Azure Monitor Copilot Observability Agent: What’s new at Build

EfratNauerman

Microsoft

Jun 02, 2026

Expanding capabilities across chat and investigation workflows

The Observability agent in Azure Copilot is an AI-powered assistant built into Azure Monitor that helps engineers investigate issues and explore their systems using natural language. By grounding its analysis in telemetry data such as metrics, logs, and traces, it supports both open-ended exploration and guided troubleshooting. For more details, see the documentation.

Since our initial public preview, the Observability agent in Azure Copilot has continued to evolve with new capabilities and expanded coverage (You can read more about the initial release in our previous blog)

At Build 2026, we’re introducing updates that expand the Observability agent’s capabilities and the range of scenarios it can support.
These updates provide deeper analysis and more detailed responses for both exploration and investigation.

Expanded Investigation Scenarios

The Observability agent now supports a broader set of scenarios across applications and infrastructure.

These can be accessed directly from relevant product experiences, without requiring a prior alert, allowing teams to explore data conversationally and initiate deeper investigations as signals emerge.

Integration with Microsoft Foundry AI Agent

The Observability agent integrates with Microsoft Foundry AI Agents, enabling correlation of signals across key generative AI and agent observability scenarios such as latency spikes, error patterns, and tool invocation failures.

Teams can interact with the Observability agent either from alerts - including alerts based on Foundry telemetry - or directly within Application Insights, where the Agents details experience serves as the primary entry point. From there, users can use the Observability agent to diagnose errors, analyze trends, and explore their data across one or multiple agents.

Application Insights integration

The Observability agent enables investigation of failure scenarios directly from Application Insights Failures blade, allowing teams to analyze application-level issues and move from symptom to root cause.

Azure Kubernetes Service (AKS) integration

The Observability agent enables deep investigation of issues in Azure Kubernetes Service (AKS) clusters.

AKS investigations correlate signals from Azure Monitor with Kubernetes logs and events, and (coming soon) Prometheus metrics stored in an Azure Monitor Workspace. Together, these signals enable full‑stack analysis of applications running on AKS.

The Observability agent helps teams determine whether an issue originates from the application or from the underlying Kubernetes platform, reducing time to diagnosis and resolution.

Activity Logs integration

Investigations can be initiated based on Azure Resource Health events surfaced in Activity Logs, enabling analysis of service-impacting signals related to the Azure platform.

Deeper Insights across systems

Multiple Application Insights - Coming soon!

The Observability agent supports investigations that can span multiple Application Insights resources, enabling scenarios that involve multiple services within distributed applications.
The agent can guide users to expand the investigation scope when cross-service issues are detected.

Integration with Azure Service Health

The Observability agent correlates investigation context with Azure Service Health events, helping teams understand potential platform impact as part of their investigation. This helps distinguish application-level issues from broader Azure platform conditions and prioritize active impacts.

Issue management Enhancements

Viewing issues

Issues can now be viewed in multiple places, depending on the required scope:

Azure Monitor: showing issues across all Azure Monitor Workspaces (AMWs) under the selected subscriptions
Azure Monitor Workspace: showing issues stored within a specific AMW

Issue actions & notifications

Issue actions trigger notifications when issues are created or updated, enabling integration with workflows such as email, webhooks, and automation.

Sharing and follow-up

You can now download investigation results as a PDF, including supported data, enabling teams to capture and share investigation context for incident reviews and reporting.

Coming Soon

Billing for the Observability agent starts on July 1, 2026. The agent uses a consumption-based pricing model, so customers pay only for the AI work the agent performs. Agent consumption is measured in Azure Agent Credit (AAC) units, which reflect how many LLM tokens the agent used. For more details, see the documentation.

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