Getting Started with Foundry Local: A Student Guide to the Microsoft Foundry Local Lab
If you want to start building AI applications on your own machine, the Microsoft Foundry Local Lab is one of the most useful places to begin. It is a practical workshop that takes you from first-time setup through to agents, retrieval, evaluation, speech transcription, tool calling, and a browser-based interface. The material is hands-on, cross-language, and designed to show how modern AI apps can run locally rather than depending on a cloud service for every step. This blog post is aimed at students, self-taught developers, and anyone learning how AI applications are put together in practice. Instead of treating large language models as a black box, the lab shows you how to install and manage local models, connect to them with code, structure tasks into workflows, and test whether the results are actually good enough. If you have been looking for a learning path that feels more like building real software and less like copying isolated snippets, this workshop is a strong starting point. What Is Foundry Local? Foundry Local is a local runtime for downloading, managing, and serving AI models on your own hardware. It exposes an OpenAI-compatible interface, which means you can work with familiar SDK patterns while keeping execution on your device. For learners, that matters for three reasons. First, it lowers the barrier to experimentation because you can run projects without setting up a cloud account for every test. Second, it helps you understand the moving parts behind AI applications, including model lifecycle, local inference, and application architecture. Third, it encourages privacy-aware development because the examples are designed to keep data on the machine wherever possible. The Foundry Local Lab uses that local-first approach to teach the full journey from simple prompts to multi-agent systems. It includes examples in Python, JavaScript, and C#, so you can follow the language that fits your course, your existing skills, or the platform you want to build on. Why This Lab Works Well for Learners A lot of AI tutorials stop at the moment a model replies to a prompt. That is useful for a first demo, but it does not teach you how to build a proper application. The Foundry Local Lab goes further. It is organised as a sequence of parts, each one adding a new idea and giving you working code to explore. You do not just ask a model to respond. You learn how to manage the service, choose a language SDK, construct retrieval pipelines, build agents, evaluate outputs, and expose the result through a usable interface. That sequence is especially helpful for students because the parts build on each other. Early labs focus on confidence and setup. Middle labs focus on architecture and patterns. Later labs move into more advanced ideas that are common in real projects, such as tool calling, evaluation, and custom model packaging. By the end, you have seen not just what a local AI app looks like, but how its different layers fit together. Before You Start The workshop expects a reasonably modern machine and at least one programming language environment. The core prerequisites are straightforward: install Foundry Local, clone the repository, and choose whether you want to work in Python, JavaScript, or C#. You do not need to master all three. In fact, most learners will get more value by picking one language first, completing the full path in that language, and only then comparing how the same patterns look elsewhere. If you are new to AI development, do not be put off by the number of parts. The early sections are accessible, and the later ones become much easier once you have completed the foundations. Think of the lab as a structured course rather than a single tutorial. What You Learn in Each Lab https://github.com/microsoft-foundry/foundry-local-lab Part 1: Getting Started with Foundry Local The first part introduces the basics of Foundry Local and gets you up and running. You learn how to install the CLI, inspect the model catalogue, download a model, and run it locally. This part also introduces practical details such as model aliases and dynamic service ports, which are small but important pieces of real development work. For students, the value of this part is confidence. You prove that local inference works on your machine, you see how the service behaves, and you learn the operational basics before writing any application code. By the end of Part 1, you should understand what Foundry Local does, how to start it, and how local model serving fits into an application workflow. Part 2: Foundry Local SDK Deep Dive Once the CLI makes sense, the workshop moves into the SDK. This part explains why application developers often use the SDK instead of relying only on terminal commands. You learn how to manage the service programmatically, browse available models, control model download and loading, and understand model metadata such as aliases and hardware-aware selection. This is where learners start to move from using a tool to building with a platform. You begin to see the difference between running a model manually and integrating it into software. By the end of this section, you should understand the API surface you will use in your own projects and know how to bootstrap the SDK in Python, JavaScript, or C#. Part 3: SDKs and APIs Part 3 turns the SDK concepts into a working chat application. You connect code to the local inference server and use the OpenAI-compatible API for streaming chat completions. The lab includes examples in all three supported languages, which makes it especially useful if you are comparing ecosystems or learning how the same idea is expressed through different syntax and libraries. The key learning outcome here is not just that you can get a response from a model. It is that you understand the boundary between your application and the local model service. You learn how messages are structured, how streaming works, and how to write the sort of integration code that becomes the foundation for every later lab. Part 4: Retrieval-Augmented Generation This is where the workshop starts to feel like modern AI engineering rather than basic prompting. In the retrieval-augmented generation lab, you build a simple RAG pipeline that grounds answers in supplied data. You work with an in-memory knowledge base, apply retrieval logic, score matches, and compose prompts that include grounded context. For learners, this part is important because it demonstrates a core truth of AI app development: a model on its own is often not enough. Useful applications usually need access to documents, notes, or structured information. By the end of Part 4, you understand why retrieval matters, how to pass retrieved context into a prompt, and how a pipeline can make answers more relevant and reliable. Part 5: Building AI Agents Part 5 introduces the concept of an agent. Instead of a one-off prompt and response, you begin to define behaviour through system instructions, roles, and conversation state. The lab uses the ChatAgent pattern and the Microsoft Agent Framework to show how an agent can maintain a purpose, respond with a persona, and return structured output such as JSON. This part helps learners understand the difference between a raw model call and a reusable application component. You learn how to design instructions that shape behaviour, how multi-turn interaction differs from single prompts, and why structured output matters when an AI component has to work inside a broader system. Part 6: Multi-Agent Workflows Once a single agent makes sense, the workshop expands the idea into a multi-agent workflow. The example pipeline uses roles such as researcher, writer, and editor, with outputs passed from one stage to the next. You explore sequential orchestration, shared configuration, and feedback loops between specialised components. For students, this lab is a very clear introduction to decomposition. Instead of asking one model to do everything at once, you break a task into smaller responsibilities. That pattern is useful well beyond AI. By the end of Part 6, you should understand why teams build multi-agent systems, how hand-offs are structured, and what trade-offs appear when more components are added to a workflow. Part 7: Zava Creative Writer Capstone Application The Zava Creative Writer is the capstone project that brings the earlier ideas together into a more production-style application. It uses multiple specialised agents, structured JSON hand-offs, product catalogue search, streaming output, and evaluation-style feedback loops. Rather than showing an isolated feature, this part shows how separate patterns combine into a complete system. This is one of the most valuable parts of the workshop for learner developers because it narrows the gap between tutorial code and real application design. You can see how orchestration, agent roles, and practical interfaces fit together. By the end of Part 7, you should be able to recognise the architecture of a serious local AI app and understand how the earlier labs support it. Part 8: Evaluation-Led Development Many beginner AI projects stop once the output looks good once or twice. This lab teaches a much stronger habit: evaluation-led development. You work with golden datasets, rule-based checks, and LLM-as-judge scoring to compare prompt or agent variants systematically. The goal is to move from anecdotal testing to repeatable assessment. This matters enormously for students because evaluation is one of the clearest differences between a classroom demo and dependable software. By the end of Part 8, you should understand how to define success criteria, compare outputs at scale, and use evidence rather than intuition when improving an AI component. Part 9: Voice Transcription with Whisper Part 9 broadens the workshop beyond text generation by introducing speech-to-text with Whisper running locally. You use the Foundry Local SDK to download and load the model, then transcribe local audio files through the compatible API surface. The emphasis is on privacy-first processing, with audio kept on-device. This section is a useful reminder that local AI development is not limited to chatbots. Learners see how a different modality fits into the same ecosystem and how local execution supports sensitive workloads. By the end of this lab, you should understand the transcription flow, the relevant client methods, and how speech features can be integrated into broader applications. Part 10: Using Custom or Hugging Face Models After learning the standard path, the workshop shows how to work with custom or Hugging Face models. This includes compiling models into optimised ONNX format with ONNX Runtime GenAI, choosing hardware-specific options, applying quantisation strategies, creating configuration files, and adding compiled models to the Foundry Local cache. For learner developers, this part opens the door to model engineering rather than simple model consumption. You begin to understand that model choice, optimisation, and packaging affect performance and usability. By the end of Part 10, you should have a clearer picture of how models move from an external source into a runnable local setup and why deployment format matters. Part 11: Tool Calling with Local Models Tool calling is one of the most practical patterns in current AI development, and this lab covers it directly. You define tool schemas, allow the model to request function calls, handle the multi-turn interaction loop, execute the tools locally, and return results back to the model. The examples include practical scenarios such as weather and population tools. This lab teaches learners how to move beyond generation into action. A model is no longer limited to producing text. It can decide when external data or a function is needed and incorporate that result into a useful answer. By the end of Part 11, you should understand the tool-calling flow and how AI systems connect reasoning with deterministic software behaviour. Part 12: Building a Web UI for the Zava Creative Writer Part 12 adds a browser-based front end to the capstone application. You learn how to serve a shared interface from Python, JavaScript, or C#, stream updates to the browser, consume NDJSON with the Fetch API and ReadableStream, and show live agent status as content is produced in real time. This part is especially good for students who want to build portfolio projects. It turns backend orchestration into something visible and interactive. By the end of Part 12, you should understand how to connect a local AI backend to a web interface and how streaming changes the user experience compared with waiting for one final response. Part 13: Workshop Complete The final part is a summary and extension point. It reviews what you have built across the previous sections and suggests ways to continue. Although it is not a new technical lab in the same way as the earlier parts, it plays an important role in learning. It helps you consolidate the architecture, the terminology, and the development patterns you have encountered. For learners, reflection matters. By the end of Part 13, you should be able to describe the full stack of a local AI application, from model management to user interface, and identify which area you want to deepen next. What Students Gain from the Full Workshop Taken together, these labs do more than teach Foundry Local itself. They teach how AI applications are built. You learn operational basics such as model setup and service management. You learn application integration through SDKs and APIs. You learn system design through RAG, agents, multi-agent orchestration, and web interfaces. You learn engineering discipline through evaluation. You also see how text, speech, custom models, and tool calling all fit into one local-first development workflow. That breadth makes the workshop useful in several settings. A student can use it as a self-study path. A lecturer can use it as source material for practical sessions. A learner developer can use it to build portfolio pieces and to understand which AI patterns are worth learning next. Because the repository includes Python, JavaScript, and C#, it also works well for comparing how architectural ideas transfer across languages. How to Approach the Lab as a Beginner If you are starting from scratch, the best route is simple. Complete Parts 1 to 3 in your preferred language first. That gives you the essential setup and integration skills. Then move into Parts 4 to 6 to understand how AI application patterns are composed. After that, use Parts 7 and 8 to learn how larger systems and evaluation fit together. Finally, explore Parts 9 to 12 based on your interests, whether that is speech, tooling, model customisation, or front-end work. It is also worth keeping notes as you go. Record what each part adds to your understanding, what code files matter, and what assumptions each example makes. That habit will help you move from following the labs to adapting the patterns in your own projects. Final Thoughts The Microsoft Foundry Local Lab is a strong introduction to local AI development because it treats learners like developers rather than spectators. You install, run, connect, orchestrate, evaluate, and present working systems. That makes it far more valuable than a short demo that only proves a model can answer a question. If you are a student or learner developer who wants to understand how AI applications are really built, this lab gives you a clear path. Start with the basics, pick one language, and work through the parts in order. By the time you finish, you will not just have used Foundry Local. You will have a practical foundation for building local AI applications with far more confidence and much better judgement.Langchain Multi-Agent Systems with Microsoft Agent Framework and Hosted Agents
If you have been building AI agents with LangChain, you already know how powerful its tool and chain abstractions are. But when it comes to deploying those agents to production — with real infrastructure, managed identity, live web search, and container orchestration — you need something more. This post walks through how to combine LangChain with the Microsoft Agent Framework ( azure-ai-agents ) and deploy the result as a Microsoft Foundry Hosted Agent. We will build a multi-agent incident triage copilot that uses LangChain locally and seamlessly upgrades to cloud-hosted capabilities on Microsoft Foundry. Why combine LangChain with Microsoft Agent Framework? As a LangChain developer, you get excellent abstractions for building agents: the @tool decorator, RunnableLambda chains, and composable pipelines. But production deployment raises questions that LangChain alone does not answer: Where do your agents run? Containers, serverless, or managed infrastructure? How do you add live web search or code execution? Bing Grounding and Code Interpreter are not LangChain built-ins. How do you handle authentication? Managed identity, API keys, or tokens? How do you observe agents in production? Distributed tracing across multiple agents? The Microsoft Agent Framework fills these gaps. It provides AgentsClient for creating and managing agents on Microsoft Foundry, built-in tools like BingGroundingTool and CodeInterpreterTool , and a thread-based conversation model. Combined with Hosted Agents, you get a fully managed container runtime with health probes, auto-scaling, and the OpenAI Responses API protocol. The key insight: LangChain handles local logic and chain composition; the Microsoft Agent Framework handles cloud-hosted orchestration and tooling. Architecture overview The incident triage copilot uses a coordinator pattern with three specialist agents: User Query | v Coordinator Agent | +--> LangChain Triage Chain (routing decision) +--> LangChain Synthesis Chain (combine results) | +---+---+---+ | | | v v v Research Diagnostics Remediation Agent Agent Agent Each specialist agent has two execution modes: Mode LangChain Role Microsoft Agent Framework Role Local @tool functions provide heuristic analysis Not used Foundry Chains handle routing and synthesis AgentsClient with BingGroundingTool , CodeInterpreterTool This dual-mode design means you can develop and test locally with zero cloud dependencies, then deploy to Foundry for production capabilities. Step 1: Define your LangChain tools Start with what you know. Define typed, documented tools using LangChain’s @tool decorator: from langchain_core.tools import tool @tool def classify_incident_severity(query: str) -> str: """Classify the severity and priority of an incident based on keywords. Args: query: The incident description text. Returns: Severity classification with priority level. """ query_lower = query.lower() critical_keywords = [ "production down", "all users", "outage", "breach", ] high_keywords = [ "503", "500", "timeout", "latency", "slow", ] if any(kw in query_lower for kw in critical_keywords): return "severity=critical, priority=P1" if any(kw in query_lower for kw in high_keywords): return "severity=high, priority=P2" return "severity=low, priority=P4" These tools work identically in local mode and serve as fallbacks when Foundry is unavailable. Step 2: Build routing with LangChain chains Use RunnableLambda to create a routing chain that classifies the incident and selects which specialists to invoke: from langchain_core.runnables import RunnableLambda from enum import Enum class AgentRole(str, Enum): RESEARCH = "research" DIAGNOSTICS = "diagnostics" REMEDIATION = "remediation" DIAGNOSTICS_KEYWORDS = { "log", "error", "exception", "timeout", "500", "503", "crash", "oom", "root cause", } REMEDIATION_KEYWORDS = { "fix", "remediate", "runbook", "rollback", "hotfix", "patch", "resolve", "action plan", } def _route(inputs: dict) -> dict: query = inputs["query"].lower() specialists = [AgentRole.RESEARCH] # always included if any(kw in query for kw in DIAGNOSTICS_KEYWORDS): specialists.append(AgentRole.DIAGNOSTICS) if any(kw in query for kw in REMEDIATION_KEYWORDS): specialists.append(AgentRole.REMEDIATION) return {**inputs, "specialists": specialists} triage_routing_chain = RunnableLambda(_route) This is pure LangChain — no cloud dependency. The chain analyses the query and returns which specialists should handle it. Step 3: Create specialist agents with dual-mode execution Each specialist agent extends a base class. In local mode, it uses LangChain tools. In Foundry mode, it delegates to the Microsoft Agent Framework: from abc import ABC, abstractmethod from pathlib import Path class BaseSpecialistAgent(ABC): role: AgentRole prompt_file: str def __init__(self): prompt_path = Path(__file__).parent.parent / "prompts" / self.prompt_file self.system_prompt = prompt_path.read_text(encoding="utf-8") async def run(self, query, shared_context, correlation_id, client=None): if client is not None: return await self._run_on_foundry(query, shared_context, correlation_id, client) return await self._run_locally(query, shared_context, correlation_id) async def _run_on_foundry(self, query, shared_context, correlation_id, client): """Use Microsoft Agent Framework for cloud-hosted execution.""" from azure.ai.agents.models import BingGroundingTool agent = await client.agents.create_agent( model=shared_context.get("model_deployment", "gpt-4o"), name=f"{self.role.value}-{correlation_id}", instructions=self.system_prompt, tools=self._get_foundry_tools(shared_context), ) thread = await client.agents.threads.create() await client.agents.messages.create( thread_id=thread.id, role="user", content=self._build_prompt(query, shared_context), ) run = await client.agents.runs.create_and_process( thread_id=thread.id, agent_id=agent.id, ) # Extract and return the agent’s response... async def _run_locally(self, query, shared_context, correlation_id): """Use LangChain tools for local heuristic analysis.""" # Each subclass implements this with its specific tools ... The key pattern here: same interface, different backends. Your coordinator does not care whether a specialist ran locally or on Foundry. Step 4: Wire it up with FastAPI Expose the multi-agent pipeline through a FastAPI endpoint. The /triage endpoint accepts incident descriptions and returns structured reports: from fastapi import FastAPI from agents.coordinator import Coordinator from models import TriageRequest app = FastAPI(title="Incident Triage Copilot") coordinator = Coordinator() @app.post("/triage") async def triage(request: TriageRequest): return await coordinator.triage( request=request, client=app.state.foundry_client, max_turns=10, ) The application also implements the /responses endpoint, which follows the OpenAI Responses API protocol. This is what Microsoft Foundry Hosted Agents expects when routing traffic to your container. Step 5: Deploy as a Hosted Agent This is where Microsoft Foundry Hosted Agents shines. Your multi-agent system becomes a managed, auto-scaling service with a single command: # Install the azd AI agent extension azd extension install azure.ai.agents # Provision infrastructure and deploy azd up The Azure Developer CLI ( azd ) provisions everything: Azure Container Registry for your Docker image Container App with health probes and auto-scaling User-Assigned Managed Identity for secure authentication Microsoft Foundry Hub and Project with model deployments Application Insights for distributed tracing Your agent.yaml defines what tools the hosted agent has access to: name: incident-triage-copilot-langchain kind: hosted model: deployment: gpt-4o identity: type: managed tools: - type: bing_grounding enabled: true - type: code_interpreter enabled: true What you gain over pure LangChain Capability LangChain Only LangChain + Microsoft Agent Framework Local development Yes Yes (identical experience) Live web search Requires custom integration Built-in BingGroundingTool Code execution Requires sandboxing Built-in CodeInterpreterTool Managed hosting DIY containers Foundry Hosted Agents Authentication DIY Managed Identity (zero secrets) Observability DIY OpenTelemetry + Application Insights One-command deploy No azd up Testing locally The dual-mode architecture means you can test the full pipeline without any cloud resources: # Create virtual environment and install dependencies python -m venv .venv source .venv/bin/activate pip install -r requirements.txt # Run locally (agents use LangChain tools) python -m src Then open http://localhost:8080 in your browser to use the built-in web UI, or call the API directly: curl -X POST http://localhost:8080/triage \ -H "Content-Type: application/json" \ -d '{"message": "Getting 503 errors on /api/orders since 2pm"}' The response includes a coordinator summary, specialist results with confidence scores, and the tools each agent used. Running the tests The project includes a comprehensive test suite covering routing logic, tool behaviour, agent execution, and HTTP endpoints: curl -X POST http://localhost:8080/triage \ -H "Content-Type: application/json" \ -d '{"message": "Getting 503 errors on /api/orders since 2pm"}' Tests run entirely in local mode, so no cloud credentials are needed. Key takeaways for LangChain developers Keep your LangChain abstractions. The @tool decorator, RunnableLambda chains, and composable pipelines all work exactly as you expect. Add cloud capabilities incrementally. Start local, then enable Bing Grounding, Code Interpreter, and managed hosting when you are ready. Use the dual-mode pattern. Every agent should work locally with LangChain tools and on Foundry with the Microsoft Agent Framework. This makes development fast and deployment seamless. Let azd handle infrastructure. One command provisions everything: containers, identity, monitoring, and model deployments. Security comes free. Managed Identity means no API keys in your code. Non-root containers, RBAC, and disabled ACR admin are all configured by default. Get started Clone the sample repository and try it yourself: git clone https://github.com/leestott/hosted-agents-langchain-samples cd hosted-agents-langchain-samples python -m venv .venv && source .venv/bin/activate pip install -r requirements.txt python -m src Open http://localhost:8080 to interact with the copilot through the web UI. When you are ready for production, run azd up and your multi-agent system is live on Microsoft Foundry. Resources Microsoft Agent Framework for Python documentation Microsoft Foundry Hosted Agents Azure Developer CLI (azd) LangChain documentation Microsoft Foundry documentationBuild an Offline Hybrid RAG Stack with ONNX and Foundry Local
If you are building local AI applications, basic retrieval augmented generation is often only the starting point. This sample shows a more practical pattern: combine lexical retrieval, ONNX based semantic embeddings, and a Foundry Local chat model so the assistant stays grounded, remains offline, and degrades cleanly when the semantic path is unavailable. Why this sample is worth studying Many local RAG samples rely on a single retrieval strategy. That is usually enough for a proof of concept, but it breaks down quickly in production. Exact keywords, acronyms, and document codes behave differently from natural language questions and paraphrased requests. This repository keeps the original lexical retrieval path, adds local ONNX embeddings for semantic search, and fuses both signals in a hybrid ranking mode. The generation step runs through Foundry Local, so the entire assistant can remain on device. Lexical mode handles exact terms and structured vocabulary. Semantic mode handles paraphrases and more natural language phrasing. Hybrid mode combines both and is usually the best default. Lexical fallback protects the user experience if the embedding pipeline cannot start. Architectural overview The sample has two main flows: an offline ingestion pipeline and a local query pipeline. The architecture splits cleanly into offline ingestion at the top and runtime query handling at the bottom. Offline ingestion pipeline Read Markdown files from docs/ . Parse front matter and split each document into overlapping chunks. Generate dense embeddings when the ONNX model is available. Store chunks in SQLite with both sparse lexical features and optional dense vectors. Local query pipeline The browser posts a question to the Express API. ChatEngine resolves the requested retrieval mode. VectorStore retrieves lexical, semantic, or hybrid results. The prompt is assembled with the retrieved context and sent to a Foundry Local chat model. The answer is returned with source references and retrieval metadata. The sequence diagram shows the difference between lexical retrieval and hybrid retrieval. In hybrid mode, the query is embedded first, then lexical and semantic scores are fused before prompt assembly. Repository structure and core components The implementation is compact and readable. The main files to understand are listed below. src/config.js : retrieval defaults, paths, and model settings. src/embeddingEngine.js : local ONNX embedding generation through Transformers.js. src/vectorStore.js : SQLite storage plus lexical, semantic, and hybrid ranking. src/chatEngine.js : retrieval mode resolution, prompt assembly, and Foundry Local model execution. src/ingest.js : document ingestion and embedding generation during indexing. src/server.js : REST endpoints, streaming endpoints, upload support, and health reporting. Getting started To run the sample, you need Node.js 20 or newer, Foundry Local, and a local ONNX embedding model. The default model path is models/embeddings/bge-small-en-v1.5 . cd c:\Users\leestott\local-hybrid-retrival-onnx npm install huggingface-cli download BAAI/bge-small-en-v1.5 --local-dir models/embeddings/bge-small-en-v1.5 npm run ingest npm start Ingestion writes the local SQLite database to data/rag.db . If the embedding model is available, each chunk gets a dense vector as well as lexical features. If the embedding model is missing, ingestion still succeeds and the application remains usable in lexical mode. Best practice: local AI applications should treat model files, SQLite data, and native runtime compatibility as part of the deployable system, not as optional developer conveniences. Code walkthrough 1. Retrieval configuration The sample makes its retrieval behaviour explicit in configuration. That is useful for testing and for operator visibility. export const config = { model: "phi-3.5-mini", docsDir: path.join(ROOT, "docs"), dbPath: path.join(ROOT, "data", "rag.db"), chunkSize: 200, chunkOverlap: 25, topK: 3, retrievalMode: process.env.RETRIEVAL_MODE || "hybrid", retrievalModes: ["lexical", "semantic", "hybrid"], fallbackRetrievalMode: "lexical", retrievalWeights: { lexical: 0.45, semantic: 0.55, }, }; Those defaults tell you a lot about the intended operating profile. Chunks are small, the number of returned chunks is low, and the fallback path is explicit. 2. Local ONNX embeddings The embedding engine disables remote model loading and only uses local files. That matters for privacy, repeatability, and air gapped operation. env.allowLocalModels = true; env.allowRemoteModels = false; this.extractor = await pipeline("feature-extraction", resolvedPath, { local_files_only: true, }); const output = await this.extractor(text, { pooling: "mean", normalize: true, }); The mean pooling and normalisation step make the vectors suitable for cosine similarity based ranking. 3. Hybrid storage and ranking in SQLite Instead of adding a separate vector database, the sample stores lexical and semantic representations in the same SQLite table. That keeps the local footprint low and the implementation easy to debug. searchHybrid(query, queryEmbedding, topK = 5, weights = { lexical: 0.45, semantic: 0.55 }) { const lexicalResults = this.searchLexical(query, topK * 3); const semanticResults = this.searchSemantic(queryEmbedding, topK * 3); if (semanticResults.length === 0) { return lexicalResults.slice(0, topK).map((row) => ({ ...row, retrievalMode: "lexical", })); } const fused = [...combined.values()].map((row) => ({ ...row, score: (row.lexicalScore * lexicalWeight) + (row.semanticScore * semanticWeight), })); fused.sort((a, b) => b.score - a.score); return fused.slice(0, topK); } The important point is not just the weighted fusion. It is the fallback behaviour. If semantic retrieval cannot provide results, the user still gets lexical grounding instead of an empty context window. 4. Retrieval mode resolution in ChatEngine ChatEngine keeps the runtime behaviour predictable. It validates the requested mode and falls back to lexical search when semantic retrieval is unavailable. resolveRetrievalMode(requestedMode) { const desiredMode = config.retrievalModes.includes(requestedMode) ? requestedMode : config.retrievalMode; if ((desiredMode === "semantic" || desiredMode === "hybrid") && !this.semanticAvailable) { return config.fallbackRetrievalMode; } return desiredMode; } This is a sensible production design because local runtime failures are common. Missing model files or native dependency mismatches should reduce quality, not crash the entire assistant. 5. Foundry Local model management The sample uses FoundryLocalManager to discover, download, cache, and load the configured chat model. const manager = FoundryLocalManager.create({ appName: "gas-field-local-rag" }); const catalog = manager.catalog; this.model = await catalog.getModel(config.model); if (!this.model.isCached) { await this.model.download((progress) => { const pct = Math.round(progress * 100); this._emitStatus("download", `Downloading ${this.modelAlias}... ${pct}%`, progress); }); } await this.model.load(); this.chatClient = this.model.createChatClient(); this.chatClient.settings.temperature = 0.1; This gives the app a better local startup experience. The server can expose a status stream while the model initialises in the background. User experience and screenshots The client is intentionally simple, which makes it useful during evaluation. You can switch retrieval mode, test questions quickly, and inspect the retrieved sources. The landing page exposes retrieval mode directly in the UI. That makes it easy to compare lexical, semantic, and hybrid behaviour during testing. The sources panel shows grounding evidence and retrieval scores, which is useful when validating whether better answers are coming from better retrieval or just model phrasing. Best practices for ONNX RAG and Foundry Local Keep lexical fallback alive. Exact identifiers and runtime failures both make this necessary. Persist sparse and dense features together where possible. It simplifies debugging and operational reasoning. Use small chunks and conservative topK values for local context budgets. Expose health and status endpoints so users can see when the model is still loading or embeddings are unavailable. Test retrieval quality separately from generation quality. Pin and validate native runtime dependencies, especially ONNX Runtime, before tuning prompts. Practical warning: this repository already shows why runtime validation matters. A local app can ingest documents successfully and still fail at model initialisation if the native runtime stack is misaligned. How this compares with RAG and CAG The strongest value in this sample comes from where it sits between a basic local RAG baseline and a curated CAG design. Dimension Classic local RAG This hybrid ONNX RAG sample CAG Context assembly Retrieve chunks at query time, often lexically, then inject them into the prompt. Retrieve chunks at query time with lexical, semantic, or fused scoring, then inject the strongest results into the prompt. Use a prepared or cached context pack instead of fresh retrieval for every request. Main strength Easy to implement and easy to explain. Better recall for paraphrases without giving up exact match behaviour or offline execution. Predictable prompts and low query time overhead. Main weakness Misses synonyms and natural language reformulations. More moving parts, larger local asset footprint, and native runtime compatibility to manage. Coverage depends on curation quality and goes stale more easily. Failure behaviour Weak retrieval leads to weak grounding. Semantic failure can degrade to lexical retrieval if designed properly, which this sample does. Prepared context can be too narrow for new or unexpected questions. Best fit Simple local assistants and proof of concept systems. Offline copilots and technical assistants that need stronger recall across varied phrasing. Stable workflows with tightly bounded, curated knowledge. Samples Related samples: - Foundry Local RAG - https://github.com/leestott/local-rag - Foundry Local CAG - https://github.com/leestott/local-cag - Foundry Local hybrid-retrival-onnx https://github.com/leestott/local-hybrid-retrival-onnx Specific benefits of this hybrid approach over classic RAG It captures paraphrased questions that lexical search would often miss. It still preserves exact match performance for codes, terms, and product names. It gives operators a controlled degradation path when the semantic stack is unavailable. It stays local and inspectable without introducing a separate hosted vector service. Specific differences from CAG CAG shifts effort into context curation before the request. This sample retrieves evidence dynamically at runtime. CAG can be faster for fixed workflows, but it is usually less flexible when the document set changes. This hybrid RAG design is better suited to open ended knowledge search and growing document collections. What to validate before shipping Measure retrieval quality in each mode using exact term, acronym, and paraphrase queries. Check that sources shown in the UI reflect genuinely distinct evidence, not repeated chunks. Confirm the application remains usable when semantic retrieval is unavailable. Verify ONNX Runtime compatibility on the real target machines, not only on the development laptop. Test model download, cache, and startup behaviour with a clean environment. Final take For developers getting started with ONNX RAG and Foundry Local, this sample is a good technical reference because it demonstrates a realistic local architecture rather than a minimal demo. It shows how to build a grounded assistant that remains offline, supports multiple retrieval modes, and fails gracefully. Compared with classic local RAG, the hybrid design provides better recall and better resilience. Compared with CAG, it remains more flexible for changing document sets and less dependent on pre curated context packs. If you want a practical starting point for offline grounded AI on developer workstations or edge devices, this is the most balanced pattern in the repository set.Creating a Fun Multi-Agent Content Strategy System with Microsoft Agent Framework
This tutorial walks you through building a multi-agent content strategy system using Microsoft's AutoGen framework. Three specialised AI agents — a Content Creator, an Algorithm Simulator, and an Audience Persona — collaborate to help gaming content creators pressure-test their social media posts before publishing. Using live Google Trends data and platform-specific scoring rubrics for TikTok, Twitter/X, YouTube, and Instagram, the system generates content, predicts how each platform's algorithm would distribute it, and simulates authentic audience reactions. The tutorial covers core multi-agent patterns including role specialisation, structured evaluation, iterative feedback loops, and resilient tool integration — all running on GitHub Models' free tier.Building a Local Research Desk: Multi-Agent Orchestration
Introduction Multi-agent systems represent the next evolution of AI applications. Instead of a single model handling everything, specialised agents collaborate—each with defined responsibilities, passing context to one another, and producing results that no single agent could achieve alone. But building these systems typically requires cloud infrastructure, API keys, usage tracking, and the constant concern about what data leaves your machine. What if you could build sophisticated multi-agent workflows entirely on your local machine, with no cloud dependencies? The Local Research & Synthesis Desk demonstrates exactly this. Using Microsoft Agent Framework (MAF) for orchestration and Foundry Local for on-device inference, this demo shows how to create a four-agent research pipeline that runs entirely on your hardware—no API keys, no data leaving your network, and complete control over every step. This article walks through the architecture, implementation patterns, and practical code that makes multi-agent local AI possible. You'll learn how to bootstrap Foundry Local from Python, create specialised agents with distinct roles, wire them into sequential, concurrent, and feedback loop orchestration patterns, and implement tool calling for extended functionality. Whether you're building research tools, internal analysis systems, or simply exploring what's possible with local AI, this architecture provides a production-ready foundation. Why Multi-Agent Architecture Matters Single-agent AI systems hit limitations quickly. Ask one model to research a topic, analyse findings, identify gaps, and write a comprehensive report—and you'll get mediocre results. The model tries to do everything at once, with no opportunity for specialisation, review, or iterative refinement. Multi-agent systems solve this by decomposing complex tasks into specialised roles. Each agent focuses on what it does best: Planners break ambiguous questions into concrete sub-tasks Retrievers focus exclusively on finding and extracting relevant information Critics review work for gaps, contradictions, and quality issues Writers synthesise everything into coherent, well-structured output This separation of concerns mirrors how human teams work effectively. A research team doesn't have one person doing everything—they have researchers, fact-checkers, editors, and writers. Multi-agent AI systems apply the same principle to AI workflows, with each agent receiving the output of previous agents as context for their own specialised task. The Local Research & Synthesis Desk implements this pattern with four primary agents, plus an optional ToolAgent for utility functions. Here's how user questions flow through the system: This architecture demonstrates three essential orchestration patterns: sequential pipelines where each agent builds on the previous output, concurrent fan-out where independent tasks run in parallel to save time, and feedback loops where the Critic can send work back to the Retriever for iterative refinement. The Technology Stack: MAF + Foundry Local Before diving into implementation, let's understand the two core technologies that make this architecture possible and why they work so well together. Microsoft Agent Framework (MAF) The Microsoft Agent Framework provides building blocks for creating AI agents in Python and .NET. Unlike frameworks that require specific cloud providers, MAF works with any OpenAI-compatible API—which is exactly what Foundry Local provides. The key abstraction in MAF is the ChatAgent . Each agent has: Instructions: A system prompt that defines the agent's role and behaviour Chat client: An OpenAI-compatible client for making inference calls Tools: Optional functions the agent can invoke during execution Name: An identifier for logging and observability MAF handles message threading, tool execution, and response parsing automatically. You focus on designing agent behaviour rather than managing low-level API interactions. Foundry Local Foundry Local brings Azure AI Foundry's model catalog to your local machine. It automatically selects the best hardware acceleration available (GPU, NPU, or CPU) and exposes models through an OpenAI-compatible API. Models run entirely on-device with no data leaving your machine. The foundry-local-sdk Python package provides programmatic control over the Foundry Local service. You can start the service, download models, and retrieve connection information—all from your Python code. This is the "control plane" that manages the local AI infrastructure. The combination is powerful: MAF handles agent logic and orchestration, while Foundry Local provides the underlying inference. No cloud dependencies, no API keys, complete data privacy: Bootstrapping Foundry Local from Python The first practical challenge is starting Foundry Local programmatically. The FoundryLocalBootstrapper class handles this, encapsulating all the setup logic so the rest of the application can focus on agent behaviour. The bootstrap process follows three steps: start the Foundry Local service if it's not running, download the requested model if it's not cached, and return connection information that MAF agents can use. Here's the core implementation: from dataclasses import dataclass from foundry_local import FoundryLocalManager @dataclass class FoundryConnection: """Holds endpoint, API key, and model ID after bootstrap.""" endpoint: str api_key: str model_id: str model_alias: str This dataclass carries everything needed to connect MAF agents to Foundry Local. The endpoint is typically http://localhost:<port>/v1 (the port is assigned dynamically), and the API key is managed internally by Foundry Local. class FoundryLocalBootstrapper: def __init__(self, alias: str | None = None) -> None: self.alias = alias or os.getenv("MODEL_ALIAS", "qwen2.5-0.5b") def bootstrap(self) -> FoundryConnection: """Start service, download & load model, return connection info.""" from foundry_local import FoundryLocalManager manager = FoundryLocalManager() model_info = manager.download_and_load_model(self.alias) return FoundryConnection( endpoint=manager.endpoint, api_key=manager.api_key, model_id=model_info.id, model_alias=self.alias, ) Key design decisions in this implementation: Lazy import: The foundry_local import happens inside bootstrap() so the application can provide helpful error messages if the SDK isn't installed Environment configuration: Model alias comes from MODEL_ALIAS environment variable or defaults to qwen2.5-0.5b Automatic hardware selection: Foundry Local picks GPU, NPU, or CPU automatically—no configuration needed The qwen2.5 model family is recommended because it supports function/tool calling, which the ToolAgent requires. For higher quality outputs, larger variants like qwen2.5-7b or qwen2.5-14b are available via the --model flag. Creating Specialised Agents With Foundry Local bootstrapped, the next step is creating agents with distinct roles. Each agent is a ChatAgent instance with carefully crafted instructions that focus it on a specific task. The Planner Agent The Planner receives a user question and available documents, then breaks the research task into concrete sub-tasks. Its instructions emphasise structured output—a numbered list of specific tasks rather than prose: from agent_framework import ChatAgent from agent_framework.openai import OpenAIChatClient def _make_client(conn: FoundryConnection) -> OpenAIChatClient: """Create an MAF OpenAIChatClient pointing at Foundry Local.""" return OpenAIChatClient( api_key=conn.api_key, base_url=conn.endpoint, model_id=conn.model_id, ) def create_planner(conn: FoundryConnection) -> ChatAgent: return ChatAgent( chat_client=_make_client(conn), name="Planner", instructions=( "You are a planning agent. Given a user's research question and a list " "of document snippets (if any), break the question into 2-4 concrete " "sub-tasks. Output ONLY a numbered list of tasks. Each task should state:\n" " • What information is needed\n" " • Which source documents might help (if known)\n" "Keep it concise — no more than 6 lines total." ), ) Notice how the instructions are explicit about output format. Multi-agent systems work best when each agent produces structured, predictable output that downstream agents can parse reliably. The Retriever Agent The Retriever receives the Planner's task list plus raw document content, then extracts and cites relevant passages. Its instructions emphasise citation format—a specific pattern that the Writer can reference later: def create_retriever(conn: FoundryConnection) -> ChatAgent: return ChatAgent( chat_client=_make_client(conn), name="Retriever", instructions=( "You are a retrieval agent. You receive a research plan AND raw document " "text from local files. Your job:\n" " 1. Identify the most relevant passages for each task in the plan.\n" " 2. Output extracted snippets with citations in the format:\n" " [filename.ext, lines X-Y]: \"quoted text…\"\n" " 3. If no relevant content exists, say so explicitly.\n" "Be precise — quote only what is relevant, keep each snippet under 100 words." ), ) The citation format [filename.ext, lines X-Y] creates a consistent contract. The Writer knows exactly how to reference source material, and human reviewers can verify claims against original documents. The Critic Agent The Critic reviews the Retriever's work, identifying gaps and contradictions. This agent serves as a quality gate before the final report and can trigger feedback loops for iterative improvement: def create_critic(conn: FoundryConnection) -> ChatAgent: return ChatAgent( chat_client=_make_client(conn), name="Critic", instructions=( "You are a critical review agent. You receive a plan and extracted snippets. " "Your job:\n" " 1. Check for gaps — are any plan tasks unanswered?\n" " 2. Check for contradictions between snippets.\n" " 3. Suggest 1-2 specific improvements or missing details.\n" "Start your response with 'GAPS FOUND' if issues exist, or 'NO GAPS' if satisfied.\n" "Then output a short numbered list of issues (or say 'No issues found')." ), ) The Critic is instructed to output GAPS FOUND or NO GAPS at the start of its response. This structured output enables the orchestrator to detect when gaps exist and trigger the feedback loop—sending the gaps back to the Retriever for additional retrieval before re-running the Critic. This iterates up to 2 times before the Writer takes over, ensuring higher quality reports. Critics are essential for production systems. Without this review step, the Writer might produce confident-sounding reports with missing information or internal contradictions. The Writer Agent The Writer receives everything—original question, plan, extracted snippets, and critic review—then produces the final report: def create_writer(conn: FoundryConnection) -> ChatAgent: return ChatAgent( chat_client=_make_client(conn), name="Writer", instructions=( "You are the final report writer. You receive:\n" " • The original question\n" " • A plan, extracted snippets with citations, and a critic review\n\n" "Produce a clear, well-structured answer (3-5 paragraphs). " "Requirements:\n" " • Cite sources using [filename.ext, lines X-Y] notation\n" " • Address any gaps the critic raised (note if unresolvable)\n" " • End with a one-sentence summary\n" "Do NOT fabricate citations — only use citations provided by the Retriever." ), ) The final instruction—"Do NOT fabricate citations"—is crucial for responsible AI. The Writer has access only to citations the Retriever provided, preventing hallucinated references that plague single-agent research systems. Implementing Sequential Orchestration With agents defined, the orchestrator connects them into a workflow. Sequential orchestration is the simpler pattern: each agent runs after the previous one completes, passing its output as input to the next agent. The implementation uses Python's async/await for clean asynchronous execution: import asyncio import time from dataclasses import dataclass, field @dataclass class StepResult: """Captures one agent step for observability.""" agent_name: str input_text: str output_text: str elapsed_sec: float @dataclass class WorkflowResult: """Final result of the entire orchestration run.""" question: str steps: list[StepResult] = field(default_factory=list) final_report: str = "" async def _run_agent(agent: ChatAgent, prompt: str) -> tuple[str, float]: """Execute a single agent and measure elapsed time.""" start = time.perf_counter() response = await agent.run(prompt) elapsed = time.perf_counter() - start return response.content, elapsed The StepResult dataclass captures everything needed for observability: what went in, what came out, and how long it took. This information is invaluable for debugging and optimisation. The sequential pipeline chains agents together, building context progressively: async def run_sequential_workflow( question: str, docs: LoadedDocuments, conn: FoundryConnection, ) -> WorkflowResult: wf = WorkflowResult(question=question) doc_block = docs.combined_text if docs.chunks else "(no documents provided)" # Step 1 — Plan planner = create_planner(conn) planner_prompt = f"User question: {question}\n\nAvailable documents:\n{doc_block}" plan_text, elapsed = await _run_agent(planner, planner_prompt) wf.steps.append(StepResult("Planner", planner_prompt, plan_text, elapsed)) # Step 2 — Retrieve retriever = create_retriever(conn) retriever_prompt = f"Plan:\n{plan_text}\n\nDocuments:\n{doc_block}" snippets_text, elapsed = await _run_agent(retriever, retriever_prompt) wf.steps.append(StepResult("Retriever", retriever_prompt, snippets_text, elapsed)) # Step 3 — Critique critic = create_critic(conn) critic_prompt = f"Plan:\n{plan_text}\n\nExtracted snippets:\n{snippets_text}" critique_text, elapsed = await _run_agent(critic, critic_prompt) wf.steps.append(StepResult("Critic", critic_prompt, critique_text, elapsed)) # Step 4 — Write writer = create_writer(conn) writer_prompt = ( f"Original question: {question}\n\n" f"Plan:\n{plan_text}\n\n" f"Extracted snippets:\n{snippets_text}\n\n" f"Critic review:\n{critique_text}" ) report_text, elapsed = await _run_agent(writer, writer_prompt) wf.steps.append(StepResult("Writer", writer_prompt, report_text, elapsed)) wf.final_report = report_text return wf Each step receives all relevant context from previous steps. The Writer gets the most comprehensive prompt—original question, plan, snippets, and critique—enabling it to produce a well-informed final report. Adding Concurrent Fan-Out and Feedback Loops Sequential orchestration works well but can be slow. When tasks are independent—neither needs the other's output—running them in parallel saves time. The demo implements this with asyncio.gather . Consider the Retriever and ToolAgent: both need the Planner's output, but neither depends on the other. Running them concurrently cuts the wait time roughly in half: async def run_concurrent_retrieval( plan_text: str, docs: LoadedDocuments, conn: FoundryConnection, ) -> tuple[str, str]: """Run Retriever and ToolAgent in parallel.""" retriever = create_retriever(conn) tool_agent = create_tool_agent(conn) doc_block = docs.combined_text if docs.chunks else "(no documents)" retriever_prompt = f"Plan:\n{plan_text}\n\nDocuments:\n{doc_block}" tool_prompt = f"Analyse the following documents for word count and keywords:\n{doc_block}" # Execute both agents concurrently (snippets_text, r_elapsed), (tool_text, t_elapsed) = await asyncio.gather( _run_agent(retriever, retriever_prompt), _run_agent(tool_agent, tool_prompt), ) return snippets_text, tool_text The asyncio.gather function runs both coroutines concurrently and returns when both complete. If the Retriever takes 3 seconds and the ToolAgent takes 1.5 seconds, the total wait is approximately 3 seconds rather than 4.5 seconds. Implementing the Feedback Loop The most sophisticated orchestration pattern is the Critic–Retriever feedback loop. When the Critic identifies gaps in the retrieved information, the orchestrator sends them back to the Retriever for additional retrieval, then re-evaluates: async def run_critic_with_feedback( plan_text: str, snippets_text: str, docs: LoadedDocuments, conn: FoundryConnection, max_iterations: int = 2, ) -> tuple[str, str]: """ Run Critic with feedback loop to Retriever. Returns (final_snippets, final_critique). """ critic = create_critic(conn) retriever = create_retriever(conn) current_snippets = snippets_text for iteration in range(max_iterations): # Run Critic critic_prompt = f"Plan:\n{plan_text}\n\nExtracted snippets:\n{current_snippets}" critique_text, _ = await _run_agent(critic, critic_prompt) # Check if gaps were found if not critique_text.upper().startswith("GAPS FOUND"): return current_snippets, critique_text # Gaps found — send back to Retriever for more extraction gap_fill_prompt = ( f"Previous snippets:\n{current_snippets}\n\n" f"Gaps identified:\n{critique_text}\n\n" f"Documents:\n{docs.combined_text}\n\n" "Extract additional relevant passages to fill these gaps." ) additional_snippets, _ = await _run_agent(retriever, gap_fill_prompt) current_snippets = f"{current_snippets}\n\n--- Gap-fill iteration {iteration + 1} ---\n{additional_snippets}" # Max iterations reached — run final critique final_critique, _ = await _run_agent(critic, f"Plan:\n{plan_text}\n\nExtracted snippets:\n{current_snippets}") return current_snippets, final_critique This feedback loop pattern significantly improves output quality. The Critic acts as a quality gate, and when standards aren't met, the system iteratively improves rather than producing incomplete results. The full workflow combines all three patterns—sequential where dependencies require it, concurrent where independence allows it, and feedback loops for quality assurance: async def run_full_workflow( question: str, docs: LoadedDocuments, conn: FoundryConnection, ) -> WorkflowResult: """ End-to-end workflow showcasing THREE orchestration patterns: 1. Planner runs first (sequential — must happen before anything else). 2. Retriever + ToolAgent run concurrently (fan-out on independent tasks). 3. Critic reviews with feedback loop (iterates with Retriever if gaps found). 4. Writer produces final report (sequential — needs everything above). """ wf = WorkflowResult(question=question) # Step 1: Planner (sequential) plan_text, elapsed = await _run_agent(create_planner(conn), planner_prompt) wf.steps.append(StepResult("Planner", planner_prompt, plan_text, elapsed)) # Step 2: Concurrent fan-out (Retriever + ToolAgent) snippets_text, tool_text = await run_concurrent_retrieval(plan_text, docs, conn) # Step 3: Critic with feedback loop final_snippets, critique_text = await run_critic_with_feedback( plan_text, snippets_text, docs, conn ) # Step 4: Writer (sequential — needs everything) writer_prompt = ( f"Original question: {question}\n\n" f"Plan:\n{plan_text}\n\n" f"Snippets:\n{final_snippets}\n\n" f"Stats:\n{tool_text}\n\n" f"Critique:\n{critique_text}" ) report_text, elapsed = await _run_agent(create_writer(conn), writer_prompt) wf.final_report = report_text return wf This hybrid approach maximises both correctness and performance. Dependencies are respected, independent work happens in parallel, and quality is ensured through iterative feedback. Implementing Tool Calling Some agents benefit from deterministic tools rather than relying entirely on LLM generation. The ToolAgent demonstrates this pattern with two utility functions: word counting and keyword extraction. MAF supports tool calling through function declarations with Pydantic type annotations: from typing import Annotated from pydantic import Field def word_count( text: Annotated[str, Field(description="The text to count words in")] ) -> int: """Count words in a text string.""" return len(text.split()) def extract_keywords( text: Annotated[str, Field(description="The text to extract keywords from")], top_n: Annotated[int, Field(description="Number of keywords to return", default=5)] ) -> list[str]: """Extract most frequent words (simple implementation).""" words = text.lower().split() # Filter common words, count frequencies, return top N word_counts = {} for word in words: if len(word) > 3: # Skip short words word_counts[word] = word_counts.get(word, 0) + 1 sorted_words = sorted(word_counts.items(), key=lambda x: x[1], reverse=True) return [word for word, count in sorted_words[:top_n]] The Annotated type with Field descriptions provides metadata that MAF uses to generate function schemas for the LLM. When the model needs to count words, it invokes the word_count tool rather than attempting to count in its response (which LLMs notoriously struggle with). The ToolAgent receives these functions in its constructor: def create_tool_agent(conn: FoundryConnection) -> ChatAgent: return ChatAgent( chat_client=_make_client(conn), name="ToolHelper", instructions=( "You are a utility agent. Use the provided tools to compute " "word counts or extract keywords when asked. Return the tool " "output directly — do not embellish." ), tools=[word_count, extract_keywords], ) This pattern—combining LLM reasoning with deterministic tools—produces more reliable results. The LLM decides when to use tools and how to interpret results, but the actual computation happens in Python where precision is guaranteed. Running the Demo With the architecture explained, here's how to run the demo yourself. Setup takes about five minutes. Prerequisites You'll need Python 3.10 or higher and Foundry Local installed on your machine. Install Foundry Local by following the instructions at github.com/microsoft/Foundry-Local, then verify it works: foundry --help Installation Clone the repository and set up a virtual environment: git clone https://github.com/leestott/agentframework--foundrylocal.git cd agentframework--foundrylocal python -m venv .venv # Windows .venv\Scripts\activate # macOS / Linux source .venv/bin/activate pip install -r requirements.txt copy .env.example .env CLI Usage Run the research workflow from the command line: python -m src.app "What are the key features of Foundry Local and how does it compare to cloud inference?" --docs ./data You'll see agent-by-agent progress with timing information: Web Interface For a visual experience, launch the Flask-based web UI: python -m src.app.web Open http://localhost:5000 in your browser. The web UI provides real-time streaming of agent progress, a visual pipeline showing both orchestration patterns, and an interactive demos tab showcasing tool calling capabilities. CLI Options The CLI supports several options for customisation: --docs: Folder of local documents to search (default: ./data) --model: Foundry Local model alias (default: qwen2.5-0.5b) --mode: full for sequential + concurrent, or sequential for simpler pipeline --log-level: DEBUG, INFO, WARNING, or ERROR For higher quality output, try larger models: python -m src.app "Explain multi-agent benefits" --docs ./data --model qwen2.5-7b Validate Tool/Function Calling Run the dedicated tool calling demo to verify function calling works: python -m src.app.tool_demo This tests direct tool function calls ( word_count , extract_keywords ), LLM-driven tool calling via the ToolAgent, and multi-tool requests in a single prompt. Run Tests Run the smoke tests to verify your setup: pip install pytest pytest-asyncio pytest tests/ -v The smoke tests check document loading, tool functions, and configuration—they do not require a running Foundry Local service. Interactive Demos: Exploring MAF Capabilities Beyond the research workflow, the web UI includes five interactive demos showcasing different MAF capabilities. Each demonstrates a specific pattern with suggested prompts and real-time results. Weather Tools demonstrates multi-tool calling with an agent that provides weather information, forecasts, city comparisons, and activity recommendations. The agent uses four different tools to construct comprehensive responses. Math Calculator shows precise calculation through tool calling. The agent uses arithmetic, percentage, unit conversion, compound interest, and statistics tools instead of attempting mental math—eliminating the calculation errors that plague LLM-only approaches. Sentiment Analyser performs structured text analysis, detecting sentiment, emotions, key phrases, and word frequency through lexicon-based tools. The results are deterministic and verifiable. Code Reviewer analyses code for style issues, complexity problems, potential bugs, and improvement opportunities. This demonstrates how tool calling can extend AI capabilities into domain-specific analysis. Multi-Agent Debate showcases sequential orchestration with interdependent outputs. Three agents—one arguing for a position, one against, and a moderator—debate a topic. Each agent receives the previous agent's output, demonstrating how multi-agent systems can explore topics from multiple perspectives. Troubleshooting Common issues and their solutions: foundry: command not found : Install Foundry Local from github.com/microsoft/Foundry-Local foundry-local-sdk is not installed : Run pip install foundry-local-sdk Model download is slow: First download can be large. It's cached for future runs. No documents found warning: Add .txt or .md files to the --docs folder Agent output is low quality: Try a larger model alias, e.g. --model phi-3.5-mini Web UI won't start: Ensure Flask is installed: pip install flask Port 5000 in use: The web UI uses port 5000. Stop other services or set PORT=8080 environment variable Key Takeaways Multi-agent systems decompose complex tasks: Specialised agents (Planner, Retriever, Critic, Writer) produce better results than single-agent approaches by focusing each agent on what it does best Local AI eliminates cloud dependencies: Foundry Local provides on-device inference with automatic hardware acceleration, keeping all data on your machine MAF simplifies agent development: The ChatAgent abstraction handles message threading, tool execution, and response parsing, letting you focus on agent behaviour Three orchestration patterns serve different needs: Sequential pipelines maintain dependencies; concurrent fan-out parallelises independent work; feedback loops enable iterative quality improvement Feedback loops improve quality: The Critic–Retriever feedback loop catches gaps and contradictions, iterating until quality standards are met rather than producing incomplete results Tool calling adds precision: Deterministic functions for counting, calculation, and analysis complement LLM reasoning for more reliable results The same patterns scale to production: This demo architecture—bootstrapping, agent creation, orchestration—applies directly to real-world research and analysis systems Conclusion and Next Steps The Local Research & Synthesis Desk demonstrates that sophisticated multi-agent AI systems don't require cloud infrastructure. With Microsoft Agent Framework for orchestration and Foundry Local for inference, you can build production-quality workflows that run entirely on your hardware. The architecture patterns shown here—specialised agents with clear roles, sequential pipelines for dependent tasks, concurrent fan-out for independent work, feedback loops for quality assurance, and tool calling for precision—form a foundation for building more sophisticated systems. Consider extending this demo with: Additional agents for fact-checking, summarisation, or domain-specific analysis Richer tool integrations connecting to databases, APIs, or local services Human-in-the-loop approval gates before producing final reports Different model sizes for different agents based on task complexity Start with the demo, understand the patterns, then apply them to your own research and analysis challenges. The future of AI isn't just cloud models—it's intelligent systems that run wherever your data lives. Resources Local Research & Synthesis Desk Repository – Full source code with documentation and examples Foundry Local – Official site for on-device AI inference Foundry Local GitHub Repository – Installation instructions and CLI reference Foundry Local SDK Documentation – Python SDK reference on Microsoft Learn Microsoft Agent Framework Documentation – Official MAF tutorials and user guides MAF Orchestrations Overview – Deep dive into workflow patterns agent-framework-core on PyPI – Python package for MAF Agent Framework Samples – Additional MAF examples and patternsChoosing the Right Intelligence Layer for Your Application
Introduction One of the most common questions developers ask when planning AI-powered applications is: "Should I use the GitHub Copilot SDK or the Microsoft Agent Framework?" It's a natural question, both technologies let you add an intelligence layer to your apps, both come from Microsoft's ecosystem, and both deal with AI agents. But they solve fundamentally different problems, and understanding where each excels will save you weeks of architectural missteps. The short answer is this: the Copilot SDK puts Copilot inside your app, while the Agent Framework lets you build your app out of agents. They're complementary, not competing. In fact, the most interesting applications use both, the Agent Framework as the system architecture and the Copilot SDK as a powerful execution engine within it. This article breaks down each technology's purpose, architecture, and ideal use cases. We'll walk through concrete scenarios, examine a real-world project that combines both, and give you a decision framework for your own applications. Whether you're building developer tools, enterprise workflows, or data analysis pipelines, you'll leave with a clear understanding of which tool belongs where in your stack. The Core Distinction: Embedding Intelligence vs Building With Intelligence Before comparing features, it helps to understand the fundamental design philosophy behind each technology. They approach the concept of "adding AI to your application" from opposite directions. The GitHub Copilot SDK exposes the same agentic runtime that powers Copilot CLI as a programmable library. When you use it, you're embedding a production-tested agent, complete with planning, tool invocation, file editing, and command execution, directly into your application. You don't build the orchestration logic yourself. Instead, you delegate tasks to Copilot's agent loop and receive results. Think of it as hiring a highly capable contractor: you describe the job, and the contractor figures out the steps. The Microsoft Agent Framework is a framework for building, orchestrating, and hosting your own agents. You explicitly model agents, workflows, state, memory, hand-offs, and human-in-the-loop interactions. You control the orchestration, policies, deployment, and observability. Think of it as designing the company that employs those contractors: you define the roles, processes, escalation paths, and quality controls. This distinction has profound implications for what you build and how you build it. GitHub Copilot SDK: When Your App Wants Copilot-Style Intelligence The GitHub Copilot SDK is the right choice when you want to embed agentic behavior into an existing application without building your own planning or orchestration layer. It's optimized for developer workflows and task automation scenarios where you need an AI agent to do things, edit files, run commands, generate code, interact with tools, reliably and quickly. What You Get Out of the Box The SDK communicates with the Copilot CLI server via JSON-RPC, managing the CLI process lifecycle automatically. This means your application inherits capabilities that have been battle-tested across millions of Copilot CLI users: Planning and execution: The agent analyzes tasks, breaks them into steps, and executes them autonomously Built-in tool support: File system operations, Git operations, web requests, and shell command execution work out of the box MCP (Model Context Protocol) integration: Connect to any MCP server to extend the agent's capabilities with custom data sources and tools Multi-language support: Available as SDKs for Python, TypeScript/Node.js, Go, and .NET Custom tool definitions: Define your own tools and constrain which tools the agent can access BYOK (Bring Your Own Key): Use your own API keys from OpenAI, Azure AI Foundry, or Anthropic instead of GitHub authentication Architecture The SDK's architecture is deliberately simple. Your application communicates with the Copilot CLI running in server mode: Your Application ↓ SDK Client ↓ JSON-RPC Copilot CLI (server mode) The SDK manages the CLI process lifecycle automatically. You can also connect to an external CLI server if you need more control over the deployment. This simplicity is intentional, it keeps the integration surface small so you can focus on your application logic rather than agent infrastructure. Ideal Use Cases for the Copilot SDK The Copilot SDK shines in scenarios where you need a competent agent to execute tasks on behalf of users. These include: AI-powered developer tools: IDEs, CLIs, internal developer portals, and code review tools that need to understand, generate, or modify code "Do the task for me" agents: Applications where users describe what they want—edit these files, run this analysis, generate a pull request and the agent handles execution Rapid prototyping with agentic behavior: When you need to ship an intelligent feature quickly without building a custom planning or orchestration system Internal tools that interact with codebases: Build tools that explore repositories, generate documentation, run migrations, or automate repetitive development tasks A practical example: imagine building an internal CLI that lets engineers say "set up a new microservice with our standard boilerplate, CI pipeline, and monitoring configuration." The Copilot SDK agent would plan the file creation, scaffold the code, configure the pipeline YAML, and even run initial tests, all without you writing orchestration logic. Microsoft Agent Framework: When Your App Is the Intelligence System The Microsoft Agent Framework is the right choice when you need to build a system of agents that collaborate, maintain state, follow business processes, and operate with enterprise-grade governance. It's designed for long-running, multi-agent workflows where you need fine-grained control over every aspect of orchestration. What You Get Out of the Box The Agent Framework provides a comprehensive foundation for building sophisticated agent systems in both Python and .NET: Graph-based workflows: Connect agents and deterministic functions using data flows with streaming, checkpointing, human-in-the-loop, and time-travel capabilities Multi-agent orchestration: Define how agents collaborate, hand off tasks, escalate decisions, and share state Durability and checkpoints: Workflows can pause, resume, and recover from failures, essential for business-critical processes Human-in-the-loop: Built-in support for approval gates, review steps, and human override points Observability: OpenTelemetry integration for distributed tracing, monitoring, and debugging across agent boundaries Multiple agent providers: Use Azure OpenAI, OpenAI, and other LLM providers as the intelligence behind your agents DevUI: An interactive developer UI for testing, debugging, and visualizing workflow execution Architecture The Agent Framework gives you explicit control over the agent topology. You define agents, connect them in workflows, and manage the flow of data between them: ┌─────────────┐ ┌──────────────┐ ┌──────────────┐ │ Agent A │────▶│ Agent B │────▶│ Agent C │ │ (Planner) │ │ (Executor) │ │ (Reviewer) │ └─────────────┘ └──────────────┘ └──────────────┘ Define Execute Validate strategy tasks output Each agent has its own instructions, tools, memory, and state. The framework manages communication between agents, handles failures, and provides visibility into what's happening at every step. This explicitness is what makes it suitable for enterprise applications where auditability and control are non-negotiable. Ideal Use Cases for the Agent Framework The Agent Framework excels in scenarios where you need a system of coordinated agents operating under business rules. These include: Multi-agent business workflows: Customer support pipelines, research workflows, operational processes, and data transformation pipelines where different agents handle different responsibilities Systems requiring durability: Workflows that run for hours or days, need checkpoints, can survive restarts, and maintain state across sessions Governance-heavy applications: Processes requiring approval gates, audit trails, role-based access, and compliance documentation Agent collaboration patterns: Applications where agents need to negotiate, escalate, debate, or refine outputs iteratively before producing a final result Enterprise data pipelines: Complex data processing workflows where AI agents analyze, transform, and validate data through multiple stages A practical example: an enterprise customer support system where a triage agent classifies incoming tickets, a research agent gathers relevant documentation and past solutions, a response agent drafts replies, and a quality agent reviews responses before they reach the customer, with a human escalation path when confidence is low. Side-by-Side Comparison To make the distinction concrete, here's how the two technologies compare across key dimensions that matter when choosing an intelligence layer for your application. Dimension GitHub Copilot SDK Microsoft Agent Framework Primary purpose Embed Copilot's agent runtime into your app Build and orchestrate your own agent systems Orchestration Handled by Copilot's agent loop, you delegate You define explicitly, agents, workflows, state, hand-offs Agent count Typically single agent per session Multi-agent systems with agent-to-agent communication State management Session-scoped, managed by the SDK Durable state with checkpointing, time-travel, persistence Human-in-the-loop Basic, user confirms actions Rich approval gates, review steps, escalation paths Observability Session logs and tool call traces Full OpenTelemetry, distributed tracing, DevUI Best for Developer tools, task automation, code-centric workflows Enterprise workflows, multi-agent systems, business processes Languages Python, TypeScript, Go, .NET Python, .NET Learning curve Low, install, configure, delegate tasks Moderate, design agents, workflows, state, and policies Maturity Technical Preview Preview with active development, 7k+ stars, 100+ contributors Real-World Example: Both Working Together The most compelling applications don't choose between these technologies, they combine them. A perfect demonstration of this complementary relationship is the Agentic House project by my colleague Anthony Shaw, which uses an Agent Framework workflow to orchestrate three agents, one of which is powered by the GitHub Copilot SDK. The Problem Agentic House lets users ask natural language questions about their Home Assistant smart home data. Questions like "what time of day is my phone normally fully charged?" or "is there a correlation between when the back door is open and the temperature in my office?" require exploring available data, writing analysis code, and producing visual results—a multi-step process that no single agent can handle well alone. The Architecture The project implements a three-agent pipeline using the Agent Framework for orchestration: ┌─────────────┐ ┌──────────────┐ ┌──────────────┐ │ Planner │────▶│ Coder │────▶│ Reviewer │ │ (GPT-4.1) │ │ (Copilot) │ │ (GPT-4.1) │ └─────────────┘ └──────────────┘ └──────────────┘ Plan Notebook Approve/ analysis generation Reject Planner Agent: Takes a natural language question and creates a structured analysis plan, which Home Assistant entities to query, what visualizations to create, what hypotheses to test. This agent uses GPT-4.1 through Azure AI Foundry or GitHub Models. Coder Agent: Uses the GitHub Copilot SDK to generate a complete Jupyter notebook that fetches data from the Home Assistant REST API via MCP, performs the analysis, and creates visualizations. The Copilot agent is constrained to only use specific tools, demonstrating how the SDK supports tool restriction. Reviewer Agent: Acts as a security gatekeeper, reviewing the generated notebook to ensure it only reads and displays data. It rejects notebooks that attempt to modify Home Assistant state, import dangerous modules, make external network requests, or contain obfuscated code. Why This Architecture Works This design demonstrates several principles about when to use which technology: Agent Framework provides the workflow: The sequential pipeline with planning, execution, and review is a classic Agent Framework pattern. Each agent has a clear role, and the framework manages the flow between them. Copilot SDK provides the coding execution: The Coder agent leverages Copilot's battle-tested ability to generate code, work with files, and use MCP tools. Building a custom code generation agent from scratch would take significantly longer and produce less reliable results. Tool constraints demonstrate responsible AI: The Copilot SDK agent is constrained to only specific tools, showing how you can embed powerful agentic behavior while maintaining security boundaries. Standalone agents handle planning and review: The Planner and Reviewer use simpler LLM-based agents, they don't need Copilot's code execution capabilities, just good reasoning. While the Home Assistant data is a fun demonstration, the pattern is designed for something much more significant: applying AI agents for complex research against private data sources. The same architecture could analyze internal databases, proprietary datasets, or sensitive business metrics. Decision Framework: Which Should You Use? When deciding between the Copilot SDK and the Agent Framework, or both, consider these questions about your application. Start with the Copilot SDK if: You need a single agent to execute tasks autonomously (code generation, file editing, command execution) Your application is developer-facing or code-centric You want to ship agentic features quickly without building orchestration infrastructure The tasks are session-scoped, they start and complete within a single interaction You want to leverage Copilot's existing tool ecosystem and MCP integration Start with the Agent Framework if: You need multiple agents collaborating with different roles and responsibilities Your workflows are long-running, require checkpoints, or need to survive restarts You need human-in-the-loop approvals, escalation paths, or governance controls Observability and auditability are requirements (regulated industries, enterprise compliance) You're building a platform where the agents themselves are the product Use both together if: You need a multi-agent workflow where at least one agent requires strong code execution capabilities You want Agent Framework's orchestration with Copilot's battle-tested agent runtime as one of the execution engines Your system involves planning, coding, and review stages that benefit from different agent architectures You're building research or analysis tools that combine AI reasoning with code generation Getting Started Both technologies are straightforward to install and start experimenting with. Here's how to get each running in minutes. GitHub Copilot SDK Quick Start Install the SDK for your preferred language: # Python pip install github-copilot-sdk # TypeScript / Node.js npm install @github/copilot-sdk # .NET dotnet add package GitHub.Copilot.SDK # Go go get github.com/github/copilot-sdk/go The SDK requires the Copilot CLI to be installed and authenticated. Follow the Copilot CLI installation guide to set that up. A GitHub Copilot subscription is required for standard usage, though BYOK mode allows you to use your own API keys without GitHub authentication. Microsoft Agent Framework Quick Start Install the framework: # Python pip install agent-framework --pre # .NET dotnet add package Microsoft.Agents.AI The Agent Framework supports multiple LLM providers including Azure OpenAI and OpenAI directly. Check the quick start tutorial for a complete walkthrough of building your first agent. Try the Combined Approach To see both technologies working together, clone the Agentic House project: git clone https://github.com/tonybaloney/agentic-house.git cd agentic-house uv sync You'll need a Home Assistant instance, the Copilot CLI authenticated, and either a GitHub token or Azure AI Foundry endpoint. The project's README walks through the full setup, and the architecture provides an excellent template for building your own multi-agent systems with embedded Copilot capabilities. Key Takeaways Copilot SDK = "Put Copilot inside my app": Embed a production-tested agentic runtime with planning, tool execution, file edits, and MCP support directly into your application Agent Framework = "Build my app out of agents": Design, orchestrate, and host multi-agent systems with explicit workflows, durable state, and enterprise governance They're complementary, not competing: The Copilot SDK can act as a powerful execution engine inside Agent Framework workflows, as demonstrated by the Agentic House project Choose based on your orchestration needs: If you need one agent executing tasks, start with the Copilot SDK. If you need coordinated agents with business logic, start with the Agent Framework The real power is in combination: The most sophisticated applications use Agent Framework for workflow orchestration and the Copilot SDK for high-leverage task execution within those workflows Conclusion and Next Steps The question isn't really "Copilot SDK or Agent Framework?" It's "where does each fit in my architecture?" Understanding this distinction unlocks a powerful design pattern: use the Agent Framework to model your business processes as agent workflows, and use the Copilot SDK wherever you need a highly capable agent that can plan, code, and execute autonomously. Start by identifying your application's needs. If you're building a developer tool that needs to understand and modify code, the Copilot SDK gets you there fast. If you're building an enterprise system where multiple AI agents need to collaborate under governance constraints, the Agent Framework provides the architecture. And if you need both, as most ambitious applications do, now you know how they fit together. The AI development ecosystem is moving rapidly. Both technologies are in active development with growing communities and expanding capabilities. The architectural patterns you learn today, embedding intelligent agents, orchestrating multi-agent workflows, combining execution engines with orchestration frameworks, will remain valuable regardless of how the specific tools evolve. Resources GitHub Copilot SDK Repository – SDKs for Python, TypeScript, Go, and .NET with documentation and examples Microsoft Agent Framework Repository – Framework source, samples, and workflow examples for Python and .NET Agentic House – Real-world example combining Agent Framework with Copilot SDK for smart home data analysis Agent Framework Documentation – Official Microsoft Learn documentation with tutorials and user guides Copilot CLI Installation Guide – Setup instructions for the CLI that powers the Copilot SDK Copilot SDK Getting Started Guide – Step-by-step tutorial for SDK integration Copilot SDK Cookbook – Practical recipes for common tasks across all supported languagesPantone’s Palette Generator enhances creative exploration with agentic AI on Azure
Color can be powerful. When creative professionals shape the mood and direction of their work, color plays a vital role because it provides context and cues for the end product or creation. For more than 60 years, creatives from all areas of design—including fashion, product, and digital—have turned to Pantone color guides to translate inspiration into precise, reproducible color choices. These guides offer a shared language for colors, as well as inspiration and communication across industries. Once rooted in physical tools, Pantone has evolved to meet the needs of modern creators through its trend forecasting, consulting services, and digital platform. Today, Pantone Connect and its multi-agent solution called the Pantone Palette Generator seamlessly bring color inspiration and accuracy into everyday design workflows (as well as the New York City mayoral race). Simply by typing in a prompt, designers can generate palettes in seconds. Available in Pantone Connect, the tool uses Azure services like Microsoft Foundry, Azure AI Search, and Azure Cosmos DB to serve up the company’s vast collection of trend and color research from the color experts at the Pantone Color Institute. reached in seconds instead of days. Now, with Microsoft Foundry, creatives can use agents to get instant color palettes and suggestions based on human insights and trend direction.” Turning Pantone’s color legacy into an AI offering The Palette Generator accelerates the process of researching colors and helps designers find inspiration or validate some of their ideas through trend-backed research. “Pantone wants to be where our customers are,” says Rohani Jotshi, Director of Software Engineering and Data at Pantone. “As workflows become increasingly digital, we wanted to give our customers a way to find inspiration while keeping the same level of accuracy and trust they expect from Pantone.” The Palette Generator taps into thousands of articles from Pantone’s Color Insider library, as well as trend guides and physical color books in a way that preserves the company’s color standards science while streamlining the creative process. Built entirely on Microsoft Foundry, the solution uses Azure AI Search for agentic retrieval-augmented generation (RAG) and Azure OpenAI in Foundry Models to reason over the data. It quickly serves up palette options in response to questions like “Show me soft pastels for an eco-friendly line of baby clothes” or “I want to see vibrant metallics for next spring.” Over the course of two months, the Pantone team built the initial proof of concept for the Palette Generator, using GitHub Copilot to streamline the process and save over 200 hours of work across multiple sprints. This allowed Pantone’s engineers to focus on improving prompt engineering, adding new agent capabilities, and refining orchestration logic rather than writing repetitive code. Building a multi-agent architecture that accelerates creativity The Pantone team worked with Microsoft to develop the multi-agent architecture, which is made up of three connected agents. Using Microsoft Agent Framework—an open source development kit for building AI orchestration systems—it was a straightforward process to bring the agents together into one workflow. “The Microsoft team recommended Microsoft Agent Framework and when we tried it, we saw how it was extremely fast and easy to create architectural patterns,” says Kristijan Risteski, Solutions Architect at Pantone. “With Microsoft Agent Framework, we can spin up a model in five lines of code to connect our agents.” When a user types in a question, they interact with an orchestrator agent that routes prompts and coordinates the more specialized agents. Behind the scenes an additional agent retrieves contextually relevant insights from Pantone’s proprietary Color Insider dataset. Using Azure AI Search with vectorized data indexing, this agent interprets the semantics of a user’s query rather than relying solely on keywords. A third agent then applies rules from color science to assemble a balanced palette. This agent ensures the output is a color combination that meets harmony, contrast, and accessibility standards. The result is a set of Pantone-curated colors that match the emotional and aesthetic tone of the request. “All of this happens in seconds,” says Risteski. To manage conversation flow and achieve long-term data persistence, Pantone uses Azure Cosmos DB, which stores user sessions, prompts, and results. The database not only enables designers to revisit past palette explorations but also provides Pantone with valuable usage intelligence to refine the system over time. “We use Azure Cosmos DB to track inputs and outputs,” says Risteski. “That data helps us fine-tune prompts, measure engagement, and plan how we’ll train future models.” Improving accuracy and performance with Azure AI Search With Azure AI Search, the Palette Generator can understand the nuance of color language. Instead of relying solely on keyword searches that might miss the complexity of words like “vibrant” or “muted,” Pantone’s team decided to use a vectorized index for more accurate palette results. Using the built-in vectorization capability of Azure AI Search, the team converted their color knowledge base—including text-based color psychology and trend articles—into numerical embeddings. “Overall, vector search gave us better results because it could understand the intent of the prompt, not just the words,“ says Risteski. “If someone types, ‘Show me colors that feel serene and oceanic,’ the system understands intent. It finds the right references across our color psychology and trend archives and delivers them instantly.” The team also found ways to reduce latency as they evolved their proof of concept. Initially, they encountered slow inference times and performance lags when retrieving search results. By switching from GPT-4.1 to GPT-5, latency improved. And using Azure AI Search to manage ranking and filtering results helped reduce the number of calls to the large language model (LLM). “With Azure, we just get the articles, put them in a bucket, and say ‘index it now,’ says Risteski. “It takes one or two minutes—and that’s it. The results are so much better than traditional search.” Moving from inspiration to palettes faster The Palette Generator has transformed how designers and color enthusiasts interact with Pantone’s expertise. What once took weeks of research and review can now be done in seconds. “Typically, if someone wanted to develop a palette for a product launch, it might take many months of research,” says Jotshi. “Now, they can type one sentence to describe their inspiration then immediately find Pantone-backed insight and options. Human curation will still be hugely important, but a strong set of starting options can significantly accelerate the palette development process.” Expanding the palette: The next phase for Pantone’s design agent Rapidly launching the Palette Generator in beta has redefined what the Pantone engineering team thought was possible. “We’re a small development team, but with Azure we built an enterprise-grade AI system in a matter of weeks,” says Risteski. “That’s a huge win for us.” Next up, the team plans to migrate the entire orchestration layer to Azure Functions, moving to a fully scalable, serverless deployment. This will allow Pantone to run its agents more efficiently, handle variable workloads automatically, and integrate seamlessly with other Azure products such as Microsoft Foundry and Azure Cosmos DB. At the same time, Pantone plans to expand its multi-agent system to include new specialized agents, including one focused on palette harmony and another focused on trend prediction.
