Demystifying GitHub Copilot Security Controls: easing concerns for organizational adoption
At a recent developer conference, I delivered a session on Legacy Code Rescue using GitHub Copilot App Modernization. Throughout the day, conversations with developers revealed a clear divide: some have fully embraced Agentic AI in their daily coding, while others remain cautious. Often, this hesitation isn't due to reluctance but stems from organizational concerns around security and regulatory compliance. Having witnessed similar patterns during past technology shifts, I understand how these barriers can slow adoption. In this blog, I'll demystify the most common security concerns about GitHub Copilot and explain how its built-in features address them, empowering organizations to confidently modernize their development workflows. GitHub Copilot Model Training A common question I received at the conference was whether GitHub uses your code as training data for GitHub Copilot. I always direct customers to the GitHub Copilot Trust Center for clarity, but the answer is straightforward: “No. GitHub uses neither Copilot Business nor Enterprise data to train the GitHub model.” Notice this restriction also applies to third-party models as well (e.g. Anthropic, Google). GitHub Copilot Intellectual Property indemnification policy A frequent concern I hear is, since GitHub Copilot’s underlying models are trained on sources that include public code, it might simply “copy and paste” code from those sources. Let’s clarify how this actually works: Does GitHub Copilot “copy/paste”? “The AI models that create Copilot’s suggestions may be trained on public code, but do not contain any code. When they generate a suggestion, they are not “copying and pasting” from any codebase.” To provide an additional layer of protection, GitHub Copilot includes a “duplicate detection filter”. This feature helps prevent suggestions that closely match public code from being surfaced. (Note: This duplicate detection currently does not apply to the Copilot coding agent.) More importantly, customers are protected by an Intellectual Property indemnification policy. This means that if you receive an unmodified suggestion from GitHub Copilot and face a copyright claim as a result, Microsoft will defend you in court. GitHub Copilot Data Retention Another frequent question I hear concerns GitHub Copilot’s data retention policies. For organizations on GitHub Copilot Business and Enterprise plans, retention practices depend on how and where the service is accessed from: Access through IDE for Chat and Code Completions: Prompts and Suggestions: Not retained. User Engagement Data: Kept for two years. Feedback Data: Stored for as long as needed for its intended purpose. Other GitHub Copilot access and use: Prompts and Suggestions: Retained for 28 days. User Engagement Data: Kept for two years. Feedback Data: Stored for as long as needed for its intended purpose. For Copilot Coding Agent, session logs are retained for the life of the account in order to provide the service. Excluding content from GitHub Copilot To prevent GitHub Copilot from indexing sensitive files, you can configure content exclusions at the repository or organization level. In VS Code, use the .copilotignore file to exclude files client-side. Note that files listed in .gitignore are not indexed by default but may still be referenced if open or explicitly referenced (unless they’re excluded through .copilotignore or content exclusions). The life cycle of a GitHub Copilot code suggestion Here are the key protections at each stage of the life cycle of a GitHub Copilot code suggestion: In the IDE: Content exclusions prevent files, folders, or patterns from being included. GitHub proxy (pre-model safety): Prompts go through a GitHub proxy hosted in Microsoft Azure for pre-inference checks: screening for toxic or inappropriate language, relevance, and hacking attempts/jailbreak-style prompts before reaching the model. Model response: With the public code filter enabled, some suggestions are suppressed. The vulnerability protection feature blocks insecure coding patterns like hardcoded credentials or SQL injections in real time. Disable access to GitHub Copilot Free Due to the varying policies associated with GitHub Copilot Free, it is crucial for organizations to ensure it is disabled both in the IDE and on GitHub.com. Since not all IDEs currently offer a built-in option to disable Copilot Free, the most reliable method to prevent both accidental and intentional access is to implement firewall rule changes, as outlined in the official documentation. Agent Mode Allow List Accidental file system deletion by Agentic AI assistants can happen. With GitHub Copilot agent mode, the "Terminal auto approve” setting in VS Code can be used to prevent this. This setting can be managed centrally using a VS Code policy. MCP registry Organizations often want to restrict access to allow only trusted MCP servers. GitHub now offers an MCP registry feature for this purpose. This feature isn’t available in all IDEs and clients yet, but it's being developed. Compliance Certifications The GitHub Copilot Trust Center page lists GitHub Copilot's broad compliance credentials, surpassing many competitors in financial, security, privacy, cloud, and industry coverage. SOC 1 Type 2: Assurance over internal controls for financial reporting. SOC 2 Type 2: In-depth report covering Security, Availability, Processing Integrity, Confidentiality, and Privacy over time. SOC 3: General-use version of SOC 2 with broad executive-level assurance. ISO/IEC 27001:2013: Certification for a formal Information Security Management System (ISMS), based on risk management controls. CSA STAR Level 2: Includes a third-party attestation combining ISO 27001 or SOC 2 with additional cloud control matrix (CCM) requirements. TISAX: Trusted Information Security Assessment Exchange, covering automotive-sector security standards. In summary, while the adoption of AI tools like GitHub Copilot in software development can raise important questions around security, privacy, and compliance, it’s clear that existing safeguards in place help address these concerns. By understanding the safeguards, configurable controls, and robust compliance certifications offered, organizations and developers alike can feel more confident in embracing GitHub Copilot to accelerate innovation while maintaining trust and peace of mind.
Implementing the Backend-for-Frontend (BFF) / Curated API Pattern Using Azure API Management
Modern digital applications rarely serve a single type of client. Web portals, mobile apps, partner integrations, and internal tools often consume the same backend services—yet each has different performance, payload, and UX requirements. Exposing backend APIs directly to all clients frequently leads to over-fetching, chatty networks, and tight coupling between UI and backend domain models. This is where a Curated API or Backend for Frontend API design pattern becomes useful. What Is the Backend-for-Frontend (BFF) Pattern? The Backend-for-Frontend (BFF)—also known as the Curated API pattern—solves this problem by introducing a client-specific API layer that shapes, aggregates, and optimizes data specifically for the consuming experience. There is very good architectural guidance on this at Azure Architecture Center [Check out the 1st Link on Citation section] The BFF pattern introduces a dedicated backend layer for each frontend experience. Instead of exposing generic backend services directly, the BFF: Aggregates data from multiple backend services Filters and reshapes responses Optimizes payloads for a specific client Shields clients from backend complexity and change Each frontend (web, mobile, partner) can evolve independently, without forcing backend services to accommodate UI-specific concerns. Why Azure API Management Is a Natural Fit for BFF Azure API Management is commonly used as an API gateway, but its policy engine enables much more than routing and security. Using APIM policies, you can: Call multiple backend services (sequentially or in parallel) Transform request and response payloads to provide a unform experience Apply caching, rate limiting, authentication, and resiliency policies All of this can be achieved without modifying backend code, making APIM an excellent place to implement the BFF pattern. When Should You Use a Curated API in APIM? Using APIM as a BFF makes sense when: Frontend clients require optimized, experience-specific payloads Backend services must remain generic and reusable You want to reduce round trips from mobile or low-bandwidth clients You want to implement uniform polices for cross cutting concerns, authentication/authorization, caching, rate-limiting and logging, etc. You want to avoid building and operating a separate aggregation service You need strong governance, security, and observability at the API layer How the BFF Pattern Works in Azure API Management There is a Git Hub Repository [Check out the 2nd Link on Citation section] that provides a wealth of information and samples on how to create complex APIM policies. I recently contributed to this repository with a sample policy for Curated APIs [Check out the 3rd Link on Citation section] At a high level, the policy follows this flow: APIM receives a single client request APIM issues parallel calls to multiple backend services as shown below <wait for="all"> <send-request mode="copy" response-variable-name="operation1" timeout="{{bff-timeout}}" ignore-error="false"> <set-url>@("{{bff-baseurl}}/operation1?param1=" + context.Request.Url.Query.GetValueOrDefault("param1", "value1"))</set-url> </send-request> <send-request mode="copy" response-variable-name="operation2" timeout="{{bff-timeout}}" ignore-error="false"> <set-url>{{bff-baseurl}}/operation2</set-url> </send-request> <send-request mode="copy" response-variable-name="operation3" timeout="{{bff-timeout}}" ignore-error="false"> <set-url>{{bff-baseurl}}/operation3</set-url> </send-request> <send-request mode="copy" response-variable-name="operation4" timeout="{{bff-timeout}}" ignore-error="false"> <set-url>{{bff-baseurl}}/operation4</set-url> </send-request> </wait> Few things to consider The Wait policy allows us to make multiple requests using nested send-request policies. The for="all" attribute value implies that the policy execution will await all the nested send requests before moving to the next one. {{bff-baseurl}}: This example assumes a single base URL for all end points. It does not have to be. The calls can be made to any endpoint response-variable-name attribute sets a unique variable name to hold response object from each of the parallel calls. This will be used later in the policy to transform and produce the curated result. timeout attribute: This example assumes uniform timeouts for each endpoint, but it might vary as well. ignore-error: set this to true only when you are not concerned about the response from the backend (like a fire and forget request) otherwise keep it false so that the response variable captures the response with error code. Once responses from all the requests have been received (or timed out) the policy execution moves to the next policy Then the responses from all requests are collected and transformed into a single response data <!-- Collect the complete response in a variable. --> <set-variable name="finalResponseData" value="@{ JObject finalResponse = new JObject(); int finalStatus = 200; // This assumes the final success status (If all backend calls succeed) is 200 - OK, can be customized. string finalStatusReason = "OK"; void ParseBody(JObject element, string propertyName, IResponse response){ string body = ""; if(response!=null){ body = response.Body.As<string>(); try{ var jsonBody = JToken.Parse(body); element.Add(propertyName, jsonBody); } catch(Exception ex){ element.Add(propertyName, body); } } else{ element.Add(propertyName, body); //Add empty body if the response was not captured } } JObject PrepareResponse(string responseVariableName){ JObject responseElement = new JObject(); responseElement.Add("operation", responseVariableName); IResponse response = context.Variables.GetValueOrDefault<IResponse>(responseVariableName); if(response == null){ finalStatus = 207; // if any of the responses are null; the final status will be 207 finalStatusReason = "Multi Status"; ParseBody(responseElement, "error", response); return responseElement; } int status = response.StatusCode; responseElement.Add("status", status); if(status == 200){ // This assumes all the backend APIs return 200, if they return other success responses (e.g. 201) add them here ParseBody(responseElement, "body", response); } else{ // if any of the response codes are non success, the final status will be 207 finalStatus = 207; finalStatusReason = "Multi Status"; ParseBody(responseElement, "error", response); } return responseElement; } // Gather responses into JSON Array // Pass on the each of the response variable names here. JArray finalResponseBody = new JArray(); finalResponseBody.Add(PrepareResponse("operation1")); finalResponseBody.Add(PrepareResponse("operation2")); finalResponseBody.Add(PrepareResponse("operation3")); finalResponseBody.Add(PrepareResponse("operation4")); // Populate finalResponse with aggregated body and status information finalResponse.Add("body", finalResponseBody); finalResponse.Add("status", finalStatus); finalResponse.Add("reason", finalStatusReason); return finalResponse; }" /> What this code does is prepare the response into a single JSON Object. using the help of the PrepareResponse function. The JSON not only collects the response body from each response variable, but it also captures the response codes and determines the final response code based on the individual response codes. For the purpose of his example, I have assumed all operations are GET operations and if all operations return 200 then the overall response is 200-OK, otherwise it is 206 -Partial Content. This can be customized to the actual scenario as needed. Once the final response variable is ready, then construct and return a single response based on the above calculation <!-- This shows how to return the final response code and body. Other response elements (e.g. outbound headers) can be curated and added here the same way --> <return-response> <set-status code="@((int)((JObject)context.Variables["finalResponseData"]).SelectToken("status"))" reason="@(((JObject)context.Variables["finalResponseData"]).SelectToken("reason").ToString())" /> <set-body>@(((JObject)context.Variables["finalResponseData"]).SelectToken("body").ToString(Newtonsoft.Json.Formatting.None))</set-body> </return-response> This effectively turns APIM into an experience-specific backend tailored to frontend needs. When not to use APIM for BFF Implementation? While this approach works well when you want to curate a few responses together and apply a unified set of policies, there are some cases where you might want to rethink this approach When the need for transformation is complex. Maintaining a lot of code in APIM is not fun. If the response transformation requires a lot of code that needs to be unit tested and code that might change over time, it might be better to sand up a curation service. Azure Functions and Azure Container Apps are well suited for this. When each backend endpoint requires very complex request transformation, then that also increases the amount of code, then that would also indicate a need for an independent curation service. If you are not already using APIM then this does not warrant adding one to your architecture just to implement BFF. Conclusion Using APIM is one of the many approaches you can use to create a BFF layer on top of your existing endpoint. Let me know your thoughts con the comments on what you think of this approach. Citations Azure Architecture Center – Backend-for-Frontends Pattern Azure API Management Policy Snippets (GitHub) Curated APIs Policy Example (GitHub) Send-request Policy ReferenceOn-demand webinar: Maximize the Cost Efficiency of AI Agents on Azure
AI agents are quickly becoming central to how organizations automate work, engage customers, and unlock new insights. But as adoption accelerates, so do questions about cost, ROI, and long-term sustainability. That’s exactly what the Maximize the Cost Efficiency of AI Agents on Azure webinar is designed to address. The webinar will provide practical guidance on building and scaling AI agents on Azure with financial discipline in mind. Rather than focusing only on technology, the session helps learners connect AI design decisions to real business outcomes—covering everything from identifying high-impact use cases and understanding cost drivers to forecasting ROI. Whether you’re just starting your AI journey or expanding AI agents across the enterprise, the session will equip you with strategies to make informed, cost-conscious decisions at every stage—from architecture and model selection to ongoing optimization and governance. Who should attend? If you are in one of these roles and are a decision maker or can influence decision makers in AI decisions or need to show ROI metrics on AI, this session is for you. Developer Administrator Solution Architect AI Engineer Business Analyst Business User Technology Manager Why attending the webinar? In the webinar, you’ll hear how to translate theory into real-world scenarios, walk through common cost pitfalls, and show how organizations are applying these principles in practice. Most importantly, the webinar helps you connect the dots faster, turning what you’ve learned into actionable insights you can apply immediately, ask questions live, and gain clarity on how to maximize ROI while scaling AI responsibly. If you care about building AI agents that are not only innovative but also efficient, governable, and financially sustainable, this training—and this webinar that complements it—are well worth your time. Missed it? Watch it on-demand Who will speak at the webinar? Your speakers will be: Carlotta Castelluccio: Carlotta is a Senior AI Advocate with the mission of helping every developer to succeed with AI, by building innovative solutions responsibly. To achieve this goal, she develops technical content, and she hosts skilling sessions, enabling her audience to take the most out of AI technologies and to have an impact on Microsoft AI products’ roadmap. Nitya Narasimhan: Nitya is a PhD and Polyglot with 25+ years of software research & development experience spanning mobile, web, cloud and AI. She is an innovator (12+ patents), a visual storyteller (@sketchtedocs), and an experienced community builder in the Greater New York area. As a senior AI Advocate on the Core AI Developer Relations team, she acts as "developer 0" for the Microsoft Foundry platform, providing product feedback and empowering AI developers to build trustworthy AI solutions with code samples, open-source curricula and content-initiatives like Model Mondays. Prior to joining Microsoft, she spent a decade in Motorola Labs working on ubiquitous & mobile computing research, founded Google Developer Groups in New York, and consulted for startups building real-time experiences for enterprise. Her current interests span Model understanding & customization, E2E Observability & Safety, and agentic AI workflows for maintainable software. Moderator Lee Stott is a Principal Cloud Advocate at Microsoft, working in the Core AI Developer Relations Team. He helps developers and organizations build responsibly with AI and cloud technologies through open-source projects, technical guidance, and global developer programs. Based in the UK, Lee brings deep hands-on experience across AI, Azure, and developer tooling. Useful resources Microsoft Learn Training Path: https://aka.ms/maximize-cost-efficiency-ai-agents-training Session Deck: https://aka.ms/maximize-cost-efficiency-ai-agents-deckMCP vs mcp-cli: Dynamic Tool Discovery for Token-Efficient AI Agents
Introduction The AI agent ecosystem is evolving rapidly, and with it comes a scaling challenge that many developers are hitting context window bloat. When building systems that integrate with multiple MCP (Model Context Protocol) servers, you're forced to load all tool definitions upfront—consuming thousands of tokens just to describe what tools could be available. mcp-cli: a lightweight tool that changes how we interact with MCP servers. But before diving into mcp-cli, it's essential to understand the foundational protocol itself, the design trade-offs between static and dynamic approaches, and how they differ fundamentally. Part 1: Understanding MCP (Model Context Protocol) What is MCP? The Model Context Protocol (MCP) is an open standard for connecting AI agents and applications to external tools, APIs, and data sources. Think of it as a universal interface that allows: AI Agents (Claude, Gemini, etc.) to discover and call tools Tool Providers to expose capabilities in a standardized way Seamless Integration between diverse systems without custom adapters New to MCP see https://aka.ms/mcp-for-beginners How MCP Works MCP operates on a simple premise: define tools with clear schemas and let clients discover and invoke them. Basic MCP Flow: Tool Provider (MCP Server) ↓ [Tool Definitions + Schemas] ↓ AI Agent / Client ↓ [Discover Tools] → [Invoke Tools] → [Get Results] Example: A GitHub MCP server exposes tools like: search_repositories - Search GitHub repos create_issue - Create a GitHub issue list_pull_requests - List open PRs Each tool comes with a JSON schema describing its parameters, types, and requirements. The Static Integration Problem Traditionally, MCP integration works like this: Startup: Load ALL tool definitions from all servers Context Window: Send every tool schema to the AI model Invocation: Model chooses which tool to call Execution: Tool is invoked and result returned The Problem: When you have multiple MCP servers, the token cost becomes substantial: Scenario Token Count 6 MCP Servers, 60 tools (static loading) ~47,000 tokens After dynamic discovery ~400 tokens Token Reduction 99% 🚀 For a production system with 10+ servers exposing 100+ tools, you're burning through thousands of tokens just describing capabilities, leaving less context for actual reasoning and problem-solving. Key Issues: ❌ Reduced effective context length for actual work ❌ More frequent context compactions ❌ Hard limits on simultaneous MCP servers ❌ Higher API costs Part 2: Enter mcp-cli – Dynamic Context Discovery What is mcp-cli? mcp-cli is a lightweight CLI tool (written in Bun, compiled to a single binary) that implements dynamic context discovery for MCP servers. Instead of loading everything upfront, it pulls in information only when needed. Static vs. Dynamic: The Paradigm Shift Traditional MCP (Static Context): AI Agent Says: "Load all tool definitions from all servers" ↓ Context Window Bloat ❌ ↓ Limited space for reasoning mcp-cli (Dynamic Discovery): AI Agent Says: "What servers exist?" ↓ mcp-cli responds AI Agent Says: "What are the params for tool X?" ↓ mcp-cli responds AI Agent Says: "Execute tool X" mcp-cli executes and responds Result: You only pay for information you actually use. ✅ Core Capabilities mcp-cli provides three primary commands: 1. Discover - What servers and tools exist? mcp-cli Lists all configured MCP servers and their tools. 2. Inspect - What does a specific tool do? mcp-cli info <server> <tool> Returns the full JSON schema for a tool (parameters, descriptions, types). 3. Execute - Run a tool mcp-cli call <server> <tool> '{"arg": "value"}' Executes the tool and returns results. Key Features of mcp-cli Feature Benefit Stdio & HTTP Support Works with both local and remote MCP servers Connection Pooling Lazy-spawn daemon avoids repeated startup overhead Tool Filtering Control which tools are available via allowedTools/disabledTools Glob Searching Find tools matching patterns: mcp-cli grep "*mail*" AI Agent Ready Designed for use in system instructions and agent skills Lightweight Single binary, minimal dependencies Part 3: Detailed Comparison Table Aspect Traditional MCP mcp-cli Protocol HTTP/REST or Stdio Stdio/HTTP (via CLI) Context Loading Static (upfront) Dynamic (on-demand) Tool Discovery All at once Lazy enumeration Schema Inspection Pre-loaded On-request Token Usage High (~47k for 60 tools) Low (~400 for 60 tools) Best For Direct server integration AI agent tool use Implementation Server-side focus CLI-side focus Complexity Medium Low (CLI handles it) Startup Time One call Multiple calls (optimized) Scaling Limited by context Unlimited (pay per use) Integration Custom implementation Pre-built mcp-cli Part 4: When to Use Each Approach Use Traditional MCP (HTTP Endpoints) when: ✅ Building a direct server integration ✅ You have few tools (< 10) and don't care about context waste ✅ You need full control over HTTP requests/responses ✅ You're building a specialized integration (not AI agents) ✅ Real-time synchronous calls are required Use mcp-cli when: ✅ Integrating with AI agents (Claude, Gemini, etc.) ✅ You have multiple MCP servers (> 2-3) ✅ Token efficiency is critical ✅ You want a standardized, battle-tested tool ✅ You prefer CLI-based automation ✅ Connection pooling and lazy loading are beneficial ✅ You're building agent skills or system instructions Conclusion MCP (Model Context Protocol) defines the standard for tool sharing and discovery. mcp-cli is the practical tool that makes MCP efficient for AI agents by implementing dynamic context discovery. The fundamental difference: MCP mcp-cli What The protocol standard The CLI tool Where Both server and client Client-side CLI Problem Solved Tool standardization Context bloat Architecture Protocol Implementation Think of it this way: MCP is the language, mcp-cli is the interpreter that speaks fluently. For AI agent systems, dynamic discovery via mcp-cli is becoming the standard. For direct integrations, traditional MCP HTTP endpoints work fine. The choice depends on your use case, but increasingly, the industry is trending toward mcp-cli for its efficiency and scalability. Resources MCP Specification mcp-cli GitHub New to MCP see https://aka.ms/mcp-for-beginners Practical demo: AnveshMS/mcp-cli-example
Building High-Performance Agentic Systems
Most enterprise chatbots fail in the same quiet way. They answer questions. They impress in demos. And then they stall in production. Knowledge goes stale. Answers cannot be audited. The system cannot act beyond generating text. When workflows require coordination, execution, or accountability, the chatbot stops being useful. Agentic systems exist because that model is insufficient. Instead of treating the LLM as the product, agentic architecture embeds it inside a bounded control loop: plan → act (tools) → observe → refine The model becomes one component in a runtime system with explicit state management, safety policies, identity enforcement, and operational telemetry. This shift is not speculative. A late-2025 MIT Sloan Management Review / BCG study reports that 35% of organizations have already adopted AI agents, with another 44% planning deployment. Microsoft is advancing open protocols for what it calls the “agentic web,” including Agent-to-Agent (A2A) interoperability and Model Context Protocol (MCP), with integration paths emerging across Copilot Studio and Azure AI Foundry. The real question is no longer whether agents are coming. It is whether enterprise architecture is ready for them. This article translates “agentic” into engineering reality: the runtime layers, latency and cost levers, orchestration patterns, and governance controls required for production deployment. The Core Capabilities of Agentic AI What makes an AI “agentic” is not a single feature—it’s the interaction of different capabilities. Together, they form the minimum set needed to move from “answering” to “operating”. Autonomy – Goal-Driven Task Completion Traditional bots are reactive: they wait for a prompt and produce output. Autonomy introduces a goal state and a control loop. The agent is given an objective (or a trigger) and it can decide the next step without being micromanaged. The critical engineering distinction is that autonomy must be bounded: in production, you implement it with explicit budgets and stop conditions—maximum tool calls, maximum retries, timeouts, and confidence thresholds. The typical execution shape is a loop: plan → act → observe → refine. A project-management agent, for example, doesn’t just answer “what’s the status?” It monitors signals (work items, commits, build health), detects a risk pattern (slippage, dependency blockage), and then either surfaces an alert or prepares a remediation action (re-plan milestones, notify owners). In high-stakes environments, autonomy is usually human-in-the-loop by design: the agent can draft changes, propose next actions, and only execute after approval. Over time, teams expand the autonomy envelope for low-risk actions while keeping approvals for irreversible or financially sensitive operations. Tool Integration – Taking Action and Staying Current A standalone LLM cannot fetch live enterprise state and cannot change it. Tool integration is how an agent becomes operational: it can query systems of record, call APIs, trigger workflows, and produce outputs that reflect the current world rather than the model’s pretraining snapshot. There are two classes of tools that matter in enterprise agents: Retrieval tools (grounding / RAG)When the agent needs facts, it retrieves them. This is the backbone of reducing hallucination: instead of guessing, the agent pulls authoritative content (SharePoint, Confluence, policy repositories, CRM records, Fabric datasets) and uses it as evidence. In practice, retrieval works best when it is engineered as a pipeline: query rewrite (optional) → hybrid search (keyword + vector) → filtering (metadata/ACL) → reranking → compact context injection. The point is not “stuff the prompt with documents,” but “inject only the minimum evidence required to answer accurately.” Action tools (function calling / connectors) These are the hands of the agent: update a CRM record, create a ticket, send an email, schedule a meeting, generate a report, run a pipeline. Tool integration shifts value from “advice” to “execution,” but also introduces risk—so action tools need guardrails: least-privilege permissions, input validation, idempotency keys, and post-condition checks (confirm the update actually happened). In Microsoft ecosystems, this tool plane often maps to Graph actions + business connectors (via Logic Apps/Power Automate) + custom APIs, with Copilot Studio (low code) or Foundry-style runtimes (pro code) orchestrating the calls. Memory (Context & Learning) – Context Awareness and Adaptation “Memory” is not just a long prompt. In agentic systems, memory is an explicit state strategy: Working memory: what the agent has learned during the current run (intermediate tool results, constraints, partial plans). Session memory: what should persist across turns (user preferences, ongoing tasks, summarized history). Long-term memory: enterprise knowledge the agent can retrieve (indexed documents, structured facts, embeddings + metadata). Short-term memory enables multi-step workflows without repeating questions. An HR onboarding agent can carry a new hire’s details from intake through provisioning without re-asking, because the workflow state is persisted and referenced. Long-term “learning” is typically implemented through feedback loops rather than real-time model weight updates: capturing corrections, storing validated outcomes, and periodically improving prompts, routing logic, retrieval configuration, or (where appropriate) fine-tuning. The key design rule is that memory must be policy-aware: retention rules, PII handling, and permission trimming apply to stored state as much as they apply to retrieved documents. Orchestration – Coordinating Multi-Agent Teams Complex enterprise work is rarely single-skill. Orchestration is how agentic systems scale capability without turning one agent into an unmaintainable monolith. The pattern is “manager + specialists”: an orchestrator decomposes the goal into subtasks, routes each to the best tool or sub-agent, and then composes a final response. This can be done sequentially or in parallel. Employee onboarding is a classic: HR intake, IT account creation, equipment provisioning, and training scheduling can run in parallel where dependencies allow. The engineering challenge is making orchestration reliable: defining strict input/output contracts between agents (often structured JSON), handling failures (timeouts, partial completion), and ensuring only one component has authority to send the final user-facing message to avoid conflicting outputs. In Microsoft terms, orchestration can be implemented as agentic flows in Copilot Studio, connected-agent patterns in Foundry, or explicit orchestrators in code using structured tool schemas and shared state. Strategic Impact – How Agentic AI Changes Knowledge Work Agentic AI is no longer an experimental overlay to enterprise systems. It is becoming an embedded operational layer inside core workflows. Unlike earlier chatbot deployments that answered isolated questions, modern enterprise agents execute end-to-end processes, interact with structured systems, maintain context, and operate within governed boundaries. The shift is not about conversational intelligence alone; it is about workflow execution at scale. The transformation becomes clearer when examining real implementations across industries. In legal services, agentic systems have moved beyond document summarization into operational case automation. Assembly Software’s NeosAI, built on Azure AI infrastructure, integrates directly into legal case management systems and automates document analysis, structured data extraction, and first-draft generation of legal correspondence. What makes this deployment impactful is not merely the generative drafting capability, but the integration architecture. NeosAI is not an isolated chatbot; it operates within the same document management systems, billing systems, and communication platforms lawyers already use. Firms report time savings of up to 25 hours per case, with document drafting cycles reduced from days to minutes for first-pass outputs. Importantly, the system runs within secure Azure environments with zero data retention policies, addressing one of the most sensitive concerns in legal AI adoption: client confidentiality. JPMorgan’s COiN platform represents another dimension of legal and financial automation. Instead of conversational assistance, COiN performs structured contract intelligence at production scale. It analyzes more than 12,000 commercial loan agreements annually, extracting over 150 clause attributes per document. Work that previously required approximately 360,000 human hours now executes in seconds. The architecture emphasizes structured NLP pipelines, taxonomy-based clause classification, and private cloud deployment for regulatory compliance. Rather than replacing legal professionals, the system flags unusual clauses for human review, maintaining oversight while dramatically accelerating analysis. Over time, COiN has also served as a knowledge retention mechanism, preserving institutional contract intelligence that would otherwise be lost with employee turnover. In financial services, the impact is similarly structural. Morgan Stanley’s internal AI Assistant allows wealth advisors to query over 100,000 proprietary research documents using natural language. Adoption has reached nearly universal usage across advisor teams, not because it replaces expertise, but because it compresses research time and surfaces insights instantly. Building on this foundation, the firm introduced an AI meeting debrief agent that transcribes client conversations using speech-to-text models and generates CRM notes and follow-up drafts through GPT-based reasoning. Advisors review outputs before finalization, preserving human judgment. The result is faster client engagement and measurable productivity improvements. What differentiates Morgan Stanley’s approach is not only deployment scale, but disciplined evaluation before release. The firm established rigorous benchmarking frameworks to test model outputs against expert standards for accuracy, compliance, and clarity. Only after meeting defined thresholds were systems expanded firmwide. This pattern—evaluation before scale—is becoming a defining trait of successful enterprise agent deployment. Human Resources provides a different perspective on agentic AI. Johnson Controls deployed an AI HR assistant inside Slack to manage policy questions, payroll inquiries, and onboarding support across a global workforce exceeding 100,000 employees. By embedding the agent in a channel employees already use, adoption barriers were reduced significantly. The result was a 30–40% reduction in live HR call volume, allowing HR teams to redirect focus toward strategic workforce initiatives. Similarly, Ciena integrated an AI assistant directly into Microsoft Teams, unifying HR and IT support through a single conversational interface. Employees no longer navigate separate portals; the agent orchestrates requests across backend systems such as Workday and ServiceNow. The technical lesson here is clear: integration breadth drives usability, and usability drives adoption. Engineering and IT operations reveal perhaps the most technically sophisticated application of agentic AI: multi-agent orchestration. In a proof-of-concept developed through collaboration between Microsoft and ServiceNow, an AI-driven incident response system coordinates multiple agents during high-priority outages. Microsoft 365 Copilot transcribes live war-room discussions and extracts action items, while ServiceNow’s Now Assist executes operational updates within IT service management systems. A Semantic Kernel–based manager agent maintains shared context and synchronizes activity across platforms. This eliminates the longstanding gap between real-time discussion and structured documentation, automatically generating incident reports while freeing engineers to focus on remediation rather than clerical tasks. The system demonstrates that orchestration is not conceptual—it is operational. Across these examples, the pattern is consistent. Agentic AI changes knowledge work by absorbing structured cognitive labor: document parsing, compliance classification, research synthesis, workflow routing, transcription, and task coordination. Humans remain essential for judgment, ethics, and accountability, but the operational layer increasingly runs through AI-mediated execution. The result is not incremental productivity improvement; it is structural acceleration of knowledge processes. Design and Governance Challenges – Managing the Risks As agentic AI shifts from answering questions to executing workflows, governance must mature accordingly. These systems retrieve enterprise data, invoke APIs, update records, and coordinate across platforms. That makes them operational actors inside your architecture—not just assistants. The primary shift is this: autonomy increases responsibility. Agents must be observable. Every retrieval, reasoning step, and tool invocation should be traceable. Without structured telemetry and audit trails, enterprises lose visibility into why an agent acted the way it did. Agents must also operate within scoped authority. Least-privilege access, role-based identity, and bounded credentials are essential. An HR agent should not access finance systems. A finance agent should not modify compliance data without policy constraints. Autonomy only works when it is deliberately constrained. Execution boundaries are equally critical. High-risk actions—financial approvals, legal submissions, production changes—should include embedded thresholds or human approval gates. Autonomy should be progressive, not absolute. Cost and performance must be governed just like cloud infrastructure. Agentic systems can trigger recursive calls and model loops. Without usage monitoring, rate limits, and model-tier routing, compute consumption can escalate unpredictably. Finally, agentic systems require continuous evaluation. Real-world testing, live monitoring, and drift detection ensure the system remains aligned with business rules and compliance requirements. These are not “set and forget” deployments. In short, agentic AI becomes sustainable only when autonomy is paired with observability, scoped authority, embedded guardrails, cost control, and structured oversight. Conclusion – Towards the Agentic Enterprise The organizations achieving meaningful returns from agentic AI share a common pattern. They do not treat AI agents as experimental tools. They design them as production systems with defined roles, scoped authority, measurable KPIs, embedded observability, and formal governance layers. When autonomy is paired with integration, memory, orchestration, and governance discipline, agentic AI becomes more than automation—it becomes an operational architecture. Enterprises that master this architecture are not merely reducing costs; they are redefining how knowledge work is executed. In this emerging model, human professionals focus on strategic judgment and innovation, while AI agents manage structured cognitive execution at scale. The competitive advantage will not belong to those who deploy the most AI, but to those who deploy it with architectural rigor and governance maturity. Before we rush to deploy more agents, a few questions are worth asking: If an AI agent executes a workflow in your enterprise today, can you trace every reasoning step and tool invocation behind that decision? Does your architecture treat AI as a conversational layer - or as an operational actor with scoped identity, cost controls, and policy enforcement? Where should autonomy stop in your organization - and who defines that boundary? Agentic AI is not just a capability shift. It is an architectural decision. Curious to hear how others are designing their control planes and orchestration layers. References MIT Sloan – “Agentic AI, Explained” by Beth Stackpole: A foundational overview of agentic AI, its distinction from traditional generative AI, and its implications for enterprise workflows, governance, and strategy. Microsoft TechCommunity – “Introducing Multi-Agent Orchestration in Foundry Agent Service”: Details Microsoft’s multi-agent orchestration capabilities, including Connected Agents, Multi-Agent Workflows, and integration with A2A and MCP protocols. Microsoft Learn – “Extend the Capabilities of Your Agent – Copilot Studio”: Explains how to build and extend custom agents in Microsoft Copilot Studio using tools, connectors, and enterprise data sources. Assembly Software’s NeosAI case – Microsoft Customer Stories JPMorgan COiN platform – GreenData Case Study HR support AI (Johnson Controls, Ciena, Databricks) – Moveworks case studies ServiceNow & Semantic Kernel multi-agent P1 Incident – Microsoft Semantic Kernel Blog
Using Azure API Management with Azure Front Door for Global, Multi‑Region Architectures
Modern API‑driven applications demand global reach, high availability, and predictable latency. Azure provides two complementary services that help achieve this: Azure API Management (APIM) as the API gateway and Azure Front Door (AFD) as the global entry point and load balancer. Going over the available documentation available, my team and I found this article on how to front a single-region APIM with an Azure Front Door , but we wanted to extend this to a multi-region APIM as well. That led us to design the solution detailed in this article which explains how to configure multi‑regional, active‑active APIM behind Azure Front Door using Custom origins and regional gateway endpoints. (I have also covered topics like why organizations commonly pair APIM with Front Door, when to use internal vs. external APIM modes, etc. but main topic first! Scroll down to the bottom for more info). Configuring Multi‑Regional APIM with Azure Front Door WHAT TO KNOW: If using APIM Premium with multi‑region gateways, each region exposes its own regional gateway endpoint, formatted as: https://<service-name>-<region>-01.regional.azure-api.net Examples: https://mydemo-apim-westeurope-01.regional.azure-api.net https://mydemo-apim-eastus-01.regional.azure-api.net where 'mydemo' is the name of the APIM instance. You will use these regional endpoints and configure them as a separate origin in Azure Front Door—using the Custom origin type. Solution Architecture Azure Front Door Configuration Steps 1. Create an Origin Group Inside your Front Door profile, define a group (Settings -> Origin Groups - > Add -> Add an origin) that will contain all APIM regional gateways. See images below: 2. Add Each APIM Region as a Custom Origin Use the Custom origin type: Origin type: Custom Host name: Use the APIM regional endpoint Example: mydemo-apim-westeurope-01.regional.azure-api.net Origin host header: Same as the host name. Enable certificate subject name validation (Recommended when private link or TLS integrity is required.) Priority: Lower value = higher priority (for failover). Weight: Controls how traffic is distributed across equally prioritized origins. Status: Enable origin. And repeat the same steps for additional APIM regions giving them priority and weightage as you feel appropriate. How to Know Which Region is being Invoked To test this setup, create 2 Virtual Machines (VMs) in Azure - one for each region. For this guide, we chose to create the VMs in West Europe and East US. Open up a Command Prompt from the VM and do a curl on the sample Echo API that comes with every new APIM deployment: Example: curl -v "afd-blah.b01.azurefd.net/echo/resource?param1=sample" Your results should show the region being hit as shown below: How AFD Routes Traffic Across Multiple APIM Regions AFD evaluates origins in this order: Available instances — the Health Probe removes unhealthy origins Priority — selects highest‑priority available origins Latency — optionally selects lowest‑latency pool Weight — round‑robin distribution across selected origins Example When origins are configured as below: West Europe (priority 1, weight 1000) East US (priority 1, weight 500) Central US (priority 2, weight 1000) AFD will: Use West Europe + East US in a 1000:500 ratio. Only use Central US if both West Europe & East US become unavailable. For more information on this nice algorithm, see here: Traffic routing methods to origin - Azure Front Door | Microsoft Learn More Info (as promised) Why Use Azure API Management? Azure API Management is a fully managed service providing: 1. Centralized API Gateway Enforces policies such as authentication, rate limiting, transformations, and caching. Acts as a single façade for backend services, enabling modernization without breaking existing clients. 2. Security & Governance Integrates with Azure AD, OAuth2, and mTLS (mutual TLS). Provides threat protection and schema validation. 3. Developer Ecosystem Developer portal, API documentation, testing console, versioning, and releases. 4. Multi‑Region Gateways (Premium Tier) Allows deployment of additional regional gateways for active‑active, low‑latency global experiences. APIM Deployment Modes: Internal vs. External External Mode The APIM gateway is reachable publicly over the internet. Common when: Exposing APIs to partners, mobile apps, or public clients. You can easily front this with an Azure Front Door for reasons listed in the next section. Internal Mode APIM gateway is deployed inside a VNet, accessible only privately. Used when: APIs must stay private to an enterprise network. Only internal consumers/VPN/VNet peered systems need access. To make your APIM publicly accessible, you need to front it with both an Application Gateway and an Azure Front Door because: Azure Front Door (AFD) cannot directly reach an internal‑mode APIM because AFD requires a publicly routable origin. Application Gateway is a Layer‑7 reverse proxy that can expose a public frontend while still reaching internal private backends (like APIM gateway). [Ref] But Why Put Azure Front Door in Front of API Management? Azure Front Door provides capabilities that APIM alone does not offer: 1. Global Load Balancing As discussed above. 2. Edge Security Web Application Firewall, TLS termination at the edge, DDoS absorption. Reduces load on API gateways. 3. Faster Global Performance Anycast network and global POPs reduce round‑trip latency before requests hit APIM. A POP (Point of Presence) is an Azure Front Door edge location—a physical site in Microsoft’s global network where incoming user traffic first lands. Azure Front Door uses numerous global and local POPs strategically placed close to end‑users (both enterprise and consumer) to improve performance. Anycast is a networking protocol Azure Front Door uses to improve global connectivity. Ref: Traffic acceleration - Azure Front Door | Microsoft Learn 4. Unified Global Endpoint A single public endpoint (e.g., https://api.contoso.com) that intelligently distributes traffic across multiple APIM regions. With all of the above features, it is best to pair API Management with a Front Door, especially when dealing with multi-region architectures. Credits: Junee Singh, Senior Solution Engineer at Microsoft Isiah Hudson, Senior Solution Engineer at MicrosoftWriting Effective Prompts for Testing Scenarios: AI Assisted Quality Engineering
AI-assisted testing is no longer an experiment confined to innovation labs. Across enterprises, quality engineering teams are actively shifting from manual-heavy testing approaches to AI-first QA, where tools like GitHub Copilot participate throughout the SDLC—from requirement analysis to regression triage. Yet, despite widespread adoption, most teams are only scratching the surface. They use AI to “generate test cases” or “write automation,” but struggle with inconsistent outputs, shallow coverage, and trust issues. The root cause is rarely the model, it’s prompt design. This blog moves past basic prompting tips to cover QA practices, focusing on effective prompt design and common pitfalls. It notes that adopting AI in testing is a gradual process of ongoing transformation rather than a quick productivity gain. Why Effective Prompting Is Necessary in Testing At its core, testing is about asking the right questions of a system. When AI enters the picture, prompts become the mechanism through which those questions are asked. A vague or incomplete prompt is no different from an ambiguous test requirement—it leads to weak coverage and unreliable results. Poorly written prompts often result in generic or shallow test cases, incomplete UI or API coverage, incorrect automation logic, or superficial regression analysis. This increases rework and reduces trust in AI-generated outputs. In contrast, well-crafted prompts dramatically improve outcomes. They help expand UI and API test coverage, accelerate automation development, and enable faster interpretation of regression results. More importantly, they allow testers to focus on risk analysis and quality decisions instead of repetitive tasks. In this sense, effective prompting doesn’t replace testing skills—it amplifies them. Industry Shift: Manual QA to AI-First Testing Lifecycle Modern QA organizations are undergoing three noticeable shifts. First, there is a clear move away from manual test authoring toward AI-augmented test design. Testers increasingly rely on AI to generate baseline coverage, allowing them to focus on risk analysis, edge cases, and system behavior rather than repetitive documentation. Second, enterprises are adopting agent-based and MCP-backed testing, where AI systems are no longer isolated prompt responders. They operate with access to application context—OpenAPI specs, UI flows, historical regressions, and even production telemetry—making outputs significantly more accurate and actionable. Third, teams are seeing tangible SDLC impact. Internally reported metrics across multiple organizations show faster test creation, reduced regression cycle time, and earlier defect detection when Copilot-style tools are used correctly. The key phrase here is correct. Poor prompt neutralizes these benefits almost immediately. Prerequisites GitHub Copilot access in a supported IDE (VS Code, JetBrains, Visual Studio) An appropriate model (advanced reasoning models for workflows and analysis) Basic testing fundamentals (AI amplifies skill; it does not replace it) (Optional but powerful) Context providers / MCP servers for specs, docs, and reports Prompting - A Designing skill with Examples Most testers treat prompts as instructions. Mature teams treat them as design artifacts. Effective prompts should be intentional, layered, and defensive. They should not just ask for output, but control how the AI reasons, what assumptions it can make, and how uncertainty is handled. Pattern 1: Role-Based Prompting Assigning a role fundamentally changes the AI’s reasoning depth. Instead of: “Generate test cases for login.” Use: This pattern consistently results in better prioritization, stronger negative scenarios, and fewer superficial cases. Pattern 2: Few-Shot Prompting with Test Examples AI aligns faster when shown what “good” looks like. Providing even a single example test case or automation snippet dramatically improves consistency in AI-generated outputs, especially when multiple teams are involved. Concrete examples help align the AI with expected automation structure, enforce naming conventions, influence the depth and quality of assertions, and standardize reporting formats. By showing what “good” looks like, teams reduce variation, improve maintainability, and make AI-generated assets far easier to review and extend. Pattern 3: Provide Rich Context and Clear Instructions Copilot works best when it understands the surrounding context of what you are testing. The richer the context, the higher the quality of the output—whether you are generating manual test cases, automation scripts, or regression insights. When writing prompts clearly describe the application type (web, mobile, UI, API), the business domain, the feature or workflow under test, and the relevant user roles or API consumers. Business rules, constraints, assumptions, and exclusions should also be explicitly stated. Where possible, include structured instructions in an Instructions .md file and pass it as context to the Copilot agent. You can also attach supporting assets—such as Swagger screenshots or UI flow diagrams—to further ground the AI’s understanding. The result is more concise, accurate output that aligns closely with your system’s real behavior and constraints. Below is an example of how rich context can aid in efficient output Below example shows how to give clear instructions to GHCP that helps AI to handle the uncertainty and exceptions to adhere Prompt Anti-Patterns to Avoid Most AI failures in QA are self-inflicted. The following anti-patterns show up repeatedly in enterprise teams. Overloaded prompts that request UI tests, API tests, automation, and analysis in one step Natural language overuse where structured output (tables, JSON, code templates) is required Automation prompts without environment details (browser, framework, auth, data) Contradictory instructions, such as asking for “detailed coverage” and “keep it minimal” simultaneously The AI-Assisted QA Maturity Model Prompting is not a one-time tactic—it is a capability that matures over time. The levels below represent how increasing sophistication in prompt design directly leads to more advanced, reliable, and impactful testing outcomes. Level 1 – Prompt-Based Test Generation AI is primarily used to generate manual test cases, scenarios, and edge cases from requirements or user stories. This level improves test coverage and speeds up test design but still relies heavily on human judgment for validation, prioritization, and execution. Level 2 – AI-Assisted Automation AI moves beyond documentation and actively supports automation by generating framework-aligned scripts, page objects, and assertions. Testers guide the AI with clear constraints and patterns, resulting in faster automation development while retaining full human control over architecture and execution. Level 3 – AI-Led Regression Analysis At this stage, AI assists in analyzing regression results by clustering failures, identifying recurring patterns, and suggesting likely root causes. Testers shift from manually triaging failures to validating AI-generated insights, significantly reducing regression cycle time. Level 4 – MCP-Integrated, Agentic Testing AI operates with deep system context through MCP servers, accessing specifications, historical test data, and execution results. It can independently generate, refine, and adapt tests based on system changes, enabling semi-autonomous, context-aware quality engineering with human oversight. Best Practices for Prompt-Based Testing Prioritize context over brevity Treat prompts as test specifications Iterate instead of rewriting from scratch Experiment with models when outputs miss intent Always validate AI-generated automation and analysis Maintain reusable prompt templates for UI testing, API testing, automation, and regression analysis Final Thoughts: Prompting as a Core QA Capability Effective prompt improves coverage, accelerates delivery, and elevates QA from execution to engineering. It turns Copilot from a code generator into a quality partner. The next use case in line is going beyond functional flows and understanding how AI prompting can aid for – Automation framework enhancements, Performance testing prompts, Accessibility testing prompts, Data quality testing prompts. Stay tuned for upcoming blogs!!Optimising AI Costs with Microsoft Foundry Model Router
Microsoft Foundry Model Router analyses each prompt in real-time and forwards it to the most appropriate LLM from a pool of underlying models. Simple requests go to fast, cheap models; complex requests go to premium ones, all automatically. I built an interactive demo app so you can see the routing decisions, measure latencies, and compare costs yourself. This post walks through how it works, what we measured, and when it makes sense to use. The Problem: One Model for Everything Is Wasteful Traditional deployments force a single choice: Strategy Upside Downside Use a small model Fast, cheap Struggles with complex tasks Use a large model Handles everything Overpay for simple tasks Build your own router Full control Maintenance burden; hard to optimise Most production workloads are mixed-complexity. Classification, FAQ look-ups, and data extraction sit alongside code analysis, multi-constraint planning, and long-document summarisation. Paying premium-model prices for the simple 40% is money left on the table. The Solution: Model Router Model Router is a trained language model deployed as a single Azure endpoint. For each incoming request it: Analyses the prompt — complexity, task type, context length Selects an underlying model from the routing pool Forwards the request and returns the response Exposes the choice via the response.model field You interact with one deployment. No if/else routing logic in your code. Routing Modes Mode Goal Trade-off Balanced (default) Best cost-quality ratio General-purpose Cost Minimise spend May use smaller models more aggressively Quality Maximise accuracy Higher cost for complex tasks Modes are configured in the Foundry Portal, no code change needed to switch. Building the Demo To make routing decisions tangible, we built a React + TypeScript app that sends the same prompt through both Model Router and a fixed standard deployment (e.g. GPT-5-nano), then compares: Which model the router selected Latency (ms) Token usage (prompt + completion) Estimated cost (based on per-model pricing) Select a prompt, choose a routing mode, and hit Run Both to compare side-by-side What You Can Do 10 pre-built prompts spanning simple classification to complex multi-constraint planning Custom prompt input enter any text and benchmarks run automatically Three routing modes switch and re-run to see how distribution changes Batch mode run all 10 prompts in one click to gather aggregate stats API Integration The integration is a standard Azure OpenAI chat completion call. The only difference is the deployment name ( model-router instead of a specific model): const response = await fetch( `${endpoint}/openai/deployments/model-router/chat/completions?api-version=2024-10-21`, { method: 'POST', headers: { 'Content-Type': 'application/json', 'api-key': apiKey, }, body: JSON.stringify({ messages: [{ role: 'user', content: prompt }], max_completion_tokens: 1024, }), } ); const data = await response.json(); // The key insight: response.model reveals the underlying model const selectedModel = data.model; // e.g. "gpt-5-nano-2025-08-07" That data.model field is what makes cost tracking and distribution analysis possible. Results: What the Data Shows We ran all 10 prompts through both Model Router (Balanced mode) and a fixed standard deployment. Note: Results vary by run, region, model versions, and Azure load. These numbers are from a representative sample run. Side-by-side comparison across all 10 prompts in Balanced mode Summary Metric Router (Balanced) Standard (GPT-5-nano) Avg Latency ~7,800 ms ~7,700 ms Total Cost (10 prompts) ~$0.029 ~$0.030 Cost Savings ~4.5% — Models Used 4 1 Model Distribution The router used 4 different models across 10 prompts: Model Requests Share Typical Use gpt-5-nano 5 50% Classification, summarisation, planning gpt-5-mini 2 20% FAQ answers, data extraction gpt-oss-120b 2 20% Long-context analysis, creative tasks gpt-4.1-mini 1 10% Complex debugging & reasoning Routing distribution chart — the router favours efficient models for simple prompts Across All Three Modes Metric Balanced Cost-Optimised Quality-Optimised Cost Savings ~4.5% ~4.7% ~14.2% Avg Latency (Router) ~7,800 ms ~7,800 ms ~6,800 ms Avg Latency (Standard) ~7,700 ms ~7,300 ms ~8,300 ms Primary Goal Balance cost + quality Minimise spend Maximise accuracy Model Selection Mixed (4 models) Prefers cheaper Prefers premium Cost-optimised mode — routes more aggressively to nano/mini models Quality-optimised mode — routes to larger models for complex tasks Analysis What Worked Well Intelligent distribution The router didn't just default to one model. It used 4 different models and mapped prompt complexity to model capability: simple classification → nano, FAQ answers → mini, long-context documents → oss-120b, complex debugging → 4.1-mini. Measurable cost savings across all modes 4.5% in Balanced, 4.7% in Cost, and 14.2% in Quality mode. Quality mode was the surprise winner by choosing faster, cheaper models for simple prompts, it actually saved the most while still routing complex requests to capable models. Zero routing logic in application code One endpoint, one deployment name. The complexity lives in Azure's infrastructure, not yours. Operational flexibility Switch between Balanced, Cost, and Quality modes in the Foundry Portal without redeploying your app. Need to cut costs for a high-traffic period? Switch to Cost mode. Need accuracy for a compliance run? Switch to Quality. Future-proofing As Azure adds new models to the routing pool, your deployment benefits automatically. No code changes needed. Trade-offs to Consider Latency is comparable, not always faster In Balanced mode, Router averaged ~7,800 ms vs Standard's ~7,700 ms nearly identical. In Quality mode, the Router was actually faster (~6,800 ms vs ~8,300 ms) because it chose more efficient models for simple prompts. The delta depends on which models the router selects. Savings scale with workload diversity Our 10-prompt test set showed 4.5–14.2% savings. Production workloads with a wider spread of simple vs complex prompts should see larger savings, since the router has more opportunity to route simple requests to cheaper models. Opaque routing decisions You can see which model was picked via response.model , but you can't see why. For most applications this is fine; for debugging edge cases you may want to test specific prompts in the demo first. Custom Prompt Testing One of the most practical features of the demo is testing your own prompts before committing to Model Router in production. Enter any prompt `the quantum computing example is a medium-complexity educational prompt` Benchmarks execute automatically, showing the selected model, latency, tokens, and cost Workflow: Click ✏️ Custom in the prompt selector Enter your production-representative prompt Click ✓ Use This Prompt — Router and Standard run automatically Compare results — repeat with different routing modes Use the data to inform your deployment strategy This lets you predict costs and validate routing behaviour with your actual workload before going to production. When to Use Model Router Great Fit Mixed-complexity workloads — chatbots, customer service, content pipelines Cost-sensitive deployments — where even single-digit percentage savings matter at scale Teams wanting simplicity — one endpoint beats managing multi-model routing logic Rapid experimentation — try new models without changing application code Consider Carefully Ultra-low-latency requirements — if you need sub-second responses, the routing overhead matters Single-task, single-model workloads — if one model is clearly optimal for 100% of your traffic, a router adds complexity without benefit Full control over model selection — if you need deterministic model choice per request Mode Selection Guide Is accuracy critical (compliance, legal, medical)? Is accuracy critical (compliance, legal, medical)? └─ YES → Quality-Optimised └─ NO → Strict budget constraints? └─ YES → Cost-Optimised └─ NO → Balanced (recommended) Best Practices Start with Balanced mode — measure actual results, then optimise Test with your real prompts — use the Custom Prompt feature to validate routing before production Monitor model distribution — track which models handle your traffic over time Compare against a baseline — always keep a standard deployment to measure savings Review regularly — as new models enter the routing pool, distributions shift Technical Stack Technology Purpose React 19 + TypeScript 5.9 UI and type safety Vite 7 Dev server and build tool Tailwind CSS 4 Styling Recharts 3 Distribution and comparison charts Azure OpenAI API (2024-10-21) Model Router and standard completions Security measures include an ErrorBoundary for crash resilience, sanitised API error messages, AbortController request timeouts, input length validation, and restrictive security headers. API keys are loaded from environment variables and gitignored. Source: leestott/router-demo-app: An interactive web application demonstrating the power of Microsoft Foundry Model Router - an intelligent routing system that automatically selects the optimal language model for each request based on complexity, reasoning requirements, and task type. ⚠️ This demo calls Azure OpenAI directly from the browser. This is fine for local development. For production, proxy through a backend and use Managed Identity. Try It Yourself Quick Start git clone https://github.com/leestott/router-demo-app/ cd router-demo-app # Option A: Use the setup script (recommended) # Windows: .\setup.ps1 -StartDev # macOS/Linux: chmod +x setup.sh && ./setup.sh --start-dev # Option B: Manual npm install cp .env.example .env.local # Edit .env.local with your Azure credentials npm run dev Open http://localhost:5173 , select a prompt, and click ⚡ Run Both. Get Your Credentials Go to ai.azure.com → open your project Copy the Project connection string (endpoint URL) Navigate to Deployments → confirm model-router is deployed Get your API key from Project Settings → Keys Configuration Edit .env.local : VITE_ROUTER_ENDPOINT=https://your-resource.cognitiveservices.azure.com VITE_ROUTER_API_KEY=your-api-key VITE_ROUTER_DEPLOYMENT=model-router VITE_STANDARD_ENDPOINT=https://your-resource.cognitiveservices.azure.com VITE_STANDARD_API_KEY=your-api-key VITE_STANDARD_DEPLOYMENT=gpt-5-nano Ideas for Enhancement Historical analysis — persist results to track routing trends over time Cost projections — estimate monthly spend based on prompt patterns and volume A/B testing framework — compare modes with statistical significance Streaming support — show model selection for streaming responses Export reports — download benchmark data as CSV/JSON for further analysis Conclusion Model Router addresses a real problem: most AI workloads have mixed complexity, but most deployments use a single model. By routing each request to the right model automatically, you get: Cost savings (~4.5–14.2% measured across modes, scaling with volume) Intelligent distribution (4 models used, zero routing code) Operational simplicity (one endpoint, mode changes via portal) Future-proofing (new models added to the pool automatically) The latency trade-off is minimal — in Quality mode, the Router was actually faster than the standard deployment. The real value is flexibility: tune for cost, quality, or balance without touching your code. Ready to try it? Clone the demo repository, plug in your Azure credentials, and test with your own prompts. Resources Model Router Benchmark Sample Sample App Model Router Concepts Official documentation Model Router How-To Deployment guide Microsoft Foundry Portal Deploy and manage Model Router in the Catalog Model listing Azure OpenAI Managed Identity Production auth Built to explore Model Router and share findings with the developer community. Feedback and contributions welcome, open an issue or PR on GitHub.Building Interactive Agent UIs with AG-UI and Microsoft Agent Framework
Introduction Picture this: You've built an AI agent that analyzes financial data. A user uploads a quarterly report and asks: "What are the top three expense categories?" Behind the scenes, your agent parses the spreadsheet, aggregates thousands of rows, and generates visualizations. All in 20 seconds. But the user? They see a loading spinner. Nothing else. No "reading file" message, no "analyzing data" indicator, no hint that progress is being made. They start wondering: Is it frozen? Should I refresh? The problem isn't the agent's capabilities - it's the communication gap between the agent running on the backend and the user interface. When agents perform multi-step reasoning, call external APIs, or execute complex tool chains, users deserve to see what's happening. They need streaming updates, intermediate results, and transparent progress indicators. Yet most agent frameworks force developers to choose between simple request/response patterns or building custom solutions to stream updates to their UIs. This is where AG-UI comes in. AG-UI is a fairly new event-based protocol that standardizes how agents communicate with user interfaces. Instead of every framework and development team inventing their own streaming solution, AG-UI provides a shared vocabulary of structured events that work consistently across different agent implementations. When an agent starts processing, calls a tool, generates text, or encounters an error, the UI receives explicit, typed events in real time. The beauty of AG-UI is its framework-agnostic design. While this blog post demonstrates integration with Microsoft Agent Framework (MAF), the same AG-UI protocol works with LangGraph, CrewAI, or any other compliant framework. Write your UI code once, and it works with any AG-UI-compliant backend. (Note: MAF supports both Python and .NET - this blog post focuses on the Python implementation.) TL;DR The Problem: Users don't get real-time updates while AI agents work behind the scenes - no progress indicators, no transparency into tool calls, and no insight into what's happening. The Solution: AG-UI is an open, event-based protocol that standardizes real-time communication between AI agents and user interfaces. Instead of each development team and framework inventing custom streaming solutions, AG-UI provides a shared vocabulary of structured events (like TOOL_CALL_START, TEXT_MESSAGE_CONTENT, RUN_FINISHED) that work across any compliant framework. Key Benefits: Framework-agnostic - Write UI code once, works with LangGraph, Microsoft Agent Framework, CrewAI, and more Real-time observability - See exactly what your agent is doing as it happens Server-Sent Events - Built on standard HTTP for universal compatibility Protocol-managed state - No manual conversation history tracking In This Post: You'll learn why AG-UI exists, how it works, and build a complete working application using Microsoft Agent Framework with Python - from server setup to client implementation. What You'll Learn This blog post walks through: Why AG-UI exists - how agent-UI communication has evolved and what problems current approaches couldn't solve How the protocol works - the key design choices that make AG-UI simple, reliable, and framework-agnostic Protocol architecture - the generic components and how AG-UI integrates with agent frameworks Building an AG-UI application - a complete working example using Microsoft Agent Framework with server, client, and step-by-step setup Understanding events - what happens under the hood when your agent runs and how to observe it Thinking in events - how building with AG-UI differs from traditional APIs, and what benefits this brings Making the right choice - when AG-UI is the right fit for your project and when alternatives might be better Estimated reading time: 15 minutes Who this is for: Developers building AI agents who want to provide real-time feedback to users, and teams evaluating standardized approaches to agent-UI communication To appreciate why AG-UI matters, we need to understand the journey that led to its creation. Let's trace how agent-UI communication has evolved through three distinct phases. The Evolution of Agent-UI Communication AI agents have become more capable over time. As they evolved, the way they communicated with user interfaces had to evolve as well. Here's how this evolution unfolded. Phase 1: Simple Request/Response In the early days of AI agent development, the interaction model was straightforward: send a question, wait for an answer, display the result. This synchronous approach mirrored traditional API calls and worked fine for simple scenarios. # Simple, but limiting response = agent.run("What's the weather in Paris?") display(response) # User waits... and waits... Works for: Quick queries that complete in seconds, simple Q&A interactions where immediate feedback and interactivity aren't critical. Breaks down: When agents need to call multiple tools, perform multi-step reasoning, or process complex queries that take 30+ seconds. Users see nothing but a loading spinner, with no insight into what's happening or whether the agent is making progress. This creates a poor user experience and makes it impossible to show intermediate results or allow user intervention. Recognizing these limitations, development teams began experimenting with more sophisticated approaches. Phase 2: Custom Streaming Solutions As agents became more sophisticated, teams recognized the need for incremental feedback and interactivity. Rather than waiting for the complete response, they implemented custom streaming solutions to show partial results as they became available. # Every team invents their own format for chunk in agent.stream("What's the weather?"): display(chunk) # But what about tool calls? Errors? Progress? This was a step forward for building interactive agent UIs, but each team solved the problem differently. Also, different frameworks had incompatible approaches - some streamed only text tokens, others sent structured JSON, and most provided no visibility into critical events like tool calls or errors. The problem: No standardization across frameworks - client code that works with LangGraph won't work with Crew AI, requiring separate implementations for each agent backend Each implementation handles tool calls differently - some send nothing during tool execution, others send unstructured messages Complex state management - clients must track conversation history, manage reconnections, and handle edge cases manually The industry needed a better solution - a common protocol that could work across all frameworks while maintaining the benefits of streaming. Phase 3: Standardized Protocol (AG-UI) AG-UI emerged as a response to the fragmentation problem. Instead of each framework and development team inventing their own streaming solution, AG-UI provides a shared vocabulary of events that work consistently across different agent implementations. # Standardized events everyone understands async for event in agent.run_stream("What's the weather?"): if event.type == "TEXT_MESSAGE_CONTENT": display_text(event.delta) elif event.type == "TOOL_CALL_START": show_tool_indicator(event.tool_name) elif event.type == "TOOL_CALL_RESULT": show_tool_result(event.result) The key difference is structured observability. Rather than guessing what the agent is doing from unstructured text, clients receive explicit events for every stage of execution: when the agent starts, when it generates text, when it calls a tool, when that tool completes, and when the entire run finishes. What's different: A standardized vocabulary of event types, complete observability into agent execution, and framework-agnostic clients that work with any AG-UI-compliant backend. You write your UI code once, and it works whether the backend uses Microsoft Agent Framework, LangGraph, or any other framework that speaks AG-UI. Now that we've seen why AG-UI emerged and what problems it solves, let's examine the specific design decisions that make the protocol work. These choices weren't arbitrary - each one addresses concrete challenges in building reliable, observable agent-UI communication. The Design Decisions Behind AG-UI Why Server-Sent Events (SSE)? Aspect WebSockets SSE (AG-UI) Complexity Bidirectional Unidirectional (simpler) Firewall/Proxy Sometimes blocked Standard HTTP Reconnection Manual implementation Built-in browser support Use case Real-time games, chat Agent responses (one-way) For agent interactions, you typically only need server→client communication, making SSE a simpler choice. SSE solves the transport problem - how events travel from server to client. But once connected, how does the protocol handle conversation state across multiple interactions? Why Protocol-Managed Threads? # Without protocol threads (client manages): conversation_history = [] conversation_history.append({"role": "user", "content": message}) response = agent.complete(conversation_history) conversation_history.append({"role": "assistant", "content": response}) # Complex, error-prone, doesn't work with multiple clients # With AG-UI (protocol manages): thread = agent.get_new_thread() # Server creates and manages thread agent.run_stream(message, thread=thread) # Server maintains context # Simple, reliable, shareable across clients With transport and state management handled, the final piece is the actual messages flowing through the connection. What information should the protocol communicate, and how should it be structured? Why Standardized Event Types? Instead of parsing unstructured text, clients get typed events: RUN_STARTED - Agent begins (start loading UI) TEXT_MESSAGE_CONTENT - Text chunk (stream to user) TOOL_CALL_START - Tool invoked (show "searching...", "calculating...") TOOL_CALL_RESULT - Tool finished (show result, update UI) RUN_FINISHED - Complete (hide loading) This lets UIs react intelligently without custom parsing logic. Now that we understand the protocol's design choices, let's see how these pieces fit together in a complete system. Architecture Overview Here's how the components interact: The communication between these layers relies on a well-defined set of event types. Here are the core events that flow through the SSE connection: Core Event Types AG-UI provides a standardized set of event types to describe what's happening during an agent's execution: RUN_STARTED - agent begins execution TEXT_MESSAGE_START, TEXT_MESSAGE_CONTENT, TEXT_MESSAGE_END - streaming segments of text TOOL_CALL_START, TOOL_CALL_ARGS, TOOL_CALL_END, TOOL_CALL_RESULT - tool execution events RUN_FINISHED - agent has finished execution RUN_ERROR - error information This model lets the UI update as the agent runs, rather than waiting for the final response. The generic architecture above applies to any AG-UI implementation. Now let's see how this translates to Microsoft Agent Framework. AG-UI with Microsoft Agent Framework While AG-UI is framework-agnostic, this blog post demonstrates integration with Microsoft Agent Framework (MAF) using Python. MAF is available in both Python and .NET, giving you flexibility to build AG-UI applications in your preferred language. Understanding how MAF implements the protocol will help you build your own applications or work with other compliant frameworks. Integration Architecture The Microsoft Agent Framework integration involves several specialized layers that handle protocol translation and execution orchestration: Understanding each layer: FastAPI Endpoint - Handles HTTP requests and establishes SSE connections for streaming AgentFrameworkAgent - Protocol wrapper that translates between AG-UI events and Agent Framework operations Orchestrators - Manage execution flow, coordinate tool calling sequences, and handle state transitions ChatAgent - Your agent implementation with instructions, tools, and business logic ChatClient - Interface to the underlying language model (Azure OpenAI, OpenAI, or other providers) The good news? When you call add_agent_framework_fastapi_endpoint, all the middleware layers are configured automatically. You simply provide your ChatAgent, and the integration handles protocol translation, event streaming, and state management behind the scenes. Now that we understand both the protocol architecture and the Microsoft Agent Framework integration, let's build a working application. Hands-On: Building Your First AG-UI Application This section demonstrates how to build an AG-UI server and client using Microsoft Agent Framework and FastAPI. Prerequisites Before building your first AG-UI application, ensure you have: Python 3.10 or later installed Basic understanding of async/await patterns in Python Azure CLI installed and authenticated (az login) Azure OpenAI service endpoint and deployment configured (setup guide) Cognitive Services OpenAI Contributor role for your Azure OpenAI resource You'll also need to install the AG-UI integration package: pip install agent-framework-ag-ui --pre This automatically installs agent-framework-core, fastapi, and uvicorn as dependencies. With your environment configured, let's create the server that will host your agent and expose it via the AG-UI protocol. Building the Server Let's create a FastAPI server that hosts an AI agent and exposes it via AG-UI: # server.py import os from typing import Annotated from dotenv import load_dotenv from fastapi import FastAPI from pydantic import Field from agent_framework import ChatAgent, ai_function from agent_framework.azure import AzureOpenAIChatClient from agent_framework_ag_ui import add_agent_framework_fastapi_endpoint from azure.identity import DefaultAzureCredential # Load environment variables from .env file load_dotenv() # Validate environment configuration openai_endpoint = os.getenv("AZURE_OPENAI_ENDPOINT") model_deployment = os.getenv("AZURE_OPENAI_DEPLOYMENT_NAME") if not openai_endpoint: raise RuntimeError("Missing required environment variable: AZURE_OPENAI_ENDPOINT") if not model_deployment: raise RuntimeError("Missing required environment variable: AZURE_OPENAI_DEPLOYMENT_NAME") # Define tools the agent can use @ai_function def get_order_status( order_id: Annotated[str, Field(description="The order ID to look up (e.g., ORD-001)")] ) -> dict: """Look up the status of a customer order. Returns order status, tracking number, and estimated delivery date. """ # Simulated order lookup orders = { "ORD-001": {"status": "shipped", "tracking": "1Z999AA1", "eta": "Jan 25, 2026"}, "ORD-002": {"status": "processing", "tracking": None, "eta": "Jan 23, 2026"}, "ORD-003": {"status": "delivered", "tracking": "1Z999AA3", "eta": "Delivered Jan 20"}, } return orders.get(order_id, {"status": "not_found", "message": "Order not found"}) # Initialize Azure OpenAI client chat_client = AzureOpenAIChatClient( credential=DefaultAzureCredential(), endpoint=openai_endpoint, deployment_name=model_deployment, ) # Configure the agent with custom instructions and tools agent = ChatAgent( name="CustomerSupportAgent", instructions="""You are a helpful customer support assistant. You have access to a get_order_status tool that can look up order information. IMPORTANT: When a user mentions an order ID (like ORD-001, ORD-002, etc.), you MUST call the get_order_status tool to retrieve the actual order details. Do NOT make up or guess order information. After calling get_order_status, provide the actual results to the user in a friendly format.""", chat_client=chat_client, tools=[get_order_status], ) # Initialize FastAPI application app = FastAPI( title="AG-UI Customer Support Server", description="Interactive AI agent server using AG-UI protocol with tool calling" ) # Mount the AG-UI endpoint add_agent_framework_fastapi_endpoint(app, agent, path="/chat") def main(): """Entry point for the AG-UI server.""" import uvicorn print("Starting AG-UI server on http://localhost:8000") uvicorn.run(app, host="0.0.0.0", port=8000, log_level="info") # Run the application if __name__ == "__main__": main() What's happening here: We define a tool: get_order_status with the AI_function decorator Use Annotated and Field for parameter descriptions to help the agent understand when and how to use the tool We create an Azure OpenAI chat client with credential authentication The ChatAgent is configured with domain-specific instructions and the tools parameter add_agent_framework_fastapi_endpoint automatically handles SSE streaming and tool execution The server exposes the agent at the /chat endpoint Note: This example uses Azure OpenAI, but AG-UI works with any chat model. You can also integrate with Azure AI Foundry's model catalog or use other LLM providers. Tool calling is supported by most modern LLMs including GPT-4, GPT-4o, and Claude models. To run this server: # Set your Azure OpenAI credentials export AZURE_OPENAI_ENDPOINT="https://your-resource.openai.azure.com/" export AZURE_OPENAI_DEPLOYMENT_NAME="gpt-4o" # Start the server python server.py With your server running and exposing the AG-UI endpoint, the next step is building a client that can connect and consume the event stream. Streaming Results to Clients With the server running, clients can connect and stream events as the agent processes requests. Here's a Python client that demonstrates the streaming capabilities: # client.py import asyncio import os from dotenv import load_dotenv from agent_framework import ChatAgent, FunctionCallContent, FunctionResultContent from agent_framework_ag_ui import AGUIChatClient # Load environment variables from .env file load_dotenv() async def interactive_chat(): """Interactive chat session with streaming responses.""" # Connect to the AG-UI server base_url = os.getenv("AGUI_SERVER_URL", "http://localhost:8000/chat") print(f"Connecting to: {base_url}\n") # Initialize the AG-UI client client = AGUIChatClient(endpoint=base_url) # Create a local agent representation agent = ChatAgent(chat_client=client) # Start a new conversation thread conversation_thread = agent.get_new_thread() print("Chat started! Type 'exit' or 'quit' to end the session.\n") try: while True: # Collect user input user_message = input("You: ") # Handle empty input if not user_message.strip(): print("Please enter a message.\n") continue # Check for exit commands if user_message.lower() in ["exit", "quit", "bye"]: print("\nGoodbye!") break # Stream the agent's response print("Agent: ", end="", flush=True) # Track tool calls to avoid duplicate prints seen_tools = set() async for update in agent.run_stream(user_message, thread=conversation_thread): # Display text content if update.text: print(update.text, end="", flush=True) # Display tool calls and results for content in update.contents: if isinstance(content, FunctionCallContent): # Only print each tool call once if content.call_id not in seen_tools: seen_tools.add(content.call_id) print(f"\n[Calling tool: {content.name}]", flush=True) elif isinstance(content, FunctionResultContent): # Only print each result once result_id = f"result_{content.call_id}" if result_id not in seen_tools: seen_tools.add(result_id) result_text = content.result if isinstance(content.result, str) else str(content.result) print(f"[Tool result: {result_text}]", flush=True) print("\n") # New line after response completes except KeyboardInterrupt: print("\n\nChat interrupted by user.") except ConnectionError as e: print(f"\nConnection error: {e}") print("Make sure the server is running.") except Exception as e: print(f"\nUnexpected error: {e}") def main(): """Entry point for the AG-UI client.""" asyncio.run(interactive_chat()) if __name__ == "__main__": main() Key features: The client connects to the AG-UI endpoint using AGUIChatClient with the endpoint parameter run_stream() yields updates containing text and content as they arrive Tool calls are detected using FunctionCallContent and displayed with [Calling tool: ...] Tool results are detected using FunctionResultContent and displayed with [Tool result: ...] Deduplication logic (seen_tools set) prevents printing the same tool call multiple times as it streams Thread management maintains conversation context across messages Graceful error handling for connection issues To use the client: # Optional: specify custom server URL export AGUI_SERVER_URL="http://localhost:8000/chat" # Start the interactive chat python client.py Example Session: Connecting to: http://localhost:8000/chat Chat started! Type 'exit' or 'quit' to end the session. You: What's the status of order ORD-001? Agent: [Calling tool: get_order_status] [Tool result: {"status": "shipped", "tracking": "1Z999AA1", "eta": "Jan 25, 2026"}] Your order ORD-001 has been shipped! - Tracking Number: 1Z999AA1 - Estimated Delivery Date: January 25, 2026 You can use the tracking number to monitor the delivery progress. You: Can you check ORD-002? Agent: [Calling tool: get_order_status] [Tool result: {"status": "processing", "tracking": null, "eta": "Jan 23, 2026"}] Your order ORD-002 is currently being processed. - Status: Processing - Estimated Delivery: January 23, 2026 Your order should ship soon, and you'll receive a tracking number once it's on the way. You: exit Goodbye! The client we just built handles events at a high level, abstracting away the details. But what's actually flowing through that SSE connection? Let's peek under the hood. Event Types You'll See As the server streams back responses, clients receive a series of structured events. If you were to observe the raw SSE stream (e.g., using curl), you'd see events like: curl -N http://localhost:8000/chat \ -H "Content-Type: application/json" \ -H "Accept: text/event-stream" \ -d '{"messages": [{"role": "user", "content": "What'\''s the status of order ORD-001?"}]}' Sample event stream (with tool calling): data: {"type":"RUN_STARTED","threadId":"eb4d9850-14ef-446c-af4b-23037acda9e8","runId":"chatcmpl-xyz"} data: {"type":"TEXT_MESSAGE_START","messageId":"e8648880-a9ff-4178-a17d-4a6d3ec3d39c","role":"assistant"} data: {"type":"TOOL_CALL_START","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","toolCallName":"get_order_status","parentMessageId":"e8648880-a9ff-4178-a17d-4a6d3ec3d39c"} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"{\""} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"order"} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"_id"} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"\":\""} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"ORD"} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"-"} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"001"} data: {"type":"TOOL_CALL_ARGS","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","delta":"\"}"} data: {"type":"TOOL_CALL_END","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y"} data: {"type":"TOOL_CALL_RESULT","messageId":"f048cb0a-a049-4a51-9403-a05e4820438a","toolCallId":"call_GTWj2N3ZyYiiQIjg3fwmiQ8y","content":"{\"status\": \"shipped\", \"tracking\": \"1Z999AA1\", \"eta\": \"Jan 25, 2026\"}","role":"tool"} data: {"type":"TEXT_MESSAGE_START","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","role":"assistant"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":"Your"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":" order"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":" ORD"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":"-"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":"001"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":" has"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":" been"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":" shipped"} data: {"type":"TEXT_MESSAGE_CONTENT","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf","delta":"!"} ... (additional TEXT_MESSAGE_CONTENT events streaming the response) ... data: {"type":"TEXT_MESSAGE_END","messageId":"8215fc88-8cb6-4ce4-8bdb-a8715dcd26cf"} data: {"type":"RUN_FINISHED","threadId":"eb4d9850-14ef-446c-af4b-23037acda9e8","runId":"chatcmpl-xyz"} Understanding the flow: RUN_STARTED - Agent begins processing the request TEXT_MESSAGE_START - First message starts (will contain tool calls) TOOL_CALL_START - Agent invokes the get_order_status tool Multiple TOOL_CALL_ARGS events - Arguments stream incrementally as JSON chunks ({"order_id":"ORD-001"}) TOOL_CALL_END - Tool invocation structure complete TOOL_CALL_RESULT - Tool execution finished with result data TEXT_MESSAGE_START - Second message starts (the final response) Multiple TEXT_MESSAGE_CONTENT events - Response text streams word-by-word TEXT_MESSAGE_END - Response message complete RUN_FINISHED - Entire run completed successfully This granular event model enables rich UI experiences - showing tool execution indicators ("Searching...", "Calculating..."), displaying intermediate results, and providing complete transparency into the agent's reasoning process. Seeing the raw events helps, but truly working with AG-UI requires a shift in how you think about agent interactions. Let's explore this conceptual change. The Mental Model Shift Traditional API Thinking # Imperative: Call and wait response = agent.run("What's 2+2?") print(response) # "The answer is 4" Mental model: Function call with return value AG-UI Thinking # Reactive: Subscribe to events async for event in agent.run_stream("What's 2+2?"): match event.type: case "RUN_STARTED": show_loading() case "TEXT_MESSAGE_CONTENT": display_chunk(event.delta) case "RUN_FINISHED": hide_loading() Mental model: Observable stream of events This shift feels similar to: Moving from synchronous to async code Moving from REST to event-driven architecture Moving from polling to pub/sub This mental shift isn't just philosophical - it unlocks concrete benefits that weren't possible with request/response patterns. What You Gain Observability # You can SEE what the agent is doing TOOL_CALL_START: "get_order_status" TOOL_CALL_ARGS: {"order_id": "ORD-001"} TOOL_CALL_RESULT: {"status": "shipped", "tracking": "1Z999AA1", "eta": "Jan 25, 2026"} TEXT_MESSAGE_START: "Your order ORD-001 has been shipped..." Interruptibility # Future: Cancel long-running operations async for event in agent.run_stream(query): if user_clicked_cancel: await agent.cancel(thread_id, run_id) break Transparency # Users see the reasoning process "Looking up order ORD-001..." "Order found: Status is 'shipped'" "Retrieving tracking information..." "Your order has been shipped with tracking number 1Z999AA1..." To put these benefits in context, here's how AG-UI compares to traditional approaches across key dimensions: AG-UI vs. Traditional Approaches Aspect Traditional REST Custom Streaming AG-UI Connection Model Request/Response Varies Server-Sent Events State Management Manual Manual Protocol-managed Tool Calling Invisible Custom format Standardized events Framework Varies Framework-locked Framework-agnostic Browser Support Universal Varies Universal Implementation Simple Complex Moderate Ecosystem N/A Isolated Growing You've now seen AG-UI's design principles, implementation details, and conceptual foundations. But the most important question remains: should you actually use it? Conclusion: Is AG-UI Right for Your Project? AG-UI represents a shift toward standardized, observable agent interactions. Before adopting it, understand where the protocol stands and whether it fits your needs. Protocol Maturity The protocol is stable enough for production use but still evolving: Ready now: Core specification stable, Microsoft Agent Framework integration available, FastAPI/Python implementation mature, basic streaming and threading work reliably. Choose AG-UI If You Building new agent projects - No legacy API to maintain, want future compatibility with emerging ecosystem Need streaming observability - Multi-step workflows where users benefit from seeing each stage of execution Want framework flexibility - Same client code works with any AG-UI-compliant backend Comfortable with evolving standards - Can adapt to protocol changes as it matures Stick with Alternatives If You Have working solutions - Custom streaming working well, migration cost not justified Need guaranteed stability - Mission-critical systems where breaking changes are unacceptable Build simple agents - Single-step request/response without tool calling or streaming needs Risk-averse environment - Large existing implementations where proven approaches are required Beyond individual project decisions, it's worth considering AG-UI's role in the broader ecosystem. The Bigger Picture While this blog post focused on Microsoft Agent Framework, AG-UI's true power lies in its broader mission: creating a common language for agent-UI communication across the entire ecosystem. As more frameworks adopt it, the real value emerges: write your UI once, work with any compliant agent framework. Think of it like GraphQL for APIs or OpenAPI for REST - a standardization layer that benefits the entire ecosystem. The protocol is young, but the problem it solves is real. Whether you adopt it now or wait for broader adoption, understanding AG-UI helps you make informed architectural decisions for your agent applications. Ready to dive deeper? Here are the official resources to continue your AG-UI journey. Resources AG-UI & Microsoft Agent Framework Getting Started with AG-UI (Microsoft Learn) - Official tutorial AG-UI Integration Overview - Architecture and concepts AG-UI Protocol Specification - Official protocol documentation Backend Tool Rendering - Adding function tools Security Considerations - Production security guidance Microsoft Agent Framework Documentation - Framework overview AG-UI Dojo Examples - Live demonstrations UI Components & Integration CopilotKit for Microsoft Agent Framework - React component library Community & Support Microsoft Q&A - Community support Agent Framework GitHub - Source code and issues Related Technologies Azure AI Foundry Documentation - Azure AI platform FastAPI Documentation - Web framework Server-Sent Events (SSE) Specification - Protocol standard This blog post introduces AG-UI with Microsoft Agent Framework, focusing on fundamental concepts and building your first interactive agent application.Rethinking Documentation Translation: Treating Translations as Versioned Software Assets
Rethinking Documentation Translation: Treating Translations as Versioned Software Assets This article is written from the perspective of maintaining large, open-source documentation repositories in the Microsoft ecosystem. I am the maintainer of Co-op Translator, an open-source tool for automating multilingual documentation translation, used across multiple large documentation repositories, including Microsoft’s For Beginners series. In large documentation repositories, translation problems rarely fail loudly. They fail quietly, and they accumulate over time. Recently, we made a fundamental design decision in how Co-op Translator handles translations. Translations are treated as versioned software assets, not static outputs. This article explains why we reached that conclusion, and what this perspective enables for teams maintaining large, fast-moving documentation repositories. When translations quietly become a liability In most documentation projects, translations are treated as finished outputs. Once a file is translated, it is assumed to remain valid until someone explicitly notices a problem. But documentation rarely stands still. Text changes. Code examples evolve. Screenshots are replaced. Notebooks are updated to reflect new behavior. The problem is that these changes are often invisible in translated content. A translation may still read fluently, while the information it contains is already out of date. At that point, the issue is no longer about translation quality. It becomes a maintenance problem. Reframing the question Most translation workflows implicitly ask: Is this translation correct? In practice, maintainers struggle with a different question: Is this translation still synchronized with the current source? This distinction matters. A translation can be correct and still be out of sync. Once we acknowledged this, it became clear that treating translations as static content was no longer sufficient. The design decision: translations as versioned assets Starting with Co-op Translator 0.16.2, we made a deliberate design decision: Translations are treated as versioned software assets. This applies not only to Markdown files, but also to images, notebooks, and any other translated artifacts. Translated content is not just text. It is an artifact generated from a specific version of a source. To make this abstraction operational rather than theoretical, we did not invent a new mechanism. Instead, we looked to systems that already solve a similar problem: pip, poetry, and npm. These tools are designed to track artifacts as their sources evolve. We applied the same thinking to translated content. Closer to dependency management than translation jobs The closest analogy is software dependency management. When a dependency becomes outdated: it is not suddenly “wrong,” it is simply no longer aligned with the current version. Translations behave the same way. When the source document changes: the translated file does not immediately become incorrect, it becomes out of sync with its source version. This framing shifts the problem away from translation output and toward state and synchronization. Why file-level versioning matters Many translation systems operate at the string or segment level. That model works well for UI text and relatively stable resources. Documentation is different. A Markdown file is an artifact. A screenshot is an artifact. A notebook is an artifact. They are consumed as units, not as isolated strings. Managing translation state at the file level allows maintainers to reason about translations using the same mental model they already apply to other repository assets. What changed in practice From embedded markers to explicit state Previously, translation metadata lived inside translated files as embedded comments or markers. This approach had clear limitations: translation state was fragmented, difficult to inspect globally, and easy to miss as repositories grew. We moved to language-scoped JSON state files that explicitly track: the source version, the translated artifact, and its synchronization status. Translation state is no longer hidden inside content. It is a first-class, inspectable part of the repository. Extending the model to images and notebooks The same model now applies consistently to: translated images, localized notebooks, and other non-text artifacts. If an image changes in the source language, the translated image becomes out of sync. If a notebook is updated, its translated versions are evaluated against the new source version. The format does not matter. The lifecycle does. Once translations are treated as versioned assets, the system remains consistent across all content types. What this enables This design enables: Explicit drift detection See which translations are out of sync without guessing. Consistent maintenance signals Text, images, and notebooks follow the same rules. Clear responsibility boundaries The system reports state. Humans decide action. Scalability for fast-moving repositories Translation maintenance becomes observable, not reactive. In large documentation sets, this difference determines whether translation maintenance is sustainable at all. What this is not This system does not: judge translation quality, determine semantic correctness, or auto-approve content. It answers one question only: Is this translated artifact synchronized with its source version? Who this is for This approach is designed for teams that: maintain multilingual documentation, update content frequently, and need confidence in what is actually up to date. When documentation evolves faster than translations, treating translations as versioned assets becomes a necessity, not an optimization. Closing thought Once translations are modeled as software assets, long-standing ambiguities disappear. State becomes visible. Maintenance becomes manageable. And translations fit naturally into existing software workflows. At that point, the question is no longer whether translation drift exists, but: Can you see it? Reference Co-op Translator repository https://github.com/Azure/co-op-translator
