Microsoft Ignite 2025: Microsoft unveils full-stack AI lifecycle tools from idea to deployment

At Ignite 2025, Microsoft outlined its most comprehensive AI vision yet, presenting a full-stack ecosystem that supports AI development from the initial idea stage to real-world deployment and governance. The company emphasised that AI can no longer be treated as an add-on but must be embedded across every layer of work — from the data centre powering models to the frontline employees using them daily. The announcements highlight Microsoft’s effort to help organisations become “Frontier Firms,” where employees, processes and data are fully integrated with AI-driven workflows.

Work IQ brings AI into the flow of work
Microsoft is expanding its Microsoft 365 Copilot ecosystem with Work IQ, the new intelligence layer that understands how people collaborate across apps, files, meetings and chats. Built on an organisation’s data and work patterns, Work IQ enables Copilot to connect insights, anticipate user needs and deliver next-step recommendations.
For developers and enterprises, Microsoft is introducing new Copilot APIs, allowing them to build agents tuned to industry-specific workflows. Work IQ also powers several of the latest enhancements coming to Microsoft 365 Copilot unveiled at Ignite, strengthening AI-assisted productivity within familiar applications.

Fabric IQ and Foundry IQ unify business data for smarter agents
To help teams build powerful AI agents grounded in business context, Microsoft announced Fabric IQ and Foundry IQ.
Fabric IQ connects analytical, operational, time-series and location-based data under a unified business model. Organisations already using Power BI can reuse existing data models to accelerate agent development. This gives both humans and AI a real-time view of the business, enabling faster, more informed decision-making.
Foundry IQ extends these capabilities further. It acts as a managed knowledge system that integrates data from Microsoft 365 (Work IQ), Fabric IQ, internal applications and the web. With intelligence and routing built in, Foundry IQ enables agents to reason more accurately, perform safer actions and deliver higher-value outcomes.
Microsoft is combining these elements under the Microsoft Agent Factory program, which provides a single metered plan for building and deploying agents using Foundry and Copilot Studio. Organisations also gain access to training and support from Microsoft’s Forward Deployed Engineers.

Agent 365 delivers governance for the coming wave of AI agents
Microsoft expects businesses to operate 1.3 billion AI agents by 2028, highlighting the need for strong governance and security. Agent 365 is designed to provide observability, control and protection across all agents — whether they are built using Microsoft tools or third-party platforms.
Agent 365 integrates Microsoft Defender, Entra, Purview and the Foundry Control Plane, giving agents the same security and management capabilities as human accounts. It also includes Microsoft 365 productivity apps and Work IQ insights, ensuring agents can operate responsibly within enterprise boundaries.