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What is Microsoft Power Automate — flow types and how licensing works

Microsoft Power Automate is a cloud-based service that enables users to automate repetitive tasks and workflows across various applications and services, integrating M365 with external systems.

Last reviewed 3 July 2026

What Power Automate does

Power Automate allows users to create automated workflows, often called ‘flows’, to streamline processes. Flows can be triggered by events, such as receiving an email or updating a file, and can perform actions like sending notifications, updating databases, or creating documents. The service offers various flow types including automated flows (triggered by events), instant flows (triggered manually), scheduled flows (run on a schedule), and desktop flows (using Power Automate Desktop for RPA). Premium connectors provide access to more advanced third-party services.

Power Automate in Australian tenants today

AU mid-market organisations typically use Power Automate for approval workflows, invoice processing, and routine M365 administration tasks. The choice between per-flow and per-user licensing requires careful consideration based on usage patterns and the scale of automation. Governance is critical; uncontrolled ‘shadow automation’ created by non-IT staff poses a risk, potentially violating OAIC guidelines regarding data handling and APRA CPS 234 requirements for operational resilience. Organisations should implement controls to manage Power Automate usage and ensure compliance.

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