Unlocking the Future: What Is Agentic AI and How Can M365 Help You Build It?

by TechNet UC

When you think of Artificial Intelligence (AI), you might think about ChatGPT or a similar tool that has the ability to answer questions, make predictions, and even cook up a professional photo for your LinkedIn profile. But these days, AI can do so much more, especially for small-to-medium size businesses. The kicker? Business owners have little to no knowledge about how to harness the power of AI to streamline every facet of their business, assuming it’s best left to the multi-million-dollar corporations to figure out. Let’s flip that script.

The next frontier in AI evolution is Agentic AI—an intelligent system that can autonomously plan, reason, and take actions to achieve goals. Unlike traditional AI models that wait for commands, agentic systems behave more like powerhouse digital collaborators. And the best part is that businesses of ALL sizes can take full advantage of its potential.

In this blog, we'll explore more on:

• What Agentic AI is
• How it works
• Why it matters
• And how a leading Microsoft solutions provider like TechNet UC can help you create or integrate Microsoft 365 (M365) tools with agentic systems

What Is Agentic AI?

First, let’s get the homework out of the way. Agentic AI refers to AI systems that demonstrate autonomy, goal-directed behavior, and adaptive learning. Think of them as agents behind your screen that don't just respond—they initiate tasks, learn from feedback, adapt strategies, and even manage workflows, all with minimal human supervision.

Key Traits of Agentic AI to Note

Autonomy: Acts independently without needing constant input

Goal-driven: Operates with specific objectives in mind

Reasoning: Evaluates multiple strategies and adapts in real-time

Memory and Learning: Stores past interactions and learns from them to improve over time

Tool Use: Can interact with APIs, files, apps, and even other AIs to achieve tasks

Agentic AI systems are especially useful in complex workflows such as customer service orchestration for financial institutions, document management for local government offices, process automation within an education institution, and real-time decision-making for ecommerce organizations who rely on trends.

How Does Agentic AI Work?

At the core of an agentic system are a few critical components that you’ll want to familiarize yourself with.

Planner/Executor Loop

The system sets a goal, devises a strategy (plan), and then executes a series of steps. If the result isn’t satisfactory, it revisits the plan and tries another route—like a human project manager.

Memory Architecture

Agentic AIs maintain short-term and long-term memory. They track what they've done, what worked, and what failed, allowing them to refine future decisions.

Tool and API Access

Modern agentic systems use external tools—search engines, CRMs, spreadsheets, databases, and more—to gather data or act on behalf of a user.

Language as Interface

Many agentic AIs are powered by large language models (LLMs), which allow them to interact with humans using natural language—enabling seamless communication and instruction.

Building or Integrating Agentic AI with Microsoft 365 Tools

If you're operating in a Microsoft-centric workplace, you're in luck. Microsoft 365 (M365) offers a robust ecosystem that can serve as the foundation or support layer for agentic AI systems. Let’s explore how.

1. Microsoft Copilot as a Base

Microsoft’s own AI assistant—Copilot—is a great example of an agentic layer built into Word, Excel, Teams, and Outlook. It doesn’t just respond to prompts; it can generate summaries, draft emails, suggest meeting actions, and so much more.

Additionally, you can build on Copilot's API and plugins to extend functionality tailored to your enterprise.

2. Power Automate + Agentic Logic

Agentic AIs can leverage Power Automate to trigger actions across Microsoft apps and third-party services. For example, an agent could:

• Read a customer complaint in Outlook
• Extract data from the message
• Log it into SharePoint or Dynamics 365
• Notify a support rep in Teams

And this could happen in a matter of minutes without any middle-man involvement.

3. Azure OpenAI + M365 Integration

With Azure OpenAI Services, you can embed LLMs into business applications. Paired with Microsoft Graph API, the AI can read calendar events, analyze documents in SharePoint, or initiate Teams meetings—all within enterprise guardrails.

This enables developers to script agentic behaviors—like summarizing project files before a meeting or proactively scheduling follow-ups.

4. Dataverse and Dynamics 365

Use Dataverse to store structured knowledge that agents can then query and update, and use Dynamics 365 to provide CRM or ERP integration. Agentic systems can help automate even the most complex workflows such as lead nurturing or inventory management.

So, How Can Agentic AI Help My Small Business?

In a world of information overload and complex digital ecosystems, agentic AI offers something fresh, simple, and empowering.

• Now you can save hours by automating repeatable tasks
• Find proactive insights with advanced decision support
• Manage and scale more tasks without increasing headcount
• Tailor experiences to team members and customers across channels

Agentic AI is not the stuff of legend or science fiction—it’s already reshaping how we work. Don’t be late to the party and risk losing more business to the competition! With Microsoft 365's powerful suite of tools and integrations, leadership teams can start embedding agentic capabilities into their workflows today, and TechNet UC has the Microsoft certified experts to help you do exactly that.