Foundry IQ: Improve recall by up to 54% with knowledge bases
Foundry IQ: Improve recall by up to 54% with knowledge bases. Foundry IQ (Azure AI Search) has improved its agentic retrieval engine resulting in better answer quality and improved token cost savings. We compared standalone retrieval tools to knowledge bases using the challenging BrowseComp-Plus benchmark and found: Replacing single-shot RAG with a knowledge base improves evidence recall by up to 46%. Combining a smaller agent model with agentic retrieval improves evidence recall by up to 54% while controlling costs and increasing agent responsiveness. In both cases, the amount of retrieval tool calls your agent makes is reduced, resulting in 34% token cost savings.Foundry IQ: New governance and enterprise AI security capabilities
Enterprise AI isn’t just about better retrieval—it’s about secure access to business‑critical content. Discover how Foundry IQ (Azure AI Search) enables governance, compliance, and private connectivity across agentic retrieval workflows. We are introducing the following features: - Incremental SharePoint permissions sync for indexed document content, SharePoint Lists and ASPX pages. - Purview sensitivity labels in Foundry IQ knowledge bases - Purview auditing for elevated admin queries - Private connectivity support between for Foundry IQ and Foundry resources via NSPIntroducing Grok 4.3 on Microsoft Foundry: Latest Generation Agentic Capabilities
Customers building advanced AI systems increasingly need models that can reason deeply, act autonomously, and integrate reliably into real‑world workflows—all without compromising on governance or cost efficiency. Grok 4.3, xAI’s latest flagship model, is now available in Microsoft Foundry, giving developers and enterprises access to latest agentic intelligence within a production‑ready environment designed for scale. With Grok 4.3 on Microsoft Foundry, customers can more easily experiment with, evaluate, and deploy a powerful new option for agent‑based and domain‑specific applications—while benefiting from the safety controls, monitoring, and operational tooling needed to move from prototype to production with confidence. About Grok 4.3 Grok 4.3 is xAI’s latest flagship model, designed to support agent-based and productivity-focused workflows across a wide range of professional scenarios. Based on information provided by xAI and independent research conducted by Artificial Analysis, Grok 4.3 demonstrates strong performance across multiple benchmarks, reflecting a favorable balance between model capability and reported benchmark cost. *Benchmark data and cost metrics are provided by xAI and independently analyzed by Artificial Analysis. Source: https://artificialanalysis.ai Improved agentic capabilities Grok 4.3 is purpose‑built for agentic systems, improving in tool calling, instruction following, and lower hallucination, as reported by xAI. Grok 4.3 also enables policy‑aware support agents with reliable tool use and consistent behavior across extended conversations. On Microsoft Foundry, Grok 4.3 supports up to a 200k token context window, enabling extended multi‑turn reasoning and agent workflows. Multi-modal and domain‑specific strengths Grok 4.3 delivers strong performance across a range of professional and technical domains: Multimodal analysis: Native understanding across text, images, diagrams, and mixed data sources, enabling synthesis of visual and textual information for complex reasoning tasks. Web development: Excels in full‑stack web development, producing clean, production‑ready code with minimal guidance. Legal reasoning: supports interpretation of contracts, case law, and regulatory documents. Finance agents: supports financial analysis, modeling, and human decisions Built‑In Native Capabilities Grok 4.3 includes powerful native capabilities that simplify real‑world application development: Web search and X search for real‑time context Python code execution for analysis and automation File search (RAG) for enterprise knowledge grounding Excel, PDF, and PowerPoint generation for end‑to‑end workflows Together, these capabilities allow Grok 4.3 to function as a powerful agentic productivity engine, not just a language mode. Why Grok 4.3 on Microsoft Foundry Bringing Grok 4.3 to Microsoft Foundry delivers value beyond raw model performance. When deployed through Foundry, Azure AI Content Safety is enabled by default, adding an additional layer of protection for enterprise use. Customers can review the Microsoft Foundry model card for detailed safety and usage considerations. Microsoft Foundry also provides tools to support our customers with their responsible AI efforts, including model cards during selection, configurable guardrails such as jailbreak detection and content filtering, pre‑deployment evaluations and red teaming, and post‑deployment monitoring and governance. These capabilities help customers maintain output quality and deploy Grok 4.3 responsibly at scale. Pricing Model Deployment Input/1M Tokens Output/1M Tokens Availability Grok 4.3 Global Standard $1.25 $2.50 Public Preview Getting started Grok 4.3 is now available in Microsoft Foundry. Explore the model details in the Foundry model catalog, evaluate it using your own datasets, and start building and deployment in minutes.
Now in Foundry: Tongyi-MAI Z-Image-Turbo, with FLUX.1-schnell and SDXL base 1.0
This week's Model Mondays edition pairs three models available through the Hugging Face collection in Microsoft Foundry: Tongyi-MAI's Z-Image-Turbo, a new designed for lower latency on a single GPU and native bilingual text rendering; Black Forest Labs' FLUX.1-schnell, a 12B rectified flow transformer distilled to 1–4 step inference and one of the most adopted open-weight image models since its 2024 release; and Stability AI's stable-diffusion-xl-base-1.0 (SDXL), a latent diffusion research model that can be used to generate and modify images based on text prompts. Models of the week Tongyi-MAI: Z-Image-Turbo Model Specs Parameters / size: 6B (BF16) Resolution: Up to 1024×1024 native Primary task: Text-to-image generation (English and Chinese) Why it's interesting (Spotlight) Scalable Single-Stream Diffusion Transformer (S3-DiT) architecture: Z-Image concatenates text tokens, visual semantic tokens, and image VAE tokens into a single unified input stream rather than running text and image through separate branches. This single-stream design can improve parameter efficiency relative to dual-stream DiT architectures at the same capacity. See the Z-Image technical report for details. 8-step inference at sub-second latency, fits in 16GB VRAM: Z-Image-Turbo is distilled with Decoupled Distribution Matching Distillation (Decoupled-DMD) and further refined with DMDR, a method that fuses DMD with reinforcement learning during post-training. The result is a model that runs 8 Number-of-Function-Evaluations (NFE) per image with no Classifier-Free Guidance (CFG)—which roughly halves the per-step compute compared to CFG-based inference. See the Decoupled-DMD and DMDR papers. Native bilingual text rendering and strong instruction adherence: Unlike most open-weight image models, which struggle with legible in-image text, Z-Image-Turbo renders complex English and Chinese text accurately which is useful for posters, signage, packaging mockups, and marketing creative. Try it Imagine you're a community programs coordinator at your city's parks department, planning a new summer event series — a "Cake Picnic in the Park" — designed to bring neighbors together over food in shared green space. The event is a few weeks out. You haven't booked bakery partners yet, so no actual cake exists, and you need marketing assets this week to start driving sign-ups: a hero image for the registration page, a flyer for community centers and libraries, social tiles for the city's channels. Use the prompt below and a photorealistic image, that can now be scaled to become additional assets like printed flyers or social images in minutes using image editing tools (or another model). Prompt: A round layered cake displayed on a white ceramic cake stand, topped with glossy fresh red cherries and smooth pastel pink buttercream frosting piped in delicate rosettes around the edge. One generous slice has been cleanly cut and removed from the front, revealing a perfect cross-section: four distinct horizontal layers alternating between soft pink sponge cake and fluffy white vanilla cream frosting. Professional bakery photography, soft natural window light from the left, shallow depth of field, marble countertop, warm and inviting atmosphere, photorealistic detail on the cake texture, cherry highlights, and frosting swirls. Black Forest Labs: FLUX.1-schnell Model Specs Parameters / size: 12B (rectified flow transformer) Resolution: Flexible up to 2 megapixels Primary task: Text-to-image generation Why it's interesting (Spotlight) Rectified flow transformer with adversarial distillation for 1–4 step inference: FLUX.1-schnell is the distilled, Apache 2.0 sibling of the FLUX.1 family. It uses a rectified flow formulation (a diffusion variant that learns straight-line probability paths between noise and data, reducing the number of solver steps needed) and is further compressed with latent adversarial diffusion distillation. The model generates high quality images in for latency-sensitive workloads. Permissive licensing for commercial use: Released under Apache 2.0, FLUX.1-schnell can be used for personal, scientific, and commercial purposes. This has driven broad adoption across product features that need an open, redistributable image backbone. Strong prompt adherence at its parameter range: At 12B parameters, FLUX.1-schnell sits between the SDXL family and frontier proprietary image models, and it remains a common reference point for evaluating open image generation prompt following—particularly for complex compositional prompts and longer captions—roughly two years after its initial release. Try it Hugging Face Spaces give developers the ability to experiment and try new models before deploying them. Test out a few prompts here: https://black-forest-labs-flux-1-schnell.hf.space then when you are ready, deploy the model in Microsoft Foundry. Stability AI: stable-diffusion-xl-base-1.0 stabilityai/stable-diffusion-xl-base-1.0 · Hugging Face Model Specs Parameters / size: 2.6B UNet (≈3.5B total with text encoders) Resolution: 1024×1024 native Primary task: Text-to-image generation Why it's interesting (Spotlight) Dual text encoder design and an ensemble-of-experts pipeline: SDXL uses two pretrained text encoders—OpenCLIP-ViT/G and CLIP-ViT/L—concatenated to capture both broad semantic alignment and finer-grained token-level cues. It can be run standalone or paired with the SDXL refiner in an ensemble-of-experts pipeline where the base model handles early denoising and the refiner specializes in the final steps. See the SDXL report for the original training and architecture details. CreativeML Open RAIL++-M licensing for managed deployments: SDXL is distributed under the CreativeML Open RAIL++-M license, which permits commercial use and downstream fine-tuning with documented use restrictions. Try it To go deeper on SDXL, take a look at Stability AI's generative-models GitHub repository, which implements the most popular diffusion frameworks for both training and inference and continues to expand with new capabilities like distillation. Getting started You can deploy open-source Hugging Face models directly in Microsoft Foundry in two ways. The first by browsing the Hugging Face collection in the Foundry model catalog and deploying to managed endpoints in just a few clicks. The second way is direct through the Hugging Face Hub, select any supported model and then choose "Deploy on Microsoft Foundry", which brings you straight into Azure. Learn how to discover models and deploy them using Microsoft Foundry documentation: Follow along the Model Mondays series and access the GitHub to stay up to date on the latest Read Hugging Face on Azure docs Learn about one-click deployments from the Hugging Face Hub on Microsoft Foundry Explore models in Microsoft FoundryA New Chapter for Realtime AI: Reasoning, Translation, and Real-Time Transcription
Voice can be one of the most direct and productive interfaces for AI — enabling customer support agents that may resolve issues without a single keystroke, live multilingual communication that can take on language barriers as conversations happen, and voice assistants capable of reasoning through complex requests in real time. Developers building these experiences need models that can keep pace with increasingly demanding latency, accuracy, and language coverage requirements. Today, OpenAI’s GPT-realtime-translate, GPT‑realtime‑2 and, GPT-realtime-whisper are rolling out into Microsoft Foundry starting today — together representing a significant step forward for the realtime model lineup available to developers on the platform. GPT-realtime-translate and GPT-realtime-whisper GPT-realtime-translate and GPT-realtime-whisper together extend the realtime stack for live multilingual audio workflows. GPT-realtime-translate is built for continuous, real-time translation, producing translated output as speech unfolds without relying on segmented pipeline processing, while GPT-realtime-whisper provides low-latency streaming transcription of the original audio in parallel. Used together, they help developers support scenarios such as live events, cross-language customer experiences, captions, monitoring, and archival workflows that require both translated output and visibility into the source speech. Continuous stream processing: This new model translates live audio without segmenting or buffering allowing for more natural interactions. New translation and transcription capabilities: Translate between languages in real time and observe faster text to speech. Available via the Realtime API GPT-realtime-2 GPT‑realtime‑2 is a generational upgrade to OpenAI's speech-to-speech model, bringing internal reasoning and an expanded context window to real-time voice applications. Where previous speech to speech models responded immediately, GPT‑realtime‑2 can work through a problem before speaking — making it well suited for voice applications that need to handle complex, multi-step queries entirely in the audio layer without routing to a separate text pipeline. Native reasoning capability: The newest realtime model introduces stronger reasoning capabilities. Now the model thinks internally before responding. Adjustable reasoning effort via {reasoning.effort}: Explicitly request the level of reasoning the model uses -- minimal, low, medium, high – to save on cost and latency. Audio in, audio out: No need for an intermediary text step, conversation stays fluid and natural. Available via the Realtime API This models is coming soon to Microsoft Foundry. Since, May 6, the models have been rolling out into the model catalog. We are excited for you to explore and build with our evolving collection of frontier models. Use cases These models work independently, but they're designed to complement each other in real-world pipelines: Live multilingual events. GPT-realtime-translate enables real-time translation of live audio, producing translated speech along with a transcript in the target language. GPT‑realtime‑whisper can be used in parallel to capture a transcription of the original speech for captions, monitoring, or archival purposes. Together, they enable multilingual live streaming with both translated experiences and visibility into the source language. Global customer support. Route inbound calls through GPT-realtime-translate to translate conversations in real time and provide a translated transcript for agents. Use GPT‑realtime‑whisper alongside it to capture the original conversation as text for compliance, quality review, or analytics. Then pass the interaction to an agent built with GPT‑realtime‑2 using {reasoning.effort}: high for complex issue resolution, all within a continuous audio pipeline. International voice assistants. Build once and deploy across languages. GPT-realtime-translate enables multilingual interaction and provides translated output with a target-language transcript, while GPT‑realtime‑whisper can optionally capture the original user input as text. GPT‑realtime‑2 manages reasoning and conversational context, supporting more complex voice interactions. Pricing Model Deployment Modality Pricing per 1M tokens Input Cached Input Output GPT-realtime-2 Global Standard Audio $32.00 $0.40 $64.00 Text $4.00 $0.40 $24.00 Image $5.00 $0.50 -- GPT-realtime-translate Global Standard Audio -- -- $2.04/hour GPT-realtime-whisper Global Standard Audio -- -- $1.02/hour *Pricing for GPT-realtime-translate and GPT-realtime-whisper will be done by the hour Getting Started Looking for ways to dive in? GPT-realtime-translate, GPT-realtime-whisper, and GPT‑realtime‑2 are rolling out into Microsoft Foundry today. Explore the model catalog and start building: https://ai.azure.comNow in Foundry: IBM Granite 4.1, NVIDIA Nemotron Nano Omni, and Qwen3.6-35B-A3B
This week Microsoft Foundry adds two major model families alongside a reasoning powerhouse that spans the full spectrum from specialized speech and vision to general-purpose coding and long-context analysis. IBM's Granite 4.1 is a famiily of 10: six LLMs across 3B, 8B, and 30B sizes in both full-precision and FP8 variants, plus a safety model, a vision-language model for document extraction, and a multilingual speech recognition model. NVIDIA's Nemotron-3-Nano-Omni-30B-A3B-Reasoning brings multimodal capability—video, audio, image, and text—to a 31B Mamba2-Transformer Hybrid Mixture-of-Experts (MoE) architecture that activates only 3B parameters per forward pass; three variants are available in Foundry (BF16, FP8, and NVFP4), with the FP8 variant featured here. Qwen3.6-35B-A3B is designed for agentic coding among open models, with thinking preservation across conversation turns and a context window extensible to 1 million tokens. Models of the week IBM: granite-4.1-30b Model Specs Parameters / size: 30B (flagship of the Granite 4.1 family) Context length: 131,072 tokens Primary task: Text generation (multilingual instruction following, RAG, tool calling, code, summarization) Why it's interesting The Granite 4.1 release brings 10 models to Microsoft Foundry. The LLM lineup covers granite-4.1-3b-instruct, granite-4.1-8b-instruct, and granite-4.1-30b-instruct with FP8 variants for each, plus granite-guardian-4.1-8b for safety, granite-vision-4.1-4b for document and chart understanding, and granite-speech-4.1-2b for multilingual speech recognition. This is a deployment-ready stack where teams can mix and match model sizes and modalities from a single provider. Strong instruction following and reasoning at the 30B scale: granite-4.1-30b-instruct scores 80.16 on MMLU, 64.09 on MMLU-Pro, 83.74 on Big-Bench Hard (BBH), 77.80 on AGI Eval, 45.76 on GPQA (Graduate-Level Google-Proof Q&A, a graduate-level science reasoning benchmark), and 89.65 average on IFEval (instruction following). These results reflect SFT and reinforcement learning post-training focused specifically on instruction compliance, tool calling accuracy, and long-context retrieval. (View benchmarks here) Enhanced tool calling and 12-language support: Granite 4.1 models are trained for structured function calling and support 12 languages—Arabic, Chinese, Czech, Dutch, English, French, German, Italian, Japanese, Korean, Portuguese, and Spanish—with dialog, extraction, and summarization capabilities. Safety and multimodal coverage within the same family: The inclusion of granite-guardian-4.1-8b (a safety classifier for detecting harmful content and prompt injections), granite-vision-4.1-4b (a Vision Language Model optimized for document extraction from PDFs, charts, and tables), and granite-speech-4.1-2b (a 2B multilingual Automatic Speech Recognition model) means teams can address safety, document parsing, and audio ingestion within the same model family—reducing integration complexity across a full pipeline. Try it Use Case Prompt Pattern Multilingual RAG Submit retrieved document passages in any of 12 supported languages; ask model to synthesize and cite sources Agentic tool calling Provide function definitions + user goal; model plans and executes tool calls in structured format Document extraction (granite-vision-4.1-4b) Submit PDF page image; extract tables, key figures, or form fields as structured JSON Safety classification (granite-guardian-4.1-8b) Pass user input or model output; receive structured risk assessment before serving response Sample prompt for an enterprise document processing deployment: You are building a multilingual document intelligence pipeline for a global financial institution. Using the granite-4.1-30b-instruct endpoint deployed in Microsoft Foundry, submit each incoming policy or regulatory document with the following system instruction: "You are a compliance analysis assistant. Review the document and extract: (1) all regulatory requirements described, (2) the entities to which each requirement applies, (3) any compliance deadlines mentioned, and (4) any penalties or consequences for non-compliance. Return the output as a structured JSON array with one entry per requirement." For documents that include scanned pages, first route them through granite-vision-4.1-4b to extract text and table content before passing to the 30B model for compliance analysis. Pass all user-facing outputs through granite-guardian-4.1-8b to screen for sensitive information before returning results. NVIDIA: Nemotron-3-Nano-Omni-30B-A3B-Reasoning-FP8 Model Specs Parameters / size: 31B total, ~3B activated per forward pass (Mamba2-Transformer Hybrid Mixture-of-Experts) Context length: 256,000 tokens Primary task: Video-audio-image-text-to-text (Multimodal understanding, reasoning, tool calling) Why it's interesting Multimodal input from a single efficient endpoint: Nemotron-3-Nano-Omni-30B-A3B-Reasoning supports video (up to 2 minutes), audio (up to 1 hour), images (RGB), and text—all from a single model deployed in Microsoft Foundry. Three variants are available in Foundry: full-precision BF16, FP8, and NVFP4. Paper: Nemotron Nano Omni technical report. Strong results across vision, document, video, and audio benchmarks: With reasoning mode enabled, the model scores 82.8 on MathVista-MINI (visual math reasoning), 67.04 on OCRBenchV2-EN (document OCR), 63.6 on Charxiv Reasoning (chart understanding), 72.2 on Video MME (video Q&A), 74.52 on Daily Omni (video+audio omnimodal understanding), and 89.39 on VoiceBench (speech instruction following). On OSWorld (GUI agent benchmark measuring autonomous computer use), it scores 47.4—a notable result for a model at the 3B active parameter scale. (Please see above model cards for further benchmark data) Mamba2-Transformer Hybrid MoE for efficient long-context inference: The model's layers alternate between Mamba2 state-space blocks (which process sequences with linear rather than quadratic cost) and standard Transformer attention blocks, combined with Mixture-of-Experts feedforward layers. Only ~3B parameters are activated per token despite the 31B total, making the 256K context window practically usable at lower compute cost than a comparably sized dense model. Word-level timestamps, JSON output, and tool calling for structured media workflows: The model produces word-level timestamps from audio, enabling precise transcript-to-timecode alignment for review and indexing workflows. Combined with JSON-structured output, chain-of-thought reasoning, and native tool calling, it can serve as an agentic step that ingests raw media (meeting recordings, M&E assets, training videos) and produces structured outputs for downstream systems without requiring separate transcription or OCR preprocessing stages. Try it Use Case Prompt Pattern Meeting intelligence Submit audio recording (up to 1 hr); extract transcript with word-level timestamps, action items, and decisions as structured JSON Video content analysis Submit video clip (up to 2 min) + query; retrieve timestamped summary of key events or spoken content Document + audio joint analysis Submit scanned document image alongside narrated walkthrough audio; extract and reconcile information from both modalities Multimodal tool calling Provide tool definitions + combined image/audio input; model reasons over content and executes structured tool calls Sample prompt for a media and compliance deployment: You are building a broadcast compliance review system for a media company. Using the Nemotron-3-Nano-Omni-30B-A3B-Reasoning-FP8 endpoint deployed in Microsoft Foundry, submit each recorded segment as video input with the following instruction: "Review this video segment and produce a compliance report as a JSON object with the following fields: transcript (full text with word-level timestamps), flagged_segments (array of objects with start_time, end_time, content, and reason for flagging), speaker_count (estimated number of distinct speakers), and compliance_summary (overall assessment). Flag any content that includes unverified factual claims, restricted product categories, or regulatory disclosures that may be incomplete." Use the word-level timestamps from the compliance report to route flagged segments directly to the editorial review queue with precise timecode references. Qwen: Qwen3.6-35B-A3B Model Specs Parameters / size: 35B total, 3B activated (Mixture-of-Experts) Context length: 262,144 tokens natively, extensible to 1,010,000 tokens Primary task: Image-text-to-text (agentic coding, reasoning, vision) Why it's interesting Agentic coding improvements over Qwen3.5-35B-A3B: Qwen3.6-35B-A3B scores 73.4 on SWE-bench Verified (vs. 70.0 for Qwen3.5-35B-A3B and 52.0 for Gemma 4 31B), 67.2 on SWE-bench Multilingual (vs. 60.3 and 51.7), and 49.5 on SWE-bench Pro (vs. 44.6 and 35.7). Terminal-Bench 2.0 reaches 51.5 (vs. 40.5 and 42.9). The update targets frontend workflows and repository-level reasoning specifically, areas where earlier Qwen3.5 iterations showed gaps. Blog post: Qwen3.6-35B-A3B. Hybrid architecture: Gated DeltaNet and Mixture-of-Experts: The model's 40 layers alternate between Gated DeltaNet blocks (a form of linear attention that avoids the quadratic cost of standard self-attention), Gated Attention blocks (using Grouped Query Attention with 16 query heads and 2 key-value heads), and Mixture-of-Experts (MoE) feedforward layers with 256 experts (8 routed + 1 shared active per token). Only 3B parameters are activated per forward pass, keeping inference cost comparable to a 3B dense model while retaining the capacity of a 35B model for knowledge and specialization. Thinking preservation across conversation turns: Qwen3.6 introduces an option to retain reasoning context from previous messages in multi-turn conversations. In prior models, chain-of-thought traces were stripped between turns, requiring the model to re-derive context it had already reasoned through. With thinking preservation enabled, iterative coding workflows—such as debugging across multiple exchanges—benefit from accumulated reasoning without repeating earlier analysis. Natively extensible to 1 million token context: The 262K native context is already among the largest in open models at this size, and the architecture supports extension to 1,010,000 tokens. On GPQA Diamond (science reasoning), Qwen3.6-35B-A3B scores 86.0—above both Gemma 4 31B (84.3) and Qwen3.5-27B (85.5)—while matching Gemma 4 31B on MMLU Pro (85.2) and LiveCodeBench v6 (80.4 vs. 80.0). Try it Use Case Prompt Pattern Repository-level code change Provide repository structure + task description; model plans file edits and outputs unified diff Multi-turn iterative debugging Enable thinking preservation; submit failing test + code across multiple turns; accumulate reasoning context Frontend code generation Provide design spec or screenshot + existing codebase context; generate component implementation Long-document reasoning Submit technical specification (up to 262K tokens); ask model to identify ambiguities or implementation gaps Sample prompt for a software engineering deployment: You are building an automated code review and implementation assistant for a platform engineering team. Using the Qwen3.6-35B-A3B endpoint deployed in Microsoft Foundry, enable thinking preservation for multi-turn sessions. In the first turn, submit the repository file tree and a GitHub issue describing a required API endpoint change. Prompt the model: "Review the repository structure and describe your implementation plan, including which files need to change and why." In the second turn, submit the relevant source files and prompt: "Based on your earlier plan, implement the changes and produce a unified diff." In the third turn, submit the test suite and prompt: "Write additional unit tests for the new endpoint, covering edge cases identified in your reasoning." The thinking preservation feature ensures the model carries forward its understanding of the codebase across all three turns without re-explaining context. Getting started You can deploy open-source Hugging Face models directly in Microsoft Foundry by browsing the Hugging Face collection in the Foundry model catalog and deploying to managed endpoints in just a few clicks. You can also start from the Hugging Face Hub. First, select any supported model and then choose "Deploy on Microsoft Foundry", which brings you straight into Azure with secure, scalable inference already configured. Learn how to discover models and deploy them using Microsoft Foundry documentation. Follow along the Model Mondays series and access the GitHub to stay up to date on the latest Read Hugging Face on Azure docs Learn about one-click deployments from the Hugging Face Hub on Microsoft Foundry Explore models in Microsoft FoundryIntroducing OpenAI's newest chat model in Microsoft Foundry
OpenAI's GPT-5.5 Instant (or Chat-latest in the API) begins rolling out in Microsoft Foundry today as GPT-chat-latest. Built on GPT-5.4 and GPT-5.3-chat, the new model delivers measurable gains in factual accuracy, tool calling, and response efficiency. These improvements translate directly into more reliable production deployments. GPT-chat-latest is designed for the workflows builders are actually shipping: multi-turn assistants, agentic systems that orchestrate tools, and retrieval-grounded applications where precision and grounding matter as much as conversational quality. Why the name is changing In Microsoft Foundry, we are introducing GPT-chat-latest as the product name for this release, while the model continues to follow the existing Preview lifecycle and standard notice periods. We are also evaluating ways to simplify how customers access continuously updated models over time, but current behavior remains unchanged as that work continue Smarter, more factually reliable GPT-chat-latest closes the factuality gap from prior iterations with significant reductions in hallucinations, especially in domains where accuracy matters most. According to OpenAI, the new model produces 52.5% fewer hallucinations and reduces hallucinated claims by 37.3% on conversations previously flagged for factual errors when compared to GPT-5.3-chat. These gains extend beyond text. GPT-chat-latest shows improvements in visual reasoning, expert multimodal understanding, and STEM tasks, with measurable lifts across standard benchmarks: Benchmark GPT-5.3-chat GPT-chat-latest CharXiv-reasoning Scientific Chart Reasoning 75.0 81.6 MMMU-Pro Expert multimodal reasoning 69.2 76.0 GPQA PhD-level science questions 78.5 85.6 AIME 2025 Competition math 65.4 81.2 *Data shown comes from OpenAI’s testing” For builders shipping into regulated workloads such as clinical decision support, legal research, financial advisory, and technical analysis, these improvements raise the bar on the kinds of applications GPT-chat-latest can assist with. More efficient outputs GPT-chat-latest produces responses that may be more to-the-point without losing substance. The model may reduce verbosity and over formatting, ask fewer follow-up questions, and avoid cluttered output patterns that often require post-processing in production UIs. For builders, this can translate to two concrete benefits: lower output token costs at scale, and cleaner responses that drop into product surfaces with less downstream cleanup. In comparative testing from OpenAI, GPT-chat-latest produced roughly 25–30% fewer words than GPT-5.3-chat across a range of common prompts while preserving response quality, and in many cases improving it. Improving intelligence and tool calling GPT-chat-latest introduces measurable improvements in how the model interacts with tools, including better judgment about when and how to invoke them. The model produces more structured and context-aware tool invocation outputs, which is particularly relevant for workflows that rely on function calling, retrieval-augmented generation, and multi-step reasoning. Equally important, the model is better at deciding whether a tool is needed in the first place, reducing unnecessary tool calls in scenarios where it already has the information to answer directly. Improved search and context handling GPT-chat-latest includes targeted improvements to how the model retrieves, interprets, and synthesizes information when search is involved, with enhancements to query formulation, result ranking, and filtering, plus more grounded synthesis of retrieved content into final responses. These changes improve handling of ambiguous or underspecified queries and reduce noise in answers that depend on retrieved content. The model also makes better use of the context developers pass in, including system prompts, conversation history, retrieved documents, and structured data. Applications that maintain long-running state or stitch together multiple retrieval steps produce more coherent, context-aware outputs without developers having to over-engineer prompt scaffolding. Use Cases: When to choose the chat model Developers typically choose a chat-optimized model like GPT-5.5-chat when the application needs to sustain multi-turn conversations while reliably following instructions and coordinating external tools. This is a fit for assistants and agentic workflows where the model must interpret user intent over time, decide when to retrieve additional context, and produce structured outputs for downstream systems rather than just generate free-form text. Customer support and contact centers: virtual agents that maintain conversational context across a case, retrieve policy or product documentation via search, and hand off to a ticketing or CRM system through tool calls when escalation is needed. Retail and e-commerce: shopping and service assistants that clarify preferences over multiple turns, reference catalogs and policies via retrieval, and generate structured actions such as returns, exchanges, and order lookups through integrated tools. Manufacturing and field service: technician-facing assistants that combine conversational guidance with retrieval of manuals and work instructions, plus structured task creation in maintenance systems. Use GPT-chat-latest Use GPT-5.5 Reasoning Multi-turn assistants and customer-facing chat experiences Harder problems that benefit from more deliberate, step-by-step thinking Agentic workflows that coordinate tools (search, retrieval, ticketing, CRM) and benefit from structured tool outputs Complex analysis, planning, or decision support where correctness matters more than conversational flow Interactive experiences where you want quick back-and-forth clarification and task completion Tasks involving multi-constraint reasoning (policy interpretation, detailed requirements, long-horizon plans) RAG-based apps where the model must decide when to retrieve and then synthesize grounded answers Offline or low-tool scenarios where the main value is deeper reasoning over provided context Pricing Model Input ($/1M tokens) Cached input ($/1M tokens) Output ($/1M tokens) GPT-chat-latest $5 $0.50 $30 Responsible AI in Microsoft Foundry At Microsoft, our mission to empower people and organizations remains constant. In the age of AI, trust is foundational to adoption, and earning that trust requires a commitment to transparency, safety, and accountability. Microsoft Foundry provides governance controls, monitoring, and evaluation capabilities to help organizations deploy models responsibly in production environments, aligned with Microsoft's Responsible AI principles. Getting started GPT-chat-latest is rolling out in Microsoft Foundry today.Introducing OpenAI's GPT-image-2 in Microsoft Foundry
Take a small design team running a global social campaign. They have the creative vision to produce localized imagery for every market, but not the resources to reshoot, reformat, or outsource that scale. Every asset needs to fit a different platform, a different dimension, a different cultural context, and they all need to ship at the same time. This is where flexible image generation comes in handy. OpenAI's GPT-image-2 is now generally available and rolling out today to Microsoft Foundry, introducing a step change in image generation. Developers and designers now get more control over image output, so a small team can execute with the reach and flexibility of a much larger one. What is new in GPT-image-2? GPT-image-2 brings real world intelligence, multilingual understanding, improved instruction following, increased resolution support, and an intelligent routing layer giving developers the tools to scale image generation for production workflows. Real world intelligence GPT-image-2 has a knowledge cut off of December 2025, meaning that it is able to give you more contextually relevant and accurate outputs. The model also comes with enhanced thinking capabilities that allow it to search the web, check its own outputs, and create multiple images from just one prompt. These enhancements shift image generation models away from being simple tools and runs them into creative sidekicks. Multilingual understanding GPT-image-2 includes increased language support across Japanese, Korean, Chinese, Hindi, and Bengali, as well as new thinking capabilities. This means the model can create images and render text that feels localized. Increased resolution support GPT-image-2 introduces 4K resolution support, giving developers the ability to generate rich, detailed, and photorealistic images at custom dimensions. Resolution guidelines to keep in mind: Constraint Detail Total pixel budget Maximum pixels in final image cannot exceed 8,294,400 Minimum pixels in final image cannot be less than 655,360 Requests exceeding this are automatically resized to fit. Resolutions 4K, 1024x1024, 1536x1024, and 1024x1536 Dimension alignment Each dimension must be a multiple of 16 Note: If your requested resolution exceeds the pixel budget, the service will automatically resize it down. Intelligent routing layer GPT-image-2 also includes an expanded routing layer with two distinct modes, allowing the service to intelligently select the right generation configuration for a request without requiring an explicitly set size value. Mode 1 — Legacy size selection In Mode 1, the routing layer selects one of the three legacy size tiers to use for generation: Size tier Description smimage Small image output image Standard image output xlimage Large image output This mode is useful for teams already familiar with the legacy size tiers who want to benefit from automatic selection without making any manual changes. Mode 2 — Token size bucket selection In Mode 2, the routing layer selects from six token size buckets — 16, 24, 36, 48, 64, 96 — which map roughly to the legacy size tiers: Token bucket Approximate legacy size 16, 24 smimage 36, 48 image 64, 96 xlimage This approach can allow for more flexibility in the number of tokens generated, which in turn helps to better optimize output quality and efficiency for a given prompt. See it in action GPT-image-2 shows improved image fidelity across visual styles, generating more detailed and refined images. But, don’t just take our word for it, let's see the model in action with a few prompts and edits. Here is the example we used: Prompt: Interior of an empty subway car (no people). Wide-angle view looking down the aisle. Clean, modern subway car with seats, poles, route map strip, and ad frames above the windows. Realistic lighting with a slight cool fluorescent tone, realistic materials (metal poles, vinyl seats, textured floor). As you can see, when using the same base prompt, the image quality and realism improved with each model. Now let’s take a look at adding incremental changes to the same image: Prompt: Populate the ad frames with a cohesive ad campaign for “Zava Flower Delivery” and use an array of flower types. And our subway is now full of ads for the new ZAVA flower delivery service. Let's ask for another small change: Prompt: In all Zava Flower Delivery advertisements, change the flowers shown to roses (red and pink roses). And in three simple prompts, we've created a mockup of a flower delivery ad. From marketing material to website creation to UX design, GPT-image-2 now allows developers to deliver production-grade assets for real business use cases. Image generation across industries These new capabilities open the door to richer, more production-ready image generation workflows across a range of enterprise scenarios: Retail & e-commerce: Generate product imagery at exact platform-required dimensions, from square thumbnails to wide banners, without post-processing. Marketing: Produce crisp, rich in color campaign visuals and social assets localized to different markets. Media & entertainment: Generate storyboard panels and scene at resolutions suited to production pipelines. Education & training: Create visual learning aids and course materials formatted to exact display requirements across devices. UI/UX design: Accelerate mockup and prototype workflows by generating interface assets at the precise dimensions your design system requires. Trust and safety At Microsoft, our mission to empower people and organizations remains constant. As part of this commitment, models made available through Foundry undergo internal reviews and are deployed with safeguards designed to support responsible use at scale. Learn more about responsible AI at Microsoft. For GPT-image-2, Microsoft applied an in-depth safety approach that addresses disallowed content and misuse while maintaining human oversight. The deployment combines OpenAI’s image generation safety mitigations with Azure AI Content Safety, including filters and classifiers for sensitive content. Pricing Model Offer type Pricing - Image Pricing - Text GPT-image-2 Standard Global Input Tokens: $8 Cached Input Tokens: $2 Output Tokens: $30 Input Tokens: $5 Cached Input Tokens: $1.25 Note: All prices are per 1M token. There is no billing for output tokens for the GPT-image-2 model. Getting started Whether you’re building a personalized retail experience, automating visual content pipelines or accelerating design workflows. GPT-image-2 gives your team the resolution control and intelligent routing to generate images that fit your exact needs. Try the GPT-image-2 in Microsoft Foundry today! Deploy the model in Microsoft Foundry Experiment with the model in the Image playground Read the documentation to learn more
Three tiers of Agentic AI - and when to use none of them
Every enterprise has an AI agent. Almost none of them work in production. Walk into any enterprise technology review right now and you will find the same thing. Pilots running. Demos recorded. Steering committees impressed. And somewhere in the background, a quiet acknowledgment that the thing does not actually work at scale yet. OutSystems surveyed nearly 1,900 global IT leaders and found that 96% of organizations are already running AI agents in some capacity. Yet only one in nine has those agents operating in production at scale. The experiments are everywhere. The production systems are not. That gap is not a capability problem. The infrastructure has matured. Tool calling is standard across all major models. Frameworks like LangGraph, CrewAI, and Microsoft Agent Framework abstract orchestration logic. Model Context Protocol standardizes how agents access external tools and data sources. Google's Agent-to-Agent protocol now under Linux Foundation governance with over 50 enterprise technology partners including Salesforce, SAP, ServiceNow, and Workday standardizes how agents coordinate with each other. The protocols are in place. The frameworks are production ready. The gap is a selection and governance problem. Teams are building agents on problems that do not need them. Choosing the wrong tier for the ones that do. And treating governance as a compliance checkbox to add after launch, rather than an architectural input to design in from the start. The same OutSystems research found that 94% of organizations are concerned that AI sprawl is increasing complexity, technical debt, and security risk and only 12% have a centralized approach to managing it. Teams are deploying agents the way shadow IT spread through enterprises a decade ago: fast, fragmented, and without a shared definition of what production-ready actually means. I've built agentic systems across enterprise clients in logistics, retail, and B2B services. The failures I keep seeing are not technology failures. They are architecture and judgment failures problems that existed before the first line of code was written, in the conversation where nobody asked the prior question. This article is the framework I use before any platform conversation starts. What has genuinely shifted in the agentic landscape Three changes are shaping how enterprise agent architecture should be designed today and they are not incremental improvements on what existed before. The first is the move from single agents to multi-agent systems. Databricks' State of AI Agents report drawing on data from over 20,000 organizations, including more than 60% of the Fortune 500 found that multi-agent workflows on their platform grew 327% in just four months. This is not experimentation. It is production architecture shifting. A single agent handling everything routing, retrieval, reasoning, execution is being replaced by specialized agents coordinating through defined interfaces. A financial organization, for example, might run separate agents for intent classification, document retrieval, and compliance checking each narrow in scope, each connected to the next through a standardized protocol rather than tightly coupled code. The second is protocol standardization. MCP handles vertical connectivity how agents access tools, data sources, and APIs through a typed manifest and standardized invocation pattern. A2A handles horizontal connectivity how agents discover peer agents, delegate subtasks, and coordinate workflows. Production systems today use both. The practical consequence is that multi-agent architectures can be composed and governed as a platform rather than managed as a collection of one-off integrations. The third is governance as the differentiating factor between teams that ship and teams that stall. Databricks found that companies using AI governance tools get over 12 times more AI projects into production compared to those without. The teams running production agents are not running more sophisticated models. They built evaluation pipelines, audit trails, and human oversight gates before scaling not after the first incident. Tier 1 - Low-code agents: fast delivery with a defined ceiling The low-code tier is more capable than it was eighteen months ago. Copilot Studio, Salesforce Agentforce, and equivalent platforms now support richer connector libraries, better generative orchestration, and more flexible topic models. The ceiling is higher than it was. It is still a ceiling. The core pattern remains: a visual topic model drives a platform-managed LLM that classifies intent and routes to named execution branches. Connectors abstract credential management and API surface. A business team — analyst, citizen developer, IT operations — can build, deploy, and iterate without engineering involvement on every change. For bounded conversational problems, this is the fastest path from requirement to production. The production reality is documented clearly. Gartner data found that only 5% of Copilot Studio pilots moved to larger-scale deployment. A European telecom with dedicated IT resources and a full Microsoft enterprise agreement spent six months and did not deliver a single production agent. The visual builder works. The path from prototype to production, production-grade integrations, error handling, compliance logging, exception routing is where most enterprises get stuck, because it requires Power Platform expertise that most business teams do not have. The platform ceiling shows up predictably at four points. Async processing anything beyond a synchronous connector call, including approval chains, document pipelines, or batch operations cannot be handled natively. Full payload audit logs platform logs give conversation transcripts and connector summaries, not structured records of every API call and its parameters. Production volume concurrency limits and message throughput budgets bind faster than planning assumptions suggest. Root cause analysis in production you cannot inspect the LLM's confidence score or the alternatives it considered, which makes diagnosing misbehavior significantly harder than it should be. The correct diagnostic: can this use case be owned end-to-end by a business team, covered by standard connectors, with no latency SLA below three seconds and no payload-level compliance requirement? Yes, low code is the correct tier. Not a compromise. If no on any point, continue. If low-code is the right call for your use case: Copilot Studio quickstart Tier 2 - Pro-code agents: the architecture the current landscape demands The defining pattern in production pro-code architecture today is multi-agent. Specialized agents per domain, coordinating through MCP for tool access and A2A for peer-to-peer delegation, with a governance layer spanning the entire system. What this looks like in practice: a financial organization handling incoming compliance queries runs separate agents for intent classification, document retrieval, and the compliance check itself. None of these agents tries to do all three jobs. Each has a narrow responsibility, a defined input/output contract typed against a JSON Schema, and a clear handoff boundary. The 327% growth in multi-agent workflows reflects production teams discovering that the failure modes of monolithic agents topic collision, context overflow, degraded classification as scope expands are solved by specialization, not by making a single agent more capable. The discipline that makes multi-agent systems reliable is identical to what makes single-agent systems reliable, just enforced across more boundaries: the LLM layer reasons and coordinates; deterministic tool functions enforce. In a compliance pipeline, no LLM decides whether a document satisfies a regulatory requirement. That evaluation runs in a deterministic tool with a versioned rule set, testable outputs, and an immutable audit log. The LLM orchestrates the sequence. The tool produces the compliance record. Mixing these letting an LLM evaluate whether a rule pass collapses the audit trail and introduces probabilistic outputs on questions that have regulatory answers. MCP is the tool interface standard today. An MCP server exposes a typed manifest any compliant agent runtime can discover at startup. Tools are versioned, independently deployable, and reusable across agents without bespoke integration code. A2A extends this horizontally: agents advertise capability cards, discover peers, and delegate subtasks through a standardised protocol. The practical consequence is that multi-agent systems built on both protocols can be composed and governed as a platform rather than managed as a collection of one-off integrations. Observability is the architectural element that separates teams shipping production agents from teams perpetually in pilot. Build evaluation pipelines, distributed traces across all agent boundaries, and human review gates before scaling. The teams that add these after the first production incident spend months retrofitting what should have been designed in. If pro-code is the right call for your use case: Foundry Agent Service The hybrid pattern: still where production deployments land The shift to multi-agent architecture does not change the hybrid pattern it deepens it. Low-code at the conversational surface, pro-code multi-agent systems behind it, with a governance layer spanning both. On a logistics client engagement, the brief was a sales assistant for account managers shipment status, account health, and competitive context inside Teams. The business team wanted everything in Copilot Studio. Engineering wanted a custom agent runtime. Both were wrong. What we built: Copilot Studio handled all high-frequency, low-complexity queries shipment tracking, account status, open cases through Power Platform connectors. Zero custom code. That covered roughly 78% of actual interaction volume. Requests requiring multi-source reasoning competitive positioning on a specific lane, churn risk across an account portfolio, contract renewal analysis delegated via authenticated HTTP action to a pro-code multi-agent service on Azure. A retrieval agent pulled deal history and market intelligence through MCP-exposed tools. A synthesis agent composed the recommendation with confidence scoring. Structured JSON back to the low-code layer, rendered as an adaptive card in Teams. The HITL gate was non-negotiable and designed before deployment, not added after the first incident. No output reached a customer without a manager approval step. The agent drafts. A human sends. This boundary low-code for conversational volume, pro-code for reasoning depth maps directly to what the research shows separates teams that ship from teams that stall. The organizations running agents in production drew the line correctly between what the platform can own and what engineering needs to own. Then they built governance into both sides before scaling. The four gates - the prior question that still gets skipped Run every candidate use case through these four checks before the platform conversation begins. None of the recent infrastructure improvements change what they are checking, because none of them change the fundamental cost structure of agentic reasoning. Gate 1 - is the logic fully deterministic? If every valid output for every valid input can be enumerated in unit tests, the problem does not need an LLM. A rules engine executes in microseconds at zero inference cost and cannot produce a plausible-but-wrong answer. NeuBird AI's production ops agents which have resolved over a million alerts and saved enterprises over $2 million in engineering hours work because alert triage logic that can be expressed as rules runs in deterministic code, and the LLM only handles cases where pattern-matching is insufficient. That boundary is not incidental to the system's reliability. It is the reason for it. Gate 2 - is zero hallucination tolerance required? With over 80% of databases now being built by AI agents per Databricks' State of AI Agents report the surface area for hallucination-induced data errors has grown significantly. In domains where a wrong answer is a compliance event financial calculation, medical logic, regulatory determinations irreducible LLM output uncertainty is disqualifying regardless of model version or prompt engineering effort. Exit to deterministic code or classical ML with bounded output spaces. Gate 3 - is a sub-100ms latency SLA required? LLM inference is faster than it was eighteen months ago. It is not fast enough for payment transaction processing, real-time fraud scoring, or live inventory management. A three-agent system with MCP tool calls has a P50 latency measured in seconds. These problems need purpose-built transactional architecture. Gate 4 - is regulatory explainability required? A2A enables complex agent coordination and delegation. It does not make LLM reasoning reproducible in a regulatory sense. Temperature above zero means the same input produces different outputs across invocations. Regulators in financial services, healthcare, and consumer credit require deterministic, auditable decision rationale. Exit to deterministic workflow with structured audit logging at every Five production failure modes - one of them new The four original anti-patterns are still showing up in production. A fifth has been added by scale. Routing data retrieval through a reasoning loop. A direct API call returns account status in under 10ms. Routing the same request through an LLM reasoning step adds hundreds of milliseconds, consumes tokens on every call, and introduces output parsing on data that is already structured. The agent calls a structured tool. The tool calls the API. The agent never acts as the integration layer. Encoding business rules in prompts. Rules expressed in prompt text drift as models update. They produce probabilistic output across invocations and fail in ways that are difficult to reproduce and diagnose. A rule that must evaluate correctly every time belongs in a deterministic tool function unit-tested, version-controlled, independently deployable via MCP. No approval gate on CRUD operations. CRUD operations without a human approval step will eventually misfire on the input that testing did not cover. The gate needs to be designed before deployment, not added after the first incident involving a financial posting, a customer-facing communication, or a data deletion. Monolithic agent for all domains. A single agent accumulating every domain leads predictably to topic collision, context overflow, and maintenance that becomes impossible as scope expands. Specialized agents per domain, coordinating through A2A, is the architecture that scales. Ungoverned agent sprawl. This is the new one and currently the most prevalent. OutSystems found 94% of organizations concerned about it, with only 12% having a centralized response. Teams building agents independently across fragmented stacks, without shared governance, evaluation standards, or audit infrastructure, produce exactly the same organizational debt that shadow IT created but with higher stakes, because these systems make autonomous decisions rather than just storing and retrieving data. The fix is treating governance as an architectural input before deployment, not a compliance requirement after something breaks. The infrastructure is ready. The judgment is not. The tier decision sequence has not changed. Does the problem need natural language understanding or dynamic generation? No — deterministic system, stop. Can a business team own it through standard connectors with no sub-3-second latency SLA and no payload-level compliance requirement? Yes — low-code. Does it need custom orchestration, multi-agent coordination, or audit-grade observability? Yes — pro-code with MCP and A2A. Does it need both a conversational surface and deep backend reasoning? Hybrid, with a governance layer spanning both. What has changed is that governance is no longer optional infrastructure to add when you have time. The data is unambiguous. Companies with governance tools get over 12 times more AI projects into production than those without. Evaluation pipelines, distributed tracing across agent boundaries, human oversight gates, and centralised agent lifecycle management are not overhead. They are what converts experiments into production systems. The teams still stuck in pilot are not stuck because the technology failed them. They are stuck because they skipped this layer. The protocols are standardised. The frameworks are mature. The infrastructure exists. None of that is what is holding most enterprise agent programmes back. What is holding them back is a selection problem disguised as a technology problem — teams building agents before asking whether agents are warranted, choosing platforms before running the four gates, and treating governance as a checkpoint rather than an architectural input. I have built agents that should have been workflow engines. Not because the technology was wrong, but because nobody stopped early enough to ask whether it was necessary. The four gates in this article exist because I learned those lessons at clients' expense, not mine. The most useful thing I can offer any team starting an agentic AI project is not a framework selection guide. It is permission to say no — and a clear basis for saying it. Take the four gates framework to your next architecture review. If you have already shipped agents to production, I would like to hear what worked and what did not - comment below What to do next Three concrete steps depending on where you are right now. If you have pilots that have not reached production: Run them through the four gates in this article before the next sprint. Gate 1 alone will eliminate a meaningful percentage of them. The ones that survive all four are your real candidates for production investment. Download the attached file for gated checklist and take it into your next architecture review. If you are starting a new agent project: Do not open a platform before you have answered the gate questions. Once you have confirmed an agent is warranted and identified the tier, start here: Copilot Studio guided setup for low-code scenarios, or Foundry Agent Service for pro-code patterns with MCP and multi-agent coordination built in. Build governance infrastructure - evaluation pipeline, distributed tracing, HITL gates - before you scale, not after. If you have already shipped agents to production: Share what worked and what did not in the Azure AI Tech Community — tag posts with #AgentArchitecture. The most useful signal for teams still in pilot is hearing from practitioners who have been through production, not vendors describing what production should look like. References OutSystems — State of AI Development Report - https://www.outsystems.com/1/state-ai-development-report Databricks — State of AI Agents Report - https://www.databricks.com/resources/ebook/state-of-ai-agents Gartner — 2025 Microsoft 365 and Copilot Survey - https://www.gartner.com/en/documents/6548002 (Paywalled primary source — publicly reported via techpartner.news: https://www.techpartner.news/news/gartner-microsoft-copilot-hype-offset-by-roi-and-readiness-realities-618118) Anthropic — Model Context Protocol (MCP) - https://modelcontextprotocol.io Google Cloud — Agent-to-Agent Protocol (A2A) . https://developers.googleblog.com/en/a2a-a-new-era-of-agent-interoperability NeuBird AI — Production Operations Deployment Announcement NeuBird AI Closes $19.3M Funding Round to Scale Agentic AI Across Enterprise Production Operations ReAct: Synergizing Reasoning and Acting in Language Models — Yao et al. https://arxiv.org/abs/2210.03629 Enterprise Integration Patterns — Gregor Hohpe & Bobby Woolf, Addison-Wesley https://www.enterpriseintegrationpatterns.com
Vector Drift in Azure AI Search: Three Hidden Reasons Your RAG Accuracy Degrades After Deployment
What Is Vector Drift? Vector drift occurs when embeddings stored in a vector index no longer accurately represent the semantic intent of incoming queries. Because vector similarity search depends on relative semantic positioning, even small changes in models, data distribution, or preprocessing logic can significantly affect retrieval quality over time. Unlike schema drift or data corruption, vector drift is subtle: The system continues to function Queries return results But relevance steadily declines Cause 1: Embedding Model Version Mismatch What Happens Documents are indexed using one embedding model, while query embeddings are generated using another. This typically happens due to: Model upgrades Shared Azure OpenAI resources across teams Inconsistent configuration between environments Why This Matters Embeddings generated by different models: Exist in different vector spaces Are not mathematically comparable Produce misleading similarity scores As a result, documents that were previously relevant may no longer rank correctly. Recommended Practice A single vector index should be bound to one embedding model and one dimension size for its entire lifecycle. If the embedding model changes, the index must be fully re-embedded and rebuilt. Cause 2: Incremental Content Updates Without Re-Embedding What Happens New documents are continuously added to the index, while existing embeddings remain unchanged. Over time, new content introduces: Updated terminology Policy changes New product or domain concepts Because semantic meaning is relative, the vector space shifts—but older vectors do not. Observable Impact Recently indexed documents dominate retrieval results Older but still valid content becomes harder to retrieve Recall degrades without obvious system errors Practical Guidance Treat embeddings as living assets, not static artifacts: Schedule periodic re-embedding for stable corpora Re-embed high-impact or frequently accessed documents Trigger re-embedding when domain vocabulary changes meaningfully Declining similarity scores or reduced citation coverage are often early signals of drift. Cause 3: Inconsistent Chunking Strategies What Happens Chunk size, overlap, or parsing logic is adjusted over time, but previously indexed content is not updated. The index ends up containing chunks created using different strategies. Why This Causes Drift Different chunking strategies produce: Different semantic density Different contextual boundaries Different retrieval behavior This inconsistency reduces ranking stability and makes retrieval outcomes unpredictable. Governance Recommendation Chunking strategy should be treated as part of the index contract: Use one chunking strategy per index Store chunk metadata (for example, chunk_version) Rebuild the index when chunking logic changes Design Principles Versioned embedding deployments Scheduled or event-driven re-embedding pipelines Standardized chunking strategy Retrieval quality observability Prompt and response evaluation Key Takeaways Vector drift is an architectural concern, not a service defect It emerges from model changes, evolving data, and preprocessing inconsistencies Long-lived RAG systems require embedding lifecycle management Azure AI Search provides the controls needed to mitigate drift effectively Conclusion Vector drift is an expected characteristic of production RAG systems. Teams that proactively manage embedding models, chunking strategies, and retrieval observability can maintain reliable relevance as their data and usage evolve. Recognizing and addressing vector drift is essential to building and operating robust AI solutions on Azure. Further Reading The following Microsoft resources provide additional guidance on vector search, embeddings, and production-grade RAG architectures on Azure. Azure AI Search – Vector Search Overview - https://learn.microsoft.com/azure/search/vector-search-overview Azure OpenAI – Embeddings Concepts - https://learn.microsoft.com/en-us/azure/ai-foundry/openai/how-to/embeddings?view=foundry-classic&tabs=csharp Retrieval-Augmented Generation (RAG) Pattern on Azure - https://learn.microsoft.com/en-us/azure/search/retrieval-augmented-generation-overview?tabs=videos Azure Monitor – Observability Overview - https://learn.microsoft.com/azure/azure-monitor/overview
