Building and customizing solutions using Microsoft 365 Copilot APIs and tools
Yes, Azure SQL can be connected to Copilot Studio using Power Platform connectors and used as a real-time data source. However, for a large dataset (16,000+ records), the recommended approach is to use SQL through a Power Automate flow, custom connector, or real-time knowledge connector rather than relying solely on generative knowledge retrieval.
Copilot Studio can understand natural-language questions and extract filters such as Customer, Project, Supplier, Location, Status, Date, Product, or Equipment, then invoke SQL queries at runtime to retrieve the relevant records.
To ensure accurate counts, filtered results, and record retrieval, keep SQL as the system of record and return query results directly from the database instead of relying on the LLM to infer answers.
For more advanced semantic search and large-scale Q&A scenarios, consider indexing the SQL data in Azure AI Search and using it as the retrieval layer for Copilot Studio. This typically provides more reliable results for unpredictable user questions.
Ref: https://learn.microsoft.com/en-us/microsoft-copilot-studio/nlu-generative-answers-azure-openai