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Build 2025: Microsoft Charts Wider Path for AI Agents

At Build 2025, Microsoft unveiled its strategic vision for the future of AI agents, emphasizing the development of autonomous systems capable of performing complex tasks across various applications.

The company introduced new tools and platforms aimed at empowering developers to build AI agents that can operate independently, interact naturally with users, and integrate seamlessly into existing workflows.

Central to this initiative is the enhancement of Microsoft 365 and Azure with AI capabilities that support the creation and deployment of intelligent agents. These agents are designed to automate routine tasks, provide contextual assistance, and collaborate with users in real-time. Microsoft's approach focuses on creating an ecosystem where AI agents can be developed with ease, ensuring they are adaptable, secure and aligned with organizational goals.

Microsoft Entra Agent ID Extends Identity Management to AI Agents
Leading the announcements was the public preview of Microsoft Entra Agent ID, a new capability designed to bring identity and access governance to nonhuman actors. Introduced by Alex Simons, corporate vice president of Microsoft Entra, the service gives IT teams visibility and control over AI agents built across Microsoft tools, including Copilot Studio, Azure AI Foundry and Security Copilot.

"Our goal is simple: bring the same protections and controls you rely on for workforce identities to AI agents -- your new digital teammates," said Simons in a follow-up blog post.

Through the Entra admin center, organizations can apply Conditional Access, audit trails and lifecycle policies to AI agents. Microsoft also plans to expand Agent ID to support third-party agents and is partnering with ServiceNow and Workday to integrate agent provisioning with enterprise workflows.

Copilot Studio Enables Multi-Agent Collaboration
Copilot Studio, Microsoft's low-code AI builder, now supports multi-agent systems, enabling developers to design agents that delegate tasks to one another. Currently in private preview, this feature allows agents built in Microsoft 365, Azure AI and Microsoft Fabric to collaborate toward shared outcomes -- such as pulling CRM data, drafting documents and scheduling meetings in sequence.

Additional updates to Copilot Studio include:

  • Computer use agents that interact with software interfaces like a human.
  • Custom model integration from Azure AI Foundry, including fine-tuning options.
  • Expanded publishing channels, including SharePoint (now available) and WhatsApp (coming in July).
  • Stronger governance tools, such as DLP enforcement and Entra integration.
  • In-conversation recommendations that route users to the best-fit agent based on their query.

Azure AI Foundry Goes GA With Agent-Oriented Enhancements
Microsoft also announced the general availability of the Foundry Agent Service, a core part of the Azure AI Foundry platform. It supports both single- and multi-agent deployments, leverages the Model Context Protocol and Agent-to-Agent (A2A) protocol and offers seamless orchestration with Microsoft and third-party services.

The expanded platform now includes:

  • A catalog of 1,900+ models, including GPT-4.5 and Grok 3.
  • Edge-ready agents via Foundry Local for offline or privacy-sensitive workloads.
  • A new developer tier with free hosting for experimentation.
  • Smart model routing to optimize performance and cost.
  • Built-in AgentOps for tracing, debugging and deployment monitoring.

With streamlined onboarding, a unified API, and deep Visual Studio Code integration, Azure AI Foundry aims to drastically reduce time-to-production for enterprise AI projects.

GitHub Copilot Agent Automates Developer Tasks
GitHub introduced a new Copilot coding agent, allowing developers to assign GitHub issues directly to Copilot, which then writes and submits code via pull requests. Operating within a secure GitHub Actions environment, the agent is optimized for routine coding tasks -- such as refactoring, testing, and documentation -- while enforcing strict review and branch policies.

Key features include:

  • Live session logs and progress tracking.
  • Support for MCP and visual issue inputs.
  • Approval gates and repository safeguards.

GitHub CEO Thomas Dohmke called the feature a game-changer: "Whether it's code completions, next edit suggestions, chat, agent mode, or now coding agent, GitHub Copilot has always had one mission: To keep you in the magical flow state."

Microsoft's Build announcements signal a clear commitment to making agents first-class citizens in the enterprise IT ecosystem. With identity protections from Entra, composability in Copilot Studio, scalable deployment in Azure AI Foundry, and automation in GitHub Copilot, the company is positioning agents not just as tools -- but as collaborators.

About the Author

Chris Paoli (@ChrisPaoli5) is the associate editor for Converge360.

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