Embracing Responsible AI: A Comprehensive Guide and Call to Action
In an age where artificial intelligence (AI) is becoming increasingly integrated into our daily lives, the need for responsible AI practices has never been more critical. From healthcare to finance, AI systems influence decisions affecting millions of people. As developers, organizations, and users, we are responsible for ensuring that these technologies are designed, deployed, and evaluated ethically. This blog will delve into the principles of responsible AI, the importance of assessing generative AI applications, and provide a call to action to engage with the Microsoft Learn Module on responsible AI evaluations. What is Responsible AI? Responsible AI encompasses a set of principles and practices aimed at ensuring that AI technologies are developed and used in ways that are ethical, fair, and accountable. Here are the core principles that define responsible AI: Fairness AI systems must be designed to avoid bias and discrimination. This means ensuring that the data used to train these systems is representative and that the algorithms do not favor one group over another. Fairness is crucial in applications like hiring, lending, and law enforcement, where biased AI can lead to significant societal harm. Transparency Transparency involves making AI systems understandable to users and stakeholders. This includes providing clear explanations of how AI models make decisions and what data they use. Transparency builds trust and allows users to challenge or question AI decisions when necessary. Accountability Developers and organizations must be held accountable for the outcomes of their AI systems. This includes establishing clear lines of responsibility for AI decisions and ensuring that there are mechanisms in place to address any negative consequences that arise from AI use. Privacy AI systems often rely on vast amounts of data, raising concerns about user privacy. Responsible AI practices involve implementing robust data protection measures, ensuring compliance with regulations like GDPR, and being transparent about how user data is collected, stored, and used. The Importance of Evaluating Generative AI Applications Generative AI, which includes technologies that can create text, images, music, and more, presents unique challenges and opportunities. Evaluating these applications is essential for several reasons: Quality Assessment Evaluating the output quality of generative AI applications is crucial to ensure that they meet user expectations and ethical standards. Poor-quality outputs can lead to misinformation, misrepresentation, and a loss of trust in AI technologies. Custom Evaluators Learning to create and use custom evaluators allows developers to tailor assessments to specific applications and contexts. This flexibility is vital in ensuring that the evaluation process aligns with the intended use of the AI system. Synthetic Datasets Generative AI can be used to create synthetic datasets, which can help in training AI models while addressing privacy concerns and data scarcity. Evaluating these synthetic datasets is essential to ensure they are representative and do not introduce bias. Call to Action: Engage with the Microsoft Learn Module To deepen your understanding of responsible AI and enhance your skills in evaluating generative AI applications, I encourage you to explore the Microsoft Learn Module available at this link. What You Will Learn: Concepts and Methodologies: The module covers essential frameworks for evaluating generative AI, including best practices and methodologies that can be applied across various domains. Hands-On Exercises: Engage in practical, code-first exercises that simulate real-world scenarios. These exercises will help you apply the concepts learned tangibly, reinforcing your understanding. Prerequisites: An Azure subscription (you can create one for free). Basic familiarity with Azure and Python programming. Tools like Docker and Visual Studio Code for local development. Why This Matters By participating in this module, you are not just enhancing your skills; you are contributing to a broader movement towards responsible AI. As AI technologies continue to evolve, the demand for professionals who understand and prioritize ethical considerations will only grow. Your engagement in this learning journey can help shape the future of AI, ensuring it serves humanity positively and equitably. Conclusion As we navigate the complexities of AI technology, we must prioritize responsible AI practices. By engaging with educational resources like the Microsoft Learn Module on responsible AI evaluations, we can equip ourselves with the knowledge and skills necessary to create AI systems that are not only innovative but also ethical and responsible. Join the movement towards responsible AI today! Take the first step by exploring the Microsoft Learn Module and become an advocate for ethical AI practices in your community and beyond. Together, we can ensure that AI serves as a force for good in our society. References Evaluate generative AI applications https://learn.microsoft.com/en-us/training/paths/evaluate-generative-ai-apps/?wt.mc_id=studentamb_263805 Azure Subscription for Students https://azure.microsoft.com/en-us/free/students/?wt.mc_id=studentamb_263805 Visual Studio Code https://code.visualstudio.com/?wt.mc_id=studentamb_263805Fine-Tuning and Deploying Phi-3.5 Model with Azure and AI Toolkit
What is Phi-3.5? Phi-3.5 as a state-of-the-art language model with strong multilingual capabilities. Emphasize that it is designed to handle multiple languages with high proficiency, making it a versatile tool for Natural Language Processing (NLP) tasks across different linguistic backgrounds. Key Features of Phi-3.5 Highlight the core features of the Phi-3.5 model: Multilingual Capabilities: Explain that the model supports a wide variety of languages, including major world languages such as English, Spanish, Chinese, French, and others. You can provide an example of its ability to handle a sentence or document translation from one language to another without losing context or meaning. Fine-Tuning Ability: Discuss how the model can be fine-tuned for specific use cases. For instance, in a customer support setting, the Phi-3.5 model can be fine-tuned to understand the nuances of different languages used by customers across the globe, improving response accuracy. High Performance in NLP Tasks: Phi-3.5 is optimized for tasks like text classification, machine translation, summarization, and more. It has superior performance in handling large-scale datasets and producing coherent, contextually correct language outputs. Applications in Real-World Scenarios To make this section more engaging, provide a few real-world applications where the Phi-3.5 model can be utilized: Customer Support Chatbots: For companies with global customer bases, the model’s multilingual support can enhance chatbot capabilities, allowing for real-time responses in a customer’s native language, no matter where they are located. Content Creation for Global Markets: Discuss how businesses can use Phi-3.5 to automatically generate or translate content for different regions. For example, marketing copy can be adapted to fit cultural and linguistic nuances in multiple languages. Document Summarization Across Languages: Highlight how the model can be used to summarize long documents or articles written in one language and then translate the summary into another language, improving access to information for non-native speakers. Why Choose Phi-3.5 for Your Project? End this section by emphasizing why someone should use Phi-3.5: Versatility: It’s not limited to just one or two languages but performs well across many. Customization: The ability to fine-tune it for particular use cases or industries makes it highly adaptable. Ease of Deployment: With tools like Azure ML and Ollama, deploying Phi-3.5 in the cloud or locally is accessible even for smaller teams. Objective Of Blog Specialized Language Models (SLMs) are at the forefront of advancements in Natural Language Processing, offering fine-tuned, high-performance solutions for specific tasks and languages. Among these, the Phi-3.5 model has emerged as a powerful tool, excelling in its multilingual capabilities. Whether you're working with English, Spanish, Mandarin, or any other major world language, Phi-3.5 offers robust, reliable language processing that adapts to various real-world applications. This makes it an ideal choice for businesses looking to deploy multilingual chatbots, automate content generation, or translate customer interactions in real time. Moreover, its fine-tuning ability allows for customization, making Phi-3.5 versatile across industries and tasks. Customization and Fine-Tuning for Different Applications The Phi-3.5 model is not just limited to general language understanding tasks. It can be fine-tuned for specific applications, industries, and language models, allowing users to tailor its performance to meet their needs. Customizable for Industry-Specific Use Cases: With fine-tuning, the model can be trained further on domain-specific data to handle particular use cases like legal document translation, medical records analysis, or technical support. Example: A healthcare company can fine-tune Phi-3.5 to understand medical terminology in multiple languages, enabling it to assist in processing patient records or generating multilingual health reports. Adapting for Specialized Tasks: You can train Phi-3.5 to perform specialized tasks like sentiment analysis, text summarization, or named entity recognition in specific languages. Fine-tuning helps enhance the model's ability to handle unique text formats or requirements. Example: A marketing team can fine-tune the model to analyse customer feedback in different languages to identify trends or sentiment across various regions. The model can quickly classify feedback as positive, negative, or neutral, even in less widely spoken languages like Arabic or Korean. Applications in Real-World Scenarios To illustrate the versatility of Phi-3.5, here are some real-world applications where this model excels, demonstrating its multilingual capabilities and customization potential: Case Study 1: Multilingual Customer Support Chatbots Many global companies rely on chatbots to handle customer queries in real-time. With Phi-3.5’s multilingual abilities, businesses can deploy a single model that understands and responds in multiple languages, cutting down on the need to create language-specific chatbots. Example: A global airline can use Phi-3.5 to power its customer service bot. Passengers from different countries can inquire about their flight status or baggage policies in their native languages—whether it's Japanese, Hindi, or Portuguese—and the model responds accurately in the appropriate language. Case Study 2: Multilingual Content Generation Phi-3.5 is also useful for businesses that need to generate content in different languages. For example, marketing campaigns often require creating region-specific ads or blog posts in multiple languages. Phi-3.5 can help automate this process by generating localized content that is not just translated but adapted to fit the cultural context of the target audience. Example: An international cosmetics brand can use Phi-3.5 to automatically generate product descriptions for different regions. Instead of merely translating a product description from English to Spanish, the model can tailor the description to fit cultural expectations, using language that resonates with Spanish-speaking audiences. Case Study 3: Document Translation and Summarization Phi-3.5 can be used to translate or summarize complex documents across languages. Its ability to preserve meaning and context across languages makes it ideal for industries where accuracy is crucial, such as legal or academic fields. Example: A legal firm working on cross-border cases can use Phi-3.5 to translate contracts or legal briefs from German to English, ensuring the context and legal terminology are accurately preserved. It can also summarize lengthy documents in multiple languages, saving time for legal teams. Fine-Tuning Phi-3.5 Model Fine-tuning a language model like Phi-3.5 is a crucial step in adapting it to perform specific tasks or cater to specific domains. This section will walk through what fine-tuning is, its importance in NLP, and how to fine-tune the Phi-3.5 model using Azure Model Catalog for different languages and tasks. We'll also explore a code example and best practices for evaluating and validating the fine-tuned model. What is Fine-Tuning? Fine-tuning refers to the process of taking a pre-trained model and adapting it to a specific task or dataset by training it further on domain-specific data. In the context of NLP, fine-tuning is often required to ensure that the language model understands the nuances of a particular language, industry-specific terminology, or a specific use case. Why Fine-Tuning is Necessary Pre-trained Large Language Models (LLMs) are trained on diverse datasets and can handle various tasks like text summarization, generation, and question answering. However, they may not perform optimally in specialized domains without fine-tuning. The goal of fine-tuning is to enhance the model's performance on specific tasks by leveraging its prior knowledge while adapting it to new contexts. Challenges of Fine-Tuning Resource Intensiveness: Fine-tuning large models can be computationally expensive, requiring significant hardware resources. Storage Costs: Each fine-tuned model can be large, leading to increased storage needs when deploying multiple models for different tasks. LoRA and QLoRA To address these challenges, techniques like LoRA (Low-rank Adaptation) and QLoRA (Quantized Low-rank Adaptation) have emerged. Both methods aim to make the fine-tuning process more efficient: LoRA: This technique reduces the number of trainable parameters by introducing low-rank matrices into the model while keeping the original model weights frozen. This approach minimizes memory usage and speeds up the fine-tuning process. QLoRA: An enhancement of LoRA, QLoRA incorporates quantization techniques to further reduce memory requirements and increase the efficiency of the fine-tuning process. It allows for the deployment of large models on consumer hardware without the extensive resource demands typically associated with full fine-tuning. from transformers import AutoModelForSequenceClassification, Trainer, TrainingArguments from peft import get_peft_model, LoraConfig # Load a pre-trained model model = AutoModelForSequenceClassification.from_pretrained("bert-base-uncased") # Configure LoRA lora_config = LoraConfig( r=16, # Rank lora_alpha=32, lora_dropout=0.1, ) # Wrap the model with LoRA model = get_peft_model(model, lora_config) # Define training arguments training_args = TrainingArguments( output_dir="./results", evaluation_strategy="epoch", learning_rate=2e-5, per_device_train_batch_size=16, per_device_eval_batch_size=16, num_train_epochs=3, ) # Create a Trainer trainer = Trainer( model=model, args=training_args, train_dataset=train_dataset, eval_dataset=eval_dataset, ) # Start fine-tuning trainer.train() This code outlines how to set up a model for fine-tuning using LoRA, which can significantly reduce the resource requirements while still adapting the model effectively to specific tasks. In summary, fine-tuning with methods like LoRA and QLoRA is essential for optimizing pre-trained models for specific applications in NLP, making it feasible to deploy these powerful models in various domains efficiently. Why is Fine-Tuning Important in NLP? Task-Specific Performance: Fine-tuning helps improve performance for tasks like text classification, machine translation, or sentiment analysis in specific domains (e.g., legal, healthcare). Language-Specific Adaptation: Since models like Phi-3.5 are trained on general datasets, fine-tuning helps them handle industry-specific jargon or linguistic quirks. Efficient Resource Utilization: Instead of training a model from scratch, fine-tuning leverages pre-trained knowledge, saving computational resources and time. Steps to Fine-Tune Phi-3.5 in Azure AI Foundry Fine-tuning the Phi-3.5 model in Azure AI Foundry involves several key steps. Azure provides a user-friendly interface to streamline model customization, allowing you to quickly configure, train, and deploy models. Step 1: Setting Up the Environment in Azure AI Foundry Access Azure AI Foundry: Log in to Azure AI Foundry. If you don’t have an account, you can create one and set up a workspace. Create a New Experiment: Once in the Azure AI Foundry, create a new training experiment. Choose the Phi-3.5 model from the pre-trained models provided in the Azure Model Zoo. Set Up the Data for Fine-Tuning: Upload your custom dataset for fine-tuning. Ensure the dataset is in a compatible format (e.g., CSV, JSON). For instance, if you are fine-tuning the model for a customer service chatbot, you could upload customer queries in different languages. Step 2: Configure Fine-Tuning Settings Select the Training Dataset: Select the dataset you uploaded and link it to the Phi-3.5 model. 2) Configure the Hyperparameters: Set up training hyperparameters like the number of epochs, learning rate, and batch size. You may need to experiment with these settings to achieve optimal performance. 3) Choose the Task Type: Specify the task you are fine-tuning for, such as text classification, translation, or summarization. This helps Azure AI Foundry understand how to optimize the model during fine-tuning. 4) Fine-Tuning for Specific Languages: If you are fine-tuning for a specific language or multilingual tasks, ensure that the dataset is labeled appropriately and contains enough examples in the target language(s). This will allow Phi-3.5 to learn language-specific features effectively. Step 3: Train the Model Launch the Training Process: Once the configuration is complete, launch the training process in Azure AI Foundry. Depending on the size of your dataset and the complexity of the model, this could take some time. Monitor Training Progress: Use Azure AI Foundry’s built-in monitoring tools to track performance metrics such as loss, accuracy, and F1 score. You can view the model’s progress during training to ensure that it is learning effectively. Code Example: Fine-Tuning Phi-3.5 for a Specific Use Case Here's a code snippet for fine-tuning the Phi-3.5 model using Python and Azure AI Foundry SDK. In this example, we are fine-tuning the model for a customer support chatbot in multiple languages. from azure.ai import Foundry from azure.ai.model import Model # Initialize Azure AI Foundry foundry = Foundry() # Load the Phi-3.5 model model = Model.load("phi-3.5") # Set up the training dataset training_data = foundry.load_dataset("customer_queries_dataset") # Fine-tune the model model.fine_tune(training_data, epochs=5, learning_rate=0.001) # Save the fine-tuned model model.save("fine_tuned_phi_3.5") Best Practices for Evaluating and Validating Fine-Tuned Models Once the model is fine-tuned, it's essential to evaluate and validate its performance before deploying it in production. Split Data for Validation: Always split your dataset into training and validation sets. This ensures that the model is evaluated on unseen data to prevent overfitting. Evaluate Key Metrics: Measure performance using key metrics such as: Accuracy: The proportion of correct predictions. F1 Score: A measure of precision and recall. Confusion Matrix: Helps visualize true vs. false predictions for classification tasks. Cross-Language Validation: If the model is fine-tuned for multiple languages, test its performance across all supported languages to ensure consistency and accuracy. Test in Production-Like Environments: Before full deployment, test the fine-tuned model in a production-like environment to catch any potential issues. Continuous Monitoring and Re-Fine-Tuning: Once deployed, continuously monitor the model’s performance and re-fine-tune it periodically as new data becomes available. Deploying Phi-3.5 Model After fine-tuning the Phi-3.5 model, the next crucial step is deploying it to make it accessible for real-world applications. This section will cover two key deployment strategies: deploying in Azure for cloud-based scaling and reliability, and deploying locally with AI Toolkit for simpler offline usage. Each deployment strategy offers its own advantages depending on the use case. Deploying in Azure Azure provides a powerful environment for deploying machine learning models at scale, enabling organizations to deploy models like Phi-3.5 with high availability, scalability, and robust security features. Azure AI Foundry simplifies the entire deployment pipeline. Set Up Azure AI Foundry Workspace: Log in to Azure AI Foundry and navigate to the workspace where the Phi-3.5 model was fine-tuned. Go to the Deployments section and create a new deployment environment for the model. Choose Compute Resources: Compute Target: Select a compute target suitable for your deployment. For large-scale usage, it’s advisable to choose a GPU-based compute instance. Example: Choose an Azure Kubernetes Service (AKS) cluster for handling large-scale requests efficiently. Configure Scaling Options: Azure allows you to set up auto-scaling based on traffic. This ensures that the model can handle surges in demand without affecting performance. Model Deployment Configuration: Create an Inference Pipeline: In Azure AI Foundry, set up an inference pipeline for your model. Specify the Model: Link the fine-tuned Phi-3.5 model to the deployment pipeline. Deploy the Model: Select the option to deploy the model to the chosen compute resource. Test the Deployment: Once the model is deployed, test the endpoint by sending sample requests to verify the predictions. Configuration Steps (Compute, Resources, Scaling) During deployment, Azure AI Foundry allows you to configure essential aspects like compute type, resource allocation, and scaling options. Compute Type: Choose between CPU or GPU clusters depending on the computational intensity of the model. Resource Allocation: Define the minimum and maximum resources to be allocated for the deployment. For real-time applications, use Azure Kubernetes Service (AKS) for high availability. For batch inference, Azure Container Instances (ACI) is suitable. Auto-Scaling: Set up automatic scaling of the compute instances based on the number of requests. For example, configure the deployment to start with 1 node and scale to 10 nodes during peak usage. Cost Comparison: Phi-3.5 vs. Larger Language Models When comparing the costs of using Phi-3.5 with larger language models (LLMs), several factors come into play, including computational resources, pricing structures, and performance efficiency. Here’s a breakdown: Cost Efficiency Phi-3.5: Designed as a Small Language Model (SLM), Phi-3.5 is optimized for lower computational costs. It offers competitive performance at a fraction of the cost of larger models, making it suitable for budget-conscious projects. The smaller size (3.8 billion parameters) allows for reduced resource consumption during both training and inference. Larger Language Models (e.g., GPT-3.5): Typically require more computational resources, leading to higher operational costs. Larger models may incur additional costs for storage and processing power, especially in cloud environments. Performance vs. Cost Performance Parity: Phi-3.5 has been shown to achieve performance parity with larger models on various benchmarks, including language comprehension and reasoning tasks. This means that for many applications, Phi-3.5 can deliver similar results to larger models without the associated costs. Use Case Suitability: For simpler tasks or applications that do not require extensive factual knowledge, Phi-3.5 is often the more cost-effective choice. Larger models may still be preferred for complex tasks requiring deep contextual understanding or extensive factual recall. Pricing Structure Azure Pricing: Phi-3.5 is available through Azure with a pay-as-you-go billing model, allowing users to scale costs based on usage. Pricing details for Phi-3.5 can be found on the Azure pricing page, where users can customize options based on their needs. Code Example: API Setup and Endpoints for Live Interaction Below is a Python code snippet demonstrating how to interact with a deployed Phi-3.5 model via an API in Azure: import requests # Define the API endpoint and your API key api_url = "https://<your-azure-endpoint>/predict" api_key = "YOUR_API_KEY" # Prepare the input data input_data = { "text": "What are the benefits of renewable energy?" } # Make the API request response = requests.post(api_url, json=input_data, headers={"Authorization": f"Bearer {api_key}"}) # Print the model's response if response.status_code == 200: print("Model Response:", response.json()) else: print("Error:", response.status_code, response.text) Deploying Locally with AI Toolkit For developers who prefer to run models on their local machines, the AI Toolkit provides a convenient solution. The AI Toolkit is a lightweight platform that simplifies local deployment of AI models, allowing for offline usage, experimentation, and rapid prototyping. Deploying the Phi-3.5 model locally using the AI Toolkit is straightforward and can be used for personal projects, testing, or scenarios where cloud access is limited. Introduction to AI Toolkit The AI Toolkit is an easy-to-use platform for deploying language models locally without relying on cloud infrastructure. It supports a range of AI models and enables developers to work in a low-latency environment. Advantages of deploying locally with AI Toolkit: Offline Capability: No need for continuous internet access. Quick Experimentation: Rapid prototyping and testing without the delays of cloud deployments. Setup Guide: Installing and Running Phi-3.5 Locally Using AI Toolkit Install AI Toolkit: Go to the AI Toolkit website and download the platform for your operating system (Linux, macOS, or Windows). Install AI Toolkit by running the appropriate installation command in your terminal. Download the Phi-3.5 Model: Once AI Toolkit is installed, you can download the Phi-3.5 model locally by running: 3. Run the Model Locally: After downloading the model, start a local session by running: This will launch a local server on your machine where the model will be available for interaction. Code Example: Using Phi-3.5 Locally in a Project Below is a Python code example demonstrating how to send a query to the locally deployed Phi-3.5 model running on the AI Toolkit. import requests # Define the local endpoint local_url = "http://localhost:8000/predict" # Prepare the input data input_data = { "text": "What are the benefits of renewable energy?" } # Make the API request response = requests.post(local_url, json=input_data) # Print the model's response if response.status_code == 200: print("Model Response:", response.json()) else: print("Error:", response.status_code, response.text) Comparing Language Capabilities Test Results: How Phi-3.5 Handles Different Languages The Phi-3.5 model demonstrates robust multilingual capabilities, effectively processing and generating text in various languages. Below are comparative examples showcasing its performance in English, Spanish, and Mandarin: English Example: Input: "What are the benefits of renewable energy?" Output: "Renewable energy sources, such as solar and wind, reduce greenhouse gas emissions and promote sustainability." Spanish Example: Input: "¿Cuáles son los beneficios de la energía renovable?" Output: "Las fuentes de energía renovable, como la solar y la eólica, reducen las emisiones de gases de efecto invernadero y promueven la sostenibilidad." Mandarin Example: Input: "可再生能源的好处是什么？" Output: "可再生能源，如太阳能和风能，减少温室气体排放，促进可持续发展。" Performance Benchmarking and Evaluation Across Different Languages Benchmarking Phi-3.5 across different languages involves evaluating its accuracy, fluency, and contextual understanding. For instance, using BLEU scores and human evaluations, the model can be assessed on its translation quality and coherence in various languages. Real-World Use Case: Multilingual Customer Service Chatbot A practical application of Phi-3.5's multilingual capabilities is in developing a customer service chatbot that can interact with users in their preferred language. For instance, the chatbot could provide support in English, Spanish, and Mandarin, ensuring a wider reach and better user experience. Optimizing and Validating Phi-3.5 Model Model Performance Metrics To validate the model's performance in different scenarios, consider the following metrics: Accuracy: Measure how often the model's outputs are correct or align with expected results. Fluency: Assess the naturalness and readability of the generated text. Contextual Understanding: Evaluate how well the model understands and responds to context-specific queries. Tools to Use in Azure and Ollama for Evaluation Azure Cognitive Services: Utilize tools like Text Analytics and Translator to evaluate performance. Ollama: Use local testing environments to quickly iterate and validate model outputs. Conclusion In summary, Phi-3.5 exhibits impressive multilingual capabilities, effective deployment options, and robust performance metrics. Its ability to handle various languages makes it a versatile tool for natural language processing applications. Phi-3.5 stands out for its adaptability and performance in multilingual contexts, making it an excellent choice for future NLP projects, especially those requiring diverse language support. We encourage readers to experiment with the Phi-3.5 model using Azure AI Foundry or the AI Toolkit, explore fine-tuning techniques for their specific use cases, and share their findings with the community. For more information on optimized fine-tuning techniques, check out the Ignite Fine-Tuning Workshop. References Customize the Phi-3.5 family of models with LoRA fine-tuning in Azure Fine-tune Phi-3.5 models in Azure Fine Tuning with Azure AI Foundry and Microsoft Olive Hands on Labs and Workshop Customize a model with fine-tuning https://learn.microsoft.com/en-us/azure/ai-services/openai/how-to/fine-tuning?tabs=azure-openai%2Cturbo%2Cpython-new&pivots=programming-language-studio Microsoft AI Toolkit - AI Toolkit for VSCodeExploring Azure OpenAI Assistants and Azure AI Agent Services: Benefits and Opportunities
In the rapidly evolving landscape of artificial intelligence, businesses are increasingly turning to cloud-based solutions to harness the power of AI. Microsoft Azure offers two prominent services in this domain: Azure OpenAI Assistants and Azure AI Agent Services. While both services aim to enhance user experiences and streamline operations, they cater to different needs and use cases. This blog post will delve into the details of each service, their benefits, and the opportunities they present for businesses. Understanding Azure OpenAI Assistants What Are Azure OpenAI Assistants? Azure OpenAI Assistants are designed to leverage the capabilities of OpenAI's models, such as GPT-3 and its successors. These assistants are tailored for applications that require advanced natural language processing (NLP) and understanding, making them ideal for conversational agents, chatbots, and other interactive applications. Key Features Pre-trained Models: Azure OpenAI Assistants utilize pre-trained models from OpenAI, which means they come with a wealth of knowledge and language understanding out of the box. This reduces the time and effort required for training models from scratch. Customizability: While the models are pre-trained, developers can fine-tune them to meet specific business needs. This allows for the creation of personalized experiences that resonate with users. Integration with Azure Ecosystem: Azure OpenAI Assistants seamlessly integrate with other Azure services, such as Azure Functions, Azure Logic Apps, and Azure Cognitive Services. This enables businesses to build comprehensive solutions that leverage multiple Azure capabilities. Benefits of Azure OpenAI Assistants Enhanced User Experience: By utilizing advanced NLP capabilities, Azure OpenAI Assistants can provide more natural and engaging interactions. This leads to improved customer satisfaction and loyalty. Rapid Deployment: The availability of pre-trained models allows businesses to deploy AI solutions quickly. This is particularly beneficial for organizations looking to implement AI without extensive development time. Scalability: Azure's cloud infrastructure ensures that applications built with OpenAI Assistants can scale to meet growing user demands without compromising performance. Understanding Azure AI Agent Services What Are Azure AI Agent Services? Azure AI Agent Services provide a more flexible framework for building AI-driven applications. Unlike Azure OpenAI Assistants, which are limited to OpenAI models, Azure AI Agent Services allow developers to utilize a variety of AI models, including those from other providers or custom-built models. Key Features Model Agnosticism: Developers can choose from a wide range of AI models, enabling them to select the best fit for their specific use case. This flexibility encourages innovation and experimentation. Custom Agent Development: Azure AI Agent Services support the creation of custom agents that can perform a variety of tasks, from simple queries to complex decision-making processes. Integration with Other AI Services: Like OpenAI Assistants, Azure AI Agent Services can integrate with other Azure services, allowing for the creation of sophisticated AI solutions that leverage multiple technologies. Benefits of Azure AI Agent Services Diverse Use Cases: The ability to use any AI model opens a world of possibilities for businesses. Whether it's a specialized model for sentiment analysis or a custom-built model for a niche application, organizations can tailor their solutions to meet specific needs. Enhanced Automation: AI agents can automate repetitive tasks, freeing up human resources for more strategic activities. This leads to increased efficiency and productivity. Cost-Effectiveness: By allowing the use of various models, businesses can choose cost-effective solutions that align with their budget and performance requirements. Opportunities for Businesses Improved Customer Engagement Both Azure OpenAI Assistants and Azure AI Agent Services can significantly enhance customer engagement. By providing personalized and context-aware interactions, businesses can create a more satisfying user experience. For example, a retail company can use an AI assistant to provide tailored product recommendations based on customer preferences and past purchases. Data-Driven Decision Making AI agents can analyze vast amounts of data and provide actionable insights. This capability enables organizations to make informed decisions based on real-time data analysis. For instance, a financial institution can deploy an AI agent to monitor market trends and provide investment recommendations to clients. Streamlined Operations By automating routine tasks, businesses can streamline their operations and reduce operational costs. For example, a customer support team can use AI agents to handle common inquiries, allowing human agents to focus on more complex issues. Innovation and Experimentation The flexibility of Azure AI Agent Services encourages innovation. Developers can experiment with different models and approaches to find the most effective solutions for their specific challenges. This culture of experimentation can lead to breakthroughs in product development and service delivery. Enhanced Analytics and Insights Integrating AI agents with analytics tools can provide businesses with deeper insights into customer behavior and preferences. This data can inform marketing strategies, product development, and customer service improvements. For example, a company can analyze interactions with an AI assistant to identify common customer pain points, allowing them to address these issues proactively. Conclusion In summary, both Azure OpenAI Assistants and Azure AI Agent Services offer unique advantages that can significantly benefit businesses looking to leverage AI technology. Azure OpenAI Assistants provide a robust framework for building conversational agents using advanced OpenAI models, making them ideal for applications that require sophisticated natural language understanding and generation. Their ease of integration, rapid deployment, and enhanced user experience make them a compelling choice for businesses focused on customer engagement. Azure AI Agent Services, on the other hand, offer unparalleled flexibility by allowing developers to utilize a variety of AI models. This model-agnostic approach encourages innovation and experimentation, enabling businesses to tailor solutions to their specific needs. The ability to automate tasks and streamline operations can lead to significant cost savings and increased efficiency. Additional Resources To further explore Azure OpenAI Assistants and Azure AI Agent Services, consider the following resources: Agent Service on Microsoft Learn Docs Watch On-Demand Sessions Streamlining Customer Service with AI-Powered Agents: Building Intelligent Multi-Agent Systems with Azure AI Microsoft learn Develop AI agents on Azure - Training | Microsoft Learn Community and Announcements Tech Community Announcement: Introducing Azure AI Agent Service Bonus Blog Post: Announcing the Public Preview of Azure AI Agent Service AI Agents for Beginners 10 Lesson Course https://aka.ms/ai-agents-beginnersLearn How to Build Smarter AI Agents with Microsoft’s MCP Resources Hub
If you've been curious about how to build your own AI agents that can talk to APIs, connect with tools like databases, or even follow documentation you're in the right place. Microsoft has created something called MCP, which stands for Model‑Context‑Protocol. And to help you learn it step by step, they’ve made an amazing MCP Resources Hub on GitHub. In this blog, I’ll Walk you through what MCP is, why it matters, and how to use this hub to get started, even if you're new to AI development. What is MCP (Model‑Context‑Protocol)? Think of MCP like a communication bridge between your AI model and the outside world. Normally, when we chat with AI (like ChatGPT), it only knows what’s in its training data. But with MCP, you can give your AI real-time context from: APIs Documents Databases Websites This makes your AI agent smarter and more useful just like a real developer who looks up things online, checks documentation, and queries databases. What’s Inside the MCP Resources Hub? The MCP Resources Hub is a collection of everything you need to learn MCP: Videos Blogs Code examples Here are some beginner-friendly videos that explain MCP: Title What You'll Learn VS Code Agent Mode Just Changed Everything See how VS Code and MCP build an app with AI connecting to a database and following docs. The Future of AI in VS Code Learn how MCP makes GitHub Copilot smarter with real-time tools. Build MCP Servers using Azure Functions Host your own MCP servers using Azure in C#, .NET, or TypeScript. Use APIs as Tools with MCP See how to use APIs as tools inside your AI agent. Blazor Chat App with MCP + Aspire Create a chat app powered by MCP in .NET Aspire Tip: Start with the VS Code videos if you’re just beginning. Blogs Deep Dives and How-To Guides Microsoft has also written blogs that explain MCP concepts in detail. Some of the best ones include: Build AI agent tools using remote MCP with Azure Functions: Learn how to deploy MCP servers remotely using Azure. Create an MCP Server with Azure AI Agent Service : Enables Developers to create an agent with Azure AI Agent Service and uses the model context protocol (MCP) for consumption of the agents in compatible clients (VS Code, Cursor, Claude Desktop). Vibe coding with GitHub Copilot: Agent mode and MCP support: MCP allows you to equip agent mode with the context and capabilities it needs to help you, like a USB port for intelligence. When you enter a chat prompt in agent mode within VS Code, the model can use different tools to handle tasks like understanding database schema or querying the web. Enhancing AI Integrations with MCP and Azure API Management Enhance AI integrations using MCP and Azure API Management Understanding and Mitigating Security Risks in MCP Implementations Overview of security risks and mitigation strategies for MCP implementations Protecting Against Indirect Injection Attacks in MCP Strategies to prevent indirect injection attacks in MCP implementations Microsoft Copilot Studio MCP Announcement of the Microsoft Copilot Studio MCP lab Getting started with MCP for Beginners 9 part course on MCP Client and Servers Code Repositories Try it Yourself Want to build something with MCP? Microsoft has shared open-source sample code in Python, .NET, and TypeScript: Repo Name Language Description Azure-Samples/remote-mcp-apim-functions-python Python Recommended for Secure remote hosting Sample Python Azure Functions demonstrating remote MCP integration with Azure API Management Azure-Samples/remote-mcp-functions-python Python Sample Python Azure Functions demonstrating remote MCP integration Azure-Samples/remote-mcp-functions-dotnet C# Sample .NET Azure Functions demonstrating remote MCP integration Azure-Samples/remote-mcp-functions-typescript TypeScript Sample TypeScript Azure Functions demonstrating remote MCP integration Microsoft Copilot Studio MCP TypeScript Microsoft Copilot Studio MCP lab You can clone the repo, open it in VS Code, and follow the instructions to run your own MCP server. Using MCP with the AI Toolkit in Visual Studio Code To make your MCP journey even easier, Microsoft provides the AI Toolkit for Visual Studio Code. This toolkit includes: A built-in model catalog Tools to help you deploy and run models locally Seamless integration with MCP agent tools You can install the AI Toolkit extension from the Visual Studio Code Marketplace. Once installed, it helps you: Discover and select models quickly Connect those models to MCP agents Develop and test AI workflows locally before deploying to the cloud You can explore the full documentation here: Overview of the AI Toolkit for Visual Studio Code – Microsoft Learn This is perfect for developers who want to test things on their own system without needing a cloud setup right away. Why Should You Care About MCP? Because MCP: Makes your AI tools more powerful by giving them real-time knowledge Works with GitHub Copilot, Azure, and VS Code tools you may already use Is open-source and beginner-friendly with lots of tutorials and sample code It’s the future of AI development connecting models to the real world. Final Thoughts If you're learning AI or building software agents, don’t miss this valuable MCP Resources Hub. It’s like a starter kit for building smart, connected agents with Microsoft tools. Try one video or repo today. Experiment. Learn by doing and start your journey with the MCP for Beginners curricula.Model Mondays S2E01 Recap: Advanced Reasoning Session
About Model Mondays Want to know what Reasoning models are and how you can build advanced reasoning scenarios like a Deep Research agent using Azure AI Foundry? Check out this recap from Model Mondays Season 2 Ep 1. Model Mondays is a weekly series to help you build your model IQ in three steps: 1. Catch the 5-min Highlights on Monday, to get up to speed on model news 2. Catch the 15-min Spotlight on Monday, for a deep-dive into a model or tool 3. Catch the 30-min AMA on Friday, for a Q&A session with subject matter experts Want to follow along? Register Here- to watch upcoming livestreams for Season 2 Visit The Forum- to see the full AMA schedule for Season 2 Register Here - to join the AMA on Friday Jun 20 Spotlight On: Advanced Reasoning This week, the Model Mondays spotlight was on Advanced Reasoning with subject matter expert Marlene Mhangami. In this blog post, I'll talk about my five takeaways from this episode: Why Are Reasoning Models Important? What Is an Advanced Reasoning Scenario? How Can I Get Started with Reasoning Models ? Spotlight: My Aha Moment Highlights: What’s New in Azure AI 1. Why Are Reasoning Models Important? In today's fast-evolving AI landscape, it's no longer enough for models to just complete text or summarize content. We need AI that can: Understand multi-step tasks Make decisions based on logic Plan sequences of actions or queries Connect context across turns Reasoning models are large language models (LLMs) trained with reinforcement learning techniques to "think" before they answer. Rather than simply generating a response based on probability, these models follow an internal thought process producing a chain of reasoning before responding. This makes them ideal for complex problem-solving tasks. And they’re the foundation of building intelligent, context-aware agents. They enable next-gen AI workflows in everything from customer support to legal research and healthcare diagnostics. Reason: They allow AI to go beyond surface-level response and deliver solutions that reflect understanding, not just language patterning. 2. What does Advanced Reasoning involve? An advanced reasoning scenario is one where a model: Breaks a complex prompt into smaller steps Retrieves relevant external data Uses logic to connect dots Outputs a structured, reasoned answer Example: A user asks: What are the financial and operational risks of expanding a startup to Southeast Asia in 2025? This is the kind of question that requires extensive research and analysis. A reasoning model might tackle this by: Retrieving reports on Southeast Asia market conditions Breaking down risks into financial, political, and operational buckets Cross-referencing data with recent trends Returning a reasoned, multi-part answer 3. How Can I Get Started with Reasoning Models? To get started, you need to visit a catalog that has examples of these models. Try the GitHub Models Marketplace and look for the reasoning category in the filter. Try the Azure AI Foundry model catalog and look for reasoning models by name. Example: The o-series of models from Azure Open AI The DeepSeek-R1 models The Grok 3 models The Phi-4 reasoning models Next, you can use SDKs or Playground for exploring the model capabiliies. 1. Try Lab 331 - for a beginner-friendly guide. 2. Try Lab 333 - for an advanced project. 3. Try the GitHub Model Playground - to compare reasoning and GPT models. 4. Try the Deep Research Agent using LangChain - sample as a great starting project. Have questions or comments? Join the Friday AMA on Azure AI Foundry Discord: 4. Spotlight: My Aha Moment Before this session, I thought reasoning meant longer or more detailed responses. But this session helped me realize that reasoning means structured thinking — models now plan, retrieve, and respond with logic. This inspired me to think about building AI agents that go beyond chat and actually assist users like a teammate. It also made me want to dive deeper into LangChain + Azure AI workflows to build mini-agents for real-world use. 5. Highlights: What’s New in Azure AI Here’s what’s new in the Azure AI Foundry: Direct From Azure Models - Try hosted models like OpenAI GPT on PTU plans SORA Video Playground - Generate video from prompts via SORA models Grok 3 Models - Now available for secure, scalable LLM experiences DeepSeek R1-0528 - A reasoning-optimized, Microsoft-tuned open-source model These are all available in the Azure Model Catalog and can be tried with your Azure account. Did You Know? Your first step is to find the right model for your task. But what if you could have the model automatically selected for you_ based on the prompt you provide? That's the magic of Model Router a deployable AI chat model that dynamically selects the best LLM based on your prompt. Instead of choosing one model manually, the Router makes that choice in real time. Currently, this works with a fixed set of Azure OpenAI models, including a reasoning model option. Keep an eye on the documentation for more updates. Why it’s powerful: Saves cost by switching between models based on complexity Optimizes performance by selecting the right model for the task Lets you test and compare model outputs quickly Try it out in Azure AI Foundry or read more in the Model Catalog Coming Up Next Next week, we dive into Model Context Protocol, an open protocol that empowers agentic AI applications by making it easier to discover and integrate knowledge and action tools with your model choices. Register Here to get reminded - and join us live on Monday! Join The Community Great devs don't build alone! In a fast-pased developer ecosystem, there's no time to hunt for help. That's why we have the Azure AI Developer Community. Join us today and let's journey together! Join the Discord - for real-time chats, events & learning Explore the Forum - for AMA recaps, Q&A, and help! About Me. I'm Sharda, a Gold Microsoft Learn Student Ambassador interested in cloud and AI. Find me on Github, Dev.to,, Tech Community and Linkedin. In this blog series I have summarizef my takeaways from this week's Model Mondays livestream .Model Mondays S2:E4 Understanding AI Developer Experiences with Leo Yao
This week in Model Mondays, we put the spotlight on the AI Toolkit for Visual Studio Code - and explore the tools and workflows that make building generative AI apps and agents easier for developers. Read on for my recap. This post was generated with AI help and human revision & review. To learn more about our motivation and workflows, please refer to this document in our website. About Model Mondays Model Mondays is a weekly series designed to help you grow your Azure AI Foundry Model IQ step by step. Each week includes: 5-Minute Highlights – Quick news and updates about Azure AI models and tools on Monday 15-Minute Spotlight – Deep dive into a key model, protocol, or feature on Monday 30-Minute AMA on Friday – Live Q&A with subject matter experts from the Monday livestream If you're looking to grow your skills with the latest in AI model development, this series is a great place to begin. Useful links: Register for upcoming livestreams Watch past episodes Join the AMA on AI Developer Experiences Visit the Model Mondays forum Spotlight On: AI Developer Experiences 1. What is this topic and why is it important? AI Developer Experiences focus on making the process of building, testing, and deploying AI models as efficient as possible. With the right tools—such as the AI Toolkit and Azure AI Foundry extensions for Visual Studio Code—developers can eliminate unnecessary friction and focus on innovation. This is essential for accelerating the real-world impact of generative AI. 2. What is one key takeaway from the episode? The integration of Azure AI Foundry with Visual Studio Code allows developers to manage models, run experiments, and deploy applications directly from their preferred development environment. This unified workflow enhances productivity and simplifies the AI development lifecycle. 3. How can I get started? Here are a few resources to explore: Install the AI Toolkit for VS Code Explore Azure AI Foundry Documentation Join the Microsoft Tech Community to follow and contribute to discussions 4. What’s New in Azure AI Foundry? Azure AI Foundry continues to evolve to meet developer needs with more power, flexibility, and productivity. Here are some of the latest updates highlighted in this week’s episode: AI Toolkit for Visual Studio Code Now with deeper integration, allowing developers to manage models, run experiments, and deploy applications directly within their editor—streamlining the entire workflow. Prompt Shields Enhanced security capabilities designed to protect generative AI applications from prompt injection and unsafe content, improving reliability in production environments. Model Router A new intelligent routing system that dynamically directs model requests to the most suitable model available—enhancing performance and efficiency at scale. Expanded Model Catalog The catalog now includes more open-source and proprietary models, featuring the latest from Hugging Face, OpenAI, and other leading providers. Improved Documentation and Sample Projects Newly added guides and ready-to-use examples to help developers get started faster, understand workflows, and build confidently. My A-Ha Moment Before watching this episode, setting up an AI development environment always felt like a challenge. There were so many moving parts—configurations, integrations, and dependencies—that it was hard to know where to begin. Seeing the AI Toolkit in action inside Visual Studio Code changed everything for me. It was a realization moment: “That’s it? I can explore models, test prompts, and deploy apps—without ever leaving my editor?” This episode made it clear that building with AI doesn’t have to be complex or intimidating. With the right tools, experimentation becomes faster and far more enjoyable. Now, I’m genuinely excited to build, test, and explore new generative AI solutions because the process finally feels accessible. Coming Up Next Week In the next episode, we’ll be exploring Fine-Tuning and Distillation with Dave Voutila. This session will focus on how to adapt Azure OpenAI models to your unique use cases and apply best practices for efficient knowledge transfer. Register here to reserve your spot and be part of the conversation. Join the Community Building in AI is better when we do it together. That’s why the Azure AI Developer Community exists—to support your journey and provide resources every step of the way. Join the Discord for real-time discussions, events, and peer learning Explore the Forum to catch up on AMAs, ask questions, and connect with other developers About Me I'm Sharda, a Gold Microsoft Learn Student Ambassador passionate about cloud technologies and artificial intelligence. I enjoy learning, building, and helping others grow in tech. Connect with me: LinkedIn GitHub Dev.to Microsoft Tech CommunityPower Up Your Open WebUI with Azure AI Speech: Quick STT & TTS Integration
Introduction Ever found yourself wishing your web interface could really talk and listen back to you? With a few clicks (and a bit of code), you can turn your plain Open WebUI into a full-on voice assistant. In this post, you’ll see how to spin up an Azure Speech resource, hook it into your frontend, and watch as user speech transforms into text and your app’s responses leap off the screen in a human-like voice. By the end of this guide, you’ll have a voice-enabled web UI that actually converses with users, opening the door to hands-free controls, better accessibility, and a genuinely richer user experience. Ready to make your web app speak? Let’s dive in. Why Azure AI Speech? We use Azure AI Speech service in Open Web UI to enable voice interactions directly within web applications. This allows users to: Speak commands or input instead of typing, making the interface more accessible and user-friendly. Hear responses or information read aloud, which improves usability for people with visual impairments or those who prefer audio. Provide a more natural and hands-free experience especially on devices like smartphones or tablets. In short, integrating Azure AI Speech service into Open Web UI helps make web apps smarter, more interactive, and easier to use by adding speech recognition and voice output features. If you haven’t hosted Open WebUI already, follow my other step-by-step guide to host Ollama WebUI on Azure. Proceed to the next step if you have Open WebUI deployed already. Learn More about OpenWeb UI here. Deploy Azure AI Speech service in Azure. Navigate to the Azure Portal and search for Azure AI Speech on the Azure portal search bar. Create a new Speech Service by filling up the fields in the resource creation page. Click on “Create” to finalize the setup. After the resource has been deployed, click on “View resource” button and you should be redirected to the Azure AI Speech service page. The page should display the API Keys and Endpoints for Azure AI Speech services, which you can use in Open Web UI. Settings things up in Open Web UI Speech to Text settings (STT) Head to the Open Web UI Admin page > Settings > Audio. Paste the API Key obtained from the Azure AI Speech service page into the API key field below. Unless you use different Azure Region, or want to change the default configurations for the STT settings, leave all settings to blank. Text to Speech settings (TTS) Now, let's proceed with configuring the TTS Settings on OpenWeb UI by toggling the TTS Engine to Azure AI Speech option. Again, paste the API Key obtained from Azure AI Speech service page and leave all settings to blank. You can change the TTS Voice from the dropdown selection in the TTS settings as depicted in the image below: Click Save to reflect the change. Expected Result Now, let’s test if everything works well. Open a new chat / temporary chat on Open Web UI and click on the Call / Record button. The STT Engine (Azure AI Speech) should identify your voice and provide a response based on the voice input. To test the TTS feature, click on the Read Aloud (Speaker Icon) under any response from Open Web UI. The TTS Engine should reflect Azure AI Speech service! Conclusion And that’s a wrap! You’ve just given your Open WebUI the gift of capturing user speech, turning it into text, and then talking right back with Azure’s neural voices. Along the way you saw how easy it is to spin up a Speech resource in the Azure portal, wire up real-time transcription in the browser, and pipe responses through the TTS engine. From here, it’s all about experimentation. Try swapping in different neural voices or dialing in new languages. Tweak how you start and stop listening, play with silence detection, or add custom pronunciation tweaks for those tricky product names. Before you know it, your interface will feel less like a web page and more like a conversation partner.Build and Deploy a Microsoft Foundry Hosted Agent: A Hands-On Workshop
Agents are easy to demo, hard to ship. Most teams can put together a convincing prototype quickly. The harder part starts afterwards: shaping deterministic tools, validating behaviour with tests, building a CI path, packaging for deployment, and proving the experience through a user-facing interface. That is where many promising projects slow down. This workshop helps you close that gap without unnecessary friction. You get a guided path from local run to deployment handoff, then complete the journey with a working chat UI that calls your deployed hosted agent through the project endpoint. What You Will Build This is a hands-on, end-to-end learning experience for building and deploying AI agents with Microsoft Foundry. The lab provides a guided and practical journey through hosted-agent development, including deterministic tool design, prompt-guided workflows, CI validation, deployment preparation, and UI integration. It’s designed to reduce setup friction with a ready-to-run experience. It is a prompt-based development lab using Copilot guidance and MCP-assisted workflow options during deployment. It’s a .NET 10 workshop that includes local development, Copilot-assisted coding, CI, secure deployment to Azure, and a working chat UI. A local hosted agent that responds on the responses contract Deterministic tool improvements in core logic with xUnit coverage A GitHub Actions CI workflow for restore, build, test, and container validation An Azure-ready deployment path using azd, ACR image publishing, and Foundry manifest apply A Blazor chat UI that calls openai/v1/responses with agent_reference A repeatable implementation shape that teams can adapt to real projects Who This Lab Is For AI developers and software engineers who prefer learning by building Motivated beginners who want a guided, step-by-step path Experienced developers who want a practical hosted-agent reference implementation Architects evaluating deployment shape, validation strategy, and operational readiness Technical decision-makers who need to see how demos become deployable systems Why Hosted Agents Hosted agents run your code in a managed environment. That matters because it reduces the amount of infrastructure plumbing you need to manage directly, while giving you a clearer path to secure, observable, team-friendly deployments. Prompt-only demos are still useful. They are quick, excellent for ideation, and often the right place to start. Hosted agents complement that approach when you need custom code, tool-backed logic, and a deployment process that can be repeated by a team. Think of this lab as the bridge: you keep the speed of prompt-based iteration, then layer in the real-world patterns needed to run reliably. What You Will Learn 1) Orchestration You will practise workflow-oriented reasoning through implementation-shape recommendations and multi-step readiness scenarios. The lab introduces orchestration concepts at a practical level, rather than as a dedicated orchestration framework deep dive. 2) Tool Integration You will connect deterministic tools and understand how tool calls fit into predictable execution paths. This is a core focus of the workshop and is backed by tests in the solution. 3) Retrieval Patterns (What This Lab Covers Today) This workshop does not include a full RAG implementation with embeddings and vector search. Instead, it focuses on deterministic local tools and hosted-agent response flow, giving you a strong foundation before adding retrieval infrastructure in a follow-on phase. 4) Observability You will see light observability foundations through OpenTelemetry usage in the host and practical verification during local and deployed checks. This is introductory coverage intended to support debugging and confidence building. 5) Responsible AI You will apply production-minded safety basics, including secure secret handling and review hygiene. A full Responsible AI policy and evaluation framework is not the primary goal of this workshop, but the workflow does encourage safe habits from the start. 6) Secure Deployment Path You will move from local implementation to Azure deployment with a secure, practical workflow: azd provisioning, ACR publishing, manifest deployment, hosted-agent start, status checks, and endpoint validation. The Learning Journey The overall flow is simple and memorable: clone, open, run, iterate, deploy, observe. clone -> open -> run -> iterate -> deploy -> observe You are not expected to memorize every command. The lab is structured to help you learn through small, meaningful wins that build confidence. Your First 15 Minutes: Quick Wins Open the repo and understand the lab structure in a few minutes Set project endpoint and model deployment environment variables Run the host locally and validate the responses endpoint Inspect the deterministic tools in WorkshopLab.Core Run tests and see how behaviour changes are verified Review the deployment path so local work maps to Azure steps Understand how the UI validates end-to-end behaviour after deployment Leave the first session with a working baseline and a clear next step That first checkpoint is important. Once you see a working loop on your own machine, the rest of the workshop becomes much easier to finish. Using Copilot and MCP in the Workflow This lab emphasises prompt-based development patterns that help you move faster while still learning the underlying architecture. You are not only writing code, you are learning to describe intent clearly, inspect generated output, and iterate with discipline. Copilot supports implementation and review in the coding labs. MCP appears as a practical deployment option for hosted-agent lifecycle actions, provided your tools are authenticated to the correct tenant and project context. Together, this creates a development rhythm that is especially useful for learning: Define intent with clear prompts Generate or adjust implementation details Validate behaviour through tests and UI checks Deploy and observe outcomes in Azure Refine based on evidence, not guesswork That same rhythm transfers well to real projects. Even if your production environment differs, the patterns from this workshop are adaptable. Production-Minded Tips As you complete the lab, keep a production mindset from day one: Reliability: keep deterministic logic small, testable, and explicit Security: Treat secrets, identity, and access boundaries as first-class concerns Observability: use telemetry and status checks to speed up debugging Governance: keep deployment steps explicit so teams can review and repeat them You do not need to solve everything in one pass. The goal is to build habits that make your agent projects safer and easier to evolve. Start Today: If you have been waiting for the right time to move from “interesting demo” to “practical implementation”, this is the moment. The workshop is structured for self-study, and the steps are designed to keep your momentum high. Start here: https://github.com/microsoft/Hosted_Agents_Workshop_Lab Want deeper documentation while you go? These official guides are great companions: Hosted agent quickstart Hosted agent deployment guide When you finish, share what you built. Post a screenshot or short write-up in a GitHub issue/discussion, on social, or in comments with one lesson learned. Your example can help the next developer get unstuck faster. Copy/Paste Progress Checklist [ ] Clone the workshop repo [ ] Complete local setup and run the agent [ ] Make one prompt-based behaviour change [ ] Validate with tests and chat UI [ ] Run CI checks [ ] Provision and deploy via Azure and Foundry workflow [ ] Review observability signals and refine [ ] Share what I built + one takeaway Common Questions How long does it take? Most developers can complete a meaningful pass in a few focused sessions of 60-75 mins. You can get the first local success quickly, then continue through deployment and refinement at your own pace. Do I need an Azure subscription? Yes, for provisioning and deployment steps. You can still begin local development and testing before completing all Azure activities. Is it beginner-friendly? Yes. The labs are written for beginners, run in sequence, and include expected outcomes for each stage. Can I adapt it beyond .NET? Yes. The implementation in this workshop is .NET 10, but the architecture and development patterns can be adapted to other stacks. What if I am evaluating for a team? This lab is a strong team evaluation asset because it demonstrates end-to-end flow: local dev, integration patterns, CI, secure deployment, and operational visibility. Closing This workshop gives you more than theory. It gives you a practical path from first local run to deployed hosted agent, backed by tests, CI, and a user-facing UI validation loop. If you want a build-first route into Microsoft Foundry hosted-agent development, this is an excellent place to start. Begin now: https://github.com/microsoft/Hosted_Agents_Workshop_LabIntegrating Microsoft Foundry with OpenClaw: Step by Step Model Configuration
Step 1: Deploying Models on Microsoft Foundry Let us kick things off in the Azure portal. To get our OpenClaw agent thinking like a genius, we need to deploy our models in Microsoft Foundry. For this guide, we are going to focus on deploying gpt-5.2-codex on Microsoft Foundry with OpenClaw. Navigate to your AI Hub, head over to the model catalog, choose the model you wish to use with OpenClaw and hit deploy. Once your deployment is successful, head to the endpoints section. Important: Grab your Endpoint URL and your API Keys right now and save them in a secure note. We will need these exact values to connect OpenClaw in a few minutes. Step 2: Installing and Initializing OpenClaw Next up, we need to get OpenClaw running on your machine. Open up your terminal and run the official installation script: curl -fsSL https://openclaw.ai/install.sh | bash The wizard will walk you through a few prompts. Here is exactly how to answer them to link up with our Azure setup: First Page (Model Selection): Choose "Skip for now". Second Page (Provider): Select azure-openai-responses. Model Selection: Select gpt-5.2-codex , For now only the models listed (hosted on Microsoft Foundry) in the picture below are available to be used with OpenClaw. Follow the rest of the standard prompts to finish the initial setup. Step 3: Editing the OpenClaw Configuration File Now for the fun part. We need to manually configure OpenClaw to talk to Microsoft Foundry. Open your configuration file located at ~/.openclaw/openclaw.json in your favorite text editor. Replace the contents of the models and agents sections with the following code block: { "models": { "providers": { "azure-openai-responses": { "baseUrl": "https://<YOUR_RESOURCE_NAME>.openai.azure.com/openai/v1", "apiKey": "<YOUR_AZURE_OPENAI_API_KEY>", "api": "openai-responses", "authHeader": false, "headers": { "api-key": "<YOUR_AZURE_OPENAI_API_KEY>" }, "models": [ { "id": "gpt-5.2-codex", "name": "GPT-5.2-Codex (Azure)", "reasoning": true, "input": ["text", "image"], "cost": { "input": 0, "output": 0, "cacheRead": 0, "cacheWrite": 0 }, "contextWindow": 400000, "maxTokens": 16384, "compat": { "supportsStore": false } }, { "id": "gpt-5.2", "name": "GPT-5.2 (Azure)", "reasoning": false, "input": ["text", "image"], "cost": { "input": 0, "output": 0, "cacheRead": 0, "cacheWrite": 0 }, "contextWindow": 272000, "maxTokens": 16384, "compat": { "supportsStore": false } } ] } } }, "agents": { "defaults": { "model": { "primary": "azure-openai-responses/gpt-5.2-codex" }, "models": { "azure-openai-responses/gpt-5.2-codex": {} }, "workspace": "/home/<USERNAME>/.openclaw/workspace", "compaction": { "mode": "safeguard" }, "maxConcurrent": 4, "subagents": { "maxConcurrent": 8 } } } } You will notice a few placeholders in that JSON. Here is exactly what you need to swap out: Placeholder Variable What It Is Where to Find It <YOUR_RESOURCE_NAME> The unique name of your Azure OpenAI resource. Found in your Azure Portal under the Azure OpenAI resource overview. <YOUR_AZURE_OPENAI_API_KEY> The secret key required to authenticate your requests. Found in Microsoft Foundry under your project endpoints or Azure Portal keys section. <USERNAME> Your local computer's user profile name. Open your terminal and type whoami to find this. Step 4: Restart the Gateway After saving the configuration file, you must restart the OpenClaw gateway for the new Foundry settings to take effect. Run this simple command: openclaw gateway restart Configuration Notes & Deep Dive If you are curious about why we configured the JSON that way, here is a quick breakdown of the technical details. Authentication Differences Azure OpenAI uses the api-key HTTP header for authentication. This is entirely different from the standard OpenAI Authorization: Bearer header. Our configuration file addresses this in two ways: Setting "authHeader": false completely disables the default Bearer header. Adding "headers": { "api-key": "<key>" } forces OpenClaw to send the API key via Azure's native header format. Important Note: Your API key must appear in both the apiKey field AND the headers.api-key field within the JSON for this to work correctly. The Base URL Azure OpenAI's v1-compatible endpoint follows this specific format: https://<your_resource_name>.openai.azure.com/openai/v1 The beautiful thing about this v1 endpoint is that it is largely compatible with the standard OpenAI API and does not require you to manually pass an api-version query parameter. Model Compatibility Settings "compat": { "supportsStore": false } disables the store parameter since Azure OpenAI does not currently support it. "reasoning": true enables the thinking mode for GPT-5.2-Codex. This supports low, medium, high, and xhigh levels. "reasoning": false is set for GPT-5.2 because it is a standard, non-reasoning model. Model Specifications & Cost Tracking If you want OpenClaw to accurately track your token usage costs, you can update the cost fields from 0 to the current Azure pricing. Here are the specs and costs for the models we just deployed: Model Specifications Model Context Window Max Output Tokens Image Input Reasoning gpt-5.2-codex 400,000 tokens 16,384 tokens Yes Yes gpt-5.2 272,000 tokens 16,384 tokens Yes No Current Cost (Adjust in JSON) Model Input (per 1M tokens) Output (per 1M tokens) Cached Input (per 1M tokens) gpt-5.2-codex $1.75 $14.00 $0.175 gpt-5.2 $2.00 $8.00 $0.50 Conclusion: And there you have it! You have successfully bridged the gap between the enterprise-grade infrastructure of Microsoft Foundry and the local autonomy of OpenClaw. By following these steps, you are not just running a chatbot; you are running a sophisticated agent capable of reasoning, coding, and executing tasks with the full power of GPT-5.2-codex behind it. The combination of Azure's reliability and OpenClaw's flexibility opens up a world of possibilities. Whether you are building an automated devops assistant, a research agent, or just exploring the bleeding edge of AI, you now have a robust foundation to build upon. Now it is time to let your agent loose on some real tasks. Go forth, experiment with different system prompts, and see what you can build. If you run into any interesting edge cases or come up with a unique configuration, let me know in the comments below. Happy coding!How to Set Up Claude Code with Microsoft Foundry Models on macOS
Introduction Building with AI isn't just about picking a smart model. It is about where that model lives. I chose to route my Claude Code setup through Microsoft Foundry because I needed more than just a raw API. I wanted the reliability, compliance, and structured management that comes with Microsoft's ecosystem. When you are moving from a prototype to something real, having that level of infrastructure backing your calls makes a significant difference. The challenge is that Foundry is designed for enterprise cloud environments, while my daily development work happens locally on a MacBook. Getting the two to communicate seamlessly involved navigating a maze of shell configurations and environment variables that weren't immediately obvious. I wrote this guide to document the exact steps for bridging that gap. Here is how you can set up Claude Code to run locally on macOS while leveraging the stability of models deployed on Microsoft Foundry. Requirements Before we open the terminal, let's make sure you have the necessary accounts and environments ready. Since we are bridging a local CLI with an enterprise cloud setup, having these credentials handy now will save you time later. Azure Subscription with Microsoft Foundry Setup - This is the most critical piece. You need an active Azure subscription where the Microsoft Foundry environment is initialized. Ensure that you have deployed the Claude model you intend to use and that the deployment status is active. You will need the specific endpoint URL and the associated API keys from this deployment to configure the connection. An Anthropic User Account - Even though the compute is happening on Azure, the interface requires an Anthropic account. You will need this to authenticate your session and manage your user profile settings within the Claude Code ecosystem. Claude Code Client on macOS - We will be running the commands locally, so you need the Claude Code CLI installed on your MacBook. Step 1: Install Claude Code on macOS The recommended installation method is via Homebrew or Curl, which sets it up for terminal access ("OS level"). Option A: Homebrew (Recommended) brew install --cask claude-code Option B: Curl curl -fsSL https://claude.ai/install.sh | bash Verify Installation: Run claude --version. Step 2: Set Up Microsoft Foundry to deploy Claude model Navigate to your Microsoft Foundry portal, and find the Claude model catalog, and deploy the selected Claude model. [Microsoft Foundry > My Assets > Models + endpoints > + Deploy Model > Deploy Base model > Search for "Claude"] In your Model Deployment dashboard, go to the deployed Claude Models and get the "Endpoints and keys". Store it somewhere safe, because we will need them to configure Claude Code later on. Configure Environment Variables in MacOS terminal: Now we need to tell your local Claude Code client to route requests through Microsoft Foundry instead of the default Anthropic endpoints. This is handled by setting specific environment variables that act as a bridge between your local machine and your Azure resources. You could run these commands manually every time you open a terminal, but it is much more efficient to save them permanently in your shell profile. For most modern macOS users, this file is .zshrc. Open your terminal and add the following lines to your profile, making sure to replace the placeholder text with your actual Azure credentials: export CLAUDE_CODE_USE_FOUNDRY=1 export ANTHROPIC_FOUNDRY_API_KEY="your-azure-api-key" export ANTHROPIC_FOUNDRY_RESOURCE="your-resource-name" # Specify the deployment name for Opus export CLAUDE_CODE_MODEL="your-opus-deployment-name" Once you have added these variables, you need to reload your shell configuration for the changes to take effect. Run the source command below to update your current session, and then verify the setup by launching Claude: source ~/.zshrc claude If everything is configured correctly, the Claude CLI will initialize using your Microsoft Foundry deployment as the backend. Once you execute the claude command, the CLI will prompt you to choose an authentication method. Select Option 2 (Antrophic Console account) to proceed. This action triggers your default web browser and redirects you to the Claude Console. Simply sign in using your standard Anthropic account credentials. After you have successfully signed in, you will be presented with a permissions screen. Click the Authorize button to link your web session back to your local terminal. Return to your terminal window, and you should see a notification confirming that the login process is complete. Press Enter to finalize the setup. You are now fully connected. You can start using Claude Code locally, powered entirely by the model deployment running in your Microsoft Foundry environment. Conclusion Setting up this environment might seem like a heavy lift just to run a CLI tool, but the payoff is significant. You now have a workflow that combines the immediate feedback of local development with the security and infrastructure benefits of Microsoft Foundry. One of the most practical upgrades is the removal of standard usage caps. You are no longer limited to the 5-hour API call limits, which gives you the freedom to iterate, test, and debug for as long as your project requires without hitting a wall. By bridging your local macOS terminal to Azure, you are no longer just hitting an API endpoint. You are leveraging a managed, compliance-ready environment that scales with your needs. The best part is that now the configuration is locked in, you don't need to think about the plumbing again. You can focus entirely on coding, knowing that the reliability of an enterprise platform is running quietly in the background supporting every command.
