What shipped
Microsoft's OneDrive agents are now generally available to Microsoft 365 Copilot license holders. Users can select up to 20 files, create an agent (saved as a .agent file), and query across documents instead of one at a time.
The pitch: Ask "What decisions have we made?" or "What risks keep appearing?" across project files. Agents are searchable and shareable like regular files, though collaborators need access to source documents.
The admin question
Microsoft claims getting started "requires no special admin setup." What's missing: details on data handling, retention policies, or granular access controls. The Register asked Microsoft about privacy implications and data processing. Microsoft acknowledged the question but didn't respond.
This matters for enterprise deployments. Copilot agents accessing OneDrive files raises questions about audit logs, compliance reporting, and whether admins can disable agent functionality for specific users or departments. Microsoft's existing Copilot documentation covers commercial data protection and the "green shield" enterprise boundary, but agent-specific controls remain unclear.
What's been building
OneDrive Copilot features have been rolling out since 2023: file summarization, comparisons, PDF reviews, and audio overviews. The agent functionality builds on Azure AI Search for retrieval-augmented generation. Microsoft added OneDrive file summarization to Windows File Explorer in January 2026, with rollout continuing through February.
Agents in Copilot Studio (where IT can build custom agents) got copying functionality from lite to full Studio in mid-January. The broader M365 Copilot roadmap targets December 2026 for App Builder.
The permission gap
Notably, agents don't enforce access controls automatically. If you share an agent with someone who lacks permission to underlying files, they "won't get useful answers," according to Microsoft. That's not a permission error - it's Copilot answering without context, increasing the risk of confidently wrong responses.
For organizations evaluating Copilot deployments, this is worth testing: How do agents behave with mixed file permissions? What shows up in audit logs? Can you track which agents access which files?
Microsoft's standalone SharePoint and OneDrive for Business plans (Plan 1/2) retire after June 30, 2026, pushing customers toward bundles that include Copilot licensing.
What to watch
Admin control documentation. Audit log coverage. How agents handle permission boundaries in practice. Whether Microsoft clarifies data processing specifics or leaves that to enterprise agreements.