Nasdaq builds thoughtfully designed AI for board governance with PostgreSQL on Azure
Authored by: Charles Federssen, Partner Director of Product Management for PostgreSQL at Microsoft and Mohsin Shafqat, Senior Manager, Software Engineering at Nasdaq When people think of Nasdaq, they usually think of markets, trading floors, and financial data moving at extraordinary speed. But behind the scenes, Nasdaq also plays an equally critical role in how boards of directors govern, deliberate, and make decisions. Nasdaq Boardvantage® is the company’s governance platform, used by more than 4,400 organizations worldwide—including nearly half of the Fortune 100. It’s where directors review board books, collaborate in an environment designed with robust security, and prepare for meetings that often involve some of the most sensitive information a company has. In recent years, Nasdaq set out to modernize Nasdaq Boardvantage with AI, without compromising security and reliability. That journey was featured in a Microsoft Ignite session, “Nasdaq Boardvantage: AI-Driven Governance on PostgreSQL and Foundry.” It offers a practical look at how Azure Database for PostgreSQL can support AI-driven applications where precision, isolation, and data control are non-negotiable. Introducing AI where trust is everything Board governance isn’t a typical productivity workload. Board packets can run 400 to 600 pages, meeting minutes are legal records, and any AI-generated insight must be confined to a customer’s own data. “Our customers trust us with some of their most strategic, sensitive data,” said Mohsin Shafqat, Senior Manager of Software Development at Nasdaq. That trust meant tackling several core challenges upfront, including: How do you minimize AI hallucinations in a governance context? How do you guarantee tenant isolation at scale? How do you keep data regional across a global customer base? A cloud foundation built for governance Before adding intelligence, Nasdaq decided to re-architect Nasdaq Boardvantage on Microsoft Azure, using Azure Kubernetes Service (AKS) to run containerized, multi-tenant workloads with strong isolation boundaries. Microsoft Foundry provides the managed foundation for deploying, governing, and operating AI models across this architecture, adding consistency, security, and control as intelligence is introduced. At the data layer, Azure Database for PostgreSQL and Azure Database for MySQL became the backbone for governance data. PostgreSQL, in particular, plays a central role in managing structured governance information alongside vector embeddings that support AI-driven features. Together, these services give Nasdaq the performance, security, and operational control required for a highly regulated, multi-tenant environment, while still moving quickly. Key architectural choices included: Tenant isolation by design, with separate databases and storage Regional deployments to align with data residency requirements High availability and managed operations, so teams could focus on product innovation instead of infrastructure maintenance PostgreSQL and pgvector: Powering context-aware AI With that foundation in place, Nasdaq was ready to carefully introduce AI. One of the first AI capabilities was intelligent document summarization. Board materials that once took hours to review could now be condensed into concise, contextually accurate summaries. Under the hood, this required more than just calling an LLM. Nasdaq uses pgvector, natively supported in Azure Database for PostgreSQL, to store and query embeddings generated from board documents. This allows the platform to perform hybrid searches that combine traditional SQL queries with vector similarity to retrieve the most relevant context before sending anything to a language model. Instead of treating AI as a black box, the team built a pipeline where: Documents are processed with Azure Document Intelligence to preserve structure and meaning Content is chunked and embedded Embeddings are stored in PostgreSQL with pgvector Vector similarity searches retrieve precise context for each AI task Because this runs inside PostgreSQL, the same database benefits from Azure’s built-in high availability, security controls, and operational tooling – delivering tangible results, including a 25% reduction in overall board preparation time and internal testing shows 91–97% accuracy for AI-generated summaries and meeting minutes. From summaries to an AI Board Assistant With summarization working in production, Nasdaq expanded further. The team is now building an AI-powered Board Assistant that will help directors prepare for upcoming meetings by surfacing trends, risks, and insights from prior discussions. This introduces a new level of scale. Years of board data across thousands of customers translate into millions of embeddings. PostgreSQL continues to anchor this architecture, storing vectors for semantic retrieval while MySQL supports complementary non-vector workloads. Across Nasdaq Boardvantage, users are advised to always review AI outputs, and no customer data is shared or used to train external models. “We designed AI for governance, not the other way around,” Shafqat said. More importantly, customers trust the system because security, isolation, and data control were engineered in from day one. Looking ahead Nasdaq’s work shows how Azure Database for PostgreSQL can support AI workloads that demand both intelligence and integrity. With PostgreSQL at the core, Nasdaq has built a governance platform that scales globally, respects regulatory boundaries, and introduces AI in a way that feels dependable and not experimental. What started as a modernization of Nasdaq Boardvantage is now influencing how Nasdaq approaches AI across the enterprise. To dive deeper into the architecture and hear directly from the engineers behind it, watch the Ignite session and check out these resources: Watch the Ignite breakout session for a technical walkthrough of how Nasdaq Boardvantage is built, including PostgreSQL on Azure, pgvector, and Microsoft Foundry in production. Read the case study to see how Nasdaq introduced AI into board governance and what changed for directors, administrators, and decision-making. Watch the Ignite broadcast for a candid discussion on Azure Database for PostgreSQL, Azure HorizonDB, and what it takes to scale AI-driven governance.Build Smarter with Azure HorizonDB
By: Maxim Lukiyanov, PhD, Principal PM Manager; Abe Omorogbe, Senior Product Manager; Shreya R. Aithal, Product Manager II; Swarathmika Kakivaya, Product Manager II Today, at Microsoft Ignite, we are announcing a new PostgreSQL database service - Azure HorizonDB. You can read the announcement here, and in this blog you can learn more about HorizonDB’s AI features and development tools. Azure HorizonDB is designed for the full spectrum of modern database needs - from quickly building new AI applications, to scaling enterprise workloads to unprecedented levels of performance and availability, to managing your databases efficiently and securely. To help with building new AI applications we are introducing 3 features: DiskANN Advanced Filtering, built-in AI model management, and integration with Microsoft Foundry. To help with database management we are introducing a set of new capabilities in PostgreSQL extension for Visual Studio Code, as well as announcing General Availability of the extension. Let’s dive into AI features first. DiskANN Advanced Filtering We are excited to announce a new enhancement in the Microsoft’s state of the art vector indexing algorithm DiskANN – DiskANN Advanced Filtering. Advanced Filtering addresses a common problem in vector search – combining vector search with filtering. In real-world applications where queries often include constraints like price ranges, ratings, or categories, traditional vector search approaches, such as pgvector’s HNSW, rely on multiple step retrieval and post-filtering, which can make search extremely slow. DiskANN Advanced Filtering solves this by combining filter and search into one operation - while the graph of vectors is traversed during the vector search, each vector is also checked for filter predicate match, ensuring that only the correct vectors are retrieved. Under the hood, it works in a 3-step process: first creating a bitmap of relevant rows using indexes on attributes such as price or rating, then performing a filter-aware graph traversal against the bitmap, and finally, validating and ordering the results for accuracy. This integrated approach delivers dramatically faster and more efficient filtered vector searches. Initial benchmarks show that enabling Advanced Filtering on DiskANN reduces query latency by up to 3x, depending on filter selectivity. AI Model Management Another exciting feature of HorizonDB is AI Model Management. This feature automates Microsoft Foundry model provisioning during database deployment and instantly activates database semantic operators. This eliminates tens of setup and configuration steps and simplifies the development of new AI apps and agents. AI Model Management elevates the experience of using semantic operators within PostgreSQL. When activated, it provisions key models for embedding, semantic ranking and generation via Foundry, installs and configures the azure_ai extension to enable the operators, establishes secure connections, integrates model management, monitoring and cost management within HorizonDB. What would otherwise require significant manual effort and context-switching between Foundry and PostgreSQL for configuration, management, and monitoring is now possible with just a few clicks, all without leaving the PostgreSQL environment. You can also continue to bring your own Foundry models, with a simplified and enhanced process for registering your custom model endpoints in the azure_ai extension. Microsoft Foundry Integration Microsoft Foundry offers a comprehensive technology stack for building AI apps and agents. But building modern agents capable of reasoning, acting, and collaborating is impossible without connection to data. To facilitate that connection, we are excited to announce a new PostgreSQL connector in Microsoft Foundry. The connector is designed using a new standard in data connectivity – Model Context Protocol (MCP). It enables Foundry agents to interact with HorizonDB securely and intelligently, using natural language instead of SQL, and leveraging Microsoft Entra ID to ensure secure connection. In addition to HorizonDB this connector also supports Azure Database for PostgreSQL (ADP). This integration allows Foundry agents to perform tasks like: Exploring database schemas Retrieving records and insights Performing analytical queries Executing vector similarity searches for semantic search use cases All through natural language, without compromising enterprise security or compliance. To get started with Foundry Integration, follow these setup steps to deploy your own HorizonDB (requires participation in Private Preview) or ADP and connect it to Foundry in just a few steps. PostgreSQL extension for VS Code is Generally Available We’re excited to announce that the PostgreSQL extension for Visual Studio Code is now Generally Available. This extension garnered significant popularity within the PostgreSQL community since it’s preview in May’25 reaching more than 200K installs. It is the easiest way to connect to a PostgreSQL database from your favorite editor, manage your databases, and take advantage of built-in AI capabilities without ever leaving VS Code. The extension works with any PostgreSQL whether it's on-premises or in the cloud, and also supports unique features of Azure HorizonDB and Azure Database for PostgreSQL (ADP). One of the key new capabilities is Metrics Intelligence, which uses Copilot and real-time telemetry of HorizonDB or ADP to help you diagnose and fix performance issues in seconds. Instead of digging through logs and query plans, you can open the Performance Dashboard, see a CPU spike, and ask Copilot to investigate. The extension sends a rich prompt that tells Copilot to analyze live metrics, identify the root cause, and propose an actionable fix. For example, Copilot might find a full table scan on a large table, recommend a composite index on the filter columns, create that index, and confirm the query plan now uses it. The result is dramatic: you can investigate and resolve the CPU spike in seconds, with no manual scripting or guesswork, and with no prior PostgreSQL expertise required. The extension also makes it easier to work with graph data. HorizonDB and ADP support open-source graph extension Apache AGE. This turns these services into fully managed graph databases. You can run graph queries against HorizonDB and immediately visualize the results as an interactive graph inside VS Code. This helps you understand relationships in your data faster, whether you’re exploring customer journeys, network topologies, or knowledge graphs - all without switching tools. In Conclusion Azure HorizonDB brings together everything teams need to build, run, and manage modern, AI-powered applications on PostgreSQL. With DiskANN Advanced Filtering, you can deliver low-latency, filtered vector search at scale. With built-in AI Model Management and Microsoft Foundry integration, you can provision models, wire up semantic operators, and connect agents to your data with far fewer steps and far less complexity. And with the PostgreSQL extension for Visual Studio Code, you get an intuitive, AI-assisted experience for performance tuning and graph visualization, right inside the tools you already use. HorizonDB is now available in private preview. If you’re interested in building AI apps and agents on a fully managed, PostgreSQL-compatible service with built-in AI and rich developer tooling, sign-up for Private Preview: https://aka.ms/PreviewHorizonDB.
