Microsoft Foundry development from prototype to production agent.
We design, code and operate AI agents and applications on Microsoft Foundry: Foundry Agent Service, Microsoft Agent Framework, Foundry IQ and the model that fits your quality, cost and data-residency requirements. Evaluated, traced and guarded before go-live, and run by our AI-OPS team after it.
Microsoft Foundry is Microsoft's Azure platform for building, deploying and governing AI agents and applications in code: it brings more than 10,000 models, Foundry Agent Service, knowledge tools, evaluations, tracing and guardrails together in one Foundry resource. It was called Azure AI Studio until November 2024 and Azure AI Foundry until November 2025.
Copilot Studio lets business teams assemble agents with low code. Foundry is the developer platform (PaaS) — Microsoft's Cloud Adoption Framework points to it when you need model choice, deep integration, custom logic and private networking. Agents run in Foundry Agent Service, generally available since 16 March 2026 and built on the OpenAI Responses API, either as declarative prompt agents or as hosted agents that run your own Agent Framework or LangGraph code in a container.
encorp.ai builds production agents on Foundry for companies in Bulgaria and the EU. We choose the model and deployment type for your data-residency needs, write the agent code and evaluations, connect your systems through MCP and Foundry IQ, and operate the agent after go-live with tracing, cost monitoring and EU AI Act-aligned governance.
Why Foundry projects stall
The demo took a week. The production agent is a different project.
Almost any team can call a model from a notebook. Production is where it gets hard: choosing from 10,000+ models without your own test set, deploying to a data zone that does not match your GDPR commitments, token bills nobody forecast, no tracing when an agent calls the wrong tool, and old prompt flow or hub-based projects that must move before they are retired. Then security blocks the release because nobody can show what the agent did and why.
10,000+
models in Foundry Models, with around 50 added each month (Microsoft, 2026)
No EU zone
for Claude on Foundry — Global Standard deployments only (Microsoft, 2026)
20 Apr 2027
prompt flow retires; Microsoft points users to Agent Framework (Microsoft, 2026)
What we deliver
Foundry agents, engineered like production software
Not a proof of concept that stays in a notebook. We ship agents with code, tests, monitoring and the controls your IT and security teams need before they sign off.
Foundry Agent Service agents
Prompt agents for well-scoped tasks, hosted agents for custom logic in Agent Framework or LangGraph — on the Responses API, with a private VNet where required.
Model selection & deployment
We compare GPT-5.x, Claude, Mistral, DeepSeek and Llama on your real cases, choose Global, Data Zone EU or regional deployment, and fine-tune (SFT, DPO, reinforcement) where it pays off.
RAG with Foundry IQ
Permission-aware retrieval over SharePoint, OneLake, Blob Storage and the web on Azure AI Search, respecting each user's access and Purview sensitivity labels.
Tools, MCP & multi-agent
Your APIs and systems exposed as MCP servers with OAuth passthrough, Toolboxes behind one MCP-compatible endpoint, and A2A for agents that work with other agents.
Evaluations, tracing & guardrails
Test sets run before every release, OpenTelemetry tracing, continuous red teaming and guardrails on prompts, outputs, tool calls and tool responses in Foundry Control Plane.
Cost control & AI-OPS
Token budgets per agent, Batch for jobs that can wait, provisioned throughput (PTU) for steady load, plus monitoring and monthly optimisation after go-live.
Example agents
Pro-code agents we build on Microsoft Foundry
Every project starts with a real process, a test set built from your own cases and a named owner on your side.
Back office
Document intelligence pipeline with evaluations
Extracts data from contracts, invoices or KYC documents into your ERP or core system, and scores every model or prompt change against a test set before release.
Foundry Agent Service
Foundry Models
Evaluations
Blob Storage
Customer service
Customer-facing support agent in an EU data zone
Answers customers on your website or app from product and policy content, hands over to a person with full context, and runs on a Data Zone EU model deployment.
Hosted agents
Agent Framework
Data Zone EU
Guardrails
Fintech & lending
Multi-agent credit analysis
Separate agents read financial statements, check credit-policy rules and draft the credit memo; an orchestrator combines the results and an analyst makes the decision.
Agent Framework
A2A
GPT-5.x
Foundry Control Plane
Knowledge management
Enterprise RAG over SharePoint and OneLake
Answers with citations from policies, procedures and data products, shows only content each user may see, and is published to Microsoft 365 Copilot and Teams.
Foundry IQ
Azure AI Search
SharePoint
OneLake
Contact centre
Voice agent for inbound calls
Handles routine calls such as order status or appointment changes in real time, works with your systems through MCP tools and transfers to a person when needed.
Voice Live
Foundry Agent Service
MCP
Guardrails
IT & engineering
Prompt flow to Agent Framework migration
Rebuilds existing prompt flow and hub-based projects as Agent Framework code on a Foundry resource, with evaluations proving quality holds — before the 20 April 2027 retirement.
Prompt flow
Microsoft Agent Framework
Foundry resource
Evaluations
Which Microsoft option when
Copilot Studio vs custom code on Azure vs Microsoft Foundry
Our decision guide, based on Microsoft's Cloud Adoption Framework (updated June 2026). Start with the question Microsoft asks first: does a ready-made SaaS agent already do the job? Many solutions combine two of these options.
Copilot Studio
Custom code on Azure
Microsoft Foundry
Best for
Business teams automating processes with low code
Teams that need full control of the stack or host their own models
Developers building production agents with custom logic
Service type (Microsoft CAF)
SaaS · process transformation
Infrastructure · GPUs and containers on AKS or Container Apps
PaaS · strategic transformation
Model choice
Can use Foundry models in a hybrid setup
Any model you deploy and operate yourself
10,000+ models: GPT-5.x, Claude, Mistral, DeepSeek, Llama and more
Integration & networking
SaaS security model and low-code building blocks
Whatever your team builds and maintains
Custom code, MCP, A2A and bring-your-own VNet
Quality & observability
Organisation-wide governance through Agent 365
Your own testing and monitoring stack
Evaluations, OpenTelemetry tracing, red teaming and guardrails built in
Pricing model
Copilot Credits (25,000 for €173.30/month, list price)
Azure compute and GPU capacity you run
Pay per token, Batch 50% cheaper, PTU for steady load
How we work
From architecture review to first results in 2–4 weeks
Short cycles, your real data from week one, and measured quality before anything scales.
01
Week 1
Architecture review & test set
We confirm that Foundry is the right fit rather than a SaaS agent or Copilot Studio, agree success metrics, map data sources and residency needs, and turn real cases into a test set.
Architecture decision record
Test set & quality metrics
Model and deployment shortlist
02
Weeks 2–3
Time-boxed prototype
In line with Microsoft's advice to time-box prototypes to 1–2 weeks, we build the agent in a development environment, compare two or three models on the test set and connect the first tools.
Working agent in dev
Model comparison report
Token and compute cost forecast
03
Week 4
Hardening & supervised pilot
We add guardrails, identity, private networking, tracing and red-team tests, then the agent handles live work while people review its outputs until it meets the agreed bar.
Security & data-residency review
Pilot quality and cost metrics
Go-live plan
04
After go-live
Production & AI-OPS
Release through your CI/CD pipeline with evaluations as a quality gate, monitoring in Foundry Control Plane and Azure Monitor, and a named owner on your side.
Production agent
Dashboards and alerts
Roadmap for the next agent
Ways to work with us
Start with a review, prove it in a pilot, then scale
Pro-code agents vary widely in scope, so the pilot is priced after the free architecture review. Azure consumption — tokens, compute and search — is billed by Microsoft to your own subscription.
All encorp.ai prices exclude VAT.
Architecture review
Is Foundry the right platform for this?
Free
30 minutes · online
Walk-through of your use case, data and systems
Fit check: Copilot Studio, Foundry or custom code
Model and data-zone options for your residency needs
Microsoft Foundry usage (model tokens, hosted-agent compute, Azure AI Search) is billed by Microsoft. Microsoft prices on this page are list prices as of September 2026.
Track record
650+ AI automations deployed for companies like these
Selected case studies from our wider AI engineering portfolio in fintech, telecom, logistics, media and e-commerce.
Is Microsoft Foundry the same as Azure AI Foundry?
Yes. Microsoft Foundry is the current name of Azure AI Foundry, which started out as Azure AI Studio. Microsoft renamed Azure AI Studio to Azure AI Foundry on 19 November 2024 and to Microsoft Foundry on 18 November 2025. Azure AI Services are now called Foundry Tools, hub-based projects and Azure OpenAI resources converge into a single Foundry resource, and agents move from the Assistants API to the Responses API.
What is the difference between Copilot Studio and Microsoft Foundry?
Copilot Studio is a low-code SaaS tool for business teams; Microsoft Foundry is a PaaS for developers who need model choice, deep integration, custom logic and private networking. Microsoft's Cloud Adoption Framework first asks whether a ready-made SaaS agent meets your requirements, then points to Copilot Studio for process transformation and to Foundry for strategic transformation. Hybrids are common, for example a Copilot Studio agent that uses Foundry models or Foundry IQ knowledge.
What are prompt agents and hosted agents in Foundry Agent Service?
Prompt agents are declarative: you define instructions, a model and tools, and Foundry Agent Service runs them with no additional orchestration charge. Hosted agents run your own code in a container, for example built with Microsoft Agent Framework or LangGraph, and are billed for compute in vCPU-hours and GiB-hours. Foundry Agent Service has been generally available since 16 March 2026; hosted agents reached general availability in July–August 2026.
How much does Microsoft Foundry cost?
Foundry Agent Service does not charge for orchestrating prompt agents and workflows; you pay for what the agent consumes. That means model tokens on Standard deployments, or provisioned throughput units (PTU) billed hourly with reservation discounts, plus hosted-agent compute, code interpreter sessions, file search storage above 1 GB, web search per 1,000 calls and Azure AI Search for Foundry IQ. Batch deployments cost 50% less when results can wait up to 24 hours.
Can we keep data in the EU with Microsoft Foundry and Azure OpenAI?
Yes, for models that offer a Data Zone EU deployment, which keeps processing inside the EU Data Boundary (it may include EFTA countries) while data at rest stays in your chosen geography. As of September 2026, GPT-5.4, GPT-5.5 and GPT-5.6 are offered this way in regions including Germany West Central, France Central and Sweden Central, and DeepSeek-V4-Flash and Mistral Large 3 also have an EU data zone. Claude on Foundry has no EU data zone, and gpt-6-astra is US data zone only.
Does Microsoft use our prompts and data to train models?
No. Microsoft states that prompts and completions in Foundry are not available to OpenAI and are not used to improve models. For deployments in the EEA, abuse-monitoring reviewers are located in the EEA, and qualifying customers can use modified abuse monitoring. GDPR compliance still depends on your specific use case, so we document data flows, deployment type and guardrails as part of the architecture review.
Which models can we use in Microsoft Foundry?
Foundry Models lists more than 10,000 models, with around 50 added each month. As of September 2026 that includes OpenAI GPT-5.x up to gpt-5.6 and gpt-6-astra, Claude (including Claude Opus 5), DeepSeek-V4, Mistral Large 3, Llama 3.3, Phi-4, MAI, Grok, Kimi and FLUX. We choose models by testing them on your own test set for quality, latency, cost and EU data-zone availability, not by leaderboard position.
What is Microsoft Agent Framework and how does it relate to Semantic Kernel and AutoGen?
Microsoft Agent Framework is Microsoft's SDK for building agents and multi-agent workflows in .NET and Python, and it brings AutoGen and Semantic Kernel together in one framework. Version 1.0 became generally available on 2 April 2026. It is also the path Microsoft recommends for teams using prompt flow, which retires on 20 April 2027. Agents built with it can run as hosted agents in Foundry Agent Service.
How do we migrate from prompt flow or Azure AI Foundry hubs?
Plan the move before prompt flow retires on 20 April 2027. We inventory your existing flows and hub-based projects, rebuild the logic as Microsoft Agent Framework code or prompt agents on a Foundry resource, and move Assistants API calls to the Responses API. Before switching traffic, we run the old and new versions against the same test set so you can see that quality and cost hold up.
Can Foundry agents be used in Microsoft 365 Copilot and Teams?
Yes. Since 10 June 2026, Foundry agents can be published to Microsoft 365 Copilot and Teams, and each published agent gets its own Microsoft Entra agent identity. For organisation-wide governance, Microsoft Agent 365 ($15 per user per month, list price as of September 2026, or included in Microsoft 365 E7) lets IT observe, govern and secure agents from Foundry, Copilot Studio and third parties. Since 1 July 2026, Defender security features for Foundry agents require an Agent 365 licence.
Free architecture review
Tell us what you want to build on Microsoft Foundry
Describe the agent or application in a few lines. A senior engineer replies within one working day with a first view on architecture, models and data residency.
My experience with Encorp has been excellent, especially in terms of the quality and dedication of the engineers that we’ve onboarded through them.
Take your AI prototype to a production agent on Microsoft Foundry.
Book a free 30-minute architecture review. We will check fit, models, data zone and running costs — and tell you plainly if Copilot Studio would do the job for less.