Declarative Agents for M365 Copilot (2026)
YAML manifest + knowledge sources + connected actions + fast delivery. Fixed-fee tiers for single agent, portfolio, complex.
Last updated July 7, 2026 by Errin O'Connor, Founder & Chief AI Architect, EPC Group
Declarative Agents are customized M365 Copilot agents defined via YAML manifest — instructions + knowledge sources + actions + conversation starters + branding. Run on Copilot models (no model choice); deployed to Teams/Outlook/Word/etc. Fastest build pattern (hours-days) vs Copilot Studio (weeks) vs Custom Engine (weeks-months). Six use cases: department FAQ, sales enablement, compliance assistant, project-specific, customer-specific, product-specific. EPC Group tiers: Single Declarative Agent $20K/3wk + Portfolio $75K/6wk (3-5 agents) + Complex $40K/4wk. Governance: admin approval + targeted visibility + knowledge scope + action approval + DLP + Purview audit.
Key Facts
- Declarative Agent = YAML manifest + Copilot models + M365 deployment
- 3 build patterns: Declarative (hours-days), Copilot Studio (weeks), Custom Engine (weeks-months)
- Six use cases: dept FAQ, sales enablement, compliance, project, customer, product
- EPC Group Single Declarative Agent: $20K / 3 weeks
- EPC Group Declarative Agent Portfolio: $75K / 6 weeks / 3-5 agents
- Governance: admin approval + visibility + knowledge scope + DLP + Purview audit
Declarative Agents FAQ
What are declarative agents?
Declarative Agents are customized Microsoft 365 Copilot agents defined via YAML manifest that specify: (1) Instructions — persona + role + behavior. (2) Knowledge sources — SharePoint sites, Copilot Connectors, Graph Connectors, custom sources. (3) Actions — connected APIs the agent can call (via connectors or Power Platform). (4) Conversation starters — suggested prompts users see when opening the agent. (5) Icon + branding. Declarative agents run on Copilot models (GPT-4o via Azure OpenAI) — no model choice. Deployment: as extensions to Microsoft 365 Copilot in Teams, Outlook, Word, etc. Best for: fast-to-build purpose-specific agents inside M365.
Declarative Agent vs Copilot Studio vs Custom Engine?
Three build patterns: (1) Declarative Agent — YAML manifest, Copilot models, M365 deployment, no code. Best for: simple purpose-specific agents built by IT admins or PowerPoint-comfortable business users. Time to build: hours to days. (2) Copilot Studio — low-code visual builder, Copilot models, M365 + external channels, connectors + tools. Best for: mid-complex conversational agents with tools + human handoff. Time to build: weeks. (3) Custom Engine Agent (Azure AI Foundry) — full-code, model choice, any channel. Best for: high-complexity agents needing model choice + advanced logic. Time to build: weeks to months.
What are the declarative agent components?
YAML manifest structure: (1) name + description — visible to users. (2) instructions — system prompt telling agent behavior + persona + role. (3) knowledge_sources — SharePoint sites (URL), Copilot Connectors (ID), Graph Connectors (ID), web (approved list). (4) actions — connected APIs via OpenAPI spec. (5) conversation_starters — suggested prompts. (6) branding — icon, color, name. Optional: capabilities (image gen, code interpreter), response guidance, greeting. Deployed via Copilot Agents Toolkit (VS Code extension) or Microsoft 365 Admin Center. Distributed via M365 App Store (internal + private).
What are typical declarative agent use cases?
Six proven use cases: (1) Department FAQ — HR benefits, IT help, procurement questions grounded in department SharePoint. (2) Sales enablement — competitor intel, pricing lookup, contract knowledge grounded in sales SharePoint + Dynamics. (3) Compliance assistant — policy lookup, regulatory Q&A grounded in compliance SharePoint. (4) Project-specific — grounded in single SharePoint project site for team collaboration. (5) Customer-specific (internal) — grounded in customer SharePoint for account teams. (6) Product-specific — grounded in product docs for support + engineering. Not fit: complex multi-step workflows (use Copilot Studio), non-M365 channels (use Custom Engine).
How much does declarative agent development cost?
EPC Group Declarative Agent delivery tiers: (1) Single Declarative Agent ($20K, 3 weeks) — one YAML agent with 1-2 knowledge sources + basic branding + testing + deployment. (2) Declarative Agent Portfolio ($75K, 6 weeks) — 3-5 declarative agents deployed together with shared governance + admin portal + user training. (3) Complex Declarative Agent ($40K, 4 weeks) — one agent with 3+ knowledge sources + connected actions + advanced testing. Total cost is much lower than Copilot Studio agents (typically $75K+) because declarative agents don't need connector development + testing complexity.
What governance controls apply?
Six governance controls: (1) Admin approval — organizations control which declarative agents can be installed. (2) User visibility — agents can be published to all users or targeted groups. (3) Knowledge source scope — agent limited to specified SharePoint sites + connectors. (4) Action approval — connected APIs require admin approval. (5) DLP — Copilot DLP applies to declarative agents. (6) Purview — agent activity logged for audit + compliance. Best practice: dev/test/prod environments + solution ALM + inventory + owner assignment. EPC Group Declarative Agent engagements include governance framework.
How does EPC Group build declarative agents?
EPC Group Declarative Agent portfolio: (1) Discovery + Use Case Selection ($15K, 2 weeks) — identify best-fit use cases + prioritization + fixed-fee proposal. (2) Single Declarative Agent ($20K, 3 weeks) — build + test + deploy one agent. (3) Declarative Agent Portfolio ($75K, 6 weeks) — 3-5 agents deployed together + governance. (4) Complex Declarative Agent ($40K, 4 weeks) — one agent with connected actions + 3+ knowledge sources. (5) Ongoing Agent Portfolio Management ($5K-$10K/month) — quarterly reviews + new agent additions + tuning. All led by senior Copilot architect.
Declarative Agent Discovery
$15K/2wk use case identification + prioritization. Call (888) 381-9725.
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