Why SHAREPOINT.md Is the Most Underrated Microsoft Copilot Feature of 2026

Many organizations invest time in building well-structured SharePoint sites with organized libraries, meaningful metadata, and clear navigation. Yet when users ask Microsoft Copilot simple questions like "Where do I submit a purchase request?", the answers can still be generic or incorrect.

The problem isn't that Copilot can't read your content. It's that it doesn't understand your organization's unique processes, terminology, or conventions.

That's where SHAREPOINT.md comes in.

This little-known Markdown file gives Copilot the context it needs to provide accurate, site-specific answers. Instead of relying only on existing documents, Copilot learns how your SharePoint site works.

What Is SHAREPOINT.md?

SHAREPOINT.md is a Markdown file stored in your SharePoint site's Agent Assets library. Microsoft Copilot reads this file before answering questions on the site, allowing it to understand your organization's terminology, workflows, and business rules.

Think of it as a briefing document for AI.

Instead of teaching a new employee how your site works, you're teaching Copilot.

Unlike normal SharePoint content, this file isn't meant for end users. Its purpose is to provide background context that helps Copilot generate more accurate responses.

What you typically include

• Purpose of the SharePoint site
• Library and list descriptions
• Department-specific terminology
• Business processes
• Manual approval steps
• Naming conventions
• Rules Copilot should follow
• Common mistakes to avoid

Why Microsoft Introduced It

Copilot is excellent at reading documents, but it doesn't automatically understand the unwritten knowledge that teams rely on every day.

For example:

• "PR" might mean Purchase Request in one department but Pull Request     in another.
• An approval process may require a manual action that isn't documented     anywhere.
• A library called Archive might no longer be used, even though it     still exists.

Without guidance, Copilot relies on general SharePoint knowledge and can confidently provide the wrong answer.

SHAREPOINT.md solves this by supplying the missing organizational context.

Where Does SHAREPOINT.md Live?

The file is stored in the Agent Assets library.

/sites/YourSite/AgentAssets/SHAREPOINT.md

If the Agent Assets library isn't available, it can be enabled through SharePoint Site Collection Features.

Once created, the file is automatically used whenever someone starts a Copilot conversation on that SharePoint site.

How Copilot Uses the File

When a user opens Copilot on a SharePoint site, the AI loads SHAREPOINT.md as background context before processing the question.

This allows Copilot to understand:

• Site purpose  

• Library roles  

• Business terminology  

• Approval workflows  

• Manual processes  

• Department rules  

Instead of making assumptions, Copilot responds using the guidance you've provided.

For example, if your context file states that purchase requests must always be created through a specific SharePoint list, Copilot consistently directs users there instead of suggesting generic document uploads.

What Information Should You Include?

A good context file focuses on information Copilot cannot easily infer from documents alone.

Avoid copying information that already exists in documents. Instead, describe the rules, conventions, and processes behind the content.

SHAREPOINT.md vs SharePoint Pages

A common misconception is that a SharePoint page can replace SHAREPOINT.md.

Although both can explain how a site works, they serve different purposes.

A SharePoint page is content that Copilot may discover during a search.

SHAREPOINT.md is context that Copilot receives before answering any question.

For best results, use both and keep them aligned.

SHAREPOINT.md vs SPFx

Developers often compare SHAREPOINT.md with SharePoint Framework (SPFx), but they solve different problems.

SPFx changes what users can do.

SHAREPOINT.md changes what Copilot understands.

For example, if you've built a custom SPFx web part for contract management, Copilot won't automatically know it exists. By documenting it in SHAREPOINT.md, users asking where to find contracts can be directed to the correct interface instead of receiving a generic answer.

Benefits of Using SHAREPOINT.md

Adding a well-written context file can significantly improve the quality of Copilot responses without requiring custom development.

Some key benefits include:

• More accurate, site-specific answers  

• Better understanding of business terminology  

• Improved navigation to the correct libraries and lists  

• Consistent guidance for business processes  

• Reduced duplicate instructions across Copilot Skills  

• No coding or deployment required  

• Easy to update using standard SharePoint versioning  

Because the file is stored in the Agent Assets library, it can be maintained by site owners without involving developers.

Limitations

While SHAREPOINT.md is powerful, it's important to understand its boundaries.

Treat SHAREPOINT.md as documentation for AI, not as a replacement for good information architecture.

Security Considerations

SHAREPOINT.md does not bypass SharePoint permissions.

Copilot can only access content that the current user is already allowed to view. The context file simply helps Copilot interpret your site more accurately.

However, remember that everyone using Copilot on that site may benefit from the information in the file. Avoid including:

• Passwords or credentials  

• Confidential business information  

• Sensitive employee details  

• Security procedures  

• Information that shouldn't be broadly disclosed  

Security should always be enforced through SharePoint permissions, sensitivity labels, and governance not through instructions written in SHAREPOINT.md.

Governance Best Practices

Because the context file influences every Copilot conversation on a site, it should be treated as an important business document.

Consider these governance practices:

• Assign a dedicated owner.  

• Enable SharePoint version history.  

• Review the file regularly.  

• Update it whenever libraries, lists, or workflows change.  

• Restrict editing permissions to trusted site owners.  

A simple review process helps ensure Copilot continues to provide reliable answers as the site evolves.

Best Practices

A good SHAREPOINT.md file should be concise, structured, and focused on information that Copilot cannot infer from documents alone.

Do

• Clearly state the site's purpose.  

• Use the exact names of libraries, lists, and columns.  

• Define business acronyms and terminology.  

• Describe manual approval steps.  

• Explain routing rules and business processes.  

• Include instructions about common mistakes to avoid.  

Don't

• Repeat generic SharePoint documentation.  

• Write long narrative paragraphs.  

• Store confidential information.  

• Allow the file to become outdated.  

• Treat it as a security mechanism.  

The goal is to provide Copilot with clear operational context rather than duplicate existing documentation.

Real Business Example

Imagine your Finance department manages purchase requests through SharePoint.

Without SHAREPOINT.md, a user asks:

"How do I submit a purchase request?"

Copilot might recommend uploading a document to a document library because that's common SharePoint behaviour.

With SHAREPOINT.md, Copilot understands the department's actual process:

• Purchase requests must be created in the Requests list.  

• Managers review requests manually.  

• Documents are attached only after approval.  

• The Archive library is no longer used.  

The result is faster, more accurate guidance that reflects how the organization works.

When Should You Use SHAREPOINT.md?

It's most valuable for SharePoint sites that include:

• Department workflows  

• Approval processes  

• Custom terminology  

• Manual business steps  

• Custom SPFx solutions  

• Power Automate workflows  

• Complex document management  

For simple document repositories with little business logic, a short context file or none may be sufficient.

Final Summary

SHAREPOINT.md is one of the simplest ways to improve Microsoft Copilot in SharePoint.

By providing context about your site's terminology, workflows, business rules, and organizational conventions, it helps Copilot deliver responses that are more accurate and relevant than generic SharePoint guidance.

Unlike custom development, it requires no code or deployment. A well-maintained Markdown file in the Agent Assets library can immediately improve how Copilot answers questions, routes users, and understands your organization's processes.

If your SharePoint sites contain department-specific workflows, approval processes, or custom solutions, creating a SHAREPOINT.md file is a small investment that can significantly improve the Copilot experience for everyone using the site.

‍

‍