kitio.aiMicrosoft 365 Agents SDK vs Agent Skills
A side-by-side look at pricing plans, free tiers, features, pros and cons, updated for 2026. Microsoft 365 Agents SDK starts at Free and Agent Skills starts at Free. Check both pricing pages for current plans.
Microsoft SDK for building agents that run in Teams, Copilot and the web
FreeAt a glance
Best for
Pricing model
Starting price
Free plan
Made by
Based in
Rating
Key features
- Python, JavaScript and .NET SDKs
- Deploy to Teams and Microsoft 365 Copilot
- Bring your own AI model
- Conversation state handling
- Local testing tools
- SKILL.md format
- Progressive loading
- Bundled scripts and assets
- Open specification
- Client showcase
| Feature | Microsoft 365 Agents SDK | Agent Skills |
|---|---|---|
| Best for | Microsoft SDK for building agents that run in Teams, Copilot and the web | Open folder format for giving AI agents reusable skills |
| Category | Agents & automation | Agents & automation |
| Pricing model | Free | Free |
| Starting price | Free | Free |
| Free plan | Yes, fully free | Yes, fully free |
| Made by | Microsoft | Anthropic |
| 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 starts at Free and Agent Skills starts at Free. Check both pricing pages for current plans.
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
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
Agent Skills
- Simple folder-based format
- Portable across compatible agents
- Low context cost until a skill is used
- Agent must support the standard
- Quality depends on how skills are written
- Bundled scripts need review before use
Which one should you choose?
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.
Choose Agent Skills if you want:
- Simple folder-based format
- Portable across compatible agents
- Low context cost until a skill is used
Watch out: agent must support the standard.
Microsoft 365 Agents SDK vs Agent Skills FAQ
What is the difference between Microsoft 365 Agents SDK and Agent Skills?
Microsoft 365 Agents SDK: Microsoft SDK for building agents that run in Teams, Copilot and the web. Agent Skills: Open folder format for giving AI agents reusable skills. Both are agents & automation tools.
Is Microsoft 365 Agents SDK or Agent Skills cheaper?
Microsoft 365 Agents SDK starts at Free and Agent Skills starts at Free. Check both pricing pages for current plans.
Do Microsoft 365 Agents SDK and Agent Skills have free plans?
Microsoft 365 Agents SDK: Yes, fully free. Agent Skills: Yes, fully free.
Who makes Microsoft 365 Agents SDK?
Microsoft 365 Agents SDK is made by Microsoft, based in United States.
Who makes Agent Skills?
Agent Skills is made by Anthropic, based in United States.
Which should I choose, Microsoft 365 Agents SDK or Agent Skills?
Choose Microsoft 365 Agents SDK if you value free and open source and reaches teams and copilot users directly. Choose Agent Skills if you value simple folder-based format and portable across compatible agents.