Agent Builder capabilities update

What and Why: We’re updating Agent Builder to make creating and configuring agents simpler and more intuitive. New agents will have capabilities enabled by default, providing access similar to Microsoft 365 Copilot. Builders can continue to customize and scope capabilities as needed to support specialized tasks and organizational requirements. We are also introducing an improved configuration experience to make knowledge setup easier to understand and manage. In addition, the existing "Uploaded Files" label will be renamed to "Attachments." This is a terminology update only and does not change functionality. Rollout Schedule: General Availability (Worldwide): Rollout will begin in late August 2026 and is expected to complete by late August 2026. Impact on Your Organization: Who is affected: Users who create new agents in Agent Builder. Platforms/Services: Agent Builder, Microsoft 365 Copilot. What will happen: Newly created agents will have capabilities enabled by default. Existing capabilities controls will remain available, allowing creators to tailor agent behavior and access as needed. The knowledge configuration experience will be updated with a more intuitive user interface. The "Uploaded Files" option will be renamed to "Attachments." Existing agents will not be impacted by this change. Action Required/Recommendations: No action is required. Existing agents will continue to function as they do today, and current options for configuring agent knowledge and capabilities will remain available. Compliance Considerations: No compliance considerations identified, review as appropriate for your organization.