Mastering Copilot Studio Agents Governance with Rencore: Key Insights from the Guardians of M365 Governance
In the latest episode of “Guardians of Microsoft 365 Governance,” hosts Christian Buckley, Joy Apple and me welcomed Matthias Einig, CEO of Rencore, for a deep dive into the evolving world of Copilot Studio governance. What emerged was a fascinating discussion that feels both familiar and entirely new – like déjà vu with a modern AI twist.
The Wild West Returns
Remember the early SharePoint days when customizations ran wild and broke everything? Well, welcome to Copilot Studio 2025. Matthias painted a picture that would make any IT administrator’s eye twitch: one organization already has 20,000 Copilot Studio agents created in just six months. Yes, you read that correctly – twenty thousand.
“It’s the same story we’ve seen before,” Matthias explained, drawing parallels to the SharePoint governance challenges of yesteryear. “The problems remain the same – it’s just the technology that’s changed.” The fundamental issue isn’t the AI itself; it’s the age-old challenge of data governance and managing organizational chaos.
The Cost Reality Check
Here’s where things get interesting – and expensive. Unlike the flat-rate model of Microsoft 365 Copilot (around €28 per month), Copilot Studio operates on a pay-as-you-go consumption model. This shift changes everything about governance strategy.
Organizations are discovering that what starts as a small pilot with 99 users can suddenly explode to company-wide deployment without proper oversight. The pharmaceutical company Matthias mentioned implemented a policy requiring special approval for agents shared with more than 100 people – but only checked this at creation, not throughout the lifecycle. Predictably, people game the system.
The Lifecycle Management Gap
The conversation revealed a critical blind spot: there’s virtually no lifecycle management for Copilot Studio agents. Microsoft’s recently released Copilot Control Center provides basic toggles and grids, but as Matthias pointed out, “If you have 20,000 agents, scrolling through a grid isn’t going to cut it.”
Organizations need automated processes to:
- Identify unused agents after 30-60 days
- Automatically unpublish or delete dormant solutions
- Track consumption and costs per department
- Implement chargeback models for different business units
The German vs. American Approach
An amusing cultural observation emerged during the discussion. German organizations, true to stereotype, approach Copilot adoption cautiously – maybe buying five licenses to start. Meanwhile, North American organizations embrace the “Wild West” mentality, deploying broadly and figuring out governance later.
Both approaches have merit, but the pandemic taught us valuable lessons. Organizations that rushed into Microsoft 365 deployment without proper planning are now paying the price with data chaos that actually prevents successful Copilot adoption.
Declarative Agents: The Stealth Sprawl
Just when you thought you had a handle on governance, Microsoft introduced declarative agents – a “sneaky attempt to create Copilot adoption,” as Matthias put it. These agents don’t require a Copilot license; anyone with an Entra ID can create them in Copilot Chat. It’s sprawl by design, creating stickiness for the entire Copilot ecosystem.
The Rencore Solution Preview
Matthias provided an exclusive preview of Rencore’s upcoming AI governance module, showcasing capabilities that Microsoft’s native tools currently lack:
- Risk matrices that consider both data access scope and user exposure
- Consumption tracking down to individual message costs
- Relationship mapping showing how agents connect to data sources
- Automated policy enforcement with approval workflows
- Conversation monitoring (anonymized) for compliance
The demo revealed agents pulling knowledge from document libraries, consuming premium connectors, and generating costs that organizations can’t currently track effectively.
The Automation Paradox
Perhaps the most intriguing point raised was the emergence of “automation governing automation.” We now have AI agents that are semi-autonomous, managed by governance tools with their own automation capabilities. It’s a fascinating evolution from the manual reports and dashboards of the SharePoint era.
Governance as an Enabler
The panel emphasized that modern governance shouldn’t be a burden – it should be an enabler. With AI adoption, governance becomes crucial for maximizing business value and ROI. It’s about setting up guidelines, boundaries, and processes that help organizations leverage AI effectively, not restrict it.
The Readiness Myth
Christian Buckley made an excellent point about the term “Copilot readiness.” The problem with “readiness” is that it implies a finish line – you do the work, and then you’re ready. But governance is an ongoing process. You’re never truly “ready” because organizations are constantly changing, people come and go, and new challenges emerge.
Looking Forward
The conversation highlighted that we’re witnessing the emergence of the third generation of Microsoft governance challenges. First came on-premises SharePoint customizations, then the cloud collaboration sprawl, and now AI agent proliferation. The principles remain the same – data lifecycle management, access controls, and solution governance – but the scale and complexity continue to evolve.
As organizations move from pilot to production with Copilot technologies, the lessons from previous governance challenges become invaluable. The key is learning from past mistakes rather than repeating them with shinier technology.
The message is clear: start planning your Copilot Studio governance strategy now, before you become the organization with 20,000 ungoverned agents wondering where your budget went.
This episode is also available in your favorite Podcast Player and Podcatcher like Spotify
Talk to us at HanseVision about your requirements and questions about M365 Governance, Copilot (Studio) and Agents Governance!
Find my Calendar here and check out our OnePager about M365 Governance.
One Comment