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How to use Datadog with Copilot Studio

You want Datadog inside Copilot Studio so it can investigate production errors, compare incident volume over time, trace a slow request, and find useful observability dimensions — without you copy-pasting between tabs. Here is the whole setup, once.

Create your Datadog gateway

The gateway is the thing Copilot Studio connects to, and it is where you decide which Datadog tools an agent may use. You create it once and every client reuses it.

  1. Create an Arcade account

    Sign up and open the dashboard. The free tier is enough to follow this through.

  2. Create an MCP Gateway and select your Datadog tools

    In the dashboard, create a gateway and pick the Datadog tools you want to expose. The gateway is what your client connects to, and it is where tool access is decided.

  3. Copy your gateway URL

    Every client below needs it.

    https://api.arcade.dev/mcp/<YOUR-GATEWAY-SLUG>

Create a Datadog gateway Opens the gateway builder in your Arcade dashboard.

Connect the gateway to Copilot Studio

Heads up

Needs a Microsoft 365 subscription with access to Copilot Studio, plus an Arcade API key.

  1. Add an MCP tool to your agent

    In Copilot Studio, open your agent → Tools → Add a tool → Model Context Protocol → New tool.

  2. Point it at your gateway

    Give the server a name and description, put your gateway URL in Server URL, set Authentication to OAuth 2.0 and Type to Dynamic discovery.

  3. Authorize and try it out

    Saving redirects you to Arcade to approve access. Then start a conversation and use your Datadog tools — Arcade authorizes each service just in time.

Full Copilot Studio guide in the docs steps verified 2026-08-13

Get started with Datadog prompts

Copilot Studio can now act on your Datadog account. Click a prompt to copy it.

Keep the shared API key or secret in Arcade and allow only the read-only searches your agent needs. Pair it with Contextual Access policies to control access before an agent can inspect logs, spans, or traces.

Ready to actually ship your agent?

Free to start. Ready for enterprise when you are.