What it does

Tools are how an agent does things rather than just talk: call a Power Automate flow, hit a connector, run an AI prompt, or invoke a REST API. Under generative orchestration, the model decides when to call each one.

Key facts

• Tool types include Power Automate flows, prebuilt and custom connectors, AI Builder prompts, and topics exposed as tools.
• Inputs and outputs are typed; the model fills parameters from the conversation when orchestration is on.
• Connectors run under a connection reference, so authentication and licensing follow the connector, not the agent.
• Tool names and descriptions drive selection under orchestration — write them for the model, not for you.

When to use / skip

Use tools whenever the agent must read or write real systems — create a ticket, look up an order, update a record. Skip building a custom API tool when a certified connector or existing flow already does the job.

Configuration decisions

• Flow vs connector vs custom API for each action.
• Which connections and service accounts back the tools, and their permissions.
• Input validation and confirmation steps before write actions run.

Gotchas

• Premium connectors carry their own licensing — a "free" agent can quietly need premium entitlements.
• The model can call a write action with the wrong parameters. Confirm before anything irreversible.

Consultant notes

• Governance lives with the connectors: DLP policies apply to what agents can touch, so plan them together.
• Reuse existing flows and connection references rather than rebuilding integration logic inside the agent.
• Watch capacity and connector licensing together — both scale with usage and both surprise people.

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Recheck available tool types each release.