In a recent playbook, Accelerating sustainability with AI: Innovations for a better future, we outlined our five plays to advance sustainability, providing insight into our work at Microsoft and how business leaders around the world are creating a new path forward.

The reason to choose AI for this work? It has three unique abilities that can help organizations overcome key bottlenecks. AI can: (1) measure, predict, and optimize complex systems, (2) accelerate the development of sustainability solutions, and (3), empower the sustainability workforce. These capabilities make AI a critical enabler of progress.

How can business leaders harness AI to accelerate resilience, efficiency, and sustainability in their organization?

I recently met with Lindsay Myers, Vice President, Commercial Cross Solutions at Microsoft, who leads our Commercial Sustainability business, to talk more about this guidance and how business leaders can harness AI to accelerate resilience, efficiency, and sustainability in their organizations.

Toby: Hi Lindsay, before we dive into the playbook, can you share your thoughts on how organizations are adopting AI to address these interconnected goals of resilience, efficiency, and sustainability?

Lindsay: It’s important to highlight how interconnected these goals are in many organizations today. We often see initiatives started by sustainability teams result in significant cost savings for organizations. This might be efficiency gains for existing operations, or entirely new approaches like digital twins that enable rapid iteration before initial prototypes are built. When companies choose an approach like digital twins, it can reduce the materials needed for physical models—saving time and costs—while improving resilience through agility.

Explore customer and partner examples of AI innovation

Toby: Can you give me some examples of customers and partners who are doing this work today?

Lindsay: AI is making a real difference in helping organizations prepare for climate risks, innovate for maximum efficiency, and solve complex challenges. For example, in Germany, where urban flooding is a major concern, cities are searching for innovative ways to mitigate the impacts of heavy rainfall and its impact on communities and infrastructure. Esri, a global leader in geographic information system (GIS) software is helping cities unlock the power of digital twins driven by geospatial data and AI. This solution helped the City of Stuttgart cut its reality mapping time from five months to 24 hours, enabling local government and public safety staff to understand potential impacts and make decisions faster.

Stadtwerke München (SWM), the municipal utilities company serving Munich, has made it its mission to drive every aspect of the city’s energy, heating, and mobility transition forward. To accomplish this, it needed maximum-efficiency processes, such as predictive infrastructure maintenance and optimized operations planning. It has turned to Microsoft Azure and Azure IoT to efficiently provide power to its public transport fleet of 100% electrified vehicles.

Unlock new possibilities with data and AI

Toby: Those are inspiring examples; they give a real sense of AI’s potential. The playbook outlines 5 plays, or ways that organizations can unlock this potential. Could you describe some of these?

Lindsay: Let’s talk first about the first two plays and how they work together.

Investing in AI solutions to measure, predict, and optimize complex systems can drive both innovation and efficiency, helping companies focus on the most strategic priorities for business resilience.

For example, Mitiga Solutions, a global leader in climate risk intelligence and a Microsoft Climate Innovation Fund investment leverages AI, high-performance computing, and advanced climate models to predict the impact of physical climate hazards on any asset, anywhere in the world, from now until the end of the century. This helps infrastructure, commercial real estate, insurers, and companies across industries comply with climate disclosure regulations while proactively strengthening their resilience.

 With AI-powered solutions, businesses can swiftly tackle complex challenges across their own supply chains and for their customers. This not only positions companies as leaders in sustainability but can also unlock new market opportunities and enhance their competitive advantage.

It’s crucial to build a strong digital and data infrastructure to maximize AI’s potential—your AI is only as good as the data it relies on. That’s why having high-quality, representative data and the right processing infrastructure is essential. It enables teams to make informed decisions and provides accurate input for AI applications.

For many of our customers and partners, these two plays are closely linked. The foundational work involves bringing all the necessary data together in one place, like in Microsoft Fabric. What’s amazing about Fabric is it lets you reason over both internal and external data, which is incredibly helpful for things like regulatory reporting.

Once your data is set up properly, your team can use solutions such as Microsoft Copilot to ask questions of their data, generate reports, and learn from industry best practices. Copilot streamlines these tasks, reducing manual work and enabling practitioners to focus their time on new strategic initiatives.

Minimize resource use in AI design and operations

Toby: When I talk to organizations looking to adopt AI, customers and partners often want to learn more about what Microsoft is doing to reduce the environmental impact of AI. Could we talk a bit about that?

Lindsay: Absolutely. Let’s talk about play 3 and how that relates to our work at Microsoft.

AI has its own energy and water demands, so it’s crucial to minimize resource use and move toward powering AI systems with carbon-free energy. In addition, since AI infrastructure is often concentrated in specific regions, it is essential to support the local communities where datacenters are located. At Microsoft, we’re innovating across three critical areas to continue to advance the sustainability of cloud and AI services:

1. Optimizing datacenter energy, water, and waste efficiency while protecting ecosystems.
2. Advancing low-carbon materials and creating global markets to promote industry-wide sustainability.
3. Enhancing the energy efficiency of AI and cloud services.

Many of our customers and partners want to know not only what we’re doing, but also what they can do to manage resource use. Our Well-Architected Framework sustainability guidance provides a great starting point, as well as small language models that perform specific tasks using fewer resources than larger models.

Build workforce capacity to use AI for sustainability

Toby: The pace of innovation in this domain is incredible. Is there anything more you’d like to add in terms of how your team helps leaders move their ideas from concept to implementation?

Lindsay: The way forward on this journey is through people working together, and this is an area where we can help customers and partners make progress. Let’s talk about the final play first:

For companies to be able to put AI’s three game-changing capabilities to work, they must have skills to use AI effectively. Microsoft has training programs focused on building AI fluency, supporting nonprofits, businesses, and governments in advancing workforce AI technical skills and promoting safe and responsible AI development.

Microsoft’s AI learning hub can empower customers on their AI transformation journey, and customers can also use Copilot to connect with their data in Microsoft Cloud for Sustainability and sustainability data solutions in Microsoft Fabric. With these tools, employees can quickly gain insights, understand gaps, and identify what’s needed to move initiatives forward.

Toby: Thank you, Lindsay!

Transform business using generative AI

For business leaders wanting to put these plays in action and guide their organizations through effective AI adoption, we’ve published the 2025 AI Decision Brief: Insights from Microsoft and AI leaders on navigating the generative AI platform shift. This report is packed with perspectives from top Microsoft leaders and insights from AI innovators, along with stories of companies across industries that have transformed their businesses using generative AI.

The post Harnessing AI for resilience, efficiency, and sustainability appeared first on Microsoft Industry Blogs.

To address reporting complexity, organizations need reliable methods of centralizing, analyzing, and reporting on disparate ESG data that’s spread-out across their value chains, and for driving insights to take action. Microsoft Cloud for Sustainability is built to meet this need, equipping organizations with powerful ESG data readiness and reporting capabilities and AI-powered actionable insights. With solutions built on Microsoft Cloud for Sustainability, companies can more easily respond to emerging regulations, identify ways to improve progress, and find new business models and value.  

Microsoft Cloud for Sustainability

Data and AI capabilities to help you transform for the future

Explore our solutions

In this blog, we’ll zero in on the latest Microsoft Cloud for Sustainability reporting and AI capabilities that can help you confidently tackle your 2025 reporting goals. 

Drive efficient reporting processes—from assessment to approval  

ESG reporting involves wrangling not just disparate data but varying reporting standards that examine new sustainability dimensions and specific areas like Scope 3 (indirect) supply chain emissions, and water and waste management. Collaboration and AI assistance can be key to streamlining. 

External reporting in Microsoft Sustainability Manager (formerly Project ESG Reporting), now generally available, equips organizations with templates, frameworks, and AI-powered insights to reduce reporting complexity, enhance efficiency, and provide greater transparency to processes. Using these tools through Microsoft Power Platform or in Microsoft Sustainability Manager, organizations can seamlessly connect their ESG data, organize and review it, and collaboratively create voluntary and regulatory disclosure reports across a range of standards and frameworks including: 

• Corporate Sustainability Reporting Directive (CSRD)
• Australian Sustainability Reporting Standards (ASRS)
• Business Responsibility and Sustainability Reporting (BRSR) 1 and 2
• Global Reporting Initiative (GRI)
• International Financial Reporting Standards (IFRS) 1 and 2
• Sustainability Accounting Standards Board (SASB) 

Other features include approval and audit workflows to help ensure compliance and data accuracy; Microsoft Sustainability Manager profile and data integration; workflow UI to support task management and content approval; disclosure generation in Microsoft Excel; and extensibility for custom template creation.

Aiming to foster collaboration and enhance data quality and transparency, sustainability services partner Fellowmind is working alongside Microsoft to support customers using the preview capabilities of external reporting in Microsoft Sustainability Manager.  

“External reporting in Microsoft Sustainability Manager is a true game changer to our customers as they strive to comply with the EU’s Corporate Sustainability Reporting Directive (CSRD). Customers can leverage their existing Microsoft platform technology and data for efficient and compliant sustainability reporting.” 

Louise Ol-Ers, Fellowmind Group Sustainability Manager, Fellowmind 

Learn more about external reporting in Sustainability Manager.

Find facts and finish reports faster with Microsoft Copilot 

Synthesizing large amounts of data in comprehensive reports involves large-scale data processing and reporting in multiple formats simultaneously. By enabling Microsoft Copilot in Microsoft Sustainability Manager (preview), you can simplify drafting from different source documents, greatly speeding up disclosure reporting.  

Copilot in Microsoft Sustainability Manager uses a large language model to help you write qualitative and quantitative responses to fulfill ESG disclosure requirements. You can upload documentation and draft responses with references for various requirements, such as CSRD, GRI, and IFRS. 

Relieved of having to individually review large amounts of data to create a cohesive response for every requirement, with Copilot in Microsoft Sustainability Manager, you can fast-track your way to the report review phases. This feature is enabled by admins in external reporting in Microsoft Sustainability Manager.  

Create emissions, water, waste, and CSRD preparatory reports  

With Copilot in Microsoft Sustainability Manager, you can also use natural language to generate emissions, water, waste, and CSRD preparatory reports. Simply enter a trigger phrase, such as “Create a CSRD report” and describe the report you want to create, based on detailed parameters, for example: “Create a CSRD report in English for the year 2023 called ‘2023 CSRD preparation report’ for ‘Contoso Corp’ organizational unit.” 

Learn more about creating emissions, water, waste, and CSRD reports with Copilot in Microsoft Sustainability Manager.  

Do more with Copilot in Microsoft Sustainability Manager 

Of course, Copilot in Microsoft Sustainability Manager can help with much more than report preparation. With a growing set of skills, Copilot in Microsoft Sustainability Manager can help you: 

• Analyze documents when you upload ESG-related documents and ask questions about their contents.
• Create calculation models by simply describing the calculation model you’d like to create.
• Query your organizational data to quickly extract the information you need, such as a particular assessment report value or an organizational unit’s revenue.  

Learn more about Copilot in Microsoft Sustainability Manager.  

Explore sustainability solutions with Microsoft  

Insight to impact: AI use cases to advance sustainability

Explore five actionable ways that organizations use AI.

Read the e-book

• Bookmark Microsoft Industry Blogs: Sustainability for the latest updates, including new capabilities in Microsoft Cloud for Sustainability.
• Discover solutions with Microsoft Sustainability Manager.
• Explore the Microsoft Cloud for Sustainability Community, where you can find answers to questions and connect with peers and experts.
• See what’s new in Microsoft Cloud for Sustainability. 

¹ ESG News Survey, “Global ESG Regulation Increases by 155% Over the Past Decade,” 2023.

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These initiatives focus on harnessing data insights from smart technologies such as automation, Internet of Things (IoT), and AI, to improve how products are made and distributed. By unifying this and other data—including siloed data sets—into a single ESG data estate, manufacturing organizations can gain holistic views and granular insights to help them not only meet ESG reporting requirements, but also drive the sustainability of sourcing, making, transporting, and disposing of products—and implement business practices that advance a circular economy.  

To support your organization as you explore options and identify cost-effective steps in this era of industrial transformation, we’ve gathered learnings and recommendations into the Leader’s Guide to Sustainable Business Transformation. We’ve also created an ESG data readiness assessment to help you get started quickly. 

A more responsible, competitive path forward 

Manufacturing and mobility organizations that develop smart, automated, and data-driven processes as part of industrial transformation—and incorporate sustainability into those processes—are well positioned to gain a competitive advantage. ESG insights can help manufacturers achieve a range of goals across the value chain, such as:  

• Improved risk management and the protection of critical production processes.
• Engagement with vendors and suppliers to address Scope 3 emissions, reduce exposure to impacts from climate risks, and governance loopholes.
• Reduced costs and improved traceability with streamlined technology resources.
• More responsible capital deployment.  

With advanced solutions, organizations have already begun making these improvements. For example, Sandvik, a leader in mining industry manufacturing, implemented Microsoft AI and cloud technologies to enhance predictive maintenance and lower emissions, allowing them to cut down on waste and optimize resource use. 

ESG data: The input that fuels comprehensive sustainability 

To achieve the full potential of ESG data—from the shop floor to the board room—manufacturing and mobility organizations can benefit from evaluating sustainability comprehensively, in terms of environmental concerns as well as social and governance impacts. This approach uses ESG data insights to improve risk management and protect the value of critical product processes, and to make decisions that improve energy use, labor practices, supply chain transparency, regulatory compliance, and more.  

For example, Outokumpu, a worldwide leader in stainless steel production, tapped into the power of data by developing an industrial digital platform based on Microsoft Azure. The insights this platform provided led to significantly reduced waste (due to fewer defects) and energy usage—contributing to lower CO2 emissions. 

Key ways to maximize the benefits of ESG data in manufacturing and mobility include: 

• Build a data-driven infrastructure: ensure that systems are in place to collect and integrate accurate ESG data seamlessly across all departments.
• Leverage predictive insights: use AI and analytics to forecast and optimize operations, including by using natural language querying to enable all teams to access insights—enabling efficient resource use and proactive risk management.
• Foster a culture of sustainability: from executives to front-line workers, train employees in how ESG data can improve decision-making and drive sustainability outcomes. 

Implementing these ideas can provide the foundation for using ESG data to drive long-term success, and to make significant improvements relatively quickly. For instance, Nordic-based OSTP Group, which specializes in manufacturing stainless steel products and custom equipment, is using Microsoft technologies to track and report CO2 emissions. The data insights they gained led to a 70% reduction in direct CO2 emissions from 2021 to 2023. 

Schneider Electric, a global leader in energy management and industrial automation, has also reduced carbon emissions and optimized energy use—leveraging Azure OpenAI and other Microsoft AI technologies to boost not only sustainability, but also their engineers’ productivity. 

How Microsoft is powering sustainable transformations  

Microsoft has emerged as a leading partner for manufacturing and mobility organizations on their journey toward sustainability. We’ve designed our solutions to help businesses in three primary ways: 

1. Improve ESG data transparency: We’re continuously innovating to enable our customers to glean consolidated data intelligence from across their operations and value chain.
2. Deliver actionable insights: Microsoft has a deep slate of expertise helping manufacturers maximize operational efficiencies using sensor-enabled data management and automated scenarios powered by the Microsoft Cloud.
3. Create new opportunities: We are a global leader in enabling digital transformation through our data and AI solutions, to help businesses grow while becoming more sustainable. 

We’re delivering for these solution areas by bringing together a growing set of ESG data and AI capabilities from Microsoft and our global ecosystem of partners, in Microsoft Cloud for Sustainability.  

A core solution in this suite is Microsoft Sustainability Manager, which allows businesses to more easily record, report, and reduce their environmental impact through data connections and powerful AI-powered analytics—and can be integrated with virtually any business system. With this solution, manufacturing and mobility teams advance on carbon, water, and waste management, as well as circularity.  

Businesses can also implement the purpose-built ESG capabilities of Sustainability data solutions in Microsoft Fabric, to integrate, normalize, and analyze ESG data—and other enterprise data—on a single digital platform. Together, these capabilities help improve ESG data accuracy and transparency, simplify reporting processes, and accelerate progress toward goals.  

Swedish forestry giant Södra is showing what’s possible with these capabilities. Södra utilizes Microsoft Sustainability Manager to improve supply chain transparency and track sustainability data across its entire operation, allowing them to reduce reliance on carbon-intensive materials, displacing 8.8 million tons of CO2 emissions annually. Södra estimates the positive impact of this accomplishment as equivalent to one-fifth of Sweden’s annual reported carbon emissions. 

A sustainable future begins with smarter solutions 

As manufacturing and mobility continues to transform, both smart technologies and ESG data will help companies drive sustainability, meet compliance and reporting requirements, and uncover new opportunities for growth. Microsoft is here to help organizations make the transition with solutions to help reduce their environmental impact, improve operational efficiency, and position themselves for long-term success in a rapidly changing world. To gain a view of your ESG data across key areas, as well as customized guidance on how to drive sustainability progress and add business value, complete our readiness assessment.

Explore ESG readiness for other industries

• Retail and consumer goods: Unlocking business value with data-driven sustainability for retail and consumer goods
• Financial services: ESG data readiness drives value for financial services firms

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At the same time, individual financial services firms may encounter a risk of disconnect with these stakeholders, primarily due to challenges and questions around disparities between firms’ presentation of their sustainability products, and the accuracy of the ESG data that underlies those products.  

Meanwhile, firms seek to comply with increasing ESG regulations and standards. And they need to meet, and ideally exceed, internal targets for sustainability progress in their own operations. 

ESG Data Readiness Assessment

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Take the assessment

Accordingly, the financial services industry is facing a complex constellation of challenges, with hurdles between the current state and the gaining of comprehensive ESG data insights—against a backdrop of confusion and intense competition.  

But once firms begin their data transformation journey, they’re increasingly well set to leverage data technology to drive meaningful value, from creating audit-ready ESG products to harnessing AI for advanced risk modeling. 

Positioning ESG data as a driver 

Microsoft knows firsthand the value of integrating ESG data with financial, operational, and other enterprise data. Without a connected and systemic view, firms lack holistic insight into equities, loans, or insured assets, leading to a competitive disadvantage. 

As we’ve worked over the last two decades to untangle and solve challenges at Microsoft in support of our own ESG data estate—and to drive on our sustainability commitments—we’ve regularly turned to experts in the field and endeavored to share our learnings. In taking solutions forward to our global customer base, we’ve seen that for financial services firms, the development of a comprehensive ESG data estate can advance speed to market as well as credibility of products. For example, Robeco, a Dutch international asset management organization, can now perform daily data updates for all its sustainable investing solutions—staying laser-focused on returns, but with audit-ready confidence and ESG transparency.  

Priorities for financial organizations translate to inroads in the development of an ESG data estate. For example:  

• Advanced data integration: Develop more sophisticated tools and systems to integrate ESG data seamlessly along with quality governance to inform comprehensive analyses and outcomes. 
• Sustainable and ESG investing and lending: Use data analytics to better identify and expand portfolio-level ESG assessments for risk and performance management.  
• Responsible allocation of transition capital: Help corporate clients achieve their sustainable transition goals through data-driven decision making. 
• Carbon credit markets: Support carbon trading initiatives with robust data management systems for tracking and reporting credits and trading activities.  
• Risk modeling modernization: Leverage AI capabilities to enhance risk modeling practices used in underwriting, pricing, and loan assessments.  

High-value initial steps toward ESG data readiness 

Just like with data security, developing an ESG data estate in a financial services firm doesn’t happen in a single effort. Instead, your firm can benefit from taking a customized approach based on your current data state, regulations, and data governance policy, and desired outcomes as you identify opportunities. 

Depending on the maturity of your existing data infrastructure, your organization may want to consider starting within one, or a mix, of these areas: 

Data gathering

• Develop a plan for integrating ESG data into your portfolio’s due diligence and risk analysis.
• Standardize a process for collecting and updating ESG data—from both internal and external sources. 

Data modernization

• Leverage digital capabilities to deliver new financial products to market.
• Enhance financial data compliance, governance, and security. 

Data insights  

• Implement comprehensive ESG training for your customers to support effective analysis and decision-making, with industry-specific components.
• Develop an AI-powered data system for accelerated ESG analysis tailored to your clients’ needs.  

Data action  

• Develop advanced ESG data systems to pinpoint data gaps and data accuracy risks.
• Align your decision-making and strategy to complete and accurate data. 

Advancing your sustainability journey with Microsoft AI-powered solutions 

We see enormous potential for financial services firms to tackle risks and capitalize on opportunities driven by sustainability, for themselves and their clients, and we believe comprehensive, harmonized, accessible data is the key.  

With cloud-based data capabilities, including Microsoft Cloud for Sustainability, Microsoft Fabric, and our AI-powered data solutions, we can help you shift from siloed data and labor-intensive processes to streamlined management that results in timely ESG insights and transparent reporting out to stakeholders—all with Microsoft security and governance. 

Once firms gain comprehensive management and insights into their ESG data, the potential for new and enhanced client services quickly follows. For example, United States-based economics research firm Moody’s leverages Microsoft Fabric solutions, AI-powered insights, and Microsoft Security to enable their 14,000 global employees to drive innovation for clients. In the United Kingdom, the London Stock Exchange Group (LSEG) selectively deploys generative AI to augment their existing work in Microsoft Fabric with custom chatbots and agents copilots.  

Empowering the financial services industry for sustainability success  

We know that for us to do well, our customers and the world must also do well. Our mission is to empower every individual and organization on the planet to achieve more, by building technology that can deliver business value to our customers, and positive impact to the world. 

Wherever you are in your sustainability journey, we’re here to partner with you—delivering continuous innovation from our solutions teams and our global ecosystem of partners, as we expand our ESG data readiness capabilities to help meet your unique needs in a world that is shifting quickly.  

Explore ESG readiness for other industries

• Retail and consumer goods: Unlocking business value with data-driven sustainability for retail and consumer goods
• Manufacturing: Data is driving a more sustainable industrial transformation

¹ PwC, ESG-focused institutional investment seen soaring 84% to US$33.9 trillion in 2026, making up 21.5% of assets under management: PwC report, October 2022. 

² Stanford Graduate School of Business, The ESG Generation Gap: Millennials and Boomers Split on Their Investing Goals,November 2022. 

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Beyond the illnesses they cause, food safety incidents have significant negative effects on economies, farmers, the environment in the form of food waste, and governments. Returning to the example of the United States for a moment, the federal government each year budgets over $7 billion of its tax revenue to foodborne illness response programs.³ This is a reactive system, and to reduce the human, financial, and environmental effects of food safety incidents, we need to become more proactive.  

The good news is that we have the tools at our fingertips to create much more predictable food systems. Removing the farming sector’s dependencies on paper record-keeping is a simple first step, as it increases the visibility and reliability of reports. With this groundwork, farmers can start digitizing the food system and using generative AI to analyze large datasets, identify trends, and present insights in easily digestible language and visualizations through tools like Copilot in Excel and Copilot in Power BI.  

Farmers and food suppliers can detect important issues easily with generative AI solutions, like a disruption in the cold chain between the farm and the grocer, which can lead to spoilage. Generative AI can also be used to check for compliance issues and security breaches. It can suggest process improvements, track demand, and trigger alerts that automate real-time responses—all with the goal of responding to food safety incidents before they transform into public health incidents. 

Paving the way for the advancement of AI 

Microsoft Copilot and industry-specific AI agents built by partners with specific expertise in the food production industry represent a potential leap forward in preventative food safety, but they aren’t the only benefit digitalization represents. Other solutions, themselves part of the roadmap toward generative AI adoption, are already enabling meaningful change for food producers. Recent advancements in both Internet of Things (IoT) sensors and the AI technology behind them have enabled technology to mimic the human senses of sight, hearing, and smell to improve traditional food sorting, grading, and inspection processes. Azure Data Manager for Agriculture helps collect data on farms, aiding in the identification of conditions likely to introduce bacteria to crops. 

For example, a food processing company can digitize its quality control process with the help of Microsoft Power Apps, Power BI, and Dataverse. Together, these technologies help the company better capture real-time data, generate more insightful reports and improve overall operational efficiency.

As companies build out capabilities like these, they gain the type of financial benefits and actionable insights and can simultaneously establish a deeper pool of information for future generative AI solutions to draw from. Microsoft Fabric also plays a crucial role in building an AI-ready data estate. By integrating data sources like IoT sensors, temperature monitors, and historical data, Fabric helps companies establish more comprehensive data platforms. With the advanced predictive analytics these platforms can generate, food suppliers can reduce product recalls, prevent the spread of counterfeit goods, minimize food waste, and increase consumer trust.  

Bringing better farming data into the mix 

By consolidating its data, increasing the number of advanced sensors it employs, and tracking broader types of data, the food production industry is making way for even greater advancement. Copilot and customized agents can rapidly analyze every stage of the food supply chain, from farm to table. Today’s visual recognition technology often identifies contaminants in food products faster and in smaller concentrations than its human counterparts. Generative AI models can use this data to aid in the detection of foreign objects and pathogens in either raw ingredients or finished food products. Analysis of historical and real-time data from temperature sensors in food production and warehousing facilities can help alert producers to conditions that contribute to excess food spoilage. When an agent recognizes farming or food processing irregularities, it can generate predictions based on historical data, check for compliance issues, and suggest operational improvements. By bringing together farm-specific data like local weather conditions, soil makeup, and pest populations, agents could help predict and mitigate seasonal risks to crops.

Looking ahead 

The future of food safety will rely on the continued integration of technology and data into the world’s food production and distribution processes. Customized agents powered by AI can perform tasks and provide decision support to improve food safety. These agents can be built to analyze vast amounts of data from spreadsheets, handwritten documents, voice memos, and videos, uncovering previously undetected errors and missing information.  

Companies in the farming sector can leverage Microsoft Copilot Studio to develop their own intelligent agents that assist with their most critical and risk-prone agricultural processes. Using the low-code interface of Copilot Studio, businesses can quickly create and deploy custom applications without extensive coding knowledge, enabling them to automate tasks such as crop monitoring, pest detection, and resource management. Companies can also choose to collaborate with Microsoft partners with industry-specific expertise, ensuring their solutions are tailored to their specific needs and comply with industry regulations. This partnership approach not only accelerates innovation but also ensures the deployment of robust and effective AI-powered solutions. 

By maximizing the potential of generative AI in food safety, we can predict and prevent many of the sector’s most prevalent issues, improve food quality, and prevent many food safety incidents. There are tremendous opportunities ahead, and collaboration between food producers, the regulatory bodies that oversee them, and technology companies are key to the success of these initiatives. By working together, we can create a safer and more sustainable food system for everyone. 

¹ Food Logistics, Food Recalls in 2024 are Surging. What’s the Crisis Response?, September 2024.

² World Health Organization, Foodborne Diseases Estimates.

³ U.S. Food & Drug, FDA Seeks $7.2 Billion to Protect and Advance Public Health by Enhancing Food Safety and Advancing Medical Product Availability, March 2023.

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Beginning in August 2024, Microsoft launched a new datacenter design that optimizes AI workloads and consumes zero water for cooling. By adopting chip-level cooling solutions, we can deliver precise temperature control without water evaporation. While water is still used for administrative purposes like restrooms and kitchens, this design will avoid the need for more than 125 million liters of water per year per datacenter.*

Zero-water evaporation and the quest for ultra-low Water Usage Effectiveness 

These new liquid cooling technologies recycle water through a closed loop. Once the system is filled during construction, it will continually circulate water between the servers and chillers to dissipate heat without requiring a fresh water supply. 

We measure water efficiency through Water Usage Effectiveness (WUE), which divides total annual water consumption for humidification and cooling by the total energy consumption for IT equipment. We are continually investing in improving the design and operation of our datacenters to minimize water use. In our last fiscal year, our datacenters operated with an average WUE of 0.30 L/kWh. This represents a 39% improvement compared to 2021, when we reported a global average of 0.49 L/kWh.  This WUE reduction is due to our ongoing efforts to actively reduce water wastage, expand our operating temperature range, and audit our data center operations. We also expanded our use of alternative water sources, such as reclaimed and recycled water, in Texas, Washington, California, and Singapore. 

We have been working since the early 2000s to reduce water use and improved our WUE by 80% since our first generation of datacenters. As water challenges grow more extreme, we know we have more work to do. The shift to the next generation datacenters is expected to help reduce our WUE to near zero for each datacenter employing zero-water evaporation. As our fleet expands over time, this shift will help reduce Microsoft’s fleetwide WUE even further.

Mitigating energy impacts 

Traditionally, water has been evaporated on-site to reduce the power demand of the cooling systems. Replacement of evaporative systems with mechanical cooling will increase our power usage effectiveness (PUE). However, our latest chip-level cooling solutions will allow us to utilize warmer temperatures for cooling than previous generations of IT hardware, which enables us to mitigate the power use with high efficiency economizing chillers with elevated water temperatures. 

The result is a nominal increase in our annual energy usage compared to our evaporative datacenter designs across the global fleet. Additional innovations to provide more targeted cooling are in development and are expected to continue to reduce power consumption. 

Pilot projects and implementation 

Although our current fleet will still use a mix of air-cooled and water-cooled systems, new projects in Phoenix, Arizona, and Mt. Pleasant, Wisconsin, will pilot zero-water evaporated designs in 2026. Starting August 2024, all new Microsoft datacenter designs began using this next-generation cooling technology, as we work to make zero-water evaporation the primary cooling method across our owned portfolio. These new sites will begin coming online in late 2027. 

Advancing sustainability: Sustainable by design 

Learn more about how Microsoft is advancing the sustainability of cloud and AI through our blog series:  

• Sustainable by design: Advancing the sustainability of AI
• Sustainable by design: Transforming datacenter water efficiency
• Sustainable by design: Innovating for energy efficiency in AI, part 1 

*Based on our FY 2024 global average withdrawal WUE of 0.30 L/kWh.

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As we work across industries with cloud and AI solutions to advance sustainability, we also continue our work to advance the sustainability of the datacenter infrastructure that delivers these cloud and AI innovations. Decarbonizing datacenter construction is a company-wide effort at Microsoft, from how we design, build, and operate datacenters to our work to grow markets for low-carbon building materials.  

As a sector, building materials such as steel and concrete are some of the highest contributors to the embodied carbon of new construction, together producing an estimated 13.5% of global carbon emissions.¹ Embodied carbon is a measure of the carbon emitted during the manufacturing, installation, maintenance, and disposal of a product or material.  

Innovations in lower-carbon steel and concrete are emerging around the globe, however, these markets are still nascent and need significant investment to bring supply online. With our $1 billion Climate Innovation Fund and the collaboration of pioneering teams across datacenter engineering and procurement, we’re investing to accelerate these markets.  

Innovating for energy efficiency

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Novel construction materials and new methods of creating those materials show promise in sectors that are traditionally described as “hard to abate,” sectors we believe are necessary to abate. For example, we’re breaking ground on mass timber datacenters, investing to accelerate market availability of near-zero carbon steel, and expanding options for low-carbon concrete in construction. 

Innovating with mass timber datacenter construction to reduce embodied carbon 

In Virginia, we’re building our first datacenters made with superstrong, ultra-lightweight wood with the goal of reducing the embodied carbon of the buildings by 35% compared to conventional steel construction, and 65% compared to typical precast concrete. 

Although this is a novel approach to datacenter construction, it’s a material we’ve used before. In 2021, when we chose cross-laminated timber (CLT) for a new building on our Silicon Valley campus, the approach brought numerous environmental benefits. With additional ecological design elements ranging from water reuse to clean energy production to new public pathways and restoration of the native ecology, the structure earned recognition for sustainable design excellence from the American Institute of Architects.  

The CLT market is well-established in Europe and rapidly growing in the United States, due to demand in the residential segment and adaptability of CLT to new designs. However, our innovative work to apply this material to building a hyperscale datacenter has required everyone to work differently, from our engineers to our procurement teams to the suppliers involved in construction.  

Because CLT is prefabricated offsite, it brings additional benefits such as a faster and safer onsite installation than traditional corrugated steel. Built commonly out of spruce, pine, or fir, CLT shows remarkable structural integrity and resilience even under high temperatures, developing a char and providing insulation in scenarios where steel is likely to fail. But few datacenter building specialists have experience with the material, reducing the availability of skilled contractors, and the materials come at a premium cost in certain regions.  

Throughout this project, our teams have risen to the challenge by sharing best practices across disciplines, crafting new procurement strategies, ensuring skilling pathways, and working collaboratively to validate new material combinations. Expanding the building material options for datacenter construction helps us advance our sustainability goals and contributes to expanding the market for sustainable building materials, including markets for regionally sourced materials and contractors working with these materials. 

Accelerating market availability of near-zero carbon steel 

Last year, Microsoft’s Climate Innovation Fund became an investor in Sweden’s Stegra (formerly H2 Green Steel), which is building the world’s first large-scale green steel plant in northern Sweden, achieving up to a 95% reduction in carbon emissions compared to traditional steelmaking.² Another promising investment within our Climate Innovation Fund is Boston Metal, which uses renewable electricity and a unique process that generates oxygen instead of carbon dioxide when making steel. In addition, Microsoft is a founding member of the Sustainable Steel Buyers Platform of RMI, a first-of-its-kind buyers’ group accelerating steel decarbonization through collaborative procurement and market action. 

In addition to these investments, our engineering and procurement teams are working to incorporate low-emissions steel in new construction. As an example, we recently collaborated with Tate, a global leader in design engineering and manufacturer for data center infrastructure products, to pilot a hot aisle containment system that offers a 67% embodied carbon reduction over prior Tate products offered to Microsoft. Hot aisle containment systems in datacenters improve cooling efficiency through a physical barrier that keeps hot and cold air separate.  

Expanding options for low-carbon concrete for construction  

The bulk of emissions associated with concrete come from cement production. A key ingredient of cement is limestone, which is typically heated with clay to around 2,650 degrees Fahrenheit in a coal or gas-fired kiln where it undergoes a chemical reaction called calcination that releases carbon dioxide as a byproduct. In Washington, our pilot program utilizes cement alternatives like biogenic limestone (grown in place by algae instead of quarried) and fly ash and slag, testing mixes that can lower the embodied carbon in concrete by more than 50% compared to traditional mixes.  

While transitioning to low-carbon concrete production is not as capital intensive as steel manufacturing, the supply chain is fragmented and manufacturing processes can be complex—causing delays and slowing adoption of new techniques. For this reason, we’re looking to expand options for construction across the low-carbon concrete value chain. 

One of the Climate Innovation Fund’s earliest investments is CarbonCure, a company deploying low carbon concrete technologies that inject captured carbon dioxide into concrete, where the CO2 immediately mineralizes and is permanently embedded as nanosized rocks within the physical product. This not only acts as a carbon sink but also strengthens the material, enabling a reduction in the amount of carbon-intensive cement required. Another investment is Prometheus Materials, a company producing zero-carbon bio-concrete through a unique process that combines naturally occurring microalgae with other components.  

Explore the Sustainable by design series

With these investments, we aim to facilitate the commercialization of materials innovations that can make an outsized impact on carbon reduction for our own buildings and for built environments around the world. 

Learn more about our work to advance the sustainability of AI with the Sustainable by design blog series: 

• Sustainable by design: Advancing the sustainability of AI
• Sustainable by design: Transforming datacenter water efficiency
• Sustainable by design: Innovating for energy efficiency in AI, part 1
• Sustainable by design: Innovating for energy efficiency in AI, part 2

¹ Nature Research, Cement and steel—nine steps to net zero. 

² Stegra, Green platforms—green hydrogen, green iron, and green steel. 

The post Sustainable by design: Advancing low carbon materials appeared first on Microsoft Industry Blogs.

Enter Microsoft Cloud for Sustainability data and AI solutions. These include technologies like Microsoft Fabric, Microsoft Sustainability Manager, and Microsoft Copilot which together enable organizations to centralize and standardize complex ESG data for analytics and reporting and unlock critical data intelligence to help them move forward.  

We’re excited to share details about the latest capabilities in Cloud for Sustainability that build on this potential, providing the opportunity to implement transformative, industry-targeted solutions for both our customers and our partners. 

Microsoft Cloud for Sustainability

Data and AI capabilities to help you transform for the future using environmental, social, and governance (ESG) data intelligence

Discover more

Three powerful new ways to advance sustainability with AI  

At this year’s Microsoft Ignite, we announced our latest AI innovations empowering organizations to improve their ESG data transparency, gain insights to advance toward their goals, and continue to grow sustainable business opportunities. These features were developed to meet the needs of key sustainability decision makers and practitioners, such as chief sustainability officers, chief financial officers, chief data officers, and chief information officers. 

1. General availability of sustainability data solutions in Microsoft Fabric, built into Fabric to leverage the single, AI-powered platform for centralizing enterprise data and analytics. Using these solutions, organizations can take care of their ESG data analytics in one place, driving progress faster by simplifying and accelerating analytics, collaboration, and decision making.  

Sustainability data solutions enable organizations to: 

• Centralize and transform disparate data into one sustainability data lake that conforms to a standardized ESG schema.
• Build custom insights for carbon, water, and waste by connecting to their data in Microsoft Sustainability Manager.
• Compute, visualize, and analyze ESG metrics for regulatory standards like Corporate Sustainability Disclosure Regulation (CSRD) by using prebuilt and custom metric definitions.
• Generate social and governance insights from disparate social and governance data in the ESG data lake.
• Report and analyze Microsoft Azure emissions data by collecting and processing the emissions data in the ESG data lake.

Now, there’s also next-generation AI and the power of large language models (LLM) to accelerate our customers’ work in Fabric at every layer. Users can simply describe the visuals and insights they’re looking for, and Copilot in Microsoft Power BI will do the rest.  

All in conversational language, users can: 

• Create and tailor reports in seconds.
• Generate and edit calculations.
• Create narrative summaries.
• Ask questions about their data.

With the ability to easily tailor the tone, scope, and style of narratives and add them seamlessly within reports, Power BI can also deliver data insights even more impactfully through easy-to-understand text summaries.  

Explore Sustainability data solutions in Microsoft Fabric and learn how to deploy the solutions.  

2. Coming soon: External reporting in Microsoft Sustainability Manager (formerly Project ESG Reporting). To address ESG reporting complexity, enhance efficiency, and provide greater transparency for ESG reporting, we’ve developed templates based on various ESG standards or frameworks. Using these, organizations can more easily create, complete, and approve comprehensive reports across both quantitative and qualitative metrics. 

The reporting templates map to: 

• Corporate Sustainability Reporting Directive (CSRD) 
• Australian Sustainability Reporting Standards (ASRS) 
• Business Responsibility and Sustainability Reporting (BRSR 1 and 2)
• Global Reporting Initiative (GRI)
• International Financial Reporting Standards (IFRS 1 and 2)
• Sustainability Accounting Standards Board (SASB) 

Organizations can also add standards manually or with a .CSV file.  

This feature is available in Microsoft Sustainability Manager Essentials and Premium and in Power Apps as simply Microsoft Sustainability Manager.  

3. Sustainability agents. New prebuilt and custom agents are designed to help organizations rapidly uncover insights on a Microsoft AI platform such as Microsoft Copilot Studio or Azure AI Foundry. Agents can integrate company data for real-time retrieval and be surfaced to users in a multitude of ways, from canvas apps to supported enterprise applications such as Microsoft Sustainability Manager. 

Using a Sustainability Insights agent, organizations can quickly configure an AI assistant to get insights and data about their company’s sustainability goals and progress. They can assess sustainability efforts year over year or in comparison to other organizations while quickly accessing general knowledge around sustainability. 

As compliance standards continue to evolve, it’s crucial to have the ability to quickly adapt and meet diverse needs, such as varying standards by geography or industry. With agent templates, organizations can use LLM with their data aligned with the Cloud for Sustainability schema to help meet sustainability standards like the European Union’s Carbon Border Adjustment Mechanism (CBAM) fee.  

The CBAM agent (coming soon) helps organizations estimate their fee for “carbon leakage” around less stringent climate policies in non-European Union (EU) countries. This can occur when EU-based companies move carbon-intensive production abroad or when EU products are replaced by more carbon-intensive imports.  

The agent helps to ensure that their carbon pricing is factored into imported goods while supporting the EU’s climate objectives, maintaining competitiveness, and avoiding potential regulatory penalties. Using it, you can leverage Copilot to: 

• Align your carbon fee with CBAM.
• Put a price on carbon-intensive goods imported into the European Union to help ensure that the carbon prices of imports and domestic products align.
• Estimate your carbon fee to be paid on CBAM. 

These solutions are available in AppSource and the Power Catalog. 

Partners: Build a solution practice with Microsoft Cloud for Sustainability  

Are you a systems integrator or independent software developer? By partnering with Microsoft, you can take advantage of the Microsoft Cloud platform, which extends beyond Dynamics 365 and Power Platform to Microsoft 365 and Azure and includes industry clouds, enabling you to empower your customers and deliver industry solutions faster.  

Use our cloud platform and resources to: 

• Accelerate your innovation and reduce time to market by leveraging industry-specific capabilities, data models, connectors, and APIs on a foundation of security and compliance.
• Make investments in content, programs, incentives, and offers that will help you scale as you go.
• Co-sell industry solutions alongside Microsoft by using our commercial marketplace and increasing your visibility with software certifications.

To support your solution practice, we offer Cloud for Sustainability resources, such as sandbox offers, learning paths, online technical summits, architecture guidance, sales assets, Azure Marketplace and AppSource, and more.  

Are you already a partner? Join our Microsoft Cloud for Sustainability Insider Program to participate in preview conversations with program members from other organizations and the engineering team.   

Looking for a Cloud for Sustainability partner or solution? Visit AppSource. 

Learn more about sustainability solutions with Microsoft 

• Bookmark Microsoft Industry Blogs: Sustainability for the latest updates, including new capabilities in Microsoft Cloud for Sustainability.     
• Discover solutions with Microsoft Sustainability Manager.    
• Explore the Microsoft Cloud for Sustainability Community, where you can find answers to questions and connect with peers and experts.    
• See what’s new in Microsoft Cloud for Sustainability.

The post Drive transformative business with new AI features in Microsoft Cloud for Sustainability appeared first on Microsoft Industry Blogs.

By holistically tracking, analyzing, and sharing information for each facet of their value chain, retail and CG companies can meet this moment while also addressing regulatory requirements—by turning challenges around ESG data infrastructure and organizational culture into an opportunity to build business resilience.  

Starting by understanding your current ESG data management can be a helpful first step: Assess your ESG data readiness.  

New opportunities require holistic, accessible ESG data  

Taking ESG data out of silos and into a unified, accessible system can help retail and CG companies identify and act on opportunities to advance sustainability goals. Eckes-Granini, Europe’s largest fruit juice producer, embraces this strategy by using Microsoft solutions to increase supply chain transparency. By adopting this objective, data-driven supplier management technology, now almost 70% of Eckes-Granini’s juice ingredients come from sustainable sources—putting the company on track to achieving their goal of using 100% sustainable ingredients by 2030.  

Key emerging areas where ESG data insights can help retail and CG companies drive sustainability and efficiencies include: 

• Circularity: Recycling, recommerce, and reusing or repurposing materials help companies reduce reliance on net-new or single-use materials, to help reduce waste and carbon emissions.
• Sustainable material sourcing: Integrating recycled and low carbon materials into operations and final packaged products helps companies minimize overall environmental impact.
• Increased transparency: Companies can improve brand recognition and loyalty by providing greater ESG transparency—which can also help identify new products or lines of business.
• Evolved supply chain: Data and AI-powered technologies can help streamline supply chain, reduce emissions, and minimize waste, while pinpointing ways to boost efficiency and decarbonization.

Today’s roadblocks and tomorrow’s benefits  

As discussed in Driving Business Value with ESG Data Readiness, creating a robust ESG data estate can strengthen business resilience, by enabling teams to make informed decisions as markets shift and opportunities evolve.  

For retail and CG companies, this capability supports decision-making as they explore sustainability improvements, from upgrading equipment to increase energy efficiency, to investing in new low-carbon or recycled materials. It can also help companies advance ESG data tracking in supplier regions where nascent reporting standards can impede transparency, consistency, or granularity of ESG information. 

Retail and CG companies can also collaborate across the value chain to share ESG data that helps unlock shared efficiencies, innovation, and greater trust. For example, by using Microsoft solutions to leverage integrated data analysis, sustainability-driven Radish—a food-delivery startup in Montreal—shares data insights with its restaurant partners to offset supply challenges, reduce food waste, and even access government assistance grants.   

Data that delivers more than reporting compliance  

Leveraging ESG data can also help retail and CG companies explore options such as AI-powered waste reduction, product recommerce services, or innovative, eco-friendly packaging and products. German cosmetics company Beiersdorf took this approach by using Microsoft solutions to build a simulation tool to assess scope 3 emissions for products and packaging, transitioning the company from emissions guesswork to objective insights.  

The power of ESG data insights is also boosting sustainability and improving decision-making for global bakery giant Gruppo Bimbo. The company adopted Microsoft Cloud for Sustainability to centralize emissions data across its operations—helping the company advance toward its sustainability targets for 2025, 2030, and 2050. And the Netherlands’ leading supermarket chain, Albert Hejin, developed an AI-powered solution in partnership with Microsoft to reduce food waste by dynamically adjusting prices on near-expiration items.  

Make ESG data work for you

To help unlock the value of ESG data, retailers and CG companies can benefit from setting up strong data collection and management systems:  

• Bridge the data gap: By investing in technologies that integrate ESG data across operations, companies can collect accurate and actionable information from all aspects of the value chain.
• Build trust through governance: Ensuring data accuracy is essential for both regulatory compliance and strategic decision-making, requiring strong governance and control practices around ESG data.
• Embed ESG into the company culture: Training and engagement programs can help integrate sustainability into a company’s daily operations—from executive leadership to frontline workers. And by enriching data with value-added insights from other departments, combined with natural language querying, more teams are empowered to make sustainability-informed business decisions.  

Following these steps—and the framework in the Leader’s Guide to Sustainable Business Transformation—can help you use ESG data to drive long-term success beyond reporting requirements, according to your unique business priorities. For example, industry-leading businesses like electronics retailer Kotsovolos-Dixons used Microsoft Solutions to create digital twins of its stores, reducing waste and boosting operational efficiency by 50%. Additionally, one of the United Kingdom’s largest food sellers, Co-op Group, adopted our hybrid cloud services to reduce its datacenter footprint to save £400,000 annually. 

Sustainability creates success

Microsoft Cloud for Sustainability

Data and AI capabilities to help you transform for the future using environmental, social, and governance (ESG) data intelligence

Start your journey

To stay competitive and in compliance, sustainability has become a necessity for the retail and CG industries. But starting with small steps works: ESG data can serve as the foundation for transformation, and help you advance no matter where you are in your sustainability journey.  

We’re ready to partner with you, to help you use AI-powered data technology and Internet of Things (IoT) to begin to accelerate your progress. The growing set of capabilities in Microsoft Cloud for Sustainability are designed to help companies leverage ESG insights to report on and reduce environmental impacts while driving growth well into the future.  

To gain a view of your ESG data across key areas, as well as personalized guidance on how to drive sustainability progress and add business value, complete our readiness assessment.

Explore ESG readiness for other industries

• Manufacturing: Data is driving a more sustainable industrial transformation
• Financial services: ESG data readiness drives value for financial services firms

¹ McKinsey & Company, How to prepare for a sustainable future along the value chain, January 20, 2022.

² PWC, Integrated ESG Data in Retail: Why and How.

The post Unlocking business value with data-driven sustainability for retail and consumer goods appeared first on Microsoft Industry Blogs.

As we gather for Microsoft Ignite 2024, we invite you to explore the latest advancements in AI and discover how these innovations can transform your business. With AI-powered agents, organizations can analyze vast amounts of data, adapt to changing environments, and execute complex processes, bringing efficiency and intelligence to your operations. Whether it’s automating customer service interactions, optimizing supply chain logistics, enhancing personalized shopping experiences, or driving sustainability efforts, the potential applications are vast and impactful.

Join us on this journey to unlock the potential of AI and pave the way for a more intelligent, connected, and sustainable world. Together, let’s embrace the future of innovation and drive exceptional value for our customers.

Innovating with new adapted AI models and agents

Adapted AI models are transforming industries by enabling new applications and driving business outcomes such as increased accuracy, enhanced efficiency, better decision-making, and improved customer experiences. These models are designed to meet specific industry needs and tasks, addressing unique challenges more accurately and effectively. By using customized AI for their needs, organizations can enhance their digital presence, improve customer engagement, and streamline operations. With a focus on trustworthy AI, which includes safety, security, and privacy, our AI solutions adhere to high standards of integrity and responsibility, offering a secure approach to advancing industry capabilities. These adapted AI models enable the creation of custom AI solutions within Azure AI Studio and can also be used to configure agents for specific industry scenarios in Microsoft Copilot Studio scenarios. 

We are collaborating with several partners across multiple industries on these adapted and fine-tuned AI models, which are available through the Azure AI model catalog, empowering organizations to build custom AI solutions to address their most pressing needs. Bayer, for instance, offers the E.L.Y. Crop Protection model to enhance sustainable crop protection in the agriculture sector. Cerence provides the CaLLM™ Edge model for in-vehicle digital assistant technology, while Rockwell Automation’s FT Optix Food & Beverage model supports asset troubleshooting in manufacturing. Saifr introduces models for regulatory compliance in financial institutions, and Siemens Digital Industries Software offers a copilot for NX X software leveraging an industry model to optimize the design process. Sight Machine’s Factory Namespace Manager standardizes factory data for AI readiness, and open-source models from Hugging Face are available for summarization and sentiment analysis of financial data. 

Microsoft also provides AI agents designed for various industry scenarios through Copilot Studio. These agents can be customized to meet the specific needs of different organizations. For example, retailers can use the Store Operations Agent to assist store associates, and manufacturers can utilize the Factory Operations Agent to enhance production efficiency. The new release of Agent Builder (preview) in Copilot Studio enables users to create agents directly in Business Chat and SharePoint by defining the agent’s purpose, configuring its knowledge base, and setting up starter prompts. With a user-friendly design requiring only low-code skills, Agent Builder allows integration of diverse data sources to customize agents with industry-specific knowledge and capabilities, improving their effectiveness in addressing key use cases for each industry. 

To learn more about the new adaptive AI models for Industry that are available in Azure AI model catalogue and directly through our partners, visit Azure AI model catalog.

Financial services

Microsoft Copilot and Microsoft Cloud for Financial Services are leading the generative AI revolution in financial services, empowering industry professionals to securely and easily incorporate rich industry data and specialty data sets into their everyday activities while providing enhanced security and compliance at the same time. Microsoft has dedicated itself to generating strong partner momentum across the financial services space, including through creating and offering the tools Microsoft partners need to drive innovation, mutual growth, and success both now and as the capabilities of generative AI continue to evolve. LSEG (London Stock Exchange Group), among others, has already built pioneering new solutions aligned to this initiative.

Built in collaboration with LSEG, Financial Meeting Prep (see the recent announcement using the preview name, Meeting Prep for Financial Services) aims to streamline client meeting preparation for investment banking professionals. Combining LSEG Workspace, Microsoft Teams, and Microsoft 365 Copilot, the solution will consolidate important data, introduce organization-specific insights, easily refresh content as new data becomes available, and enhance relationship manager productivity and decision-making. General availability of Financial Meeting Prep is expected by the end of 2024.

Financial Insights Agent in Copilot Studio

Gathering insights from online sources and proprietary financial documents is crucial for making investment decisions, strategizing, and conducting assessments. However, finding the right data can be time-consuming for financial services professionals, and reviewing the vast amounts of relevant information is nearly impossible.

With the Financial Insights Agent, now available in Copilot Studio, financial services professionals can quickly and easily gather information from financial news and regulatory reporting websites. And because this agent comes ready-made and is easily customized agent, you don’t need advanced development skills to get started.

The Financial Insights Agent gives high-quality results and works best when integrated with the financial document analysis skill for agents (preview), available in Azure Marketplace, which makes it possible for users to gain info and insights from financial documents provided by their organization, such as analyst reports and other complex financial documents that are stored in-house—even when the data is found in complex financial tables, graphs, or charts. This skill not only works with the Financial Insights Agent, but it can also be integrated into custom agents. For example, Reflexivity has been integral in helping Microsoft understand challenges in the industry. Within their own platform, they use this skill for certain document flows, helping financial services professionals derive insights from both structured and unstructured data more efficiently so they can make informed decisions faster.

Financial Services landing zones

Microsoft has recently developed and is now ready to introduce a new Financial Services landing zone. Based on the Azure landing zone—a secure, scalable cloud foundation tailored for compliance needs—the Financial Services landing zone is an infrastructure-as-code solution that provides the baseline governance, resilience, security, automation, and prescriptive guidance that Microsoft industry partners and other financial services organizations need in order to comply with the industry’s strict, mission-critical regulations. As the Financial Services landing zone also provides financial services organizations of all kinds a robust and compliant cloud environment, the solution represents a powerful means to accelerate digital transformation initiatives.

Manufacturing

The manufacturing industry is experiencing a dynamic transformation, with opportunities for growth and innovation despite challenges like economic uncertainty and supply chain disruptions. Microsoft and its partners are at the forefront of this evolution, empowering manufacturers with cutting-edge solutions that help enable intelligent factories, resilient supply chains, and enhanced customer experiences.

Manufacturing data solutions in Microsoft Fabric

During Hannover Messe 2024, we announced the preview of manufacturing data solutions in Microsoft Fabric. This solution integrates operational technology (OT) data, with information technology (IT) data, creating a comprehensive data foundation structured according to the ISA-95 information model.¹ This standardized approach enables manufacturers to break down data silos, enabling cross-domain insights, streamlined processes, and data-driven decision-making. Partner solutions from Sight Machine, Litmus, and Avanade further enhance these capabilities.

Sight Machine Factory Copilot on Microsoft Cloud for Manufacturing transforms your manufacturing execution systems (MES) data into the ISA-95 standard for consumption in manufacturing data solutions in Fabric, which can be surfaced through factory agent experiences to help address operational issues on the factory floor.

Litmus Edge Manager enables a robust hybrid edge-to-cloud infrastructure, streamlining real-time machine dashboards and facilitating advanced machine learning. Litmus and the manufacturing data solutions in Fabric unlocks unprecedented efficiency and innovation, seamlessly bridging the gap between edge and cloud.

Learn how to get started with manufacturing data solutions in Microsoft Fabric and Factory Operations Agent.

Factory Operations Agent in Microsoft Azure AI

We’re excited to announce the public preview of the Factory Operations Agent in Azure AI, which empowers manufacturers to develop customized, AI-powered agents for frontline workers. These intelligent assistants leverage natural language processing and retrieval-augmented generation, making complex data analytics accessible for scenarios like root cause analysis, production loss reduction, continuous improvement, and asset maintenance. With the Factory Operations Agent, factory teams can intuitively interact with data, receive timely insights, and resolve issues more efficiently—ultimately enhancing productivity and empowering the workforce to drive operational excellence.

Avanade Manufacturing Copilot, powered by manufacturing data solutions in Fabric, helps customers to overcome OT-IT data accessibility and utilization challenges and leverage AI at-scale to make higher-quality products faster with less waste.

Learn how to get started with Factory Operations Agent in Azure AI (preview).

Factory Safety Agent in Microsoft Copilot Studio

The new Factory Safety Agent in Copilot Studio (preview) is focused on workplace safety. Factory Safety Agent provides organizations with a low code option to quickly develop a customized agent, grounded in occupational health and safety data. Whether using publicly available standards like Occupational Safety and Health Administration (OSHA) or specific protocols of the organization, this agent can provide critical safety information, insights to factory workers, and streamline critical activities such as safety inspections or incident reporting to reduce risks and ultimately accidents.

Retail

As the retail industry adapts to new customer expectations and competitive pressures, Microsoft and its partners are providing tools for retailers that offer real-time insights, enhance customer engagement, and drive digital innovation.

Retail Data Solutions in Microsoft Fabric

Retail Data Solutions in Microsoft Fabric help retailers unify and standardize their data. This platform enables customers to integrate data from different systems and offers ready-to-use agents to speed up AI transformations. Currently in public preview, it includes four customizable features for retail:

• Retail Industry Data Model: Plan and design data solutions for governance, reporting, business intelligence, and analytics.
• Frequently Bought Together: Use insights to enhance upselling, shelf optimization, and store efficiency.
• Sitecore OrderCloud Connector: Standardize commerce data from Sitecore OrderCloud to gain actionable insights.
• Personalized Shopping Agent: Improve shopping experiences with tailored customer conversations.

Personalized Shopping Agent

The Personalized Shopping Agent can engage in natural language conversations to understand and respond to shoppers’ needs. It provides tailored recommendations based on the shopper’s specific requirements and preferences. Additionally, it can handle specific requests, such as finding matching items or suggesting outfits for specific occasions. The agent leverages Retail Data Solutions, using aggregated product catalogs, and AI orchestration tools to provide accurate and contextually relevant answers.   

Store Operations Agent

The Store Operations Agent revolutionizes how store associates handle daily tasks with its headless architecture that integrates into applications or websites. It offers ready-to-deploy plugins for:

• Product search or inventory search: Real-time access to product details and stock.
• Order details: Tracks order information down to the line level.
• Incident management: Resolves incidents using Copilot and ServiceNow.
• Task management: Integrates directly with tasking apps.
• Omni channel access: Provides natural language access to current prices, promotions, and information.

The agent integrates seamlessly with Dynamics 365 Finance, Dynamics 365 Commerce, and ServiceNow. These integrations can extend to other enterprise resource planning (ERP) software and applications with pre-built connectors and APIs. These features are continually updated, adding more plugins to help partners scale operations.

Partners can also utilize the Store Operations Agent alongside their own solutions to accelerate customer adoption. Accenture Avanade has launched a Clienteling copilot, which has Store Operations Agent embedded and assists store associates in managing daily tasks efficiently. It also offers a natural language query interface for store policies and procedures, enabling informed decision-making for store associates and managers.

Public sector

Microsoft is leading the way in helping government and regulated organizations address their compliance, security, and data sovereignty requirements while adopting modern digital technologies. With initiatives like Microsoft Cloud for Sovereignty and generative AI, Microsoft offers comprehensive solutions tailored to diverse regulatory landscapes, enabling organizations to streamline their compliance processes and enhance their digital capabilities.

Citizen Services agent

Available in Copilot Studio, Citizen Services agent allows public sector organizations to create AI-powered agents using their public websites and information. The agent helps citizens navigate government services and information through a Q&A experience, providing answers from configured knowledge bases, such as responses about city plans, road closures, or service applications, offering citizens access to up-to-date information.

Get started with the Citizen Services agent in Copilot Studio.

Regulated Environment Management

Regulated Environment Management (REM) in Azure, currently in private preview, supports cloud adoption as part of Microsoft Cloud for Sovereignty. REM simplifies the configuration, deployment and management of regulated environments through landing zones, policy and drift analysis. Starting November 2024, REM will shift to a subscription-level service, offering benefits like data isolation, regional boundaries, and group management of landing zone configurations. Transparency logs and the Landing Zone Account (LZA) simplify managing configurations and provide data residency. REM also includes a REST API for easier integration.

Request access in the REM private preview.  

Sustainability

With growing demands for disclosure requirements under regulatory directives like the European Union Corporate Sustainability Reporting Directive (CSRD), the pursuit of impactful initiatives such as decarbonization, and the increasing need for transparency in corporate sustainability claims, businesses are under pressure to demonstrate genuine commitment to sustainability. To address these challenges, Microsoft Cloud for Sustainability is introducing Sustainability data solutions in Microsoft Fabric and enhanced reporting in Microsoft Sustainability Manager.

Sustainability data solutions in Microsoft Fabric

Now generally available, Sustainability data solutions in Microsoft Fabric enables customers to unify environmental, social, and governance (ESG) data with organizational data, fostering innovation, process changes, and simplified reporting. With Microsoft Fabric, businesses can create a standardized sustainability data lake for their ESG needs. Features include an extensible ESG data schema, pre-built notebooks for data transformations, data pipelines for various business systems (including Microsoft Sustainability Manager), and built-in dashboards for analyzing ESG topics.

OneLake in Fabric allows businesses to enhance sustainability by building analytical insights with AI and machine learning models and using Copilot agents for autonomous workflows. Learn more about Sustainability data solutions in Microsoft Fabric.

Partners like UST Global use Sustainability data solutions in Fabric to develop flexible ESG systems of record that align with sustainability goals. Leveraging Microsoft Fabric, they craft customizable solutions for unique ESG challenges and adapt as requirements evolve.

Sustainability data solutions in Fabric offers tools to manage ESG data complexities, improve data integration and accuracy, provide real-time insights, and support compliance. This platform helps meet regulatory and stakeholder expectations and drives effective sustainability efforts across organizations.

External reporting in Microsoft Sustainability Manager

Also in general availability, the new external reporting capabilities in Microsoft Sustainability Manager (formerly Project ESG Reporting) simplifies external reporting across various standards with AI-powered insights and recommendations, making it easier for organizations to prepare and manage disclosure reports. Users can seamlessly connect, organize, review, and report data according to global standards.

Whether used as a standalone solution through the Power Platform gallery or integrated within Microsoft Sustainability Manager, it supports custom frameworks, iXBRL compatibility through partners, and offers a workflow user interface (UI) for editing and approvals. These new capabilities reduce the complexities of compliance, helping businesses stay on top of their sustainability reporting.

Using Copilot Studio with Microsoft Cloud for Sustainability

Copilot Studio is a key part of the Microsoft Cloud for Sustainability toolkit, helping users create customized agents to meet sustainability and compliance goals. As compliance standards change, Copilot Studio uses large language models (LLM) to help organizations adapt quickly. It offers pre-built connectors for easy data integration, reducing the time and effort needed to manage diverse data sources and focus on actionable insights. Current features include the Sustainability Insights Agent for interacting with sustainability reports, with upcoming agents for estimating European Union Carbon Border Adjustment Mechanism (CBAM) costs and setting goals. This tool, combined with our network of partners, helps organizations achieve their ESG goals by unifying data intelligence and streamlining sustainability management.

Shaping the future with AI

Join us on this journey to unlock the potential of AI and pave the way for a more intelligent, connected, and sustainable world. Together, let’s embrace the future of innovation and drive exceptional value for our customers. By leveraging the latest advancements in AI, we can transform industries, enhance productivity, and create meaningful experiences for everyone. Whether it’s through automating routine tasks, optimizing operations, or providing personalized services, the possibilities are endless. Let’s work together to harness the power of AI and make a lasting impact on our businesses and communities. 

Watch the Ignite 2024 sessions

Watch Accelerating industry partner growth in the age of AI with Kathleen Mitford and Satish Thomas and Delivering adapted AI models for industries with partners.

Financial Services

• Accelerate AI Innovation with Microsoft Cloud for Financial Services 
• Empowering the financial services partner ecosystem with Generative AI

Manufacturing

• Democratize data-driven decision making across factory operations with AI

Retail

• Elevate the retail experience with the Personalized Shopping Agent 
• Empower the retail workforce with the Store Operations Agent 

Public Sector

• Accelerate Cloud Adoption with Software-Defined Sovereignty 
• Collaborating with partners for digital sovereignty in the cloud 
• Deploying AI with Sovereign controls

Sustainability

• Accelerating ESG progress with sustainability data solutions in Fabric 
• Sustainability reduction and calculation compliance simplified with Copilot Studio and Microsoft Sustainability Manager 
• Building solution practices for Microsoft Cloud for Sustainability 
• Implementation best practices for Microsoft Cloud for Sustainability 

Microsoft Ignite 2024

Experience the latest innovations for AI transformation

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¹ https://www.isa.org/standards-and-publications/isa-standards/isa-95-standard

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