now Tools tab

• Same functionality as before, just a new name and icon

💡 Why the Change?

The renaming supports a more unified AI experience across Microsoft products. Here’s what this means:

• The term “Tool” reflects a more flexible, agent-like model—these are not just one-off actions, but capabilities your Copilot can reason about and choose to invoke.

• Tools are a core concept across Microsoft Copilot—used in Copilot for Microsoft 365, Copilot Studio, and the Control System in the Microsoft 365 Admin Center.

🔍 What Are Tools?

Tools are:

• Reusable integrations that allow your Copilot to perform specific tasks—like looking up customer info, creating a support ticket, or updating a record.

• Backed by APIs, Power Automate flows, or Azure Functions.

• Discoverable and pluggable into the orchestration layer that lets your Copilot pick the right Tool based on the user’s intent.

🧠 What This Means for You

• No migration needed—existing Actions are automatically renamed to Tools

• New integrations should be created using the Tools tab

• More orchestration features and Copilot intelligence capabilities are coming soon

Need help adapting your agents to use Tools effectively? Drop a comment or reach out—let’s build smarter copilots together! 🤖🧰