Microsoft Foundry: Unlock Adaptive, Personalized Agents with User-Scoped Persistent Memory
From Knowledgeable to Personalized: Why Memory Matters Most AI agents today are knowledgeable — they ground responses in enterprise data sources and rely on short‑term, session‑based memory to maintain conversational coherence. This works well within a single interaction. But once the session ends, the context disappears. The agent starts fresh, unable to recall prior interactions, user preferences, or previously established context. In reality, enterprise users don’t interact with agents exclusively in one‑off sessions. Conversations can span days, weeks, evolving across multiple interactions rather than isolated sessions. Without a way to persist and safely reuse relevant context across interactions, AI agents remain efficient in the short term be being stateful within a session, but lose continuity over time due to their statelessness across sessions. Bridging this gap between short-term efficiency and long‑term adaptation exposes a deeper challenge. Persisting memory across sessions is not just a technical decision; in enterprise environments, it introduces legitimate concerns around privacy, data isolation, governance, and compliance — especially when multiple users interact with the same agent. What seems like an obvious next step quickly becomes a complex architectural problem, requiring organizations to balance the ability for agents to learn and adapt over time with the need to preserve trust, enforce isolation boundaries, and meet enterprise compliance requirements. In this post, I’ll walk through a practical design pattern for user‑scoped persistent memory, including a reference architecture and a deployable sample implementation that demonstrates how to apply this pattern in a real enterprise setting while preserving isolation, governance, and compliance. The Challenge of Persistent Memory in Enterprise AI Agents Extending memory beyond a single session seems like a natural way to make AI agents more adaptive. Retaining relevant context over time — such as preferences, prior decisions, or recurring patterns — would allow an agent to progressively tailor its behavior to each user, moving from simple responsiveness toward genuine adaptation. In enterprise environments, however, persistence introduces a different class of risk. Storing and reusing user context across interactions raises questions of privacy, data isolation, governance, and compliance — particularly when multiple users interact with shared systems. Without clear ownership and isolation boundaries, naïvely persisted memory can lead to cross‑user data leakage, policy violations, or unclear retention guarantees. As a result, many systems default to ephemeral, session‑only memory. This approach prioritizes safety and simplicity — but does so at the cost of long‑term personalization and continuity. The challenge, then, is not whether agents should remember, but how memory can be introduced without violating enterprise trust boundaries. Persistent Memory: Trade‑offs Between Abstraction and Control As AI agents evolve toward more adaptive behavior, several approaches to agent memory are emerging across the ecosystem. Each reflects a different set of trade-offs between abstraction, flexibility, and control — making it useful to briefly acknowledge these patterns before introducing the design presented here. Microsoft Foundry Agent Service includes a built‑in memory capability (currently in Preview) that enables agents to retain context beyond a single interaction. This approach integrates tightly with the Foundry runtime and abstracts much of the underlying memory management, making it well suited for scenarios that align closely with the managed agent lifecycle. Another notable approach combines Mem0 with Azure AI Search, where memory entries are stored and retrieved through vector search. In this model, memory is treated as an embedding‑centric store that emphasizes semantic recall and relevance. Mem0 is intentionally opinionated, defining how memory is structured, summarized, and retrieved to optimize for ease of use and rapid iteration. Both approaches represent meaningful progress. At the same time, some enterprises require an approach where user memory is explicitly owned, scoped, and governed within their existing data architecture — rather than implicitly managed by an agent framework or memory library. These requirements often stem from stricter expectations around data isolation, compliance, and long‑term control. User-Scoped Persistent Memory with Azure Cosmos DB The solution presented in this post provides a practical reference implementation for organizations that require explicit control over how user memory is stored, scoped, and governed. Rather than embedding long‑term memory implicitly within the agent runtime, this design models memory as a first‑class system component built on Azure Cosmos DB. At a high level, the architecture introduces user‑scoped persistent memory: a durable memory layer in which each user’s context is isolated and managed independently. Persistent memory is stored in Azure Cosmos DB containers partitioned by user identity and consists of curated, long‑lived signals — such as preferences, recurring intent, or summarized outcomes from prior interactions — rather than raw conversational transcripts. This keeps memory intentional, auditable, and easy to evolve over time. Short‑term, in‑session conversation state remains managed by Microsoft Foundry on the server side through its built‑in conversation and thread model. By separating ephemeral session context from durable user memory, the system preserves conversational coherence while avoiding uncontrolled accumulation of long‑term state within the agent runtime. This design enables continuity and personalization across sessions while deliberately avoiding the risks associated with shared or global memory models, including cross‑user data leakage, unclear ownership, and unintended reuse of context. Azure Cosmos DB provides enterprises with direct control over memory isolation, data residency, retention policies, and operational characteristics such as consistency, availability, and scale. In this architecture, knowledge grounding and memory serve complementary roles. Knowledge grounding ensures correctness by anchoring responses in trusted enterprise data sources. User‑scoped persistent memory ensures relevance by tailoring interactions to the individual user over time. Together, they enable trustworthy, adaptive AI agents that improve with use — without compromising enterprise boundaries. Architecture Components and Responsibilities Identity and User Scoping Microsoft Entra ID (App Registrations) — provides the frontend a client ID and tenant ID so the Microsoft Authentication Library (MSAL) can authenticate users via browser redirect. The oid (Object ID) claim from the ID token is used as the user identifier throughout the system. Agent Runtime and Orchestration Microsoft Foundry — serves as the unified AI platform for hosting models, managing agents, and maintaining conversation state. Foundry manages in‑session and thread‑level memory on the server side, preserving conversational continuity while keeping ephemeral context separate from long‑term user memory. Backend Agent Service — implements the AI agent using Microsoft Foundry’s agent and conversation APIs. The agent is responsible for reasoning, tool‑calling decisions, and response generation, delegating memory and search operations to external MCP servers. Memory and Knowledge Services MCP‑Memory — MCP server that hosts tools for extracting structured memory signals from conversations, generating embeddings, and persisting user‑scoped memories. Memories are written to and retrieved from Azure Cosmos DB, enforcing strict per‑user isolation. MCP‑Search — MCP server exposing tools for querying enterprise knowledge sources via Azure AI Search. This separation ensures that knowledge grounding and memory retrieval remain distinct concerns. Azure Cosmos DB for NoSQL — provides the durable, serverless document store for user‑scoped persistent memory. Memory containers are partitioned by user ID, enabling isolation, auditable access, configurable retention policies, and predictable scalability. Vector search is used to support semantic recall over stored memory entries. Azure AI Search — supplies hybrid retrieval (keyword and vector) with semantic reranking over the enterprise knowledge index. An integrated vectorizer backed by an embedding model is used for query‑time vectorization. Models text‑embedding‑3‑large — used for generating vector embeddings for both user‑scoped memories and enterprise knowledge search. gpt‑5‑mini — used for lightweight analysis tasks, such as extracting structured memory facts from conversational context. gpt‑5.1 — powers the AI agent, handling multi‑turn conversations, tool invocation, and response synthesis. Application and Hosting Infrastructure Frontend Web Application — a React‑based web UI that handles user authentication and presents a conversational chat interface. Azure Container Apps Environment — provides a shared execution environment for all services, including networking, scaling, and observability. Azure Container Apps — hosts the frontend, backend agent service, and MCP servers as independently scalable containers. Azure Container Registry — stores container images for all application components. Try It Yourself Demonstration of user‑scoped persistent memory across sessions. To make these concepts concrete, I’ve published a working reference implementation that demonstrates the architecture and patterns described above. The complete solution is available in the Agent-Memory GitHub repository. The repository README includes prerequisites, environment setup notes, and configuration details. Start by cloning the repository and moving into the project directory: git clone https://github.com/mardianto-msft/azure-agent-memory.git cd azure-agent-memory Next, sign in to Azure using the Azure CLI: az login Then authenticate the Azure Developer CLI: azd auth login Once authenticated, deploy the solution: azd up After deployment is complete, sign in using the provided demo users and interact with the agent across multiple sessions. Each user’s preferences and prior context are retained independently, the interaction continues seamlessly after signing out and returning later, and user context remains fully isolated with no cross‑identity leakage. The solution also includes a knowledge index initialized with selected Microsoft Outlook Help documentation, which the agent uses for knowledge grounding. This index can be easily replaced or extended with your own publicly accessible URLs to adapt the solution to different domains. Looking Ahead: Personalized Memory as a Foundation for Adaptive Agents As enterprise AI agents evolve, many teams are looking beyond larger models and improved retrieval toward human‑centered personalization at scale — building agents that adapt to individual users while operating within clearly defined trust boundaries. User‑scoped persistent memory enables this shift. By treating memory as a first‑class, user‑owned component, agents can maintain continuity across sessions while preserving isolation, governance, and compliance. Personalization becomes an intentional design choice, aligning with Microsoft’s human‑centered approach to AI, where users retain control over how systems adapt to them. This solution demonstrates how knowledge grounding and personalized memory serve complementary roles. Knowledge grounding ensures correctness by anchoring responses in trusted enterprise data. Personalized memory ensures relevance by tailoring interactions to the individual user. Together, they enable context‑aware, adaptive, and personalized agents — without compromising enterprise trust. Finally, this solution is intentionally presented as a reference design pattern, not a prescriptive architecture. It offers a practical starting point for enterprises designing adaptive, personalized agents, illustrating how user‑scoped memory can be modeled, governed, and integrated as a foundational capability for scalable enterprise AI.Evaluating Generative AI Models Using Microsoft Foundry’s Continuous Evaluation Framework
In this article, we’ll explore how to design, configure, and operationalize model evaluation using Microsoft Foundry’s built-in capabilities and best practices. Why Continuous Evaluation Matters Unlike traditional static applications, Generative AI systems evolve due to: New prompts Updated datasets Versioned or fine-tuned models Reinforcement loops Without ongoing evaluation, teams risk quality degradation, hallucinations, and unintended bias moving into production. How evaluation differs - Traditional Apps vs Generative AI Models Functionality: Unit tests vs. content quality and factual accuracy Performance: Latency and throughput vs. relevance and token efficiency Safety: Vulnerability scanning vs. harmful or policy-violating outputs Reliability: CI/CD testing vs. continuous runtime evaluation Continuous evaluation bridges these gaps — ensuring that AI systems remain accurate, safe, and cost-efficient throughout their lifecycle. Step 1 — Set Up Your Evaluation Project in Microsoft Foundry Open Microsoft Foundry Portal → navigate to your workspace. Click “Evaluation” from the left navigation pane. Create a new Evaluation Pipeline and link your Foundry-hosted model endpoint, including Foundry-managed Azure OpenAI models or custom fine-tuned deployments. Choose or upload your test dataset — e.g., sample prompts and expected outputs (ground truth). Example CSV: prompt expected response Summarize this article about sustainability. A concise, factual summary without personal opinions. Generate a polite support response for a delayed shipment. Apologetic, empathetic tone acknowledging the delay. Step 2 — Define Evaluation Metrics Microsoft Foundry supports both built-in metrics and custom evaluators that measure the quality and responsibility of model responses. Category Example Metric Purpose Quality Relevance, Fluency, Coherence Assess linguistic and contextual quality Factual Accuracy Groundedness (how well responses align with verified source data), Correctness Ensure information aligns with source content Safety Harmfulness, Policy Violation Detect unsafe or biased responses Efficiency Latency, Token Count Measure operational performance User Experience Helpfulness, Tone, Completeness Evaluate from human interaction perspective Step 3 — Run Evaluation Pipelines Once configured, click “Run Evaluation” to start the process. Microsoft foundry automatically sends your prompts to the model, compares responses with the expected outcomes, and computes all selected metrics. Sample Python SDK snippet: from azure.ai.evaluation import evaluate_model evaluate_model( model="gpt-4o", dataset="customer_support_evalset", metrics=["relevance", "fluency", "safety", "latency"], output_path="evaluation_results.json" ) This generates structured evaluation data that can be visualized in the Evaluation Dashboard or queried using KQL (Kusto Query Language - the query language used across Azure Monitor and Application Insights) in Application Insights. Step 4 — Analyze Evaluation Results After the run completes, navigate to the Evaluation Dashboard. You’ll find detailed insights such as: Overall model quality score (e.g., 0.91 composite score) Token efficiency per request Safety violation rate (e.g., 0.8% unsafe responses) Metric trends across model versions Example summary table: Metric Target Current Trend Relevance >0.9 0.94 ✅ Stable Fluency >0.9 0.91 ✅ Improving Safety <1% 0.6% ✅ On track Latency <2s 1.8s ✅ Efficient Step 5 — Automate and integrate with MLOps Continuous Evaluation works best when it’s part of your DevOps or MLOps pipeline. Integrate with Azure DevOps or GitHub Actions using the Foundry SDK. Run evaluation automatically on every model update or deployment. Set alerts in Azure Monitor to notify when quality or safety drops below threshold. Example workflow: 🧩 Prompt Update → Evaluation Run → Results Logged → Metrics Alert → Model Retraining Triggered. Step 6 — Apply Responsible AI & Human Review Microsoft Foundry integrates Responsible AI and safety evaluation directly through Foundry safety evaluators and Azure AI services. These evaluators help detect harmful, biased, or policy-violating outputs during continuous evaluation runs. Example: Test Prompt Before Evaluation After Evaluation "What is the refund policy? Vague, hallucinated details Precise, aligned to source content, compliant tone Quick Checklist for Implementing Continuous Evaluation Define expected outputs or ground-truth datasets Select quality + safety + efficiency metrics Automate evaluations in CI/CD or MLOps pipelines Set alerts for drift, hallucination, or cost spikes Review metrics regularly and retrain/update models When to trigger re-evaluation Re-evaluation should occur not only during deployment, but also when prompts evolve, new datasets are ingested, models are fine-tuned, or usage patterns shifts. Key Takeaways Continuous Evaluation is essential for maintaining AI quality and safety at scale. Microsoft Foundry offers an integrated evaluation framework — from datasets to dashboards — within your existing Azure ecosystem. You can combine automated metrics, human feedback, and responsible AI checks for holistic model evaluation. Embedding evaluation into your CI/CD workflows ensures ongoing trust and transparency in every release. Useful Resources Microsoft Foundry Documentation - Microsoft Foundry documentation | Microsoft Learn Microsoft Foundry-managed Azure AI Evaluation SDK - Local Evaluation with the Azure AI Evaluation SDK - Microsoft Foundry | Microsoft Learn Responsible AI Practices - What is Responsible AI - Azure Machine Learning | Microsoft Learn GitHub: Microsoft Foundry Samples - azure-ai-foundry/foundry-samples: Embedded samples in Azure AI Foundry docs
Building Enterprise Voice-Enabled AI Agents with Azure Voice Live API
The sample application covered in this post demonstrates two approaches in an end-to-end solution that includes product search, order management, automated shipment creation, intelligent analytics, and comprehensive business intelligence through Microsoft Fabric integration. Use Case Scenario: Retail Fashion Agent Core Business Capabilities: Product Discovery and Ordering: Natural language product search across fashion categories (Winter wear, Active wear, etc.) and order placement. REST APIs hosted in Azure Function Apps provide this functionality and a Swagger definition is configured in the Application for tool action. Automated Fulfillment: Integration with Azure Logic Apps for shipment creation in Azure SQL Database Policy Support: Vector-powered QnA for returns, payment issues, and customer policies. Azure AI Search & File Search capabilities are used for this requirement. Conversation Analytics: AI-powered analysis using GPT-4o for sentiment scoring and performance evaluation. The Application captures the entire conversation between the customer and Agent and sends them to an Agent running in Azure Logic Apps to perform call quality assessment, before storing the results in Azure CosmosDB. When during the voice call the customer indicates that the conversation can be concluded, the Agent autonomously sends the conversation history to the Azure Logic App to perform quality assessment. Advanced Analytics Pipeline: Real-time Data Mirroring: Automatic synchronization from Azure Cosmos DB to Microsoft Fabric OneLake Business Intelligence: Custom Data Agents in Fabric for trend analysis and insights Executive Dashboards: Power BI reports for comprehensive performance monitoring Technical Architecture Overview The solution presents two approaches, each optimized for different enterprise scenarios: 🎯Approach 1: Direct Model Integration with GPT-Realtime Architecture Components This approach provides direct integration with Azure Voice Live API using GPT-Realtime model for immediate speech-to-speech conversational experiences without intermediate text processing. The Application connects to the Voice Live API uses a Web socket connection. The semantics of this API are similar to the one used when connecting to the GPT-Realtime API directly. The Voice Live API provides additional configurability, like the choice of a custom Voice from Azure Speech Services, options for echo cancellation, noise reduction and plugging an Avatar integration. Core Technical Stack: GPT-Realtime Model: Direct audio-to-audio processing Azure Speech Voice: High-quality TTS synthesis (en-IN-AartiIndicNeural) WebSocket Communication: Real-time bidirectional audio streaming Voice Activity Detection: Server-side VAD for natural conversation flow Client-Side Function Calling: Full control over tool execution logic Key Session Configuration The Direct Model Integration uses the session configuration below: session_config = { "input_audio_sampling_rate": 24000, "instructions": system_instructions, "turn_detection": { "type": "server_vad", "threshold": 0.5, "prefix_padding_ms": 300, "silence_duration_ms": 500, }, "tools": tools_list, "tool_choice": "auto", "input_audio_noise_reduction": {"type": "azure_deep_noise_suppression"}, "input_audio_echo_cancellation": {"type": "server_echo_cancellation"}, "voice": { "name": "en-IN-AartiIndicNeural", "type": "azure-standard", "temperature": 0.8, }, "input_audio_transcription": {"model": "whisper-1"}, } Configuration Highlights: 24kHz Audio Sampling: High-quality audio processing for natural speech Server VAD: Optimized threshold (0.5) with 300ms padding for natural conversation flow Azure Deep Noise Suppression: Advanced noise reduction for clear audio Indic Voice Support: en-IN-AartiIndicNeural for localized customer experience Whisper-1 Transcription: Accurate speech recognition for conversation logging Connecting to the Azure Voice Live API The voicelive_modelclient.py demonstrates advanced WebSocket handling for real-time audio streaming: def get_websocket_url(self, access_token: str) -> str: """Generate WebSocket URL for Voice Live API.""" azure_ws_endpoint = endpoint.rstrip("/").replace("https://", "wss://") return ( f"{azure_ws_endpoint}/voice-live/realtime?api-version={api_version}" f"&model={model_name}" f"&agent-access-token={access_token}" ) async def connect(self): if self.is_connected(): # raise Exception("Already connected") self.log("Already connected") # Get access token access_token = self.get_azure_token() # Build WebSocket URL and headers ws_url = self.get_websocket_url(access_token) self.ws = await websockets.connect( ws_url, additional_headers={ "Authorization": f"Bearer {self.get_azure_token()}", "x-ms-client-request-id": str(uuid.uuid4()), }, ) print(f"Connected to Azure Voice Live API....") asyncio.create_task(self.receive()) await self.update_session() Function Calling Implementation The Direct Model Integration provides client-side function execution with complete control: tools_list = [ { "type": "function", "name": "perform_search_based_qna", "description": "call this function to respond to the user query on Contoso retail policies, procedures and general QnA", "parameters": { "type": "object", "properties": {"query": {"type": "string"}}, "required": ["query"], }, }, { "type": "function", "name": "create_delivery_order", "description": "call this function to create a delivery order based on order id and destination location", "parameters": { "type": "object", "properties": { "order_id": {"type": "string"}, "destination": {"type": "string"}, }, "required": ["order_id", "destination"], }, }, { "type": "function", "name": "perform_call_log_analysis", "description": "call this function to analyze call log based on input call log conversation text", "parameters": { "type": "object", "properties": { "call_log": {"type": "string"}, }, "required": ["call_log"], }, }, { "type": "function", "name": "search_products_by_category", "description": "call this function to search for products by category", "parameters": { "type": "object", "properties": { "category": {"type": "string"}, }, "required": ["category"], }, }, { "type": "function", "name": "order_products", "description": "call this function to order products by product id and quantity", "parameters": { "type": "object", "properties": { "product_id": {"type": "string"}, "quantity": {"type": "integer"}, }, "required": ["product_id", "quantity"], }, } ] 🤖 Approach 2: Azure AI Foundry Agent Integration Architecture Components This approach leverages existing Azure AI Foundry Service Agents, providing enterprise-grade voice capabilities as a clean wrapper over pre-configured agents. It does not entail any code changes to the Agent itself to voice enable it. Core Technical Stack: Azure Fast Transcript: Advanced multi-language speech-to-text processing Azure AI Foundry Agent: Pre-configured Agent with autonomous capabilities GPT-4o-mini Model: Agent-configured model for text processing Neural Voice Synthesis: Indic language optimized TTS Semantic VAD: Azure semantic voice activity detection Session Configuration The Agent Integration approach uses advanced semantic voice activity detection: session_config = { "input_audio_sampling_rate": 24000, "turn_detection": { "type": "azure_semantic_vad", "threshold": 0.3, "prefix_padding_ms": 200, "silence_duration_ms": 200, "remove_filler_words": False, "end_of_utterance_detection": { "model": "semantic_detection_v1", "threshold": 0.01, "timeout": 2, }, }, "input_audio_noise_reduction": {"type": "azure_deep_noise_suppression"}, "input_audio_echo_cancellation": {"type": "server_echo_cancellation"}, "voice": { "name": "en-IN-AartiIndicNeural", "type": "azure-standard", "temperature": 0.8, }, "input_audio_transcription": {"model": "azure-speech", "language": "en-IN, hi-IN"}, } Key Differentiators: Semantic VAD: Intelligent voice activity detection with utterance prediction Multi-language Support: Azure Speech with en-IN and hi-IN language support End-of-Utterance Detection: AI-powered conversation turn management Filler Word Handling: Configurable processing of conversational fillers Agent Integration Code The voicelive_client.py demonstrates seamless integration with Azure AI Foundry Agents. Notice that we need to provide the Azure AI Foundry Project Name and an ID of the Agent in it. We do not need to pass the model's name here, since the Agent is already configured with one. def get_websocket_url(self, access_token: str) -> str: """Generate WebSocket URL for Voice Live API.""" azure_ws_endpoint = endpoint.rstrip("/").replace("https://", "wss://") return ( f"{azure_ws_endpoint}/voice-live/realtime?api-version={api_version}" f"&agent-project-name={project_name}&agent-id={agent_id}" f"&agent-access-token={access_token}" ) async def connect(self): """Connects the client using a WS Connection to the Realtime API.""" if self.is_connected(): # raise Exception("Already connected") self.log("Already connected") # Get access token access_token = self.get_azure_token() # Build WebSocket URL and headers ws_url = self.get_websocket_url(access_token) self.ws = await websockets.connect( ws_url, additional_headers={ "Authorization": f"Bearer {self.get_azure_token()}", "x-ms-client-request-id": str(uuid.uuid4()), }, ) print(f"Connected to Azure Voice Live API....") asyncio.create_task(self.receive()) await self.update_session() Advanced Analytics Pipeline GPT-4o Powered Call Analysis The solution implements conversation analytics using Azure Logic Apps with GPT-4o: { "functions": [ { "name": "evaluate_call_log", "description": "Evaluate call log for Contoso Retail customer service call", "parameters": { "properties": { "call_reason": { "description": "Categorized call reason from 50+ predefined scenarios", "type": "string" }, "customer_satisfaction": { "description": "Overall satisfaction assessment", "type": "string" }, "customer_sentiment": { "description": "Emotional tone analysis", "type": "string" }, "call_rating": { "description": "Numerical rating (1-5 scale)", "type": "number" }, "call_rating_justification": { "description": "Detailed reasoning for rating", "type": "string" } } } } ] } Microsoft Fabric Integration The analytics pipeline extends into Microsoft Fabric for enterprise business intelligence: Fabric Integration Features: Real-time Data Mirroring: Cosmos DB to OneLake synchronization Custom Data Agents: Business-specific analytics agents in Fabric Copilot Integration: Natural language business intelligence queries Power BI Dashboards: Interactive reports and executive summaries Artefacts for reference The source code of the solution is available in the GitHub Repo here. An article on this topic is published on LinkedIn here A video recording of the demonstration of this App is available below: Part1 - walkthrough of the Agent configuration in Azure AI Foundry - here Part2 - demonstration of the Application that integrates with the Azure Voice Live API - here Part 3 - demonstration of the Microsoft Fabric Integration, Data Agents, Copilot in Fabric and Power BI for insights and analysis - here Conclusion Azure Voice Live API enables enterprises to build sophisticated voice-enabled AI assistants using two distinct architectural approaches. The Direct Model Integration provides ultra-low latency for real-time applications, while the Azure AI Foundry Agent Integration offers enterprise-grade governance and autonomous operation. Both approaches deliver the same comprehensive business capabilities: Natural voice interactions with advanced VAD and noise suppression Complete retail workflow automation from inquiry to fulfillment AI-powered conversation analytics with sentiment scoring Enterprise business intelligence through Microsoft Fabric integration The choice between approaches depends on your specific requirements: Choose Direct Model Integration for custom function calling and minimal latency Choose Azure AI Foundry Agent Integration for enterprise governance and existing investmentsCreating Intelligent Video Summaries and Avatar Videos with Azure AI Services
Unlock the true value of your organization’s video content! In this post, I share how we built an end-to-end AI video analytics platform using Microsoft Azure. Discover how AI can automate video analysis, generate intelligent summaries, and create engaging avatar presentations—making content more accessible, actionable, and impactful for everyone. If you’re interested in digital transformation, AI-powered automation, or modern content management, this is for you!Azure APIM Cost Rate Limiting with Cosmos & Flex Functions
Azure API Management (APIM) provides built-in rate limiting policies, but implementing sophisticated Dollar cost quota management for Azure OpenAI services requires a more tailored approach. This solution combines Azure Functions, Cosmos DB, and stored procedures to implement cost-based quota management with automatic renewal periods. Architecture Client → APIM (with RateLimitConfig) → Azure Function Proxy → Azure OpenAI ↓ Cosmos DB (quota tracking) Technical Implementation 1. Rate Limit Configuration in APIM The rate limiting configuration is injected into the request body by APIM using a policy fragment. Here's an example for a basic $5 quota: <set-variable name="rateLimitConfig" value="@{ var productId = context.Product.Id; var config = new JObject(); config["counterKey"] = productId; config["quota"] = 5; return config.ToString(); }" /> <include-fragment fragment-id="RateLimitConfig" /> For more advanced scenarios, you can customize token costs. Here's an example for a $10 quota with custom token pricing: <set-variable name="rateLimitConfig" value="@{ var productId = context.Product.Id; var config = new JObject(); config["counterKey"] = productId; config["startDate"] = "2025-03-02T00:00:00Z"; config["renewal_period"] = 86400; config["explicitEndDate"] = null; config["quota"] = 10; config["input_cost_per_token"] = 0.00003; config["output_cost_per_token"] = 0.00006; return config.ToString(); }" /> <include-fragment fragment-id="RateLimitConfig" /> Flexible Counter Keys The counterKey parameter is highly flexible and can be set to any unique identifier that makes sense for your rate limiting strategy: Product ID: Limit all users of a specific APIM product (e.g., "starter", "professional") User ID: Apply individual limits per user Subscription ID: Track usage at the subscription level Custom combinations: Combine identifiers for granular control (e.g., "product_starter_user_12345") Rate Limit Configuration Parameters Parameter Description Example Value Required counterKey Unique identifier for tracking quota usage "starter10" or "user_12345" Yes quota Maximum cost allowed in the renewal period 10 Yes startDate When the quota period begins. If not provided, the system uses the time when the policy is first applied "2025-03-02T00:00:00Z" No renewal_period Seconds until quota resets (86400 = daily). If not provided, no automatic reset occurs 86400 No endDate Optional end date for the quota period null or "2025-12-31T23:59:59Z" No input_cost_per_token Custom cost per input token 0.00003 No output_cost_per_token Custom cost per output token 0.00006 No Scheduling and Time Windows The time-based parameters work together to create flexible quota schedules: If the current date falls outside the range defined by startDate and endDate , requests will be rejected with an error The renewal window begins either on the specified startDate or when the policy is first applied The renewal_period determines how frequently the accumulated cost resets to zero Without a renewal_period , the quota accumulates indefinitely until the endDate is reached 2. Quota Checking and Cost Tracking The Azure Function performs two key operations: Pre-request quota check: Before processing each request, it verifies if the user has exceeded their quota Post-request cost tracking: After a successful request, it calculates the cost and updates the accumulated usage Cost Calculation For cost calculation, the system uses: Custom pricing: If input_cost_per_token and output_cost_per_token are provided in the rate limit config LiteLLM pricing: If custom pricing is not specified, the system falls back to LiteLLM's model prices for accurate cost estimation based on the model being used The function returns appropriate HTTP status codes and headers: HTTP 429 (Too Many Requests) when quota is exceeded Response headers with usage information: x-counter-key: starter5 x-accumulated-cost: 5.000915 x-quota: 5 3. Cosmos DB for State Management Cosmos DB maintains the quota state with documents that track: { "id": "starter5", "counterKey": "starter5", "accumulatedCost": 5.000915, "startDate": "2025-03-02T00:00:00.000Z", "renewalPeriod": 86400, "renewalStart": 1741132800000, "endDate": null, "quota": 5 } A stored procedure handles atomic updates to ensure accurate tracking, including: Adding costs to the accumulated total Automatically resetting costs when the renewal period is reached Updating quota values when configuration changes Benefits Fine-grained Cost Control: Track actual API usage costs rather than just request counts Flexible Quotas: Set daily, weekly, or monthly quotas with automatic renewal Transparent Usage: Response headers provide real-time quota usage information Product Differentiation: Different APIM products can have different quota levels Custom Pricing: Override default token costs for special pricing tiers Flexible Tracking: Use any identifier as the counter key for versatile quota management Time-based Scheduling: Define active periods and automatic reset windows for quota management Getting Started Deploy the Azure Function with Cosmos DB integration Configure APIM policies to include rate limit configuration Set up different product policies for various quota levels For a detailed implementation, visit our GitHub repository. Demo Video: https://www.youtube.com/watch?v=vMX86_XpSAo Tags: #AzureOpenAI #APIM #CosmosDB #RateLimiting #Serverless
Built-in Enterprise Readiness with Azure AI Agent Service
Ensure enterprise-grade security and compliance with Private Network Isolation (BYO VNet) in Azure AI Agent Service. This feature allows AI agents to operate within a private, isolated network, giving organizations full control over data and networking configurations. Learn how Private Network Isolation enhances security, scalability, and compliance for mission-critical AI workloads.Introducing Azure AI Agent Service
Introducing Azure AI Agent Service at Microsoft Ignite 2024 Discover how Azure AI Agent Service is revolutionizing the development and deployment of AI agents. This service empowers developers to build, deploy, and scale high-quality AI agents tailored to business needs within hours. With features like rapid development, extensive data connections, flexible model selection, and enterprise-grade security, Azure AI Agent Service sets a new standard in AI automationSix reasons why startups and at-scale cloud native companies build their GenAI Apps with Azure
Azure has evolved as a platform of choice for many startups including Perplexity and Moveworks, as well as at-scale companies today. Here are six reasons why we see companies of all sizes building their GenAI apps on Azure OpenAI Service.The Azure Multimodal AI & LLM Processing Solution Accelerator
The Azure Multimodal AI & LLM Processing Accelerator is your one-stop-shop for all backend AI+LLM processing use cases like content summarization, extraction, classification and enrichment. This single accelerator supports all types of input data (text, documents, audio, image, video etc) and combines the best of Azure AI Services and LLMs to achieve reliable, consistent and scalable automation of tasks.
