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Microsoft Foundry Agent Service

Fully managed enterprise platform for building, deploying, and scaling AI agents with advanced multi-agent orchestration, enterprise security, and Azure ecosystem integration

Starting atFree
Visit Microsoft Foundry Agent Service →
💡

In Plain English

Azure AI Agent Service (now part of Azure AI Foundry) is Microsoft's managed platform for building AI agents that can reason, use tools, and work together. It connects to thousands of AI models and Azure services, making it easy for enterprise teams to create intelligent automation without managing infrastructure.

OverviewFeaturesPricingGetting StartedUse CasesLimitationsFAQAlternatives

Overview

Microsoft Foundry Agent Service is a fully managed enterprise AI agent platform in the Azure ecosystem, offering pay-per-use pricing for building, deploying, and orchestrating intelligent agents at scale. The platform addresses the growing need for sophisticated AI agent deployment in business environments by providing a comprehensive three-tier agent architecture that scales from no-code prototypes to fully custom containerized deployments. Prompt agents enable rapid prototyping through a portal-based no-code interface, workflow agents add declarative multi-step orchestration with branching and human-in-the-loop capabilities, and hosted agents allow teams to deploy custom code built with frameworks like LangGraph, Semantic Kernel, or AutoGen on managed infrastructure.

At the core of the platform is access to over 11,000 foundation models from the Foundry model catalog, including GPT-4o, Llama, Mistral, DeepSeek, and specialized industry models. Agents can intelligently route between models based on task requirements, and switching models is a configuration change rather than a code rewrite. Built-in tools cover web search via Bing, file search, Azure AI Search integration, code interpretation, and persistent memory, while enterprise connectors provide access to SharePoint, Microsoft Fabric, Azure Functions, and Logic Apps.

Enterprise security is deeply integrated through Microsoft Entra identity management with granular role-based access control, private virtual network isolation for compliance-sensitive workloads, and built-in content safety filters that include prompt injection and cross-prompt injection attack mitigation. The platform supports bring-your-own-resources for storage, search, and databases, enabling organizations to maintain data sovereignty and governance.

Multi-agent orchestration is a core differentiator, supporting patterns such as sequential handoff, group chat, delegation, and parallel execution through AutoGen and Semantic Kernel integration. Workflow agents add visual declarative branching and conditional logic, with human-in-the-loop approval steps available inside the same agent graph. End-to-end observability is provided through OpenTelemetry-based tracing surfaced in Application Insights, with dashboards for performance, cost, and safety metrics that make debugging and audit review practical at production scale.

The platform is best suited for enterprise development teams already invested in the Microsoft and Azure ecosystem, organizations requiring strict compliance and governance for AI deployments, and companies looking to consolidate agent development under a single managed service with deep integrations into Microsoft 365, Teams, and Azure DevOps.

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Key Features

Three-Tier Agent Architecture+

Prompt agents are no-code and configured through the Foundry portal for rapid prototyping. Workflow agents add declarative orchestration with branching, parallel steps, and human-in-the-loop, authored visually or in YAML. Hosted agents let you deploy containerized code built with LangGraph, Semantic Kernel, or AutoGen on managed infrastructure with full control over runtime dependencies, scaling, and networking. This tiered approach lets teams start simple and graduate to more complex agent deployments without switching platforms.

11,000+ Model Catalog+

Agents can call any model from the Foundry catalog, including GPT-4o, Llama, Mistral, and DeepSeek, plus bring-your-own fine-tuned models. Intelligent routing and real-time optimization let agents pick the best model per task. Switching models is a configuration change, not a code rewrite.

Enterprise Security and Identity+

Native Microsoft Entra integration gives agents and users a unified identity plane with granular RBAC. Agents can run inside private virtual networks, and built-in content safety filters include prompt injection protection. Compliance certifications cover the standards required by regulated industries.

Tool Catalog and MCP Support+

Built-in tools include Bing web search, Azure AI Search, file search, code interpreter, and memory. Enterprise connectors cover SharePoint, Microsoft Fabric, Azure Functions, and Logic Apps. Custom tools plug in through Model Context Protocol servers and OpenAPI specifications.

Multi-Agent Orchestration+

Supports AutoGen and Semantic Kernel patterns including sequential handoff, group chat, delegation, and parallel execution. Workflow agents add declarative branching and conditional logic. Human-in-the-loop steps enable approvals and escalations inside the same agent graph.

OpenTelemetry Observability+

Every tool call, model invocation, and decision is captured via OpenTelemetry tracing and surfaced in Application Insights. The Foundry Control Plane provides dashboards for performance, cost, and safety metrics. This makes debugging and audit review practical at production scale.

Pricing Plans

Free Exploration

Free

  • ✓Access to Foundry portal and playground
  • ✓Browse model catalog and agent templates
  • ✓No Azure subscription required to explore

Pay-As-You-Go

Consumption-based

  • ✓No per-agent fee; billed on underlying resource consumption
  • ✓Token-based model inference charges (varies by model, e.g. GPT-4o, Llama, Mistral)
  • ✓Azure AI Search and Bing grounding query charges
  • ✓Storage costs for agent files and knowledge bases
  • ✓Compute charges for hosted agent containers
  • ✓Full access to prompt, workflow, and hosted agent types
  • ✓Enterprise security, Entra identity, and RBAC included

Agent Commit Units (ACUs)

Pre-purchased commitment

  • ✓5% discount at entry-level commitment tiers
  • ✓Up to 15% discount for higher committed usage volumes
  • ✓ACUs apply across tokens, storage, search, and compute costs
  • ✓Ideal for predictable, high-volume production workloads
  • ✓Same full feature access as pay-as-you-go tier
See Full Pricing →Free vs Paid →Is it worth it? →

Ready to get started with Microsoft Foundry Agent Service?

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Getting Started with Microsoft Foundry Agent Service

  1. 1Sign up for Azure subscription and access Microsoft Foundry portal
  2. 2Create your first prompt agent using the no-code interface with built-in templates
  3. 3Configure agent instructions, select models, and add tools from the catalog
  4. 4Test your agent in the playground and publish to production endpoint
Ready to start? Try Microsoft Foundry Agent Service →

Best Use Cases

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Enterprise knowledge assistants that query SharePoint, Microsoft Fabric, and internal APIs while respecting Entra identity and RBAC permissions for each user

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Multi-agent research and analysis pipelines where specialized agents (retrieval, summarization, verification) coordinate via AutoGen or Semantic Kernel patterns with full OpenTelemetry tracing

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Regulated-industry copilots (financial services, healthcare, public sector) that require private VNet isolation, content safety filters, and compliance certifications not available in consumer agent platforms

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IT and DevOps automation agents integrated with Azure DevOps, Logic Apps, and Azure Functions to triage tickets, run diagnostics, and execute runbooks with human-in-the-loop approvals

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Line-of-business workflow agents replacing rule-based RPA: visual declarative workflows with branching logic, tool calls, and escalation for processes like invoice approval or onboarding

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Migration projects moving prototypes from LangGraph, CrewAI, or OpenAI Assistants into a governed production environment using the hosted agent tier without rewriting agent logic

Limitations & What It Can't Do

We believe in transparent reviews. Here's what Microsoft Foundry Agent Service doesn't handle well:

  • ⚠Hosted agents are in preview with reduced feature coverage, including no private networking support yet
  • ⚠Requires an Azure subscription and familiarity with Azure resource groups, identity, and networking
  • ⚠Consumption-based pricing spans tokens, storage, search, and compute, making cost forecasting complex
  • ⚠Prompt agents offer limited customization compared to hosted agents, forcing migration as needs grow
  • ⚠Deepest value comes from Microsoft 365 and Azure integration; benefits are smaller for non-Microsoft shops

Pros & Cons

✓ Pros

  • ✓Access to 11,000+ foundation models from a single catalog including GPT-4o, Llama, Mistral, and DeepSeek
  • ✓Fully managed infrastructure with Agent Commit Unit discounts up to 15% for committed usage
  • ✓Enterprise security via Microsoft Entra identity, RBAC, private VNet isolation, and compliance certifications
  • ✓Three agent tiers (prompt, workflow, hosted) let teams scale from no-code prototypes to full custom deployments
  • ✓Deep native integration with SharePoint, Microsoft Fabric, Teams, Azure AI Search, and Azure DevOps
  • ✓End-to-end OpenTelemetry tracing and Application Insights dashboards for production-grade observability

✗ Cons

  • ✗Requires an active Azure subscription and familiarity with Microsoft ecosystem tooling
  • ✗Hosted agents remain in preview with feature gaps, including no private networking support
  • ✗Consumption-based pricing across tokens, storage, search, and compute can be hard to forecast
  • ✗Less open-source flexibility than LangGraph or AutoGen for deeply custom agent architectures
  • ✗Meaningful learning curve for teams new to Azure identity, networking, and resource management

Frequently Asked Questions

What is the difference between Azure AI Agent Service and Azure AI Foundry?+

Azure AI Agent Service is now part of Microsoft Foundry (the platform previously branded as Azure AI Studio and Azure AI Foundry). Foundry is the umbrella platform for building AI applications and includes Foundry Models, Foundry Tools, Foundry IQ, and the Foundry Control Plane for observability. Agent Service is the specific component within Foundry dedicated to creating, deploying, and managing AI agents that can reason, use tools, and collaborate in multi-agent workflows.

What models can I use with Microsoft Foundry Agent Service?+

You can access more than 11,000 models from the Foundry model catalog, including OpenAI GPT-4o and o-series, Meta Llama, Mistral, DeepSeek, and specialized industry and fine-tuned models. You can also bring your own fine-tuned or custom models and deploy them through the same managed infrastructure. The platform supports switching models at the configuration level without requiring code changes, and intelligent routing can automatically select the best model for each task.

How does pricing work for Foundry Agent Service?+

Foundry Agent Service uses pay-as-you-go pricing based on the underlying resources an agent consumes: token-based model inference, storage, search queries (via Azure AI Search or Bing grounding), and compute for hosted agents. There is no separate per-agent fee. For higher-volume workloads, Microsoft offers Agent Commit Units (ACUs) as pre-purchased commitment plans that provide 5% to 15% discounts depending on the commitment level, applied across all resource types.

Can I run multiple AI agents that work together?+

Yes. Multi-agent orchestration is a core capability, supported through Semantic Kernel and AutoGen integration as well as the native workflow agent type. You can define specialized agents (e.g., a researcher, a reviewer, and a writer) and coordinate them with patterns for delegation, handoff, sequential execution, group chat, and parallel processing. Human-in-the-loop approval steps can be inserted at any point in the orchestration graph.

How does Foundry Agent Service compare to OpenAI's Assistants API or open-source frameworks?+

Based on our analysis of the AI Agents category, Foundry trades some raw flexibility for enterprise managed-service benefits. OpenAI's Assistants API is simpler to start with but limited to OpenAI models and lacks Microsoft 365 integration, private VNet isolation, and Entra-based RBAC. Open-source frameworks like LangGraph, AutoGen, and CrewAI offer maximum customization and portability but require you to build and manage your own hosting, security, and observability infrastructure.
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What's New in 2026

The platform has been rebranded under the Microsoft Foundry umbrella, expanding beyond Azure AI Foundry to include Foundry Models, Foundry Agent Service, Foundry IQ, Foundry Tools, and the Foundry Control Plane with integrated observability. The agent tier model now formally covers prompt, workflow, and hosted agents, with hosted agents supporting containerized deployment of custom code built with LangGraph, Semantic Kernel, or AutoGen. Model Context Protocol (MCP) support has been added for custom tool integration, and the model catalog has grown to over 11,000 foundation models with intelligent routing capabilities.

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