Introduction

Microsoft has unveiled Agent 365, a groundbreaking AI-powered control plane designed to orchestrate, manage, and secure a new generation of AI agents. Building on the familiar foundation of Microsoft 365, this platform brings together digital agents, workflows, communications, and enterprise-grade data governance, offering both new opportunities and fresh challenges for Australian organisations. Below, we explore the core features of Agent 365, what it means for security and compliance, and how business leaders should prepare, with exclusive commentary from Milan Rajkovic, CEO at Otto IT.

What Is Microsoft Agent 365?

Agent 365 is an integrated platform within Microsoft 365 that allows businesses to deploy, manage, and monitor AI-powered digital agents across their organisation. These agents, designed to work within Microsoft Teams, Outlook, SharePoint, and other apps, can automate tasks, summarise documents, schedule meetings, answer queries, and even interface with external business systems—all under the central governance of IT admins.

According to Microsoft, Agent 365 is built to be the “control plane for AI agents,” providing a unified environment where companies can harness AI while maintaining visibility, policy control, and data security.

“Microsoft Agent 365 unlocks real business value, bringing truly intelligent automation to everyday workflows yet maintaining oversight and accountability. For Australian businesses, it’s about harnessing AI while staying secure and compliant,” says Milan Rajkovic, CEO at Otto IT.

Key Features and Capabilities

• Centralised agent management: Deploy, configure, and monitor AI agents across Microsoft 365 apps from a single console—enabling scalable automation without shadow IT risk.
• Security & compliance controls: IT admins can set boundaries for what AI agents can access, ensuring sensitive data stays protected. All agent activities are logged for auditing and regulatory reporting.
• Seamless Microsoft 365 integration: Agents work natively with email, calendars, Teams chats, SharePoint files, and more, delivering productivity gains with minimal friction for end-users.
• Extensibility: Businesses can create custom agents for industry- or process-specific tasks, integrating with their existing workflows and both Microsoft and non-Microsoft platforms.
• Transparency: Every action taken by an agent is visible in audit logs, with tools for businesses to review, approve, or revoke agent permissions in real time.

Business Benefits for Australian Organisations

• Productivity acceleration: Automate repetitive tasks, triage communications, generate summaries, and reduce admin time.
• Enhanced security and governance: Built-in controls make it easier to meet Australian compliance standards, including data residency and privacy obligations.
• Resource efficiency: Free teams to focus on strategic activities instead of manual busywork.
• Scalability: Roll out AI solutions across distributed workforces without introducing new security or management headaches.

“The ability to centrally govern what AI agents do, and audit every action, will be essential to earning stakeholder trust. At Otto IT, we’re advising clients on balancing rapid AI adoption with robust policy and data controls,” notes Milan Rajkovic.

Security, Privacy, and Compliance Considerations

With the rise of AI in the workplace, concerns around data misuse, unauthorised access, and inadvertent information leakage are justified. Microsoft Agent 365 addresses this challenge head-on:

• Granular access controls allow admins to set permissions and restrict data exposure by user, department, or use case.
• Data loss prevention (DLP) features can be extended to agent activity, supporting compliance with Australian Privacy Act provisions and industry-specific frameworks.
• Comprehensive audit trails help satisfy regulatory requirements under APRA CPS 234, the Notifiable Data Breaches scheme, and other local mandates.

“Whether you’re in healthcare, finance, or critical infrastructure, Agent 365 is engineered with compliance at the core. But every business must still validate that policies are matched to their risk profile and legal obligations,” says Milan Rajkovic.

Challenges and Best Practices for Adoption

• Change management: Deploying AI agents requires clear communication with staff about how, when, and why automation will be used. Transparent policies and user training are vital.
• Monitoring and ongoing review: Regularly review agent permissions, data access patterns, and audit logs to spot suspicious or unintended activity.
• Custom agent governance: When developing bespoke agents, document data flows, and subject code to security review to avoid unintentional risks.

“AI is only as trustworthy as the rules you set and the transparency you maintain. As a managed service provider, Otto IT stands ready to help clients through every stage, from pilot to compliance assurance,” adds Milan Rajkovic, CEO at Otto IT.

How Otto IT Can Support Your AI Journey

• Microsoft 365 and security assessments: We evaluate your environment, identify AI agent use cases, and align deployments with governance best practices.
• Custom AI agent implementation: Design and integrate AI workflows tailored to your industry and compliance needs.
• Ongoing monitoring and compliance support: Our team provides 24/7 oversight, policy refinement, and incident response for AI-driven environments.
• Training and change management: We deliver end-user and leadership education to foster a culture of secure and effective AI adoption.

Ready to transform routine processes and unlock the benefits of Microsoft’s latest innovation? Explore managed IT services or start your AI security review with Otto IT today.

Conclusion

Microsoft Agent 365 signals a profound shift in workplace automation, bringing AI-powered agents out of the shadows and into the managed, central domain of IT. By coupling advanced orchestration with enterprise-class security and compliance, it gives Australian businesses a trusted path to leverage AI for efficiency, insight, and growth, while staying within the lines. With the right partner, such as Otto IT, you can move forward confidently, reaping the rewards of AI innovation without sacrificing governance or control.