2. Generative AI Capabilities Across Microsoft 365

Exam domain: Understand generative AI fundamentals (25–30%). Phase 2 covers capabilities, and Phase 3 covers responsible AI and data protection.

Understanding Copilot's capabilities starts with understanding its architecture — not at a technical level, but at a conceptual level that lets you predict how it will behave. The single most important things to understand: how Copilot stays within your organizational data boundary, how the context you provide changes what it can do, why "Copilot in Teams" behaves differently from "Copilot in Outlook," and when to reach for an agent or Copilot Cowork instead of chat.