The short version
Power Automate is the natural automation layer for a Microsoft 365 company. It is partly included in many licenses, governed by IT, and reaches into Outlook, Teams and SharePoint more deeply than anything else.
n8n is a general-purpose workflow engine that treats Microsoft as one system among many. It is stronger for AI agents, mixed software stacks, code-heavy workflows and self-hosting.
Where n8n wins
Mixed stacks. If your CRM is HubSpot, your accounting is QuickBooks Online and your support desk is Zendesk, n8n connects them all at the same billing rate. In Power Automate, many popular third-party connectors are premium, which can push every builder onto a paid license.
AI agents with model choice. n8n’s AI Agent node lets you pick OpenAI’s GPT models, Anthropic’s Claude models or others, attach tools such as database queries or other workflows, and inspect each step. See our SOP assistant guide for an agent built this way.
Code and version control. Code steps run JavaScript or Python inline. Workflows are JSON that you can review and keep in Git, and Business and Enterprise plans add proper environments.
Self-hosting. n8n can run inside your own AWS, Azure or Google Cloud account. Power Automate always runs in Microsoft’s cloud.
Simple user math. n8n plans include unlimited users. You pay for executions, not seats.
Where Power Automate wins
Microsoft 365 depth. SharePoint list triggers, Teams approvals, Outlook actions and Dataverse all run under your tenant’s identity and permissions. That is hard to match from outside the Microsoft ecosystem.
Already licensed. Many Microsoft 365 plans include cloud flows with standard connectors. For simple Microsoft-only flows, the platform cost is often zero.
Desktop flows. Power Automate can automate legacy Windows apps with no API, attended or unattended. n8n cannot.
IT governance. Environments, data loss prevention policies and Entra ID access control are built in. For companies where IT must approve every integration, this is a real advantage.
Copilot Studio. If your agent strategy runs through Microsoft Copilot, Power Automate flows are the natural action layer.
What we recommend
Microsoft-first companies should use Power Automate for Microsoft-centric work and avoid fighting the platform. Bring in n8n for AI agents, high-volume integrations across non-Microsoft systems, and anything that needs code or self-hosting. The two coexist well: n8n can call Power Automate flows through HTTP triggers, and the reverse.
If you are moving off Power Automate entirely, our Power Automate to n8n migration guide covers the plan. For budgeting a multi-workflow program, see the cost of an n8n automation program.