kitio.aiAzure AI Bot Service vs Microsoft 365 Agents SDK
A side-by-side look at pricing plans, free tiers, features, pros and cons, updated for 2026. Microsoft 365 Agents SDK is completely free, while Azure AI Bot Service is freemium.
Microsoft SDK for building agents that run in Teams, Copilot and the web
FreeAt a glance
Best for
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Free plan
Made by
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Key features
- Multi-channel publishing
- Bot Framework SDK
- Copilot Studio integration
- Speech and telephony channels
- Azure AI service connections
- Python, JavaScript and .NET SDKs
- Deploy to Teams and Microsoft 365 Copilot
- Bring your own AI model
- Conversation state handling
- Local testing tools
| Feature | Azure AI Bot Service | Microsoft 365 Agents SDK |
|---|---|---|
| Best for | Managed Azure service for building and hosting conversational bots | Microsoft SDK for building agents that run in Teams, Copilot and the web |
| Category | Agents & automation | Agents & automation |
| Pricing model | Freemium | Free |
| Starting price | See pricing page | Free |
| Free plan | Yes | Yes, fully free |
| Made by | Microsoft | Microsoft |
| Based in | United States | United States |
| Rating | No ratings yet | No ratings yet |
| Key features |
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Pricing compared
Microsoft 365 Agents SDK is completely free, while Azure AI Bot Service is freemium.
Free plan
Cheapest paid plan
Top plan
Free trial
Prices in USD, checked Nov 5, 2026 or later. Plans change often, so confirm on each tool's site before you buy.
Pros and cons
Azure AI Bot Service
- One bot reaches many channels
- Deep Microsoft Teams support
- Standard channel messages are free
- Requires an Azure subscription
- Code-first setup takes developer effort
- Pricing spread across several Azure services
Microsoft 365 Agents SDK
- Free and open source
- Reaches Teams and Copilot users directly
- Works with any model or orchestrator
- Requires coding knowledge
- Hosting and Azure services cost extra
- Tied closely to the Microsoft ecosystem
Which one should you choose?
Choose Azure AI Bot Service if you want:
- One bot reaches many channels
- Deep Microsoft Teams support
- Standard channel messages are free
Watch out: requires an azure subscription.
Choose Microsoft 365 Agents SDK if you want:
- Free and open source
- Reaches Teams and Copilot users directly
- Works with any model or orchestrator
Watch out: requires coding knowledge.
Azure AI Bot Service vs Microsoft 365 Agents SDK FAQ
What is the difference between Azure AI Bot Service and Microsoft 365 Agents SDK?
Azure AI Bot Service: Managed Azure service for building and hosting conversational bots. Microsoft 365 Agents SDK: Microsoft SDK for building agents that run in Teams, Copilot and the web. Both are agents & automation tools.
Is Azure AI Bot Service or Microsoft 365 Agents SDK cheaper?
Microsoft 365 Agents SDK is completely free, while Azure AI Bot Service is freemium.
Do Azure AI Bot Service and Microsoft 365 Agents SDK have free plans?
Azure AI Bot Service: Yes. Microsoft 365 Agents SDK: Yes, fully free.
Who makes Azure AI Bot Service?
Azure AI Bot Service is made by Microsoft, based in United States.
Who makes Microsoft 365 Agents SDK?
Microsoft 365 Agents SDK is made by Microsoft, based in United States.
Which should I choose, Azure AI Bot Service or Microsoft 365 Agents SDK?
Choose Azure AI Bot Service if you value one bot reaches many channels and deep microsoft teams support. Choose Microsoft 365 Agents SDK if you value free and open source and reaches teams and copilot users directly.