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Using Nylon in Microsoft 365 Copilot (Copilot Chat)

Set up the Nylon connector as a Copilot Studio agent and use it for tax and legal research in Microsoft 365 Copilot chat. For firms on Microsoft 365 Copilot Chat (Basic) or a full licence too.

Overview

You can use the Nylon library from inside Microsoft 365 Copilot. Ask a tax or legal question in a normal Copilot chat and Copilot searches Nylon's NZ, AU and UK legislation, tax authority guidance, commentary and case law, then answers with citations that link back to the source in Nylon.

This article is for firms whose Microsoft 365 plan includes Microsoft 365 Copilot Chat (the Copilot that comes with Microsoft 365 business and enterprise plans, shown as M365 Copilot (Basic) in the Copilot app). If your users have the paid Microsoft 365 Copilot add-on licence, read Using Nylon with a Microsoft 365 Copilot licence as well; the setup below works there too.

You need the Adviser or Elite plan to use the Nylon connector. Starter users will need to upgrade. For Claude, ChatGPT and Perplexity, see Using the Nylon AI connector.

How it works

Microsoft Copilot does not let you paste a connector address into Copilot Chat directly. Instead, you create a small agent in Microsoft Copilot Studio, give it the Nylon connector as a tool, and publish the agent to Microsoft 365 Copilot. From then on anyone you share it with can type @ in a Copilot chat, pick the Nylon agent and ask their question.

The Nylon connector uses the Model Context Protocol (MCP), the open standard Copilot Studio supports for external tools. Microsoft's own instructions are at Connect your agent to an existing Model Context Protocol (MCP) server and Connect and configure an agent for Teams and Microsoft 365 Copilot. The steps below follow those pages and show the exact labels you will see.

Each person signs in to Nylon once from Copilot. Copilot never sees your Nylon password, and Nylon only returns documents from our database, never any information about you or your chat history.

Before you start

  • A Nylon account on Adviser or Elite, with the AI connector turned on for your organisation (check Profile for the AI connector section).

  • A Microsoft 365 work account with Copilot Chat.

  • Access to Copilot Studio as a maker. Microsoft lists the options at Copilot Studio billing and licensing: a Copilot Studio user licence (free of charge, assigned by your Microsoft 365 admin), the Copilot Studio authors role, a Microsoft 365 Copilot licence, or a trial. Note that with a trial licence you can build and test an agent but you can't publish it, so ask your admin for the free user licence or the authors role.

  • The Nylon connection address:

    https://mcp.usenylon.com/mcp

Only one person in your firm needs to do Parts 1 to 3. Everyone else only does Part 4.

Part 1: Create the agent in Copilot Studio

  1. Go to copilotstudio.microsoft.com and sign in with your Microsoft 365 work account.

  2. Select Agents in the left pane, then the small arrow next to New agent, and under Other ways to build choose Agent (Standard). This article follows the Standard agent; the newer GitHub Copilot agent type has a different layout.

  3. In Name your agent, give it a clear name, e.g. Nylon Research, and select Create. This is the name your team will see after the @ in Copilot, so keep it short and unmistakable.

  4. On the agent's Overview page, select Edit next to Instructions, paste the following, and select Save. It tells the agent to always use Nylon for tax and legal questions and to cite sources as clickable links.

    You are a tax and legal research assistant for accountants, tax advisers and lawyers. For any question that touches tax or law in New Zealand, Australia or the United Kingdom, always use the Nylon tools before answering: search the Nylon library first, then read the relevant document if more detail is needed. Never answer tax or legal questions from memory or from the web. Formulate the search query yourself from the user's question; do not ask the user for keywords. Set the jurisdiction (nz, au or gb) whenever the question names or implies a country. Cite every source using only the link returned by Nylon, and present each source as a markdown hyperlink in the form [Document title](link) so it is clickable. Quote the relevant passage where it helps.

  5. Open Settings (top right), select Generative AI, and make sure generative orchestration is set to Yes. Save. Without this the agent can't decide for itself when to call Nylon and will answer "no information was found".

Part 2: Add Nylon as a tool

  1. In your agent, select Tools on the top menu, then Add a tool.

  2. Select Add new MCP (Model Context Protocol). The Add a Model Context Protocol server form opens.

  3. Fill in the form:

    • Server name: Nylon Library

    • Server description: Searches and reads tax and legal sources from Nylon: legislation, tax authority guidance and case law for New Zealand, Australia and the United Kingdom. Copilot uses this description to decide when to call Nylon, so update this to reflect how you use Nylon.

    • Server URL: https://mcp.usenylon.com/mcp

    • Authentication: OAuth 2.0, then Dynamic discovery. You don't need a client ID or secret; Nylon supports dynamic registration, which Microsoft describes as the simplest option.

  4. Select Create. Copilot Studio contacts Nylon and registers itself, which takes about half a minute.

  5. On the Add tool screen, open the Connection drop-down and select Create new connection, then Create.

  6. A Nylon sign-in window opens in a new browser window. Sign in to Nylon if asked and approve the request. The window closes itself and the connection shows a green Connected tick. If no window appears, check your browser's pop-up blocker. The sign-in link is valid for 10 minutes; if it has expired, select Create again.

  7. Select Add. Nylon Library now appears on the Tools page with two tools, search_library and read_document, both switched on.

Test it before you publish

  1. Open the Test panel (top right) and ask a question, e.g. What is the current bright-line test period for residential land in New Zealand? Cite the source.

  2. The first time, the agent may reply Let's get you connected first. Select Open connection manager, select Connect (or Review) next to Nylon Library, choose the existing connection, select Submit, close the tab and select Retry.

  3. You should get an answer with links to docs.usenylon.com. The activity pane on the left shows search_library being called with the query the agent wrote itself.

Part 3: Publish the agent to Microsoft 365 Copilot

  1. Select Publish (top right), then Publish again to confirm. Wait for the confirmation.

  2. Select Channels on the top menu (it may be under +1), then the Microsoft 365 and Microsoft Teams tile.

  3. Select Add channel. On Copilot Chat (Basic) the Make agent available in Microsoft 365 Copilot box is greyed out; that is expected. The agent still reaches Copilot Chat through the steps below.

  4. Select Availability options, then Show to my teammates and shared users.

  5. In the Share dialog, add the colleagues who should use the agent, tick Show in Built By Your Colleagues, and select Share. Each person you add needs their own Nylon account on Adviser or Elite.

Whenever you change the agent later (instructions, tools), select Publish again so the change reaches Copilot.

Part 4: Use Nylon in a Copilot chat

Everyone who has been shared the agent does this once.

  1. Open Microsoft 365 Copilot at m365.cloud.microsoft/chat (or the Copilot app, or Copilot in Microsoft 365).

  2. Select Agents in the left pane. Find the agent under Built with Power Platform (or search for its name) and select Add. The maker can also send you the direct link from Copilot Studio (See agent in Microsoft 365).

  3. Start a New chat. Type @ and the agent's name, and select it from the list. Check the chip above the message box shows the Nylon agent and not another agent with a similar name.

  4. Ask your question in plain English, e.g. Under NZ employment law, what notice must an employer give to end a 90-day trial? Cite the source.

  5. The first time, Copilot replies Let's get you connected first. Select Open connection manager, select Connect next to Nylon Library, sign in to Nylon if asked, select Submit, then come back and select Retry. You won't be asked again.

You can ask about any area Nylon covers, not only tax. Try What is the GST rate in New Zealand and which section sets it?, In Australia, what conditions apply to the small business CGT 15-year exemption? or What is the UK capital gains tax annual exempt amount for 2024/25?

Checking citations

Each source in the answer is a link to the document in Nylon. Click through and read the passage before you rely on it. You need to be signed in to Nylon in your browser to open the document. Nylon grounds the answer; you remain responsible for checking the output, as with any AI tool. Important to remember that Copilot handles a lot more of the research process, Nylon does not write the output you read. Make sure to check quality and if you're not happy, you can always revert to asking questions as normal in the Nylon App.

For Admins and Owners: access and limits

On the Nylon side, the connector is available on Adviser and Elite, usage is unlimited within your plan and does not use Pro credits. You can turn the AI connector off for your team under Organisation Settings.

On the Microsoft side, building the agent needs a Copilot Studio maker licence or role (see Copilot Studio billing and licensing). Use of an agent by people without a Microsoft 365 Copilot licence is metered by Microsoft in Copilot Credits through your tenant's Copilot Studio capacity or pay-as-you-go billing; Microsoft lists the pay-as-you-go rate at Meters for Microsoft Copilot pay-as-you-go services.

Your Microsoft 365 admin sets this up in the Microsoft 365 admin centre or Power Platform admin centre. Nylon does not charge for Copilot use.

Frequently asked questions

Q: Can I use it in a Teams chat?

A: Use it in Copilot Chat (the Copilot app, m365.cloud.microsoft/chat or Copilot in Microsoft 365). The agent also appears in Teams because Microsoft publishes to both at once, but the Teams chat surface is not supported by Nylon yet and may keep asking you to connect.

A: No. The agent searches everything your Nylon plan covers: legislation, cases and commentary across NZ and AU, and tax for the UK. Name the jurisdiction in your question and the agent sets the filter for you.

Q: Why do I have to pick an agent instead of just asking Copilot?

A: Copilot Chat only reaches outside systems through agents or admin-managed connectors. The agent route works on every Microsoft 365 plan with Copilot Chat. The admin-managed connector route needs the Microsoft 365 Copilot add-on licence; see Using Nylon with a Microsoft 365 Copilot licence.

Q: Does everyone need to do the setup?

A: No. One maker creates and shares the agent (Parts 1 to 3). Each user then adds it in Copilot and connects their own Nylon account once (Part 4).

Q: Does it use Pro credits?

A: No. On Adviser and Elite, connector usage is unlimited within your plan.

Q: Is my data or my clients' data used to train AI?

A: No. Nylon does not train on customer data and is ISO 27001 certified, no client data from Nylon is passed back to Copilot. Microsoft's terms govern what Copilot does with your prompts and the text it receives, so review them as you would for any AI tool.

Q: Can it write or save back into Nylon?

A: No. The connector is for searching and reading only.

Troubleshooting

The server was created but shows "No tools available"

Open the tool from the Tools page and select the refresh icon in the Tools section, or reload the page. Make sure the connection is green. If the list is still empty, the Nylon account you signed in with may be on Starter or have the connector turned off.

The Nylon sign-in window shows "invalid_request" or "expired"

The sign-in link lasts 10 minutes and every Create opens a new one. Close all the Nylon sign-in windows, select Create once more and approve the new window straight away.

Copilot keeps saying "Let's get you connected first"

Select Open connection manager, make sure Nylon Library shows Connected (use Connect or Review if it shows Not connected or Stale), select Submit, then start a New chat and ask again.

The agent asks me for keywords instead of searching

Check the agent's Instructions contain the text from Part 1 and that generative orchestration is Yes in Settings, then Publish again.

I can't publish the agent

A Copilot Studio trial licence can build and test but not publish. Ask your Microsoft 365 admin for the free Copilot Studio user licence or the Copilot Studio authors role.

I can't find the agent in Copilot

Ask the maker to confirm you were added under Availability options. Microsoft notes the store can cache, so sign out and back in or refresh the browser. The maker can also send you the direct link from See agent in Microsoft 365.

Sign in to Nylon in the same browser and try again. Links go to docs.usenylon.com and only open for signed-in Nylon users.

Still stuck?

Get in touch via the chat widget in-app or email [email protected] and we'll help.

Last updated: October 2026

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