Microsoft Foundry
Foundry is the platform lane for models and agent runtimes — not a replacement for Microsoft 365 Copilot seats.
What it is
Microsoft Learn describes Microsoft Foundry as a unified platform for agents, models and tools with enterprise controls (RBAC, networking, tracing, evaluations). Foundry Agent Service hosts prompt agents and hosted agents, offers toolboxes, model catalog access, observability and publishing paths that can include Teams and Microsoft 365 Copilot. Build paths: configure a prompt agent; deploy a hosted agent (your container); or call the Responses API from code you run elsewhere.
Where it sits in the stack
Foundry is the Azure PaaS end of the spectrum. Copilot Studio is the SaaS low-code lane. Use Foundry when you need model choice, custom code, or retrieval patterns beyond Microsoft 365 Copilot. Cloud Adoption Framework materials contrast Foundry, Copilot Studio and custom GPU/container paths.
Key features / capabilities
- Model catalog (models sold by Azure and partner/community models) with deployment options.
- Prompt agents and hosted agents with managed runtime.
- Tools: web/file search, code interpreter, MCP, SharePoint knowledge sources (including preview paths).
- Observability: tracing, evaluations, Application Insights integration.
- Identity via Microsoft Entra; content filters; network isolation options.
Who it is for / when to use
Platform and engineering teams building custom AI apps or agents that must sit beside Microsoft 365. Do not use Foundry as a synonym for “turn on Copilot”.
Foundry vs Copilot Studio decision
Cloud Adoption Framework guidance frames Foundry as PaaS (pro-code and declarative agents with model choice) and Copilot Studio as SaaS low-code. If your constraint is “makers in the business need channels next month”, Studio wins. If your constraint is “we need a specific model, custom runtime and deep observability”, Foundry wins. Many programmes need both — Studio for employee-facing agents, Foundry for productised AI services — on one cost sheet.
Cost layer
Azure consumption and platform SKUs — keep Foundry spend on the same programme sheet as Copilot seats. See Managing cost and the feature matrix.
Risk and governance
Enterprise setup still needs identity, logging, data boundaries and responsible AI evaluations — same story as any agent. More: Managing risk.
Adoption tip
Write an ADR: why Foundry instead of Studio. If you cannot, start in Studio. Habits: Adoption.
Related Ideas
Copilot Studio · Agent Builder · Connectors · Production grade
Source note: check Microsoft Learn and Product Terms before you brief finance or legal. Products, names and meters change. This site is independent commentary, not Microsoft official documentation.