Generative AI is already transforming how businesses operate, with organizations seeing an average return of 3.7x for every $1 of investment [The Business Opportunity of AI, IDC study commissioned by Microsoft]. Developers sit at the center of this transformation, and their need for speed, flexibility, and familiarity with existing tools is driving the demand for application platforms that integrate AI seamlessly into their current development workflows.
To fully realize the potential of generative AI in applications, organizations must provide developers with frictionless access to AI models, frameworks, and environments that enable them to scale AI applications. We see this in action at organizations like Accenture, Assembly Software, Carvana, Coldplay (Pixel Lab), Global Travel Collection, Fujitsu, healow, Heineken, Indiana Pacers, NFL Combine, Office Depot, Terra Mater Studios (Red Bull), and Writesonic.
Today, we’re excited to announce new innovations across the Azure Application Platform to meet developers where they are and help enterprises accelerate their AI transformation. The Azure App Platform offers managed Kubernetes (Azure Kubernetes Service), serverless (Azure Container Apps and Azure Functions), PaaS (Azure App Service) and integration (Azure Logic Apps and API Management). Whether you’re modernizing existing applications or creating new AI apps and agents, Azure provides a developer‑centric App Platform—seamlessly integrated with Visual Studio, GitHub, and Azure AI Foundry—and backed by a broad portfolio of fully managed databases, from Azure Cosmos DB to Azure Database for PostgreSQL and Azure SQL Database.
Innovate faster with AI apps and agents
In today’s fast-evolving AI landscape, the key to staying competitive is being able to move from AI experimentation to production quickly and easily. Whether you’re deploying open-source AI models or integrating with any of the 1900+ models in Azure AI Foundry, the Azure App Platform provides a streamlined path for building and scaling AI apps and agents.
Kubernetes AI Toolchain Operator (KAITO) for AKS add-on (GA) and Azure Arc extension (preview) simplifies deploying, testing, and operating open-source and custom models on Kubernetes. Automated GPU provisioning, pre-configured settings, workspace customization, real-time deployment tracking, and built-in testing interfaces significantly reduce infrastructure overhead and accelerate AI development. Visual Studio Code integration enables developers to quickly prototype, deploy, and manage models. Learn more.
Serverless GPU integration with AI Foundry Models (preview) offers a new deployment target for easy AI model inferencing. Azure Container Apps serverless GPU offers unparalleled flexibility to run any supported model. It features automatic scaling, pay-per-second pricing, robust data governance, and built-in enterprise networking and security support, making it an ideal solution for scalable and secure AI deployments. Learn more.
Azure Functions integration with AI Foundry Agent Service (GA) enables you to create real-time, event-driven workflows for AI agents without managing infrastructure. This integration enables agents to securely invoke Azure Functions to execute business logic, access systems, or process data on demand. It unlocks scalable, cost-efficient automation for intelligent applications that respond dynamically to user input or events. Learn more.
Azure Functions enriches Azure OpenAI extension (preview) to automate embeddings for real-time RAG, semantic search, and function calling with built-in support for AI Search, Azure Cosmos DB for MongoDB and Azure Data Explorer vector stores. Learn more.
Azure Functions MCP extension adds support for instructions and monitoring (preview) making it easier to build and operate remote MCP servers at cloud scale. With this update, developers can deliver richer AI interactions by providing capabilities and context to large language models directly from Azure Functions. This enables AI agents to both call functions and respond intelligently with no separate orchestration layer required. Learn more.
Harnessing AI to drive intelligent business processes
As AI continues to grow in adoption, its ability to automate complex business process workflows becomes increasingly valuable. Azure Logic Apps empowers organizations to build, orchestrate, and monitor intelligent, agent-driven workflows.
Logic Apps agent loop orchestrates agentic business processes (preview) with goal-based automation using AI-powered reasoning engines such as OpenAI’s GPT-4o or GPT-4.1. Instead of building fixed flows, users can define the desired outcomes, and Agent loop action in Logic Apps figures out the steps dynamically. With 1400+ out-of-the-box connectors to various enterprise systems and SaaS applications, and full observability, Logic Apps enables you to rapidly deliver on all business process needs with agentic automation. Learn more.
Enable intelligent data pipelines for RAG using Logic Apps (preview) with new native integrations with Azure Cosmos DB and Azure AI Search. Teams can ingest content into vector stores and databases through low-code templates. No custom code required. This enables AI agents to ground responses in proprietary data, improving relevance and accuracy for real business outcomes. Learn more.
Empower AI agents to act with Logic Apps in AI Foundry (preview) across enterprise systems using low-code automation. Prebuilt connectors and templates simplify integration with Microsoft and third-party services from databases to SaaS apps. This gives developers and business users a faster way to orchestrate intelligent actions, automate complex workflows, and operationalize AI across the organization. Learn more.
Scale AI innovation across your enterprise
As AI adoption grows, so does the need for visibility and control over how models are accessed and utilized. Azure API Management helps you achieve this with advanced tools that ensure governance, security, and efficient management of your AI APIs.
Expanded AI Gateway capabilities in Azure API Management (GA) give organizations deeper control, observability, and governance for generative AI workloads. Key additions include LLM Logging for prompts, completions, and token usage insights; session-aware load balancing to maintain context in multi-turn chats; robust guardrails through integration with Azure AI Content Safety service, and direct onboarding of models from Azure AI Foundry. Customers can also now apply GenAI-specific policies to AWS Bedrock model endpoints, enabling unified governance across multi-cloud environments. Learn more.
Azure API Management support for Model Context Protocol (preview) makes it easy to expose existing APIs as secure, agent-compatible endpoints. You can apply gateway policies such as authentication, rate limiting, caching, and authorization to protect MCP servers. This ensures consistent, centralized policy enforcement across all your MCP-enabled APIs. With minimal effort, you can transform APIs into AI-ready services that integrate seamlessly with autonomous agents. Learn more.
Azure API Center introduces private MCP registry and streamlined discovery (preview) giving organizations full control over which services are discoverable. Role-Based Access Control (RBAC) allows teams to manage who can find, use, and update MCP servers based on organizational roles. Developers can now discover and consume MCP-enabled APIs directly through the API Center portal. These updates improve governance and simplify developer experience for AI agent development. Learn more.
Simplify operations for AI apps and agents in production
Moving AI applications from proof-of-concept to production requires an environment that scales securely, cost-effectively, and reliably. The Azure App Platform continues to evolve with enhancements that remove operational friction, so you can deploy your AI apps, agents and scale with confidence.
App Service Premium v4 Plan (preview) delivers up to 25% better performance and up to 24% cost savings over the previous generation—ideal for scalable, secure web apps. App Service Premium v4 helps modernize both Windows and Linux applications with better performance, security, and DevOps integration. It now offers a more cost-effective solution for customers seeking a fully managed PaaS, reducing infrastructure overhead while supporting today’s demanding AI applications. Learn more.
AKS security dashboard (GA) provides unified visibility and automated remediation powered by Microsoft Defender for Containers—helping operations stay ahead of threats and compliance needs without leaving the Azure portal. Learn more.
AKS Long-Term Support (GA) introduces 2-year support for all versions of Kubernetes after 1.27, in addition to the standard community-supported versions. This extended support model enables teams to reduce upgrade frequency and complexity, ensure platform stability, and provide greater operational flexibility. Learn more.
Dynamic service recommendations for AKS (preview) streamlines the process of selecting and connecting services to your Azure Kubernetes Service cluster by offering tailored Azure service recommendations directly in the Azure portal. It uses in-portal intelligence to suggest the right services based on your usage patterns, making it easier to choose what’s best for your workloads. Learn more.
Azure Functions Flex Consumption adds support for availability zones and smaller instance sizes (preview) to improve reliability and resiliency for critical workloads. The new 512 MB memory option helps customers fine-tune resource usage and reduce costs for lightweight functions. These updates are available in Australia East, East Asia, Sweden Central, and UK South, and can be enabled on both new and existing Flex Consumption apps. Learn more.
Join us at Microsoft Build, May 19-22
The future of AI applications is here, and it’s powered by Azure. From APIs to automation, from web apps to Kubernetes, and from cloud to edge, we’re building the foundation for the next era of intelligent software. Whether you're modernizing existing systems or pioneering the next big thing in AI, Azure gives you the tools, performance, and governance to build boldly. Our platform innovations are designed to simplify your path, remove operational friction, and help you scale with confidence.
Explore the various breakout, demo and lab sessions at Microsoft Build, May 19-22, to dive deeper into these Azure App Platform innovations. We can’t wait to see what you will build next!
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