Announcing Public Preview of Agent Loop in Azure Logic Apps Consumption

We’re excited to announce a major leap forward in democratizing AI-powered business process automation: Agent Loop is now available in Azure Logic Apps Consumption, bringing advanced AI agent capabilities to a broader audience with a frictionless, pay-as-you-go experience.

NOTE: This feature is being rolled out and is expected to be in all planned regions by end of the week

What’s New?

Agent Loop, previously available only in Logic Apps Standard, is now available in Consumption logic apps, providing developers, small and medium-sized businesses, startups, and enterprise teams with the ability to create autonomous and conversational AI agents without the necessity of provisioning or managing dedicated AI infrastructure.

With Agent Loop, customers can develop both autonomous and conversational agents, seamlessly transforming any workflow into an intelligent workflow using the agent loop action. These agents are powered by knowledge and tools through access to over 1,400 connectors and MCPs (to be introduced soon).

Why Does This Matter?

By extending Agent Loop to Logic Apps Consumption, we’re making AI agent capabilities accessible to everyone—from individual developers to large enterprises—without barriers. This move supports rapid prototyping, experimentation, and production workloads, all while maintaining the flexibility to upgrade as requirements evolve.

Key highlights:

• Hosted on Behalf Of (HOBO) Model: With this model, customers can harness the power of advanced Foundry models directly within their Logic Apps, without the need to provision or manage AI resources themselves. Microsoft handles all the underlying large language model (LLM) infrastructure, preserving the serverless, low-overhead nature of Consumption Logic Apps that lets you focus purely on building intelligent workflows.
• Frictionless Entry Point: With Microsoft hosting and managing the Foundry model, customers only need an Azure subscription to set up an agentic workflow. This dramatically reduces entry barriers and enables anyone with access to Azure to leverage powerful AI agent automation right away.
• Pay-As-You-Go Billing: You’re billed based on the number of tokens used for each agentic iteration, making experimentation and scaling cost-effective. No fixed infrastructure costs or complex setup.
• Extensive Connector Ecosystem: Provides access to an extensive ecosystem of over 1,400 connectors, facilitating seamless integration with a broad range of enterprise systems, APIs, and data sources.
• Enterprise-Grade Upgrade Path: As your needs grow—whether for higher performance, compliance, or custom model hosting—you can seamlessly graduate to Logic Apps Standard, bringing your own model and unlocking advanced features like VNET support and local development. Refer https://learn.microsoft.com/en-us/azure/logic-apps/clone-consumption-logic-app-to-standard-workflow 
• Security and Tenant Isolation: The HOBO model ensures strong tenant isolation and security boundaries, so your data and workflows remain protected.
• Chat client Authentication: Setting up the chat client is straightforward, with built-in security provided using OAuth policies.

How to Get Started?

Check out the video below to see examples of conversational and autonomous agent workflows in Consumption Logic Apps.

For detailed instructions on creating agentic workflows, visit Overview | Logic Apps Labs.

Refer the official documentation for more information on this feature- Workflows with AI Agents and Models - Azure Logic Apps | Microsoft Learn.

Limitations:

• Local development capabilities and VNET integration are not supported with Consumption Logic Apps.
• Regional data residency isn't guaranteed for the agentic actions. If any GDPR (General Data Protection Regulation) concerns, use Logic Apps Standard.
• Nested agents and MCP tools are currently unavailable but will be added soon. If you need these features, refer Logic Apps Standard.
• Currently, West Europe and West US are supported regions; additional regions will be available soon.