đ AI Toolkit for VS Code: January 2026 Update
Happy New Year! đ We are kicking off 2026 with a major set of updates designed to streamline how you build, test, and deploy AI agents. This month, weâve focused on aligning with the latest GitHub Copilot standards, introducing powerful new debugging tools, and enhancing our support for enterprise-grade models via Microsoft Foundry. đĄ From Copilot Instructions to Agent Skills The biggest architectural shift following the latest VS Code Copilot standards, in v0.28.1 is the transition from Copilot Instructions to Copilot Skills. This transition has equipped GitHub Copilot specialized skills on developing AI agents using Microsoft Foundry and Agent Framework in a cost-efficient way. In AI Toolkit, we have migrated our Copilot Tools from the Custom Instructions to Agent Skills. This change allows for a more capable integration within GitHub Copilot Chat. đ Enhanced AIAgentExpert: Our custom agent now has a deeper understanding of workflow code generation and evaluation planning/execution. đ§šAutomatic Migration: When you upgrade to v0.28.1, the toolkit will automatically clean up your old instructions to ensure a seamless transition to the new skills-based framework. đď¸ Major Enhancements to Agent Development Our v0.28.0 milestone release brought significant improvements to how agents are authored and authenticated. đ Anthropic & Entra Auth Support Weâve expanded the Agent Builder and Playground to support Anthropic models using Entra Auth types. This provides enterprise developers with a more secure way to leverage Claude models within the Agent Framework while maintaining strict authentication standards. đ˘ Foundry-First Development We are prioritizing the Microsoft Foundry ecosystem to provide a more robust development experience: Foundry v2: Code generation for agents now defaults to Foundry v2. ⥠Eval Tool: You can now generate evaluation code directly within the toolkit to create and run evaluations in Microsoft Foundry. đ Model Catalog: Weâve optimized the Model Catalog to prioritize Foundry models and improved general loading performance. đď¸ đť Performance and Local Models For developers building on Windows, we continue to optimize the local model experience: Profiling for Windows ML: Version 0.28.0 introduces profiling features for Windows ML-based local models, allowing you to monitor performance and resource utilization directly within VS Code. Platform Optimization: To keep the interface clean, weâve removed the Windows AI API tab from the Model Catalog when running on Linux and macOS platforms. đ Squashing Bugs & Polishing the Experience Codespaces Fix: Resolved a crash occurring when selecting images in the Playground while using GitHub Codespaces. Resource Management: Fixed a delay where newly added models wouldn't immediately appear in the "My Resources" view. Claude Compatibility: Fixed an issue where non-empty content was required for Claude models when used via the AI Toolkit in GitHub Copilot. đ Getting Started Ready to experience the future of AI development? Here's how to get started: đĽ Download: Install the AI Toolkit from the Visual Studio Code Marketplace đ Learn: Explore our comprehensive AI Toolkit Documentation đ Discover: Check out the complete changelog for v0.24.0 We'd love to hear from you! Whether it's a feature request, bug report, or feedback on your experience, join the conversation and contribute directly on our GitHub repository. Happy Coding! đťâ¨
Published agent from Foundry doesn't work at all in Teams and M365
I've switched to the new version of Azure AI Foundry (New) and created a project there. Within this project, I created an Agent and connected two custom MCP servers to it. The agent works correctly inside Foundry Playground and responds to all test queries as expected. My goal was to make this agent available for my organization in Microsoft Teams / Microsoft 365 Copilot, so I followed all the steps described in the official Microsoft documentation: https://learn.microsoft.com/en-us/azure/ai-foundry/agents/how-to/publish-copilot?view=foundry Issue description The first problems started at Step 8 (Publishing the agent). Organization scope publishing I published the agent using Organization scope. The agent appeared in Microsoft Admin Center in the list of agents. However, when an administrator from my organization attempted to approve it, the approval always failed with a generic error: âSorry, something went wrongâ No diagnostic information, error codes, or logs were provided. We tried recreating and republishing the agent multiple times, but the result was always the same. Shared scope publishing As a workaround, I published the agent using Shared scope. In this case, the agent finally appeared in Microsoft Teams and Microsoft 365 Copilot. I can now see the agent here: Microsoft Teams â Copilot Microsoft Teams â Applications â Manage applications However, this revealed the main issue. Main problem The published agent cannot complete any query in Teams, despite the fact that: The agent works perfectly in Foundry Playground The agent responds correctly to the same prompts before publishing In Teams, every query results in messages such as: âSorry, something went wrong. Try to complete a query later.â Simplification test To exclude MCP or instruction-related issues, I performed the following: Disabled all MCP tools Removed all complex instructions Left only a minimal system prompt: âWhen the user types 123, return 456â I then republished the agent. The agent appeared in Teams again, but the behavior did not change â it does not respond at all. Permissions warning in Teams When I go to: Teams â Applications â Manage Applications â My agent â View details I see a red warning label: âPermissions needed. Ask your IT admin to add InfoConnect Agent to this team/chat/meeting.â This message is confusing because: The administrator has already added all required permissions All relevant permissions were granted in Microsoft Entra ID Admin consent was provided Because of this warning, I also cannot properly share the agent with my colleagues. Additional observation I have a similar agent configured in Copilot Studio: It shows the same permissions warning However, that agent still responds correctly in Teams It can also successfully call some MCP tools This suggests that the issue is specific to Azure AI Foundry agents, not to Teams or tenant-wide permissions in general. Steps already taken to resolve the issue Configured all required RBAC roles in Azure Portal according to: https://learn.microsoft.com/en-us/azure/ai-foundry/concepts/rbac-foundry?view=foundry-classic During publishing, an agent-bot application was automatically created. I added my account to this bot with the Azure AI User role I also assigned Azure AI User to: The projectâs Managed Identity The project resource itself Verified all permissions related to AI agents publishing in: Microsoft Admin Center Microsoft Teams Admin Center Simplified and republished the agent multiple times Deleted the automatically created agent-bot and allowed Foundry to recreate it Created a new Foundry project, configured several simple agents, and published them â the same issue occurs Tried publishing with different models: gpt-4.1, o4-mini Manually configured permissions in: Microsoft Entra ID â App registrations / Enterprise applications â API permissions Added both Delegated and Application permissions and granted Admin consent Added myself and my colleagues as Azure AI User in: Foundry â Project â Project users Followed all steps mentioned in this related discussion: https://techcommunity.microsoft.com/discussions/azure-ai-foundry-discussions/unable-to-publish-foundry-agent-to-m365-copilot-or-teams/4481420 Questions How can I make a Foundry agent work correctly in Microsoft Teams? Why does the agent fail to process requests in Teams while working correctly in Foundry? What does the âPermissions neededâ warning actually mean for Foundry agents? How can I properly share the agent with other users in my organization? Any guidance, diagnostics, or clarification on the correct publishing and permission model for Foundry agents in Teams would be greatly appreciated.From Cloud to Chip: Building Smarter AI at the Edge with Windows AI PCs
As AI engineers, weâve spent years optimizing models for the cloud, scaling inference, wrangling latency, and chasing compute across clusters. But the frontier is shifting. With the rise of Windows AI PCs and powerful local accelerators, the edge is no longer a constraint itâs now a canvas. Whether you're deploying vision models to industrial cameras, optimizing speech interfaces for offline assistants, or building privacy-preserving apps for healthcare, Edge AI is where real-world intelligence meets real-time performance. Why Edge AI, Why Now? Edge AI isnât just about running models locally, itâs about rethinking the entire lifecycle: - Latency: Decisions in milliseconds, not round-trips to the cloud. - Privacy: Sensitive data stays on-device, enabling HIPAA/GDPR compliance. - Resilience: Offline-first apps that donât break when the network does. - Cost: Reduced cloud compute and bandwidth overhead. With Windows AI PCs powered by Intel and Qualcomm NPUs and tools like ONNX Runtime, DirectML, and Olive, developers can now optimize and deploy models with unprecedented efficiency. What Youâll Learn in Edge AI for Beginners The Edge AI for Beginners curriculum is a hands-on, open-source guide designed for engineers ready to move from theory to deployment. Multi-Language Support This content is available in over 48 languages, so you can read and study in your native language. What You'll Master This course takes you from fundamental concepts to production-ready implementations, covering: Small Language Models (SLMs) optimized for edge deployment Hardware-aware optimization across diverse platforms Real-time inference with privacy-preserving capabilities Production deployment strategies for enterprise applications Why EdgeAI Matters Edge AI represents a paradigm shift that addresses critical modern challenges: Privacy & Security: Process sensitive data locally without cloud exposure Real-time Performance: Eliminate network latency for time-critical applications Cost Efficiency: Reduce bandwidth and cloud computing expenses Resilient Operations: Maintain functionality during network outages Regulatory Compliance: Meet data sovereignty requirements Edge AI Edge AI refers to running AI algorithms and language models locally on hardware, close to where data is generated without relying on cloud resources for inference. It reduces latency, enhances privacy, and enables real-time decision-making. Core Principles: On-device inference: AI models run on edge devices (phones, routers, microcontrollers, industrial PCs) Offline capability: Functions without persistent internet connectivity Low latency: Immediate responses suited for real-time systems Data sovereignty: Keeps sensitive data local, improving security and compliance Small Language Models (SLMs) SLMs like Phi-4, Mistral-7B, Qwen and Gemma are optimized versions of larger LLMs, trained or distilled for: Reduced memory footprint: Efficient use of limited edge device memory Lower compute demand: Optimized for CPU and edge GPU performance Faster startup times: Quick initialization for responsive applications They unlock powerful NLP capabilities while meeting the constraints of: Embedded systems: IoT devices and industrial controllers Mobile devices: Smartphones and tablets with offline capabilities IoT Devices: Sensors and smart devices with limited resources Edge servers: Local processing units with limited GPU resources Personal Computers: Desktop and laptop deployment scenarios Course Modules & Navigation Course duration. 10 hours of content Module Topic Focus Area Key Content Level Duration đ 00 Introduction to EdgeAI Foundation & Context EdgeAI Overview ⢠Industry Applications ⢠SLM Introduction ⢠Learning Objectives Beginner 1-2 hrs đ 01 EdgeAI Fundamentals Cloud vs Edge AI comparison EdgeAI Fundamentals ⢠Real World Case Studies ⢠Implementation Guide ⢠Edge Deployment Beginner 3-4 hrs đ§ 02 SLM Model Foundations Model families & architecture Phi Family ⢠Qwen Family ⢠Gemma Family ⢠BitNET ⢠ΟModel ⢠Phi-Silica Beginner 4-5 hrs đ 03 SLM Deployment Practice Local & cloud deployment Advanced Learning ⢠Local Environment ⢠Cloud Deployment Intermediate 4-5 hrs âď¸ 04 Model Optimization Toolkit Cross-platform optimization Introduction ⢠Llama.cpp ⢠Microsoft Olive ⢠OpenVINO ⢠Apple MLX ⢠Workflow Synthesis Intermediate 5-6 hrs đ§ 05 SLMOps Production Production operations SLMOps Introduction ⢠Model Distillation ⢠Fine-tuning ⢠Production Deployment Advanced 5-6 hrs đ¤ 06 AI Agents & Function Calling Agent frameworks & MCP Agent Introduction ⢠Function Calling ⢠Model Context Protocol Advanced 4-5 hrs đť 07 Platform Implementation Cross-platform samples AI Toolkit ⢠Foundry Local ⢠Windows Development Advanced 3-4 hrs đ 08 Foundry Local Toolkit Production-ready samples Sample applications (see details below) Expert 8-10 hrs Each module includes Jupyter notebooks, code samples, and deployment walkthroughs, perfect for engineers who learn by doing. Developer Highlights - đ§ Olive: Microsoft's optimization toolchain for quantization, pruning, and acceleration. - 𧊠ONNX Runtime: Cross-platform inference engine with support for CPU, GPU, and NPU. - đŽ DirectML: GPU-accelerated ML API for Windows, ideal for gaming and real-time apps. - đĽď¸ Windows AI PCs: Devices with built-in NPUs for low-power, high-performance inference. Local AI: Beyond the Edge Local AI isnât just about inference, itâs about autonomy. Imagine agents that: - Learn from local context - Adapt to user behavior - Respect privacy by design With tools like Agent Framework, Azure AI Foundry and Windows Copilot Studio, and Foundry Local developers can orchestrate local agents that blend LLMs, sensors, and user preferences, all without cloud dependency. Try It Yourself Ready to get started? Clone the Edge AI for Beginners GitHub repo, run the notebooks, and deploy your first model to a Windows AI PC or IoT devices Whether you're building smart kiosks, offline assistants, or industrial monitors, this curriculum gives you the scaffolding to go from prototype to production.
Building a Multi-Agent System with Azure AI Agent Service: Campus Event Management
Personal Background My name is Peace Silly. I studied French and Spanish at the University of Oxford, where I developed a strong interest in how language is structured and interpreted. That curiosity about syntax and meaning eventually led me to computer science, which I came to see as another language built on logic and structure. In the academic year 2024â2025, I completed the MSc Computer Science at University College London, where I developed this project as part of my Masterâs thesis. Project Introduction Can large-scale event management be handled through a simple chat interface? This was the question that guided my Masterâs thesis project at UCL. As part of the Industry Exchange Network (IXN) and in collaboration with Microsoft, I set out to explore how conversational interfaces and autonomous AI agents could simplify one of the most underestimated coordination challenges in campus life: managing events across multiple departments, societies, and facilities. At large universities, event management is rarely straightforward. Rooms are shared between academic timetables, student societies, and one-off events. A single lecture theatre might host a departmental seminar in the morning, a society meeting in the afternoon, and a careers talk in the evening, each relying on different systems, staff, and communication chains. Double bookings, last-minute cancellations, and maintenance issues are common, and coordinating changes often means long email threads, manual spreadsheets, and frustrated users. These inefficiencies do more than waste time; they directly affect how a campus functions day to day. When venues are unavailable or notifications fail to reach the right people, even small scheduling errors can ripple across entire departments. A smarter, more adaptive approach was needed, one that could manage complex workflows autonomously while remaining intuitive and human for end users. The result was the Event Management Multi-Agent System, a cloud-based platform where staff and students can query events, book rooms, and reschedule activities simply by chatting. Behind the scenes, a network of Azure-powered AI agents collaborates to handle scheduling, communication, and maintenance in real time, working together to keep the campus running smoothly. The user scenario shown in the figure below exemplifies the vision that guided the development of this multi-agent system. Starting with Microsoft Learning Resources I began my journey with Microsoftâs tutorial Build Your First Agent with Azure AI Foundry which introduced the fundamentals of the Azure AI Agent Service and provided an ideal foundation for experimentation. Within a few weeks, using the Azure Foundry environment, I extended those foundations into a fully functional multi-agent system. Azure Foundryâs visual interface was an invaluable learning space. It allowed me to deploy, test, and adjust model parameters such as temperature, system prompts, and function calling while observing how each change influenced the agentsâ reasoning and collaboration. Through these experiments, I developed a strong conceptual understanding of orchestration and coordination before moving to the command line for more complex development later. When development issues inevitably arose, I relied on the Discord support community and the GitHub forum for troubleshooting. These communities were instrumental in addressing configuration issues and providing practical examples, ensuring that each agent performed reliably within the shared-thread framework. This early engagement with Microsoftâs learning materials not only accelerated my technical progress but also shaped how I approached experimentation, debugging, and iteration. It transformed a steep learning curve into a structured, hands-on process that mirrored professional software development practice. A Decentralised Team of AI Agents The systemâs intelligence is distributed across three specialised agents, powered by OpenAIâs GPT-4.1 models through Azure OpenAI Service. They each perform a distinct role within the event management workflow: Scheduling Agent â interprets natural language requests, checks room availability, and allocates suitable venues. Communications Agent â notifies stakeholders when events are booked, modified, or cancelled. Maintenance Agent â monitors room readiness, posts fault reports when venues become unavailable, and triggers rescheduling when needed. Each agent operates independently but communicates through a shared thread, a transparent message log that serves as the coordination backbone. This thread acts as a persistent state space where agents post updates, react to changes, and maintain a record of every decision. For example, when a maintenance fault is detected, the Maintenance Agent logs the issue, the Scheduling Agent identifies an alternative venue, and the Communications Agent automatically notifies attendees. These interactions happen autonomously, with each agent responding to the evolving context recorded in the shared thread. Interfaces and Backend The system was designed with both developer-focused and user-facing interfaces, supporting rapid iteration and intuitive interaction. The Terminal Interface Initially, the agents were deployed and tested through a terminal interface, which provided a controlled environment for debugging and verifying logic step by step. This setup allowed quick testing of individual agents and observation of their interactions within the shared thread. The Chat Interface As the project evolved, I introduced a lightweight chat interface to make the system accessible to staff and students. This interface allows users to book rooms, query events, and reschedule activities using plain language. Recognising that some users might still want to see what happens behind the scenes, I added an optional toggle that reveals the intermediate steps of agent reasoning. This transparency feature proved valuable for debugging and for more technical users who wanted to understand how the agents collaborated. When a user interacts with the chat interface, they are effectively communicating with the Scheduling Agent, which acts as the primary entry point. The Scheduling Agent interprets natural-language commands such as âBook the Engineering Auditorium for Friday at 2 PMâ or âReschedule the robotics demo to another room.â It then coordinates with the Maintenance and Communications Agents to complete the process. Behind the scenes, the chat interface connects to a FastAPI backend responsible for core logic and data access. A Flask + HTMX layer handles lightweight rendering and interactivity, while the Azure AI Agent Service manages orchestration and shared-thread coordination. This combination enables seamless agent communication and reliable task execution without exposing any of the underlying complexity to the end user. Automated Notifications and Fault Detection Once an event is scheduled, the Scheduling Agent posts the confirmation to the shared thread. The Communications Agent, which subscribes to thread updates, automatically sends notifications to all relevant stakeholders by email. This ensures that every participant stays informed without any manual follow-up. The Maintenance Agent runs routine availability checks. If a fault is detected, it logs the issue to the shared thread, prompting the Scheduling Agent to find an alternative room. The Communications Agent then notifies attendees of the change, ensuring minimal disruption to ongoing events. Testing and Evaluation The system underwent several layers of testing to validate both functional and non-functional requirements. Unit and Integration Tests Backend reliability was evaluated through unit and integration tests to ensure that room allocation, conflict detection, and database operations behaved as intended. Automated test scripts verified end-to-end workflows for event creation, modification, and cancellation across all agents. Integration results confirmed that the shared-thread orchestration functioned correctly, with all test cases passing consistently. However, coverage analysis revealed that approximately 60% of the codebase was tested, leaving some areas such as Azure service integration and error-handling paths outside automated validation. These trade-offs were deliberate, balancing test depth with project scope and the constraints of mocking live dependencies. Azure AI Evaluation While functional testing confirmed correctness, it did not capture the agentsâ reasoning or language quality. To assess this, I used Azure AI Evaluation, which measures conversational performance across metrics such as relevance, coherence, fluency, and groundedness. The results showed high scores in relevance (4.33) and groundedness (4.67), confirming the agentsâ ability to generate accurate and context-aware responses. However, slightly lower fluency scores and weaker performance in multi-turn tasks revealed a retrievalâexecution gap typical in task-oriented dialogue systems. Limitations and Insights The evaluation also surfaced several key limitations: Synthetic data: All tests were conducted with simulated datasets rather than live campus systems, limiting generalisability. Scalability: A non-functional requirement in the form of horizontal scalability was not tested. The architecture supports scaling conceptually but requires validation under heavier load. Despite these constraints, the testing process confirmed that the system was both technically reliable and linguistically robust, capable of autonomous coordination under normal conditions. The results provided a realistic picture of what worked well and what future iterations should focus on improving. Impact and Future Work This project demonstrates how conversational AI and multi-agent orchestration can streamline real operational processes. By combining Azure AI Agent Services with modular design principles, the system automates scheduling, communication, and maintenance while keeping the user experience simple and intuitive. The architecture also establishes a foundation for future extensions: Predictive maintenance to anticipate venue faults before they occur. Microsoft Teams integration for seamless in-chat scheduling. Scalability testing and real-user trials to validate performance at institutional scale. Beyond its technical results, the project underscores the potential of multi-agent systems in real-world coordination tasks. It illustrates how modularity, transparency, and intelligent orchestration can make everyday workflows more efficient and human-centred. Acknowledgements What began with a simple Microsoft tutorial evolved into a working prototype that reimagines how campuses could manage their daily operations through conversation and collaboration. This was both a challenging and rewarding journey, and I am deeply grateful to Professor Graham Roberts (UCL) and Professor Lee Stott (Microsoft) for their guidance, feedback, and support throughout the project.AI Upskilling Framework Level 3 Building
The Global AI Community is excited to bring you the latest updates on AI Upskilling Framework Level 3 Building, straight from Microsoft Ignite! This session dives deep into advanced concepts for building agentic workflows and showcases new announcements that will help developers accelerate their Agentic AI journey.Exploring the Future of AI Agents with Microsoft Foundry
Why Agentic AI Matters AI agents are no longer a distant visionâtheyâre here and transforming how businesses operate. According to industry analysts: Over 1 billion AI agents are expected to be in use by 2028. 80% of organisations plan to integrate agents within the next 2â3 years. By 2026, 40% of enterprise apps will include task-specific AI agents. Why this surge? Agents address critical challenges such as inefficiencies in manual processes, human error, lack of visibility, and scalability issues. They enable autonomous decision-making, with projections suggesting that by 2028, half of day-to-day work decisions will be made autonomously. From Chatbots to Intelligent Agents As Mary Joe highlighted, early chatbots relied on rigid rules and regular expressions, often leading to frustrating user experiences. The introduction of large language models (LLMs) changed the game, making interactions more natural. But true autonomy, where systems act on our behalf, required more than conversational AI. Agentic AI combines: Reasoning and planning capabilities. Tools and APIs for real-world actions. Memory for learning and improving over time. This evolution moves us beyond simple input-output interactions to intelligent systems that can execute workflows, validate data, and deliver outcomes. Microsoft Foundry: Your Platform for Building Agents Microsoft Foundry offers a Platform-as-a-Service (PaaS) approach for creating AI agents, striking a balance between control and ease of use. Key components include: Model Catalogue: Access models from OpenAI, Anthropic, Mistral, and more. Foundry Agent Service: Build and customise agents with integrated tools. Foundry IQ: Knowledge grounding for accurate responses. Control Plane: Ensures safety, trust, and observability in production. Whether you need full control (Infrastructure-as-a-Service) or simplicity (Software-as-a-Service via Copilot Studio), Foundry provides flexibility for diverse scenarios. What Makes an AI Solution Agentic? Unlike traditional AI apps that perform narrow tasks (e.g., extracting text from receipts), agentic solutions: Analyse inputs using LLMs and system instructions. Integrate tools for actions like file search, code execution, or API calls. Retain memory for contextual learning. Operate autonomously across workflows. Real-World Use Cases Agentic AI unlocks new possibilities across industries: Expense Management: Automate claims and approvals. Employee Onboarding: Personalised learning paths and skills navigation. Customer Support: Intelligent assistants for FAQs and troubleshooting. Data Analytics: Interactive insights and reporting with Fabric agents. Multi-agent systems can coordinate complex tasks, with specialised agents handling subtasks under a central orchestrator. Getting Started with Microsoft Foundry Creating your first agent is simple: Sign in at https://ai.azure.com and create a Foundry project. Select a model (e.g., GPT-4.1 mini) and configure deployment options. Customise instructions to define your agentâs persona and tasks. Add tools like file search or code interpreter for extended functionality. Test and iterate using the agent playground, then export code to Visual Studio Code for deployment. For detailed guidance, explore the https://learn.microsoft.com/training. Follow the skilling plan for this series Plans | Microsoft Learn Get started with AI Agents https://aka.ms/ai-agents-fundamentals Join the Community Stay connected and keep learning: Discord: Engage with developers building agents. https://aka.ms/foundry/discord GitHub Discussions: Share ideas and troubleshoot. https://aka.ms/foundrydevs Office Hours: Get direct support from product teams. Final Thoughts Agentic AI is reshaping the way we work, enabling systems to act, learn, and collaborate. With Microsoft Foundry, developers have the tools to build secure, scalable, and intelligent agents today not tomorrow. Join the sessions at https://aka.ms/AzureSkilling-Ignite/25AI Dev Days 2025: Your Gateway to the Future of AI Development
Whatâs in Store? Day 1 â 10 December: Video Link Building AI Applications with Azure, GitHub, and Foundry Explore cutting-edge topics like: Agentic DevOps Azure SRE Agent Microsoft Foundry MCP Models for AI innovation Day 2 â 11 December Agenda: Video Link Using AI to Boost Developer Productivity Get hands-on with: Agent HQ VS Code & Visual Studio 2026 GitHub Copilot Coding Agent App Modernisation Strategies Why Join? Hands-on Labs: Apply the latest product features immediately. Highlights from Microsoft Ignite & GitHub Universe 2025: Stay ahead of the curve. Global Reach: Local-language workshops for LATAM and EMEA coming soon. Youâll recognise plenty of familiar faces in the lineup â donât miss the chance to connect and learn from the best! đ Register now and share widely across your networks â thereâs truly something for everyone! https://aka.ms/ai-dev-daysOnâDevice AI with Windows AI Foundry and Foundry Local
From âwaitingâ to âinstantâ- without sending data away AI is everywhere, but speed, privacy, and reliability are critical. Users expect instant answers without compromise. On-device AI makes that possible: fast, private and available, even when the network isnât - empowering apps to deliver seamless experiences. Imagine an intelligent assistant that works in seconds, without sending a text to the cloud. This approach brings speed and data control to the places that need it most; while still letting you tap into cloud power when it makes sense. Windows AI Foundry: A Local Home for Models Windows AI Foundry is a developer toolkit that makes it simple to run AI models directly on Windows devices. It uses ONNX Runtime under the hood and can leverage CPU, GPU (via DirectML), or NPU acceleration, without requiring you to manage those details. The principle is straightforward: Keep the model and the data on the same device. Inference becomes faster, and data stays local by default unless you explicitly choose to use the cloud. Foundry Local Foundry Local is the engine that powers this experience. Think of it as local AI runtime - fast, private, and easy to integrate into an app. Why Adopt OnâDevice AI? Faster, more responsive apps: Local inference often reduces perceived latency and improves user experience. Privacyâfirst by design: Keep sensitive data on the device; avoid cloud round trips unless the user opts in. Offline capability: An app can provide AI features even without a network connection. Cost control: Reduce cloud compute and data costs for common, highâvolume tasks. This approach is especially useful in regulated industries, fieldâwork tools, and any app where users expect quick, onâdevice responses. Hybrid Pattern for Real Apps On-device AI doesnât replace the cloud, it complements it. Hereâs how: Standalone OnâDevice: Quick, private actions like document summarization, local search, and offline assistants. CloudâEnhanced (Optional): Large-context models, up-to-date knowledge, or heavy multimodal workloads. Design an app to keep data local by default and surface cloud options transparently with user consent and clear disclosures. Windows AI Foundry supports hybrid workflows: Use Foundry Local for real-time inference. Sync with Azure AI services for model updates, telemetry, and advanced analytics. Implement fallback strategies for resource-intensive scenarios. Application Workflow Code Example using Foundry Local: 1. Only On-Device: Tries Foundry Local first, falls back to ONNX if foundry_runtime.check_foundry_available(): # Use on-device Foundry Local models try: answer = foundry_runtime.run_inference(question, context) return answer, source="Foundry Local (On-Device)" except Exception as e: logger.warning(f"Foundry failed: {e}, trying ONNX...") if onnx_model.is_loaded(): # Fallback to local BERT ONNX model try: answer = bert_model.get_answer(question, context) return answer, source="BERT ONNX (On-Device)" except Exception as e: logger.warning(f"ONNX failed: {e}") return "Error: No local AI available" 2. Hybrid approach: On-device first, cloud as last resort def get_answer(question, context): """ Priority order: 1. Foundry Local (best: advanced + private) 2. ONNX Runtime (good: fast + private) 3. Cloud API (fallback: requires internet, less private) # in case of Hybrid approach, based on real-time scenario """ if foundry_runtime.check_foundry_available(): # Use on-device Foundry Local models try: answer = foundry_runtime.run_inference(question, context) return answer, source="Foundry Local (On-Device)" except Exception as e: logger.warning(f"Foundry failed: {e}, trying ONNX...") if onnx_model.is_loaded(): # Fallback to local BERT ONNX model try: answer = bert_model.get_answer(question, context) return answer, source="BERT ONNX (On-Device)" except Exception as e: logger.warning(f"ONNX failed: {e}, trying cloud...") # Last resort: Cloud API (requires internet) if network_available(): try: import requests response = requests.post( '{BASE_URL_AI_CHAT_COMPLETION}', headers={'Authorization': f'Bearer {API_KEY}'}, json={ 'model': '{MODEL_NAME}', 'messages': [{ 'role': 'user', 'content': f'Context: {context}\n\nQuestion: {question}' }] }, timeout=10 ) answer = response.json()['choices'][0]['message']['content'] return answer, source="Cloud API (Online)" except Exception as e: return "Error: No AI runtime available", source="Failed" else: return "Error: No internet and no local AI available", source="Offline" Demo Project Output: Foundry Local answering context-based questions offline : The Foundry Local engine ran the Phi-4-mini model offline and retrieved context-based data. : The Foundry Local engine ran the Phi-4-mini model offline and mentioned that there is no answer. Practical Use Cases Privacy-First Reading Assistant: Summarize documents locally without sending text to the cloud. Healthcare Apps: Analyze medical data on-device for compliance. Financial Tools: Risk scoring without exposing sensitive financial data. IoT & Edge Devices: Real-time anomaly detection without network dependency. Conclusion On-device AI isnât just a trend - itâs a shift toward smarter, faster, and more secure applications. With Windows AI Foundry and Foundry Local, developers can deliver experiences that respect user specific data, reduce latency, and work even when connectivity fails. By combining local inference with optional cloud enhancements, you get the best of both worlds: instant performance and scalable intelligence. Whether youâre creating document summarizers, offline assistants, or compliance-ready solutions, this approach ensures your apps stay responsive, reliable, and user-centric. References Get started with Foundry Local - Foundry Local | Microsoft Learn What is Windows AI Foundry? | Microsoft Learn https://devblogs.microsoft.com/foundry/unlock-instant-on-device-ai-with-foundry-local/Unlocking Your First AI Solution on Azure: Practical Paths for Developers of All Backgrounds
Over the past several months, Iâve spent hundreds of hours working directly with teamsâfrom small startups to mid-market innovatorsâwho share the same aspiration: âWe want to use AI, but where do we start?â This question comes up everywhere. It crosses industries, geographies, skill levels, and team sizes. And as developers, we often feel the pressure to âsolve AIâ end-to-endâmodel selection, prompt engineering, security, deployment pipelines, integrationâŚ. The list is long, and the learning curve can feel even longer. But hereâs what weâve learned through our work in the SMB space and what we recently shared at Microsoft Ignite (Session OD1210). The first mile of AI doesnât have to be complex. You donât need an army of engineers, and you donât need to start from scratch. You just need the right path. In our Ignite on-demand session with UnifyCloud, we demonstrated two fast, developer-friendly ways to get your first AI workload running on Azureâboth grounded in real-world patterns we see every day. Path 1: Build Quickly with Microsoft Foundry Templates Microsoft Foundry gives developers pre-built, customizable templates that dramatically reduce setup time. In the session, I walked through how to deploy a fully functioning AI chatbot using: Azure AI Foundry GitHub (via the Azure Samples âGet Started with AI Chatâ repo) Azure Cloudshell for deployment And zero specialized infra prep With five lines of code and a few clicks, you can spin up a secure internal chatbot tailored for your business. Want responses scoped to your internal content? Want control over the model, costs, or safety filters? Want to plug in your own data sources like SharePoint, Blob Storage, or uploaded docs? You can do all of thatâeasily and on your terms. This âbuild fastâ path is ideal for: Developers who want control and extensibility Teams validating AI use cases Scenarios where data governance matters Lightweight experimentation without heavy architecture upfront And most importantly, you can scale it later. Path 2: Buy a Production-Ready Solution from a Trusted Partner Not every team wants to build. Not every team has the time, the resources, or the desire to compose their own AI stack. Thatâs why we showcased the âbuyâ path with UnifyCloudâs AI Factory, a Marketplace-listed solution that lets customers deploy mature AI capabilities directly into their Azure environment, complete with optional support, management, and best practices. In the demo, UnifyCloudâs founder Vivek Bhatnagar walked through: How to navigate Microsoft Marketplace How to evaluate solution listings How to review pricing plans and support tiers How to deploy a partner-built AI app with just a few clicks How customers can accelerate their time to value without implementation overhead This path is perfect when you want: A production-ready AI solution A supported, maintained experience Minimal engineering lift Faster time to outcome Why Azure? Why Now? During the session, we also outlined three reasons developers are choosing Azure for their first AI workloads: 1. Secure, governed, safe by design Azure mitigates risk with always-on guardrails and built-in commitments to security, privacy, and policy-based control. 2. Built for production with a complete AI platform From models to agents to tools and data integrations, Azure provides an enterprise-grade environment developers can trust. 3. Developer-first innovation with agentic DevOps Azure puts developers at the center, integrating AI across the software development lifecycle to help teams build faster and smarter. The Session: Build or BuyâTwo Paths, One Goal Whether you build using Azure AI Foundry or buy through Marketplace, the goal is the same: Help teams get to their first AI solution quickly, confidently, and securely. You donât need a massive budget. You donât need deep ML experience. You donât need a full-time AI team. What you need is a path that matches your skills, your constraints, and your timeline. Watch the Full Ignite Session You can watch the full session on-demand now also on YouTube: OD1201 â âUnlock Your First AI Solution on Azureâ It includes: The full build and buy demos Partner perspectives Deployment walkthroughs And guidance you can take back to your teams today If you want to explore the same build path we showed at Ignite: âĄď¸ Azure Samples â Get Started with AI Chat https://github.com/Azure-Samples/get-started-with-ai-chat Deploy it, customize it, attach your data sources, and extend it. Itâs a great starting point. If youâre curious about the Marketplace path: âĄď¸ Search for âUnifyCloud AI Factoryâ on Microsoft Marketplace Youâll see support offerings, solution details, and deployment instructions. Closing Thought The gap between wanting to adopt AI and actually running AI in production is shrinking fast. Azure makes it possible for teams, especially those without deep AI experience, to take meaningful steps today. No perfect architecture required. No million-dollar budget. No wait for a future-state roadmap. Just two practical paths: Build quickly. Buy confidently. Start now. If you have questions, ideas, or want to share what youâre building, feel free to reach out here in the Developer Community. Iâd love to hear what youâre creating. â Joshua Huang Microsoft AzureAzure Skilling at Microsoft Ignite 2025
The energy at Microsoft Ignite was unmistakable. Developers, architects, and technical decision-makers converged in San Francisco to explore the latest innovations in cloud technology, AI applications, and data platforms. Beyond the keynotes and product announcements was something even more valuable: an integrated skilling ecosystem designed to transform how you build with Azure. This year Azure Skilling at Microsoft Ignite 2025 brought together distinct learning experiences, over 150+ hands-on labs, and multiple pathways to industry-recognized credentialsâall designed to help you master skills that matter most in today's AI-driven cloud landscape. Just Launched at Ignite Microsoft Ignite 2025 offered an exceptional array of learning opportunities, each designed to meet developers anywhere on the skilling journey. Whether you joined us in-person or on-demand in the virtual experience, multiple touchpoints are available to deepen your Azure expertise. Ignite 2025 is in the books, but you can still engage with the latest Microsoft skilling opportunities, including: The Azure Skills Challenge provides a gamified learning experience that lets you compete while completing task-based achievements across Azure's most critical technologies. These challenges aren't just about badges and bragging rightsâthey're carefully designed to help you advance technical skills and prepare for Microsoft role-based certifications. The competitive element adds urgency and motivation, turning learning into an engaging race against the clock and your peers. For those seeking structured guidance, Plans on Learn offer curated sets of content designed to help you achieve specific learning outcomes. These carefully assembled learning journeys include built-in milestones, progress tracking, and optional email reminders to keep you on track. Each plan represents 12-15 hours of focused learning, taking you from concept to capability in areas like AI application development, data platform modernization, or infrastructure optimization. The Microsoft Reactor Azure Skilling Series, running December 3-11, brings skilling to life through engaging video content, mixing regular programming with special Ignite-specific episodes. This series will deliver technical readiness and programming guidance in a livestream presentation that's more digestible than traditional documentation. Whether you're catching episodes live with interactive Q&A or watching on-demand later, youâll get world-class instruction that makes complex topics approachable. Beyond Ignite: Your Continuous Learning Journey Here's the critical insight that separates Ignite attendees who transform their careers from those who simply collect swag: the real learning begins after the event ends. Microsoft Ignite is your launchpad, not your destination. Every module you start, every lab you complete, and every challenge you tackle connects to a comprehensive learning ecosystem on Microsoft Learn that's available 24/7, 365 days a year. Think of Ignite as your intensive immersion experienceâthe moment when you gain context, build momentum, and identify the skills that will have the biggest impact on your work. What you do in the weeks and months following determines whether that momentum compounds into career-defining expertise or dissipates into business as usual. For those targeting career advancement through formal credentials, Microsoft Certifications, Applied Skills and AI Skills Navigator, provide globally recognized validation of your expertise. Applied Skills focus on scenario-based competencies, demonstrating that you can build and deploy solutions, not simply answer theoretical questions. Certifications cover role-based scenarios for developers, data engineers, AI engineers, and solution architects. The assessment experiences include performance-based testing in dedicated Azure tenants where you complete real configuration and development tasks. And finally, the NEW AI Skills Navigator is an agentic learning space, bringing together AI-powered skilling experiences and credentials in a single, unified experience with Microsoft, LinkedIn Learning and GitHub â all in one spot Why This Matters: The Competitive Context The cloud skills race is intensifying. While our competitors offer robust training and content, Microsoft's differentiation comes not from having more contentâthough our 1.4 million module completions last fiscal year and 35,000+ certifications awarded speak to scaleâbut from integration of services to orchestrate workflows. Only Microsoft offers a truly unified ecosystem where GitHub Copilot accelerates your development, Azure AI services power your applications, and Azure platform services deploy and scale your solutionsâall backed by integrated skilling content that teaches you to maximize this connected experience. When you continue your learning journey after Ignite, you're not just accumulating technical knowledge. You're developing fluency in an integrated development environment that no competitor can replicate. You're learning to leverage AI-powered development tools, cloud-native architectures, and enterprise-grade security in ways that compound each other's value. This unified expertise is what transforms individual developers into force-multipliers for their organizations. Start Now, Build Momentum, Never Stop Microsoft Ignite 2025 offered the chance to compress months of learning into days of intensive, hands-on experience, but you can still take part through the on-demand videos, the Global Ignite Skills Challenge, visiting the GitHub repos for the /Ignite25 labs, the Reactor Azure Skilling Series, and the curated Plans on Learn provide multiple entry points regardless of your current skill level or preferred learning style. But remember: the developers who extract the most value from Ignite are those who treat the event as the beginning, not the culmination, of their learning journey. They join hackathons, contribute to GitHub repositories, and engage with the Azure community on Discord and technical forums. The question isn't whether you'll learn something valuable from Microsoft Ignite 2025-that's guaranteed. The question is whether you'll convert that learning into sustained momentum that compounds over months and years into career-defining expertise. The ecosystem is here. The content is ready. Your skilling journey doesn't end when Ignite doesâit accelerates.
