The difference between "Microsoft Foundry Agent", In-Process Agent (SDK) and Copilot Studio Agents

Introduction

With so many agent‑building platforms available, it’s essential to understand what each one offers across the dimensions that matter to your project. On the Microsoft cloud space today the three main Agent builders would be:

1. Copilot Studio – Low‑code conversational agents built and orchestrated inside the Power Platform.
2. Azure AI Foundry Hosted Agents – Fully managed, cloud‑hosted agents running on Microsoft’s Agent Service.
3. In‑Process Agents (Microsoft Agent Framework) – Code‑based agents running inside your own compute (Functions, Container Apps, AKS, etc.).

Copilot Studio is on the edge of simplicity with low code/no code. In‑process agents provide the most flexibility but also more complexity with sdk code. What is best for your project depends on the “non‑negotiable” requirements. Before discussing that, check this table: