Microsoft Confronts Agent Sprawl With Agent 365

Microsoft positioned agent governance as an infrastructure challenge rather than an innovation problem at Ignite 2025. It launched Agent 365, a platform that addresses a fundamental operational gap for organizations building agents with Copilot Studio, SharePoint and third-party frameworks.

Agent 365 extends the same identity and access management principles that govern human employees to digital agents, treating them as managed entities within existing Microsoft Entra, Purview and Defender infrastructure. The approach reflects broader enterprise concerns about agent sprawl, where teams deploy autonomous systems without coordination, creating duplicated workflows, untracked resource consumption and fragmented security policies. Microsoft is positioning Agent 365 as the control plane of agents deployed within an organization.

Five Capabilities Form Agent 365 Governance Framework

Agent 365 organizes governance around five technical capabilities that extend…