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felipeneiva's avatar
felipeneiva
MCT
Jan 09, 2026

Error when creating Assistant in Microsoft Foundry using Fabric Data Agent

I am facing an issue when using a Microsoft Fabric Data Agent integrated with the new Microsoft Foundry, and I would like your assistance to investigate it.   Scenario: 1. I created a Data Agent i...
azure
azure ai foundry
Data Agent
Surya_Narayana's avatar
Surya_Narayana
MCT
Jan 11, 2026

hi felipeneiva​ Thanks for sharing the detailed scenario, this is helpful.

A few thoughts based on similar setups we’ve seen with Fabric Data Agents + Foundry:

The Azure AI Developer / Azure AI User roles are necessary, but in this integration the Fabric side permissions are often the missing piece. The Foundry project managed identity may also need explicit access at the Fabric workspace level (e.g., Member/Contributor, and permission to execute the Data Agent and underlying datasets/lakehouse).

When publishing to Teams or Copilot for M365, there are currently some preview limitations around tool-backed agents (especially Fabric Data Agents). Even if publishing succeeds, assistant creation can fail at runtime due to unsupported execution paths or identity handoff issues between Foundry-Fabric-M365.

The fact that the same error reproduces in both Teams and Copilot suggests this is happening before channel-specific execution, likely during assistant instantiation or tool binding in Foundry.

A couple of things worth double-checking:

  • The Foundry project managed identity has direct access to the Fabric workspace hosting the Data Agent (not just Azure RBAC).
  • The Data Agent works when invoked directly inside Fabric (to rule out agent-side issues).
  • The Foundry project region and Fabric capacity region are aligned (this has caused similar “Create assistant failed” errors in some cases).

The ConversationId / activityId you shared should be useful for Microsoft support, this looks like something that may need backend investigation, especially if you’re on the new Foundry experience.

If this is still failing after validating Fabric workspace permissions, I’d recommend opening a support ticket under Azure AI Foundry / Fabric integration, as this may be a known limitation or bug in the current rollout.

Curious to hear if others have successfully run Fabric Data Agents as tools in Foundry and published them to Teams/Copilot, would be great to compare notes.

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