SubgenAI makes AI practical, scalable, and sustainable with Azure Database for PostgreSQL
Authors: Abe Omorogbe, Senior Program Manager at Microsoft and Julia Schröder Langhaeuser, VP of Product Serenity Star at SubgenAI AI agents are thriving in pilots and prototypes. However, scaling them across organizations is more difficult. A recent MIT report shows that 95 percent of projects fail to reach production. Long development cycles, lack of observability, and compliance hurdles leave enterprises struggling to deliver production-ready agents. SubgenAI, a European generative AI company that focuses on democratizing AI for businesses and governments, saw an opportunity to change this. Its flagship platform, Serenity Star, transforms AI agent development from a code-heavy, fragmented process into a streamlined, no-code experience. Built on Microsoft Azure Database for PostgreSQL, Semantic Kernel, and Microsoft Foundry, Serenity Star empowers organizations to deploy production-grade AI agents in minutes, not months. SubgenAI’s mission is to make generative AI accessible, scalable, and secure for every organization. Whether you're a startup or a multinational, Serenity Star offers the tools to build intelligent agents tailored to your business logic, with full control over data and deployment. “Many things must happen around it in the coming years. Serenity Star is designed to solve problems like data control, compliance, and decision ethics—so companies can unleash the full potential of generative AI without compromising trust or profitability” - Lorenzo Serratosa Simplifying complex AI agent development Technical and operational challenges are inherent in enterprise-wide AI agent deployments. Examples include time-consuming iteration cycles, lack of observability and cost control, security concerns, and data sovereignty requirements. Serenity Star addresses these pain points by handling the entire AI agent lifecycle while providing enterprise-grade security and compliance features. Users can focus on defining their agent's purpose and behavior rather than wrestling with technical implementation details. Its framework focuses on four essentials for AI agents: the brain (underlying model), knowledge (accessible information), behavior (programmed responses), and tools (external system integrations). This framework directly influenced the technology stack choices for Serenity Star, with Azure Database for PostgreSQL powering the knowledge retrieval and Semantic Kernel enabling flexible model orchestration. Real-world architecture in action When a user query comes in, Serenity Star uses the vector capabilities of Azure Database for PostgreSQL to retrieve the most relevant knowledge. That context, combined with the user’s input, forms a complete prompt. Semantic Kernel then routes the request to the right large language model, ensuring the agent delivers accurate and context-aware responses. Serenity Star’s native connectors to platforms such as Microsoft Teams, WhatsApp, and Google Tag Manager are also part of this architecture, delivering answers directly in the collaboration and communication tools enterprises already use every day. Figure 1: Serenity Star Architecture This routing and orchestration architecture applies to the multi-tenant SaaS deployments and dedicated customer instances offered by Serenity Star. Azure Database for PostgreSQL provides native Row-Level Security (RLS) capabilities, a key advantage for securely managing multi-tenant environments. Multi-tenant deployments allow organizations to get started quickly with lower overhead, while dedicated instances meet the needs of enterprises with strict compliance and data sovereignty requirements. Optimizing for scale The same architecture that powers retrieval, routing, and multi-channel delivery also provides a foundation for performance at scale. As adoption grows, the team continuously monitors query volume, response times, and resource efficiency across both multi-tenant and dedicated environments. To stay ahead of demand, SubgenAI actively experiments with new Azure Database for PostgreSQL features such as DiskANN for faster vector search. These optimizations keep latency low even as more users and connectors are added. The result is a platform that maintains sub-60-second response times for 99 percent of chart generations, regardless of deployment model or integration point. With this systematic approach to scaling, organizations can deploy fully functional AI agents that are connected to their preferred communication platforms in just 15 minutes instead of hours. For enterprises that have struggled with failed AI projects, Serenity Star offers not only a secure and compliant solution but also one proven to grow with their needs. Why Azure Database for PostgreSQL is a cornerstone The knowledge component of AI agents relies heavily on retrieval-augmented generation (RAG) systems that perform similarity searches against embedded content. This requires a database capable of handling efficient vector search while maintaining enterprise-grade reliability and security. SubgenAI evaluated multiple vector database options. However, Azure Database for PostgreSQL with PGVector emerged as the clear winner. There were several compelling reasons for this. One is its mature technology, which provides immediate credibility with enterprise customers. Two, the ability to scale GenAI use cases with features like DiskANN for accurate and scalable vector search. There, the flexibility and appeal of using an open-source database with a vibrant and fast-moving community. As CPO Leandro Harillo explains: “When we tell them their data runs on Azure Database for PostgreSQL, it’s a relief. It's a well-known technology versus other options that were born with this new AI revolution.” As an open-source relational database management system, Azure Database for PostgreSQL offers extensibility and seamless integration with Microsoft’s enterprise ecosystem. It has a trusted reputation that appeals to organizations with strict data sovereignty and compliance requirements such as those in healthcare and insurance where reliability and governance are non-negotiable. The integration with Azure's broader ecosystem also simplified implementation. With Serenity Star built entirely on Azure infrastructure, Azure Database for PostgreSQL provided seamless connectivity and consistent performance characteristics. The fast response times necessary for real-time agent interactions are the result, along with maintaining the reliability demanded by enterprise customers. Semantic Kernel: Enabling model flexibility at scale Enterprise AI success requires the ability to experiment with different models and adapt quickly as technology evolves. Semantic Kernel makes this possible, supporting over 300 LLMs and embedding models through a unified interface. With Serenity Star, organizations can make genuine choices about their AI implementations without vendor lock-in. Companies can use embedding models from OpenAI through Azure deployments, ensuring their information remains in their own infrastructure while accessing cutting-edge capabilities. If business requirements change or new models emerge, switching becomes a configuration change rather than a development project. Semantic Kernel's comprehensive connector ecosystem also accelerated SubgenAI's own development process. Interfaces for different vector databases enabled rapid prototyping and comparison during the evaluation phase. “Semantic Kernel helped us to be able to try the different ones and choose the one that fit better for us,” notes Julia Schroder, VP of Product. The SubgenAI team has also extended Semantic Kernel to support more features in Azure Database for PostgreSQL, which is easier because of how well-known and popular PostgreSQL is. SubgenAI has also contributed improvements back to the community. This collaborative approach ensures the platform benefits from the latest developments while helping advance the broader ecosystem. Proven impact of Azure Database for PostgreSQL across industries Because organizations struggle to deliver production-ready agents because of long development cycles, lack of observability, and compliance, the effectiveness of Azure Database for PostgreSQL and other Azure services is reflected in deployment metrics and customer feedback. Production-ready agents typically require around 30 iterations for basic implementations. Complex use cases demand significantly more refinement. One GenAI customer in medical education required over 200 iterations to perfect an agent that evaluates medical students through complex case analysis. Azure PostgreSQL and other Azure services support hour-long iteration cycles rather than week-long sprints, which made this level of refinement economically feasible. Cost efficiency is another significant advantage. SubgenAI provisions and configures models in Microsoft Foundry, which eliminates idling GPU resources while providing detailed cost breakdowns. Users can see exactly how tokens are consumed across prompt text, RAG context, and tool usage, enabling data-driven optimization decisions. Consulting partnerships validate the platform's market position. One consulting firm with 50,000 employees is delighted with the easier implementation, faster deployment, and reliable production performance. Conclusion The combination of Azure Database for PostgreSQL and Semantic Kernel has enabled SubgenAI to address the fundamental challenges that cause 95 percent of enterprise AI projects to fail. Organizations using Serenity Star bypass the traditional barriers of lengthy development cycles, limited observability, and compliance hurdles that typically derail AI initiatives. The platform's architecture delivers measurable results, including a 50 percent reduction in coding time, support for complex agents requiring 200+ iterations, and deployment capabilities that compress months-long projects into 15-minute implementations. Azure Database for PostgreSQL provides the enterprise-grade foundation that customers in regulated industries require, while Semantic Kernel ensures organizations retain flexibility as AI technology evolves. This technological partnership creates a reliable pathway for companies to deploy production-ready AI agents without sacrificing data sovereignty or operational control. Through the reliability of Azure Database for PostgreSQL and the flexibility of Semantic Kernel, Serenity Star delivers an enterprise-ready foundation that makes AI practical, scalable, and sustainable.Build Enterprise-Ready AI Agents with the New Azure Postgres LangChain + LangGraph Connector
AI agents are only as powerful as the data layer behind them. That’s why we’re excited to announce native LangChain + LangGraph connector for Azure Database for PostgreSQL. With this release, Postgres becomes your single source of truth for AI agents, handling knowledge retrieval, chat history, and long-term memory all in one place. This new connector is packed with everything you need to build secure, scalable and enterprise-ready AI agents on Azure without the complexity. With EntraID authentication, DiskANN acceleration, vector store, and a dedicated agent store, you can go from prototype to production on Azure faster than ever. You can quickly get started with the LangChain + LangGraph connector today pip install langchain-azure-postgresql In this post, we’ll cover: How Azure Postgres connector for LangGraph can serve as the single persistence + retrieval layer for an AI agent New first-class connector for LangChain +LangGraph A practical example to help you get started Azure PostgreSQL as the single persistence + retrieval layer for an AI agent When building AI agents today, developers face a fragmented stack: Vector storage and search require a library, service or separate database. Chat history & short-term memory need yet another data source. Long-term memory often means bolting on yet another system. This sprawl leads to complex integrations, higher costs, and weaker security, making it hard to scale AI agents reliably. The Solution The new Azure Postgres connector for LangChain + LangGraph transforms your Azure Postgres database to the single persistence + retrieval layer for AI agents. Instead of working on a fragmented stack, developers can now: Run embeddings + semantic search with built-in DiskANN acceleration in the same database that powers their application logic. Persist chat history and short-term memory and keep agent conversations grounded via seamless context retrieval from data stored in Postgres. Capture, retrieve, and evolve knowledge over time with a built-in long-term memory without bolting on external systems. All in one database, simplified, secure, and enterprise ready. Postgres becomes the persistent and retrieval data layer for your AI agent. Built for Enterprise Readiness: LangChain + LangGraph Connector This release unlocks several new capabilities that make it easy to build robust, production-ready agents: Auth with EntraID: Enterprise-grade identity to securely connect LangChain + LangGraph workflows to Azure Database for PostgreSQL within a centrally managed security perimeter based on identity. DiskANN & Extensions: First-class support for faster vector search using pgvector combined with DiskANN indexing, enabling support for high-dimensional vectors and cost-efficient search. Additionally, helper functions ensure your favorite extensions are installed. Native Vector Store: Store and query embeddings, enabling semantic search and Retrieval-Augmented Generation (RAG) scenarios. Dedicated Agent Store: Persist agent state, memory, and chat history with structured access patterns, perfect for multi-turn conversations and long-term context. Together, these features give developers a turnkey persistence solution for building reliable AI agents without stitching together multiple storage systems. Using LangGraph on Azure Database for PostgreSQL Using LangGraph with Azure Database for PostgreSQL is easy. Enable the vector & pg_diskann Extension: Allowlist the vector and pg_diskann extension within your server configuration. Import LangChain + LangGraph connector pip install langchain-azure-postgresql pip install -qU langchain-openai pip install -qU azure-identity Login to Azure, to your Entra ID Run az login in your terminal, where you will also run the LangGraph code. az login To get started, you need to set up a production-ready vector store for your agent in a few lines of code. # 1. Auth: Securely connect to Azure Postgres connection_pool = AzurePGConnectionPool(azure_conn_info=ConnectionInfo(host=os.environ["PGHOST"])) #2. Create embeddings embeddings = AzureOpenAIEmbeddings(model="text-embedding-3-small") # 3. Initialize a vector store in Postgres with DiskANN vector_store = AzurePGVectorStore(connection=connection, embedding=embeddings) Use LangGraph to build a sample agent. Here’s a practical example that combines vector search and checkpointer inside Postgres: #4 Define the tool for data retrieval. def get_data_from_vector_store(query: str) -> str: """Get data from the vector store.""" results = vector_store.similarity_search(query) return results #5 Define the agent, checkpointer and memory store. with connection_pool.getconn() as conn: agent = create_react_agent( model=model, tools=[get_data_from_vector_store], checkpointer=PostgresSaver(conn) ) #6 Run the agent and print results config = {"configurable": {"thread_id": "1", "user_id": "1"}} response = agent.invoke( {"messages": [{"role": "user", "content": "What does my database say about cats? Make sure you address me with my name"}]}, config ) for msg in response["messages"][-2:]: msg.pretty_print() With just a few lines of code, you can: Uses the vector store backed by Postgres Enable DiskANN for semantic search Use checkpointers for short-term conversation history Learn More This is just the beginning. With native LangChain + LangGraph support in Azure PostgreSQL, developers can now rely on a single, secure, high-performance data layer for building the next generation of AI agents. 👉 Ready to start? All the code are available in the Azure Postgres Agents Demo GitHub repository. See how easy it is to bring your AI agent to life on Azure. 👉 Check out the docs for more details on the LangChain + LangGraph connector.Fueling the Agentic Web Revolution with NLWeb and PostgreSQL
We’re excited to announce that NLWeb (Natural Language Web), Microsoft’s open project for natural language interfaces on websites now supports PostgreSQL. With this enhancement, developers can leverage PostgreSQL and NLWeb to transform any website into an AI-powered application or Model Context Protocol (MCP) server. This integration allows organizations to utilize a familiar, robust database as the foundation for conversational AI experiences, streamlining deployment and maximizing data security and scalability. Soon, autonomous agents, not just human users, will consume and interpret website content, transforming how information is accessed and utilized online. During Microsoft //Build 2025, Microsoft introduced the era of the open agentic web, in which the internet is an open agentic web a new paradigm in which autonomous agents seamlessly interact across individual, organizational, team and end-to-end business contexts. To realize the future of an open agentic web, Microsoft announced the NLWeb project. NLWeb transforms any website to an AI-powered application with just a few lines of code and by connecting to an AI model and a knowledge base. In this post, we’ll cover: What NLWeb is and how it works with vector databases How pgvector enables vector similarity search in PostgreSQL for NLWeb Get started using NLWeb with Postgres Let’s dive in and see how Postgres + NLWeb can redefine conversational web interfaces while keeping your data in a familiar, powerful database. What is NLWeb? A Quick Overview of Conversational Web Interfaces NLWeb is an open project developed by Microsoft to simplify adding conversational AI interfaces to websites. How NLWeb works under the hood: Processes existing data/website content that exists in semi-structured formats like Schema.org, RSS, and other data that websites already publish Embeds and indexes all the content in a vector store (i.e PostgreSQL with pgvector) Routes user queries through several processes which handle natural langague understanding, reranking and retrieval. Answers queries with an LLM The result is a high-quality natural language interface on top of web data, giving developers the ability to let users “talk to” web data. By default, every NLWeb instance is also a Model Context Protocol (MCP) server, allowing websites to make their content discoverable and accessible to agents and other participants in the MCP ecosystem if they choose. Importantly, NLWeb is platform-agnostic and supports many major operating systems, AI models, and vector stores and the NLWeb project is modular by design, so developers can bring their own retrieval system, model APIs, and define their own extensions. NLWeb with PostgreSQL PostgreSQL is now embedded into the NLWeb reference stack as a native retriever, creating a scalable and flexible path for deploying NLWeb instances using open-source infrastructure. Retrieval Powered by pgvector NLWeb leverages pgvector, a PostgreSQL extension for efficient vector similarity search, to handle natural language retrieval at scale. By integrating pgvector into the NLWeb stack, teams can eliminate the need for external vector databases. Web data stored in PostgreSQL becomes immediately searchable and usable for NLWeb experiences, streamlining infrastructure and enhancing security. PostgreSQL's robust governance features and wide adoption align with NLWeb’s mission to enable conversational AI for any website or content platform. With pgvector retrieval built in, developers can confidently launch NLWeb instances on their own databases no additional infrastructure required. Implementation example We are going to use NLWeb and Postgres, to create a conversational AI app and MCP server that will let us chat with content from the Talking Postgres with Claire Giordano Podcast! Prerequisites An active Azure account. Enable and configure the pg_vector extensions. Create an Azure AI Foundry project. Deploy models gpt-4.1, gpt-4.1-mini and text-embedding-3-small. Install Visual Studio Code. Install the Python extension. Install Python 3.11.x. Install the Azure CLI (latest version). Getting started All the code and sample datasets are available in this GitHub repository. Step 1: Setup NLWeb Server 1. Clone or download the code from the repo. git clone https://github.com/microsoft/NLWeb cd NLWeb 2. Open a terminal to create a virtual python environment and activate it. python -m venv myenv source myenv/bin/activate # Or on Windows: myenv\Scripts\activate 3. Go to the 'code/python' folder in NLWeb to install the dependencies. cd code/python pip install -r requirements.txt 4. Go to the project root folder in NLWeb and copy the .env.template file to a new .env file cd ../../ cp .env.template .env 5. In the .env file, update the API key you will use for your LLM endpoint of choice and update the Postgres connection string. For example: AZURE_OPENAI_ENDPOINT="https://TODO.openai.azure.com/" AZURE_OPENAI_API_KEY="<TODO>" # If using Postgres connection string POSTGRES_CONNECTION_STRING="postgresql://<HOST>:<PORT>/<DATABASE>?user=<USERNAME>&sslmode=require" POSTGRES_PASSWORD="<PASSWORD>" 6. Update your config files (located in the config folder) to make sure your preferred providers match your .env file. There are three files that may need changes. config_llm.yaml: Update the first line to the LLM provider you set in the .env file. By default it is Azure OpenAI. You can also adjust the models you call here by updating the models noted. By default, we are assuming 4.1 and 4.1-mini. config_embedding.yaml: Update the first line to your preferred embedding provider. By default it is Azure OpenAI, using text-embedding-3-small. config_retrieval.yaml: Update the first line to postgres. You should update write_endpoint to postgres and You should update postgres retrieval endpoint is enabled to 'true' in the following list of possible endpoints. Step 2: Initialize Postgres Server Go to the 'code/python/misc folder in NLWeb to run Postgres initializer. NOTE: If you are using Azure Postgres Flexible server make sure you have `vector` extension allow-listed and make sure the database has the vector extension enabled, cd code/python/misc python postgres_load.py Step 3: Ingest Data from Talk Postgres Podcast Now we will load some data in our local vector database to test with. We've listed a few RSS feeds you can choose from below. Go to the 'code/python folder in NLWeb and run the command. The format of the command is as follows (make sure you are still in the 'python' folder when you run this): python -m data_loading.db_load <RSS URL> <site-name> Talking Postgres with Claire Giordano Podcast: python -m data_loading.db_load https://feeds.transistor.fm/talkingpostgres Talking-Postgres (Optional) You can check the documents table in your Postgres database and verify the table looks like the one below. To verify all the data from the website was uploaded. Test NLWeb Server Start your NLWeb server (again from the 'python' folder): python app-file.py Go to http://localhost:8000/ Start ask questions about the Talking Postgres with Claire Giordano Podcast, you may try different modes. Trying List Mode: Sample Prompt: “I want to listen to something that talks about the advances in vector search such as DiskANN” Trying Generate Mode Sample Prompt: “What did Shireesh Thota say about the future of Postgres?” Running NLWeb with MCP 1. If you do not already have it, install MCP in your venv: pip install mcp 2. Next, configure your Claude MCP server. If you don’t have the config file already, you can create the file at the following locations: macOS: ~/Library/Application Support/Claude/claude_desktop_config.json Windows: %APPDATA%\Claude\claude_desktop_config.json The default MCP JSON file needs to be modified as shown below: macOS Example Configuration { “mcpServers”: { “ask_nlw”: { “command”: “/Users/yourname/NLWeb/myenv/bin/python”, “args”: [ “/Users/yourname/NLWeb/code/chatbot_interface.py”, “—server”, “http://localhost:8000”, “—endpoint”, “/mcp” ], “cwd”: “/Users/yourname/NLWeb/code” } } } Windows Example Configuration { “mcpServers”: { “ask_nlw”: { “command”: “C:\\Users\\yourusername\\NLWeb\\myenv\\Scripts\\python”, “args”: [ “C:\\Users\\yourusername\\NLWeb\\code\\chatbot_interface.py”, “—server”, “http://localhost:8000”, “—endpoint”, “/mcp” ], “cwd”: “C:\\Users\\yourusername\\NLWeb\\code” } } } Note: For Windows paths, you need to use double backslashes (\\) to escape the backslash character in JSON. 3. Go to the 'code/python’ folder in NLWeb and run the command. Enter your virtual environment and start your NLWeb local server. Make sure it is configured to access the data you would like to ask about from Claude. # On macOS source ../myenv/bin/activate python app-file.py # On Windows ..\myenv\Scripts\activate python app-file.py 4. Open Claude Desktop. It should ask you to trust the 'ask_nlw' external connection if it is configured correctly. After clicking yes and the welcome page appears, you should see 'ask_nlw' in the bottom right '+' options. Select it to start a query. 5. To query NLWeb, just type 'ask_nlw' in your prompt to Claude. You'll notice that you also get the full JSON script for your results. Remember, you must have your local NLWeb server started to use this option. Learn More Vector Store in Azure Postgres Flexible Server Generative AI in Azure Postgres Flexible Server NLWeb GitHub repo includes: A reference server for handling natural language queries PGvector integrationBuild AI-Ready Apps and Agents with PostgreSQL on Azure
As developers, we’re constantly looking for ways to build smarter, faster, and more scalable applications. The Microsoft Reactor series, Build AI apps with Azure Database for PostgreSQL, is a four-part livestream experience designed to help you do just that—by combining the power of PostgreSQL with Azure’s AI capabilities. Dive into the world of AI apps and agents with Azure Database for PostgreSQL in this engaging video series—your ideal starting point for building intelligent solutions and improving your workflow. Get ready to explore the fundamentals of AI and discover how vector support in databases can elevate your applications. Uncover how innovative tools like the Visual Studio Code extension for PostgreSQL and GitHub Copilot can make your database work faster and more efficient. You'll also see how to create intelligent apps and AI agents using frameworks such as LangChain and Semantic Kernel. Why This Series Matters PostgreSQL is already a favorite among developers for its flexibility and open-source strength. But when paired with Azure’s AI services, it becomes a launchpad for intelligent applications. This series walks you through how to: Orchestrate AI agents using PostgreSQL as a foundation. Enhance semantic search with vector support and indexes like DiskANN. Integrate Azure AI services to enrich your data and user experiences. Boost productivity with tools like the Visual Studio Code PostgreSQL extension and GitHub Copilot. What You'll Learn Each session is packed with practical insights: Episode 1: Laying the foundation: AI-powered apps and agents with Azure Database for PostgreSQL We introduce key AI concepts, setting the stage for a deeper understanding of Large Language Models (LLMs) and its applications, we will explore the capabilities of Azure Database for PostgreSQL, focusing on how its vector support enables advanced semantic search through technologies like DiskANN indexes. We'll also discuss the Azure AI extension, which brings powerful AI features to your data projects, helping you enrich your applications with enhanced search relevance and intelligent insights, and provide a solid foundation for leveraging these tools in your own solutions. Register here Episode 2: Accelerate your data and AI tasks with the VS Code extension for PostgreSQL and GitHub Copilot This talk will delve into how the Visual Studio Code extension for PostgreSQL can streamline your database management, while GitHub Copilot's AI-powered assistance can boost your productivity. Learn how to seamlessly integrate these tools to enhance your workflow, automate repetitive tasks, and write efficient code faster. Whether you're a developer, data scientist, or database administrator, this session will provide you with practical insights and techniques to elevate your data and AI projects. Join us to learn how to effectively use these advanced tools and take your data skills to the next level. Register here Episode 3: Build your own AI copilot for financial apps with PostgreSQL Join us to discover how to transform traditional financial applications into intelligent, AI-powered solutions with Azure Database for PostgreSQL. In this hands-on session, you'll learn to integrate generative AI for high-quality responses to financial queries using PDF-based Statements of Work and invoices, perform AI-driven data validation, apply the Azure AI extension, implement vector search with DiskANN indexes, enhance results with semantic re-ranking, use the LangChain framework, and leverage GraphRAG on Azure Database for PostgreSQL. By the end, you’ll have gained practical skills to build end-to-end AI-driven applications using your own data and projects. Register here Episode 4: Build advanced AI Agents with PostgreSQL Using a sample dataset of legal cases, we’ll show how AI technologies empower intelligent agents to provide high-quality answers to legal queries. In this session, you’ll learn to build an advanced AI agent with Azure Database for PostgreSQL, integrating generative AI for enhanced data validation, retrieval-augmented generation (RAG), semantic re-ranking, Semantic Kernel, and GraphRAG via the Apache AGE Graph extension. This practical demonstration offers insights into developing robust, intelligent solutions using your own data. Register here Join us for an inspiring and hands-on experience—don’t miss out! Get the full series details and register now: https://aka.ms/postgres-ai-reactor-seriesDiskANN on Azure Database for PostgreSQL – Now Generally Available
By Abe Omorogbe, Senior PM We’re thrilled to announce the General Availability (GA) of DiskANN for Azure Database for PostgreSQL unlocking fast, scalable, and cost-effective vector search for production workloads. Building on momentum from our private and public previews, this release brings major upgrades that directly reflect customer feedback for better performance, lower memory usage, and greater flexibility for advanced GenAI applications. Whether you're working with massive datasets or deploying on resource-constrained environments, DiskANN now offers an index that scales effortlessly. DiskANN delivers up to 10x faster speed, 4x lower costs and up to 96x lower memory footprint compared to the industry standard pgvector HNSW. In this post, we’ll highlight the following: Common pain points in large-scale vector search New features in the GA release Dive into product quantization (PQ) the main optimization that powers DiskANN’s performance Share internal testing results that demonstrate how DiskANN stacks up against alternatives like HNSW. Read on to see why DiskANN is ready for your most demanding vector search workloads. What is DiskANN? Developed by Microsoft Research and battle-tested across global services like Bing and Microsoft 365, DiskANN is a high-performance approximate nearest neighbor (ANN) search algorithm built for scalable vector search. It delivers the high recall, high throughput, and low latency required by today’s most demanding agentic AI and retrieval-augmented generation (RAG) workloads. DiskANN offers the following benefits: Low Latency: Its graph-based index structure minimizes SSD reads during search, enabling high throughput and consistently low query latency. Cost Efficiency: DiskANN’s design reduces memory usage up to 96x smaller than standard indexing methods helping lower infrastructure costs. Scalability: Optimized for massive datasets, DiskANN is built to efficiently handle millions of vectors, making it ideal for production-scale applications. Accuracy: DiskANN delivers highly accurate results without sacrificing speed or precision. Integration: DiskANN works natively with Azure Database for PostgreSQL, leveraging the power and flexibility of PostgreSQL. Breaking Through the Limits of Large-Scale Vector Search Vector search has become essential for powering AI applications from recommendation systems to agentic AI but scaling it has been anything but easy. If you've worked with large vector datasets, you've likely run into the same roadblocks: Your data is too big to fit in memory leading to slower searches. Building indexes takes forever and eats up your resources. You have no idea how long the indexing process will take or where it’s stuck. Your embedding model outputs high-dimensional vectors, but your database can’t handle them. Database bills spiral out of control due to memory intensive machines needed for efficient search on a large dataset. Sound familiar? These are not edge cases they’re the standard challenges faced by anyone trying to scale Postgres’s vector search capabilities into real-world production workloads. With the General Availability (GA) release of DiskANN for Azure Database for PostgreSQL, we’re tackling these problems head-on, bringing production-ready scale, speed, and efficiency to vector search. Let’s break down how. Product Quantization (PQ) for Lower Memory and Storage Costs (preview) One of the biggest blockers in vector search is fitting your data into memory. When using pgvector’s HNSW and your vector data doesn't fit in memory, this can lead to compute intensive I/O operations, causing degraded performance. With the GA release, DiskANN introduces a preview version of Product Quantization (PQ)—a powerful vector compression technique that makes it possible to store and search massive datasets with a dramatically smaller memory footprint. With PQ enabled, you get: Reduced memory usage — enabling datasets that previously couldn’t fit in RAM. Lower memory costs — compressed vectors mean smaller indexes and cheaper monthly bills. Faster performance — less I/O pressure means lower latency and higher throughput. Example results In our internal testing, we use pg_diskann on Azure Postgres to build an index of 35 million 768D vectors and ran benchmarking queries on an 8-core 32GB machine. The results were: 32x lower memory footprint than using pgvector’s HNSW and 4x lower cost due to significantly less resources needed to run vector search queries effectively compared to HNSW. Also, compared to standard HSNW, pg_diskann delivers up to 10x lower latency @ 95% recall especially in large scale scenarios with millions of vectors. When testing higher quality embedding such as OpenAI v3-large (3072 dimensions), we saw up to 96x lower memory footprint, due to extremely efficient compressing. In this scenario PQ compresses each vector from 12KB (3072 D, 4 bytes/D) to just 128B per quantized vector. Sign up for the preview today! To get access. Go Big: Supports vectors up to 16,000 dimensions Another big blocker for customers developing advanced GenAI applications with pgvector is that HNSW only supports indexing vectors up to 2,000 dimensions a limit that constrains the development of applications using high-dimensional embedding models which deliver high accuracy (i.e. text-embedding-large). With this release, DiskANN now supports vectors up to 16,000 dimensions. When you have product quantization enabled. Popular embedding models with over 2000 dimensions (text-embedding-large, E5-mistral-7b-instruct and NV-embed-v2) Faster Index Builds, Smarter Memory Usage Index creation has historically been a pain point, especially in previous versions of pg_diskann—especially for large datasets. In this GA release, we’ve significantly accelerated the build process through: Improved memory management using `maintenance_work_mem` more efficiently. Optimized algorithms that reduce disk I/O and CPU usage during indexing We’ve also published detailed documentation to guide you through best practices for faster index builds. The result? Index builds that are not only faster but more predictable and resource friendly. When indexing 1 millions vectors, the DiskANN GA version is ~2x faster. It took 696.0630 seconds vs 1172.3314 seconds in our DiskANN preview build. Real-Time Index Progress Tracking Previously, with pg_diskann building large indexes felt like working in the dark. Now, with the addition of improved progress reporting support, you can track exactly how far along your index build is—making it easier to monitor, plan, and troubleshoot during creation. Checking index build progress with PSQL in VSCode Use the following command in PSQL to check pg_diskann index build progress. SELECT phase, round(100.0 * blocks_done / nullif(blocks_total, 0), 1) AS "%" FROM pg_stat_progress_create_index; Using DiskANN on Azure Database for PostgreSQL Using DiskANN on Azure Database for PostgreSQL is easy. Enable the pgvector & diskann Extension: Allowlist the pgvector and diskann extension within your server configuration. Activating DiskANN in Azure Database for PostgreSQL Create Extension in Postgres: Create the pg_diskann extension on your database along with any dependencies. CREATE EXTENSION IF NOT EXISTS pg_diskann CASCADE; Create a Vector Column: Define a table to store your vector data, including a column of type vector for the vector embeddings. CREATE TABLE demo ( id INT GENERATED ALWAYS AS IDENTITY PRIMARY KEY, embedding public.vector(3) ); INSERT INTO demo (embedding) VALUES ('[1.0, 2.0, 3.0]'), ('[4.0, 5.0, 6.0]'), ('[7.0, 8.0, 9.0]'); Index the Vector Column: Create an index on the vector column to optimize search performance. The pg_diskann PostgreSQL extension is compatible with pgvector, it uses the same types, distance functions and syntactic style. To use Product Quanatization sign up for the preview today! CREATE INDEX demo_embedding_diskann_idx ON demo USING diskann (embedding vector_cosine_ops) Perform Vector Searches: Use SQL queries to search for similar vectors based on various distance metrics (cosine similarity in the example below). SELECT id, embedding FROM demo ORDER BY embedding <=> '[2.0, 3.0, 4.0]' LIMIT 5; Ready to Dive In? DiskANN’s GA release transforms PostgreSQL into a fully capable vector search platform for production AI workloads. It delivers: Support for millions of compressed vectors Compatibility with pgvector Reduced memory and storage costs Faster index creation Support for high-dimensional vectors Real-time indexing progress visibility Whether you’re building an enterprise-scale retrieval system or optimizing costs in a lean AI application, Use the DiskANN today and explore the future of AI-driven applications with the power of Azure Database for PostgreSQL! Run our end-to-end sample RAG app with DiskANN Learn More DiskANN on Azure Database for PostgreSQL is ready for production workloads. With Product Quantization, support for high-dimensional vectors, faster index creation, and clearer operational visibility, you can now scale your vector search applications even further — all while keeping costs low. To learn more, check out our documentation and start building today!Build AI Agents with Azure Database for PostgreSQL and Azure AI Agent Service
Introduction AI agents are revolutionizing how applications interact with data by combining large language models (LLMs) with external tools and databases. This blog will show you how to combine Azure Database for PostgreSQL with Azure AI Agent Service to create intelligent AI agents that can search and analyze your data. We'll use a legal research assistant as our example and walk through setup, implementation, and testing. With just a few hours of work, you can build an AI solution that would have taken weeks of traditional development. Why AI Agents Matter AI agents can improve productivity by handling repetitive, time-consuming tasks. AI agents can transform how businesses interact with their data by automating complex workflows, providing more accurate information retrieval, and enabling natural language interfaces to databases. What are AI agents? AI agents go beyond simple chatbots by combining large language models (LLMs) with external tools and databases. Unlike standalone LLMs or standard RAG systems, AI agents can: Plan: Break down complex tasks into smaller, sequential steps. Use Tools: Leverage APIs, code execution, search systems to gather information or perform actions. Perceive: Understand and process inputs from various data sources. Remember: Store and recall previous interactions for better decision-making. By connecting AI agents to databases like Azure Database for PostgreSQL, agents can deliver more accurate, context-aware responses based on your data. AI agents extend beyond basic human conversation to carry out tasks based on natural language. These tasks traditionally required coded logic; however, agents can plan the tasks needed to execute based on user-provided context. Agents can be implemented using various GenAI frameworks including LangChain, LangGraph, LlamaIndex and Semantic Kernel. All these frameworks support using Azure Database for PostgreSQL as a tool. This uses the Azure AI Agents Service for agent planning, tool usage, and perception, while using Azure Database for PostgreSQL as a tool for vector database and semantic search capabilities. Real-World Use Case: Legal Research Assistant In this tutorial, we'll build an AI agent that helps legal teams research relevant cases to support their clients in Washington state. Our agent will: Accept natural language queries about legal situations. Use vector search in Azure Database for PostgreSQL to find relevant case precedents. Analyze and summarize the findings in a format useful for legal professionals. Prerequisites Azure Resources An active Azure account. Azure Database for PostgreSQL Flexible Server instance running PG 14 or higher. With pg_vector and azure_ai extensions enabled Azure AI Foundry Project Deployed Azure GPT-4o-mini endpoint. Deployed Azure text-embedding-small endpoint. Local Setup Install Visual Studio Code. Install the Python extension. Install Python 3.11.x. Install Azure CLI.(latest version) Project Implementation All the code and sample datasets are available in this GitHub repository. Step 1: Set Up Vector Search in Azure Database for PostgreSQL First, we'll prepare our database to store and search legal case data using vector embeddings: Environment Setup: If using macOS / bash: python -m venv .pg-azure-ai source .pg-azure-ai/bin/activate pip install -r requirements.txt Windows / PowerShell python -m venv .pg-azure-ai .pg-azure-ai \Scripts\Activate.ps1 pip install -r requirements.txt Windows / cmd.exe: python -m venv .pg-azure-ai .pg-azure-ai \Scripts\activate.bat pip install -r requirements.txt Configure Environment Variables: Create a .env file with your credentials: AZURE_OPENAI_API_KEY="" AZURE_OPENAI_ENDPOINT="" EMBEDDING_MODEL_NAME="" AZURE_PG_CONNECTION="" Load documents and vectors The Python file load_data/main.py serves as the central entry point for loading data into Azure Database for PostgreSQL. This code processes sample cases data, including information about cases in Washington. High level details of main.py: Database setup and Table Creation: Creates necessary extensions, sets up OpenAI API settings, and manages database tables by dropping existing ones and creating new ones for storing case data. Data Ingestion: Reads data from a CSV file and inserts it into a temporary table, then processes and transfers this data into the main cases table. Embedding Generation: Adds a new column for embeddings in the cases table and generates embeddings for case opinions using OpenAI's API, storing them in the new column. The embedding process will take ~3-5 minutes To start the data loading process, run the following command from the load_data directory: python main.py Here's the output of main.py: Extensions created successfully OpenAI connection established successfully Cases table created successfully Temp cases table created successfully Data loaded into temp_cases_data table successfully Data loaded into cases table successfully Adding Embeddings, this will take a while around 3-5 mins... Embeddings added successfully All Data loaded successfully! Step 2: Create Postgres tool for the Agent In this step we will be configuring AI agent tools to retrieve data from Postgres and then using the Azure AI Agent Service SDK to connect your AI agent to the Postgres database. Define a function for your agent to call Start by defining a function for your agent to call by describing its structure and any required parameters in a docstring. Include all your function definitions in a single file, legal_agent_tools.py which you can then import into your main script. def vector_search_cases(vector_search_query: str, start_date: datetime ="1911-01-01", end_date: datetime ="2025-12-31", limit: int = 10) -> str: """ Fetches the cases information in Washington State for the specified query. :param query(str): The query to fetch cases for specifically in Washington. :type query: str :param start_date: The start date for the search, defaults to "1911-01-01" :type start_date: datetime, optional :param end_date: The end date for the search, defaults to "2025-12-31" :type end_date: datetime, optional :param limit: The maximum number of cases to fetch, defaults to 10 :type limit: int, optional :return: Cases information as a JSON string. :rtype: str """ db = create_engine(CONN_STR) query = """ SELECT id, name, opinion, opinions_vector <=> azure_openai.create_embeddings( 'text-embedding-3-small', %s)::vector as similarity FROM cases WHERE decision_date BETWEEN %s AND %s ORDER BY similarity LIMIT %s; """ # Fetch cases information from the database df = pd.read_sql(query, db, params=(vector_search_query,datetime.strptime(start_date, "%Y-%m-%d"), datetime.strptime(end_date, "%Y-%m-%d"),limit)) cases_json = json.dumps(df.to_json(orient="records")) return cases_json Step 3: Create and Configure the AI Agent with Postgres Now we'll set up the AI agent and integrate it with our PostgreSQL tool. The Python file src/simple_postgres_and_ai_agent.py serves as the central entry point for creating and using your agent. High level details of simple_postgres_and_ai_agent.py: Create an Agent: Initializes the agent in your Azure AI Project with a specific model. Add Postgres tool: During the agent initialization, the Postgres tool to do vector search on your Postgres DB is added. Create a Thread: Sets up a communication thread. This will be used to send messages to the agent to process Run the Agent and Call Postgres tool: Processes the user's query using the agent and tools. The agent can plan with tools to use to get the correct answer. In this use case the agent will call the Postgres tool based on the function signature and docstring to do vector search and retrieve the relevant data to answer the question. Display the Agent’s Response: Outputs the agent's response to the user's query. Find the Project Connection String in Azure AI Foundry: In your Azure AI Foundry project you will find you Project Connection String from the Overview page of the project we will use this string to connect the project to the AI agent SDK. We will be adding this string to the .env file. Connection Setup: Add these variables to your .env file in the root directory: PROJECT_CONNECTION_STRING=" " MODEL_DEPLOYMENT_NAME="gpt-4o-mini" AZURE_TRACING_GEN_AI_CONTENT_RECORDING_ENABLED="true" Create the Agent with Tool Access We will create the agent in the AI Foundry project and add the Postgres tools needed to query to Database. The code snippet below is an excerpt from the file simple_postgres_and_ai_agent.py. # Create an Azure AI Client project_client = AIProjectClient.from_connection_string( credential=DefaultAzureCredential(), conn_str=os.environ["PROJECT_CONNECTION_STRING"], ) # Initialize agent toolset with user functions functions = FunctionTool(user_functions) toolset = ToolSet() toolset.add(functions) agent = project_client.agents.create_agent( model= os.environ["MODEL_DEPLOYMENT_NAME"], name="legal-cases-agent", instructions= "You are a helpful legal assistant that can retrieve information about legal cases.", toolset=toolset ) Create Communication Thread: This code snippet, shows how to create a thread and message for the agent. The thread and message will be what the agent processes in a run. # Create thread for communication thread = project_client.agents.create_thread() # Create message to thread message = project_client.agents.create_message( thread_id=thread.id, role="user", content="Water leaking into the apartment from the floor above, What are the prominent legal precedents in Washington on this problem in the last 10 years?" ) Process the Request: This code snippet creates a run for the agent to process the message and use the appropriate tools to provide the best result. Using the tool, the agent will be able to call your Postgres and the vector search on the query “Water leaking into the apartment from the floor above”, to retrieve the data it will need to answer the question best. from pprint import pprint # Create and process agent run in thread with tools run = project_client.agents.create_and_process_run( thread_id=thread.id, agent_id=agent.id ) # Fetch and log all messages messages = project_client.agents.list_messages(thread_id=thread.id) pprint(messages['data'][0]['content'][0]['text']['value']) Run the Agent: To run the agent, run the following command from the src directory: python simple_postgres_and_ai_agent.py The agent will produce a similar result as below using the Azure Database for PostgreSQL tool to access case data saved in the Postgres Database. Snippet of output from agent: 1. Pham v. Corbett Citation: Pham v. Corbett, No. 4237124 Summary: This case involved tenants who counterclaimed against their landlord for relocation assistance and breach of the implied warranty of habitability due to severe maintenance issues, including water and sewage leaks. The trial court held that the landlord had breached the implied warranty and awarded damages to the tenants. 2. Hoover v. Warner Citation: Hoover v. Warner, No. 6779281 Summary: The Warners appealed a ruling finding them liable for negligence and nuisance after their road grading project caused water drainage issues affecting Hoover's property. The trial court found substantial evidence supporting the claim that the Warners' actions impeded the natural flow of water and damaged Hoover's property. Step 4: Testing and Debugging with Azure AI Foundry Playground After running your agent with Azure AI Agent SDK, the agent will be stored in your project, and you can experiment with the agent in the Agent playground. Using the Agent Playground: Navigate to the Agents section in Azure AI Foundry Find your agent in the list and click to open Use the playground interface to test various legal queries Test the query “Water leaking into the apartment from the floor above, What are the prominent legal precedents in Washington?”. The agent will pick the right tool to use and ask for the expected output for that query. Use sample_vector_search_cases_output.json as the sample output. Step 5: Debugging with Azure AI Foundry Tracing When developing the agent by using the Azure AI Foundry SDK, you can also debug the agent with Tracing. You will be able to debug the calls to tools like Postgres as well as seeing how to agent orchestrated each task. Debugging with Tracing: Click Tracing in the Azure AI Foundry menu Create a new Application Insights resource or connect an existing one View detailed traces of your agent's operations Learn more about how to set up tracing with the AI agent and Postgres in the advanced_postgres_and_ai_agent_with_tracing.py file on Github. Get Started Today By combining Azure Database for PostgreSQL with Azure AI Agent Service, developers can create intelligent agents that automate data retrieval, improve decision-making, and unlock powerful insights. Whether you're working on legal research, customer support, or data analytics, this setup provides a scalable and efficient solution to enhance your AI applications. Ready to build your own AI agent? Try building your own legal agent with Azure AI agent service and Postgres. 1. Setup Azure AI Foundry and Azure Database for PostgreSQL Flexible Server Setup up an AI Foundry Project and deploy models Deploy the “gpt-4o-mini” model and “text-embedding-small” models Setup Azure Database for PostgreSQL Flexible Server and pg_vector extension Allow the azure_ai extension 2. Run our end-to-end sample AI Agent using Azure Database for PostgreSQL tool 3. Customize for your use case: Replace legal data with your domain-specific information Adjust agent instructions for your specific needs Add additional tools as required Learn More Read more able Azure Database for PostgreSQL and the Azure AI Agent service. Learn more about Vector Search in Azure Database for PostgreSQL Learn more about Azure AI Agent Service
