Microsoft Foundry · formerly Azure AI Foundry

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.

650+
AI automations deployed by encorp.ai
2–4 wk
from kickoff to first working results
2019
building AI solutions in Sofia for the EU
Foundry Agent Service · Credit memo agent
running
  1. 1
    Input
    Loan application and 12 months of bank statements land in Blob Storage
  2. 2
    Hosted agent
    An Agent Framework workflow extracts the figures and checks them against the credit policy via Foundry IQ
  3. 3
    Model
    GPT-5.5 on a Data Zone EU deployment drafts the credit memo with sources
  4. 4
    Evaluation & review
    Automated checks compare the memo with the source figures; an analyst approves in Teams
OpenTelemetry tracing · Guardrails · Entra agent identity

What we build with

  • Microsoft Foundry
  • Foundry Agent Service
  • Foundry Models
  • Microsoft Agent Framework
  • Foundry IQ
  • Azure AI Search
  • Foundry Control Plane
  • MCP & A2A
  • Voice Live
  • Microsoft Agent 365
The short answer

What is Microsoft Foundry?

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 StudioCustom code on AzureMicrosoft Foundry
Best forBusiness teams automating processes with low codeTeams that need full control of the stack or host their own modelsDevelopers building production agents with custom logic
Service type (Microsoft CAF)SaaS · process transformationInfrastructure · GPUs and containers on AKS or Container AppsPaaS · strategic transformation
Model choiceCan use Foundry models in a hybrid setupAny model you deploy and operate yourself10,000+ models: GPT-5.x, Claude, Mistral, DeepSeek, Llama and more
Integration & networkingSaaS security model and low-code building blocksWhatever your team builds and maintainsCustom code, MCP, A2A and bring-your-own VNet
Quality & observabilityOrganisation-wide governance through Agent 365Your own testing and monitoring stackEvaluations, OpenTelemetry tracing, red teaming and guardrails built in
Pricing modelCopilot Credits (25,000 for €173.30/month, list price)Azure compute and GPU capacity you runPay 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
  • Clear go / no-go recommendation
Book the review

Foundry pilot

One production-grade agent, scoped and built

Custom

fixed scope and price after the review

  • Architecture, agent code and tool integrations
  • Test set, tracing and guardrails
  • Supervised pilot with quality and cost metrics
  • Hand-over documentation for your engineers
Scope my Foundry pilot

Growth plan

Ongoing AI engineering and operations

€3,500

per month · minimum 6 months

  • Fractional AI Director, 1–2 days per week for architecture and roadmap
  • AI-OPS monitoring of quality, cost and failures
  • One new small automation every month
  • Enterprise plan also available at €50,000 per year
Talk about the Growth plan

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.

FAQ

Microsoft Foundry development — common questions

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.
Nikola Alexandrov, CEO, Hydra Blockchain

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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.

650+ automations deployed · Bulgarian and English · EU AI Act-aligned · Prices exclude VAT