Automate Quota Discovery in Azure AI Foundry: A Tale of 3 APIs
Automate the discovery of Azure regions that meet your AI deployment needs using three essential APIs: Models API, Usages API, and Locations API. This process helps reduce decision fatigue and ensures compliance with enterprise-wide model deployment standards. Key learnings: Model Deployment Requirements: Understand the needs of a standard Retrieval-Augmented Generation (RAG) application, which involves deploying multiple models. Automation Benefits: Streamline your deployment process and ensure compliance with enterprise standards. Three Essential APIs: Models API: Query available models for a specific subscription within a chosen location. Usages API: Assess current usages and limits to infer available quotas. Locations API: Obtain a list of all available regions. A comprehensive Jupyter notebook with the implementation steps is available in the accompanying GitHub repository. This resource is invaluable for AI developers looking to streamline their deployment processes and ensure their applications meet all necessary requirements
Ignite 2024: Streamlining AI Development with an Enhanced User Interface, Accessibility, and Learning Experiences in Azure AI Foundry portal
Announcing Azure AI Foundry, a unified platform that simplifies AI development and management. The platform portal (formerly Azure AI Studio) features a revamped user interface, enhanced model catalog, new management center, improved accessibility and learning, making it easier than ever for Developers and IT Admins to design, customize, and manage AI apps and agents efficiently.Implementing MCP Remote Servers with Azure Function App and GitHub Copilot Integration
Introduction In the evolving landscape of AI-driven applications, the ability to seamlessly connect large language models (LLMs) with external tools and data sources is becoming a cornerstone of intelligent system design. Model Context Protocol (MCP) — a specification that enables AI agents to discover and invoke tools dynamically, based on context. While MCP is powerful, implementing it from scratch can be daunting !!! That’s where Azure Functions comes in handy. With its event-driven, serverless architecture, Azure Functions now supports a preview extension for MCP, allowing developers to build remote MCP servers that are scalable, secure, and cloud-native. Further, In VS Code, GitHub Copilot Chat in Agent Mode can connect to your deployed Azure Function App acting as an MCP server. This connection allows Copilot to leverage the tools and services exposed by your function app. Why Use Azure Functions for MCP? Serverless Simplicity: Deploy MCP endpoints without managing infrastructure. Secure by Design: Leverage HTTPS, system keys, and OAuth via EasyAuth or API Management. Language Flexibility: Build in .NET, Python, or Node.js using QuickStart templates. AI Integration: Enable GitHub Copilot, VS Code, or other AI agents to invoke your tools via SSE endpoints. Prerequisites Python version 3.11 or higher Azure Functions Core Tools >= 4.0.7030 Azure Developer CLI To use Visual Studio Code to run and debug locally: Visual Studio Code Azure Functions extension An storage emulator is needed when developing azure function app in VScode. you can deploy Azurite extension in VScode to meet this requirement. Press enter or click to view image in full size You can run the Azurite in VS Code as shown below. C:\Program Files\Microsoft Visual Studio\2022\Enterprise\Common7\IDE\Extensions\Microsoft\Azure Storage Emulator> .\azurite.exe Press enter or click to view image in full size alternatively, you can also run Azurite in docker container as shown below. docker run -p 10000:10000 -p 10001:10001 -p 10002:10002 \ mcr.microsoft.com/azure-storage/azurite For more information about setting up Azurite, visit Use Azurite emulator for local Azure Storage development | Microsoft Learn Github Repositories Following Github repos are needed to setup this PoC. Repository for MCP server using Azure Function App https://github.com/mafzal786/mcp-azure-functions-python.git Repository for AI Foundry agent as MCP Client https://github.com/mafzal786/ai-foundry-agent-with-remote-mcp-using-azure-functionapp.git Clone the repository Run the following command to clone the repository to start building your MCP server using Azure function app. git clone https://github.com/mafzal786/mcp-azure-functions-python.git Run the MCP server in VS Code Once cloned. Open the folder in VS Code. Create a virtual environment in VS Code. Change directory to “src” in a new terminal window, install the python dependencies and start the function host locally as shown below. cd src pip install -r requirements.txt func start Note: by default this will use the webhooks route: /runtime/webhooks/mcp/sse. Later we will use this in Azure to set the key on client/host calls: /runtime/webhooks/mcp/sse?code=<system_key> Press enter or click to view image in full size MCP Inspector In a new terminal window, install and run MCP Inspector. npx @modelcontextprotocol/inspector Click to load the MCP inspector. Also provide the generated proxy session token. http://127.0.0.1:6274/#resources In the URL type and click “Connect”: http://localhost:7071/runtime/webhooks/mcp/sse Once connected, click List Tools under Tools and select “hello_mcp” tool and click “Run Tool” for testing as shown below. Press enter or click to view image in full size Select another tool such as get_stockprice and run it as shown below. Press enter or click to view image in full size Deploy Function App to Azure from VS Code For deploying function app to azure from vs code, make sure you have Azure Tools extension enabled in VS Code. To learn more about Azure Tools extension, visit the following Azure Extensions if your VS code environment is not setup for Azure development, follow Configure Visual Studio Code for Azure development with .NET — .NET | Microsoft Learn Once Azure Tools are setup, sign in to Azure account with Azure Tools Press enter or click to view image in full size Once Sign-in is completed, you should be able to see all of your existing resources in the Resources view. These resources can be managed directly in VS Code. Look for Function App in Resource, right click and click “Deploy to Function App”. Press enter or click to view image in full size If you already have it deployed, you will get the following pop-up. Click “Deploy” Press enter or click to view image in full size This will start deploying your function app to Azure. In VS Code, Azure tab will display the following. Press enter or click to view image in full size Once the deployment is completed, you can view the function app and all the tools in Azure portal under function app as shown below. Press enter or click to view image in full size Get the mcp_extension key from Functions → App Keys in Function App. Press enter or click to view image in full size This mcp_extension key would be needed in mcp.json file in VS code, if you would like to test the MCP server using Github Copilot in VS Code. Your entries in mcp.json file will look like as below for example. { "inputs": [ { "type": "promptString", "id": "functions-mcp-extension-system-key", "description": "Azure Functions MCP Extension System Key", "password": true }, { "type": "promptString", "id": "functionapp-name", "description": "Azure Functions App Name" } ], "servers": { "remote-mcp-function": { "type": "sse", "url": "https://${input:functionapp-name}.azurewebsites.net/runtime/webhooks/mcp/sse", "headers": { "x-functions-key": "${input:functions-mcp-extension-system-key}" } }, "local-mcp-function": { "type": "sse", "url": "http://0.0.0.0:7071/runtime/webhooks/mcp/sse" } } } Test Azure Function MCP Server in MCP Inspector Launch MCP Inspector and provide the Azure Function in MCP inspector URL. Provide authentication as shown below. Bearer token is mcp_extension key. Testing an MCP server with GitHub Copilot Testing an MCP server with GitHub Copilot involves configuring and utilizing the server within your development environment to provide enhanced context and capabilities to Copilot Chat. Steps to Test an MCP Server with GitHub Copilot: Ensure Agent Mode is Enabled: Open Copilot Chat in Visual Studio Code and select “Agent” mode. This mode allows Copilot to interact with external tools and services, including MCP servers. Add the MCP Server: Open the Command Palette (Ctrl+Shift+P or Cmd+Shift+P) and run the command MCP: Add Server. Press enter or click to view image in full size Follow the prompts to configure the server. You can choose to add it to your workspace settings (creating a .vscode/mcp.json file) . Select HTTP or Server-Sent events Press enter or click to view image in full size Specify the URL and click Enter Press enter or click to view image in full size Provide a name of your choice Press enter or click to view image in full size Select scope as Global or workspace. I selected Workspace Press enter or click to view image in full size This will generate mcp.json file in .vscode or create a new entry if mcp.json already exists as shown below. Click Start to “start” the server. Also make sure your Azure function app is locally running with func start command. Press enter or click to view image in full size Now Type the prompt as shown below. Press enter or click to view image in full size Try another tool as below. Press enter or click to view image in full size VS code terminal output for reference. Press enter or click to view image in full size Testing an MCP server with Claude Desktop Claude Desktop is a standalone AI application that allows users to interact with Claude AI models directly from their desktop, providing a seamless and efficient experience. you can download Claude desktop at Download Claude In this article, I have added another tool to utilize to test your MCP server running in Azure Function app. Modify claude_desktop_config.json with the following. you can find this file in window environment at C:\Users\<username>\AppData\Roaming\Claude { "mcpServers": { "my mcp": { "command": "npx", "args": [ "mcp-remote", "http://localhost:7071/runtime/webhooks/mcp/sse" ] } } } Note: If claude_desktop_config.json does not exists, click on setting in Claude desktop under user and visit developer tab. You will see you MCP server in Claude Desktop as shown below. Press enter or click to view image in full size Type the prompt such as “What is the stock price of Tesla” . After submitting, you will notice that it is invoking the tool “get_stockprice” from the MCP server running locally and configured in the .json earlier. Click Allow once or Allow always as shown below. Following output will be displayed. Press enter or click to view image in full size Now lets try weather related prompt. As you can see, it has invoked “get_weatheralerts” tool from MCP server. Press enter or click to view image in full size Azure AI Foundry agent as MCP Client Use the following Github repo to set up Azure AI Foundry agent as MCP client. git clone https://github.com/mafzal786/ai-foundry-agent-with-remote-mcp-using-azure-functionapp.git Open the code in VS code and follow the instructions mentioned in README.md file at Github repo. Once you execute the code, following output will show up in VS code. Press enter or click to view image in full size In this code, message is hard coded. Change the content to “what is weather advisory for Florida” and rerun the program. It will call get_weatheralerts tool and output will look like as below. Press enter or click to view image in full size Conclusion The integration of Model Context Protocol (MCP) with Azure Functions marks a pivotal step in democratizing AI agent development. By leveraging Azure’s serverless architecture, developers can now build remote MCP servers that scale automatically, integrate seamlessly with other Azure services, and expose modular tools to intelligent agents like GitHub Copilot. This setup not only simplifies the deployment and management of MCP servers but also enhances the developer experience — allowing tools to be invoked contextually by AI agents in environments like VS Code, GitHub Codespaces, or Copilot Studio[2]. Whether you’re building a tool to query logs, calculate metrics, or manage data, Azure Functions provides the flexibility, security, and scalability needed to bring your AI-powered workflows to life. As the MCP spec continues to evolve, and GitHub Copilot expands its agentic capabilities, this architecture positions you to stay ahead — offering a robust foundation for cloud-native AI tooling that’s both powerful and future-proof.The Future of AI: Developing Lacuna - an agent for Revealing Quiet Assumptions in Product Design
A conversational agent named Lacuna is helping product teams uncover hidden assumptions embedded in design decisions. Built with Copilot Studio and powered by Azure AI Foundry, Lacuna analyzes product documents to identify speculative beliefs and assess their risk using design analysis lenses: impact, confidence, and reversibility. By surfacing cognitive biases and prompting reflection, Lacuna encourages teams to validate assumptions through lightweight evidence-gathering methods. This experiment in human-AI collaboration explores how agents can foster epistemic humility and transform static documents into dynamic conversations.
AI reports: Improve AI governance and GenAIOps with consistent documentation
AI reports are designed to help organizations improve cross-functional observability, collaboration, and governance when developing, deploying, and operating generative AI applications and fine-tuned or custom models. These reports support AI governance best practices by helping developers document the purpose of their AI model or application, its features, potential risks or harms, and applied mitigations, so that cross-functional teams can track and assess production-readiness throughout the AI development lifecycle and then monitor it in production. Starting in December, AI reports will be available in private preview in a US and EU Azure region for Azure AI Foundry customers. To request access to the private preview of AI reports, please complete the Interest Form. Furthermore, we are excited to announce new collaborations with Credo AI and Saidot to support customers’ end-to-end AI governance. By integrating the best of Azure AI with innovative and industry-leading AI governance solutions, we hope to provide our customers with choice and help empower greater cross-functional collaboration to align AI solutions with their own principles and regulatory requirements. Building on learnings at Microsoft Microsoft’s approach for governing generative AI applications builds on our Responsible AI Standard and the National Institute of Standards and Technology’s AI Risk Management Framework. This approach requires teams to map, measure, and manage risks for generative applications throughout their development cycle. A core asset of the first—and iterative—map phase is the Responsible AI Impact Assessment. These assessments help identify potential risks and their associated harms, as well as mitigations to address them. As development of an AI system progresses, additional iterations can help development teams document their progress in risk mitigation and allow experts to review the evaluations and mitigations and make further recommendations or requirements before products are launched. Post-deployment, these assessments become a source of truth for ongoing governance and audits, and help guide how to monitor the application in production. You can learn more about Microsoft’s approach to AI governance in our Responsible AI Transparency Report and find a Responsible AI Impact Assessment Guide and example template on our website. How AI reports support AI impact assessments and GenAIOps AI reports can help organizations govern their GenAI models and applications by making it easier for developers to provide the information needed for cross-functional teams to assess production-readiness throughout the GenAIOps lifecycle. Developers will be able to assemble key project details, such as the intended business use case, potential risks and harms, model card, model endpoint configuration, content safety filter settings, and evaluation results into a unified AI report from within their development environment. Teams can then publish these reports to a central dashboard in the Azure AI Foundry portal, where business leaders can track, review, update, and assess reports from across their organization. Users can also export AI reports in PDF and industry-standard SPDX 3.0 AI BOM formats, for integration into existing GRC workflows. These reports can then be used by the development team, their business leaders, and AI, data, and other risk professionals to determine if an AI model or application is fit for purpose and ready for production as part of their AI impact assessment processes. Being versioned assets, AI reports can also help organizations build a consistent bridge across experimentation, evaluation, and GenAIOps by documenting what metrics were evaluated, what will be monitored in production, and the thresholds that will be used to flag an issue for incident response. For even greater control, organizations can choose to implement a release gate or policy as part of their GenAIOps that validates whether an AI report has been reviewed and approved for production. Key benefits of these capabilities include: Observability: Provide cross-functional teams with a shared view of AI models and applications in development, in review, and in production, including how these projects perform in key quality and safety evaluations. Collaboration: Enable consistent information-sharing between GRC, development, and operational teams using a consistent and extensible AI report template, accelerating feedback loops and minimizing non-coding time for developers. Governance: Facilitate responsible AI development across the GenAIOps lifecycle, reinforcing consistent standards, practices, and accountability as projects evolve or expand over time. Build production-ready GenAI apps with Azure AI Foundry If you are interested in testing AI reports and providing feedback to the product team, please request access to the private preview by completing the Interest Form. Want to learn more about building trustworthy GenAI applications with Azure AI? Here’s more guidance and exciting announcements to support your GenAIOps and governance workflows from Microsoft Ignite: Learn about new GenAI evaluation capabilities in Azure AI Foundry Learn about new GenAI monitoring capabilities in Azure AI Foundry Learn about new IT governance capabilities in Azure AI Foundry Whether you’re joining in person or online, we can’t wait to see you at Microsoft Ignite 2024. We’ll share the latest from Azure AI and go deeper into capabilities that support trustworthy AI with these sessions: Keynote: Microsoft Ignite Keynote Breakout: Trustworthy AI: Future trends and best practices Breakout: Trustworthy AI: Advanced AI risk evaluation and mitigation Demo: Simulate, evaluate, and improve GenAI outputs with Azure AI Foundry Demo: Track and manage GenAI app risks with AI reports in Azure AI Foundry We’ll also be available for questions in the Connection Hub on Level 3, where you can find “ask the expert” stations for Azure AI and Trustworthy AI.The Future of AI: Maximize your fine-tuned model performance with the new Azure AI Evaluation SDK
In this article, we will explore how to effectively evaluate fine-tuned AI models using the new Azure AI Evaluation SDK. This comprehensive guide is the fourth part of our series on making large language model distillation easier. We delve into the importance of model evaluation, outline a systematic process for assessing the performance of a distilled student model against a baseline model, and demonstrate the use of advanced metrics provided by Azure's SDK. Join us as we navigate the intricacies of AI evaluation and provide insights for continuous model improvement and operational efficiency.The Future of AI: The paradigm shifts in Generative AI Operations
Dive into the transformative world of Generative AI Operations (GenAIOps) with Microsoft Azure. Discover how businesses are overcoming the challenges of deploying and scaling generative AI applications. Learn about the innovative tools and services Azure AI offers, and how they empower developers to create high-quality, scalable AI solutions. Explore the paradigm shift from MLOps to GenAIOps and see how continuous improvement practices ensure your AI applications remain cutting-edge. Join us on this journey to harness the full potential of generative AI and drive operational excellence.
