While testing an agent in Copilot Studio, you may suddenly notice that the Demo Website option is disabled and showing this message:

The demo website is not available when your copilot requires authentication with Microsoft.

At first, this error looks confusing because everything else in the copilot may still work correctly.

The good news is that this is not actually a bug. It happens because of the authentication configuration used in the Copilot.

In this tutorial, I will explain exactly why this happens and show you how to fix it step by step.

Why Does This Error Happen

Copilot Studio allows you to secure your agent using authentication.

When the authentication type is set to:

• Microsoft authentication
• Azure AD authentication
• Manual authentication

The Demo Website channel becomes unavailable.

This happens because the Demo Website channel only supports copilots that allow public access without sign-in.

As soon as authentication is enabled, Copilot Studio automatically disables the Demo Website option.

Copilot Studio Demo Website Authentication Error

Now I will show you how to solve this error.

1. Go to Copilot Studio and open the agent where the issue is happening.
2. From the top menu, click Settings.

3. Inside Settings, Open Security, Click Authentication

This section controls how users access your copilot.

4. Select No authentication and click on Save.

This allows the Demo Website channel to work properly.

5. After that, click on the Publish button to publish the changes.

Authentication changes will not apply until the copilot is republished. Wait for the publishing process to complete.

6. Now go back to Channels, the Demo Website.

Now you can visit the demo website to test the agent.

Note:

When you change the authentication to No authentication, the agent now becomes public. Anyone with the link can access the copilot. Because of this, avoid using sensitive business data in publicly accessible copilots.

Conclusion

This is one of the most common issues users face while testing copilots in Copilot Studio. The error happens because the Demo Website channel does not support copilots that require Microsoft authentication. To fix this, we need to change the authentication to “No authentication”.

Also, you may like some tutorials:

• SharePoint List as Knowledge in Copilot Studio
• Change Copilot Studio Agent Welcome Message
• Add Copilot Studio Knowledge Files Using Power Automate