Copilot Studio can address some of the shortcomings of a “horizontal” tool such as Microsoft 365 Copilot, which often requires a lot of guidance to access the right data, and may produce hallucinations, said J.P. Gownder, vice president and principal analyst at Forrester.

“The Copilot Studio tools help to fill this gap by allowing organizations to create more finely tuned solutions that nevertheless are a lot easier and cheaper than training a model from scratch,” he said. 

Improved tuning and sourcing in Copilot Studio allows more retrieval augmented generation (RAG)-based approaches, said Gownder, which specifies data more precisely, reducing the likelihood of “both vague outputs and hallucinations.” The ability to use custom Azure AI Search indexes as a knowledge source for custom RAG scenarios — another of the Copilot Studio updates at Ignite — allows for more “specific, contextual, and accurate outcomes,” he said. 

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