Empowering AI Agents with Deep Reasoning in Microsoft Copilot Studio

Holger ImberyHolger Imbery
3 min read

Content Classification

Content for IT decision makers - Level 100 (Background knowledge)

Content for IT professionals - Level 100 (Implementation knowledge)

Content for IT architects - Level 100 (Background and Implementation knowledge)

Summary
Summary Lede Microsoft Copilot Studio’s new deep reasoning models significantly advance AI agent capabilities, enabling complex problem-solving, logical analysis, and multi-step decision-making. This feature empowers organizations to build virtual agents that can analyze unstructured data, make contextual recommendations, and support sophisticated business processes—all while maintaining accuracy and thoughtful analysis. Learn how deep reasoning models are transforming AI agents from simple Q&A tools into powerful decision-support systems for business intelligence, operations, education, and customer support.

As AI continues to evolve, the demand for more intelligent, context-aware, and decision-capable virtual agents is growing rapidly. Microsoft Copilot Studio addresses this need with a powerful new feature: deep reasoning models. These models enable agents to tackle complex tasks beyond simple question-answering, allowing for logical analysis, problem-solving, and multi-step decision-making.

What Are Deep Reasoning Models?

Deep reasoning models in Copilot Studio are powered by a large language model designed to handle tasks that require structured thinking and contextual understanding. Unlike standard models that respond quickly but may lack depth, deep reasoning models are optimized for accuracy and thoughtful analysis, even if that means slightly slower response times.

These models are ideal for scenarios where agents must:

  • Analyze unstructured data

  • Solve complex problems (e.g., mathematical reasoning)

  • Make recommendations based on multiple variables

  • Perform step-by-step evaluations

How It Works

To activate deep reasoning, developers must:

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  • Enable Generative Mode in the agent settings.

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  • Turn on Deep Reasoning Models under the Generative AI tab.

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  • Use the keyword reason in the agent’s instructions to trigger deep reasoning for specific tasks or steps.

For example, an agent might be instructed to:

  • Parse a request for services

  • Retrieve supplier data from internal systems

  • Search external sources for market data

  • Use reason to analyze all inputs and recommend the best supplier

This approach ensures that deep reasoning is applied only where needed, optimizing performance and relevance.

Use Cases and Benefits

Deep reasoning models are instrumental in industries and scenarios where decisions must be data-driven and context-aware. Some examples include:

  • Business Intelligence : Evaluating market trends and recommending investment strategies.

  • Operations : Analyzing supply chain data to optimize inventory management.

  • Education : Solving complex math problems with step-by-step explanations.

  • Customer Support : Handling nuanced queries that require an understanding of multiple data sources.

Limitations and Availability

Now, deep reasoning features are in preview and available only in select regions. They are not yet intended for production use and may have limited functionality.

Conclusion

Microsoft’s integration of deep reasoning capabilities into Copilot Studio represents a significant evolution in AI agent development. These models transform virtual agents from basic query responders into sophisticated reasoning systems capable of nuanced analysis and contextual problem-solving. By strategically incorporating deep reasoning, organizations can develop AI solutions that deliver more meaningful business insights, support complex decision-making processes, and adapt to intricate business scenarios with greater intelligence. As this technology matures beyond its preview stage, it promises to redefine the role of AI agents across industries—from reactive information providers to proactive strategic partners in business operations.

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Written by

Holger Imbery
Holger Imbery

I talk and write about conversational AI, robotic process automation, and things that keep an architect awake at night. Your feedback on my articles is highly appreciated, and I would like to invite you to a professional discussion. I'm a Principal Architect @NTTDATA focusing on Microsoft Power Platform and Azure.