Microsoft Unveils Integrated Platform for Building and Governing Enterprise AI Agents
Executive Summary
At Ignite 2025, Microsoft announced a comprehensive suite of tools to manage the entire lifecycle of enterprise AI. The new platform introduces "IQ" layers—Work IQ, Fabric IQ, and Foundry IQ—to provide AI agents with deep contextual understanding of business data and workflows. To facilitate development and deployment, Microsoft launched Agent Factory, a program for building agents on a metered plan, and Agent 365 for observing, securing, and governing all AI agents within an organization.
Key Takeaways
* Contextual Intelligence Layers (IQ):
* Work IQ: An intelligence layer for Microsoft 365 Copilot that understands user work patterns, collaborations, and content to provide context to agents. It is now accessible via APIs.
* Fabric IQ: Connects analytical, operational, and location data into a shared model, giving agents a live view of business operations, and leverages existing Power BI models.
* Foundry IQ: A managed knowledge system that grounds agents across multiple data sources (Work IQ, Fabric IQ, custom apps, web) through a single endpoint to improve reasoning.
* Agent Development and Deployment:
* Microsoft Agent Factory: A program that combines the IQ layers to help organizations build agents. It features a single metered plan with no upfront licensing and offers hands-on support from Microsoft AI engineers.
* AI Governance and Management:
* Microsoft Agent 365: A new platform to observe, manage, and secure all AI agents, whether built on Microsoft, open-source, or third-party platforms. It addresses the "shadow IT" risk of ungoverned agents by integrating with Microsoft security and management tools like Defender, Entra, and the M365 admin center.
Strategic Importance
This announcement shifts Microsoft from providing standalone AI tools to offering a holistic, end-to-end platform for enterprise AI adoption. By addressing development, deployment, and governance in one integrated system, Microsoft aims to become the essential operating system for enterprise AI, creating deep ecosystem lock-in across its cloud, data, and security stacks.