Financial service institutions have long been among the sectors requiring the greatest levels of security, compliance, and reliability. Today, in the age of AI, organizations in the financial sector are looking to apply AI to alleviate some of these burdens, while also unlocking meaningful competitive advantage through AI applications.

The good news: If you’re in this industry you will likely have decades of sensitive data you can use for learning and insights that can lead to real customer solutions.

The bad news: Yesterday’s data infrastructure might not be up to the task. Delivering the scale, speed, predictive maintenance, access, and performance that today’s financial data platforms need—along with the standard security and compliance—requires rethinking your database solution for the modern era.

The stakes are higher with sensitive data

Maintaining always-on services and meeting stringent regulatory requirements have been baseline expectations in finance for years. Now, with surging digital transactions and AI-powered projects, the pressure has only intensified. In some financial organizations, even a few minutes of downtime can be disastrous, given the reliance on every day availability. Aging, self-managed databases struggle to keep up with high-volume transactions and real-time analytics demands. The operational overhead of managing such systems (like patching, scaling hardware, and manual failovers) drains resources that could be better spent on innovation.

It’s telling that predictive maintenance and infrastructure automation have become focal points for banks to avoid costly outages. Yet, acting too fast also carries risk: one fintech leader recently cautioned that “in financial services, harm historically scales faster than benefit,” underscoring that if you scale up without a solid foundation, problems can amplify rapidly. In other words, bad data or brittle systems will only wreak havoc faster when accelerated by AI. This reality makes it clear that simply layering AI on top of old infrastructure isn’t viable—the core data platform needs modernization.

An investment in PostgreSQL on Microsoft Azure

Azure PostgreSQL managed services, including Microsoft Azure Database for PostgreSQL, address these modern challenges, combining PostgreSQL’s versatility with Azure’s cloud resilience and ecosystem. It’s a fully managed service, meaning Azure handles the heavy lifting of maintenance, updates, and scaling behind the scenes, so teams can focus on value-add work instead of upkeep. Crucially for financial institutions, Azure Database for PostgreSQL offers flexible performance scaling. You can start with a small instance and scale up to large multi-vCore servers or even scale out across elastic clusters to distribute heavy workloads across multiple nodes. This elasticity ensures that sudden surges in trading volume or customer usage won’t degrade application performance.

Enterprise-grade resilience and availability

Downtime isn’t an option for these critical applications, so continuous availability is baked into Azure PostgreSQL services. With a few clicks, you can enable zone-redundant high availability, deploying a fully synchronized standby server in a different Azure availability zone. In the event of an outage or even an entire datacenter zone failure, the service triggers an automatic failover to the standby typically within 60 to 120 seconds with zero data loss. This architecture delivers up to a 99.99% availability service level agreement (SLA) for mission-critical workloads, which is a key assurance for financial apps that cannot go down.

For read-intensive scenarios, Azure Database for PostgreSQL supports read replicas which asynchronously replicate data and allow you to offload analytics or reporting queries without impacting the primary database’s performance. These replicas can even be in different Azure regions, doubling as a disaster recovery option to keep services running through regional disruptions. The bottom line: whether it’s handling a hardware failure or scaling out reads, the service preserves uptime and consistency so your customers and applications see uninterrupted service.

Security, compliance, and an integrated ecosystem

Azure Database for PostgreSQL helps simplify compliance for sensitive and highly regulated data by providing layered security controls out of the box. All data is encrypted at rest by default, and you have the option to use customer-managed keys for encryption if you need full control over key rotation and access. Network isolation is straightforward: you can deploy your PostgreSQL server into an Azure Virtual Network with private endpoints, so that database access stays entirely on your private Azure network with no exposure to the public internet.

For identity and access management, Azure Database for PostgreSQL supports Microsoft Entra ID authentication, allowing you to manage database users and permissions through centralized Entra ID identities instead of static credentials. This means you can use existing corporate security policies and easily onboard and offboard users per compliance needs. Together, these features help meet strict standards like payment card industry data security standard (PCI DSS) and Security Operations Center (SOC) compliance by controlling who has access to what data and ensuring data is protected at rest and in motion.

Because it’s an Azure service, PostgreSQL integrates naturally with the broader Microsoft ecosystem. You can connect your data to analytics and AI services (such as Microsoft Fabric and Azure AI) without complex Extract, Transform, and Load (ETL), accelerating the development of AI-powered apps on top of your operational data.

In fact, after modernizing its platform, BNY Mellon reported that its teams could “innovate faster in areas such as data management, analytics, AI, and machine learning” once they were running PostgreSQL on Azure. Developers also retain the full power of PostgreSQL’s extensibility. Azure’s managed service supports a wide range of popular Postgres extensions (from PostGIS for geospatial analysis to pg_cron for scheduling), so developers can continue to use specialized plugins for financial calculations, time-series analysis, or even graph queries as needed.

A transformation with returns in nine months

To see these benefits in action, consider BNY Mellon, a global financial services company that modernized a critical data platform by migrating to Azure Database for PostgreSQL. BNY Mellon’s Data Vault system ingests and manages mission-critical, multitenant data for clients—it demanded high resilience, scalability, and agility that their legacy self-managed database couldn’t easily provide. Working closely with Microsoft, BNY Mellon moved this workload to Azure Database for PostgreSQL, completing the migration in just nine months.

By adopting Azure’s fully managed Postgres, the company achieved simplified data storage and analytics and built a “cohesive, customized solution” aligned with their microservices architecture. Resiliency improved immediately, with Azure’s high availability and backup capabilities, and BNY Mellon’s engineering teams gained more time for innovation now that routine database maintenance is offloaded to Azure. This new foundation is not only handling today’s needs but is flexible enough to evolve with future AI and analytics initiatives, exemplifying how a modern cloud database can empower a venerable financial institution to stay on the cutting edge.

A step toward readiness for the era of AI

Modern financial services requires a database platform that can scale effortlessly, stay secure and compliant by default, and free up your teams to innovate with data. Azure Database for PostgreSQL, with its combination of performance, high availability, advanced security, and rich PostgreSQL compatibility, rises to that challenge. It’s a solution that lets developers and Database Administrators (DBAs) spend less time wrestling with infrastructure limitations and more time building the next generation of financial applications.

Ready to take the next step? Explore our PostgreSQL for Financial Services solution guide for architectural best practices and implementation tips.

The post AI is requiring financial services to modernize their data platforms appeared first on The Microsoft Cloud Blog.

Property and casualty (P&C) insurers face growing challenges, including macro-economic factors and cyber-attacks, but none is bigger than climate risk. Catastrophic events are nothing new, of course. What has changed is the scale and frequency of weather-related losses and the operational strain that follows. Swiss Re estimates global insured losses from weather‑related natural catastrophes have exceeded $135 billion in 2024, marking the fifth consecutive year insured losses topped $100 billion, and underscoring a structural escalation in climate‑related risk.¹

In response, many insurers are rethinking how to best deliver customer value, profitability, and growth. Mutual and cooperative insurers are under sustained pressure to balance financial strength with their purpose of providing protection in an environment marked by increasingly severe risks and closer regulatory scrutiny. It is a challenge that AI is well suited to answer, helping to expand the role of insurers from risk transfer providers to proactive risk partners.

Insurers and AI: early adoption and opportunity

A 2024 survey by the International Cooperative and Mutual Insurance Federation (ICMIF) found that 62% of respondents were already using AI, with a further 19% planning adoption within the next year. In practice, however, most deployments were commonly concentrated in specific functional areas, such as supporting underwriting, claims processing, and customer interactions. About 67% of insurers expect AI to become more central to their operations, even as many cite data quality and talent gaps as key challenges.²

According to a recent BCG study, only about 7% of insurers have successfully scaled initiatives, with 67% engaged in pilots, fragmented across functions. The opportunity now is to move from isolated use cases to AI embedded across end‑to‑end processes, extending to more automated, interconnected workflows and setting the stage for a shift toward risk prevention.³

How AI helps improve efficiency, service, and relationship management

Prevention does not replace excellence in risk transfer. Forward-looking organizations pursue both. They modernize service and core operations across the customer engagement cycle, while investing in prediction and prevention-oriented capabilities that help reduce future risk and strengthen long-term resilience.

One area where AI delivers important benefits is in enabling faster, more consistent client service by helping representatives locate and validate policy information faster. At Unum Group, for example, a new AI-powered application lets representatives search across 1.3 terabytes of policy and related documents and receive highly relevant answers in four to five seconds, with reported accuracy of up to 95%. This reduces time spent on manual lookup and frees representatives to focus on higher-value client interactions.

Likewise, NFU Mutual uses Copilot for Sales with Microsoft Dynamics 365 to establish a centralized “single source of truth” for customer data and interactions. By capturing and summarizing communications in real time, employees can quickly understand customer needs and respond with greater precision, helping to reduce response times and deliver more informed, personalized engagement.

AI can also streamline First Notice of Loss by ingesting call transcriptions, images, and videos, and guiding representatives to capture the right information in the first conversation, helping accelerate remediation.

In claims review, AI can turn static documentation into insights that inform action. Gallagher, for example, built an internal AI platform that summarizes complex claims files in minutes rather than hours, helping adjusters move faster and apply those insights more effectively across claims and client workflows.

In cases of widespread impact, such as a storm that causes power outages that result in many food spoilage claims, AI can route low-complexity claims through specialized AI agents that can help validate coverage, correlate weather data, detect fraud, calculate payouts, and generate audit trails. This increases service representative capacity for higher-impact cases by addressing low-risk claims with autonomous AI.

These innovations use document processing, contextual summarization, natural language interface and workflow automation, all of which can be used to help improve other processes across core insurance capabilities, customer service, and relationship management.

How AI helps with prevention and protection

The impact of prevention‑led approaches, whether applied to customer risk or enterprise risk, is twofold: financial resilience and stronger trust. This positions insurers as partners that mitigate, not just transfer risk for their customers.

Prevention‑led use cases extend well beyond field‑level interventions, such as property risk scoring or event‑readiness outreach. Increasingly, they focus on identifying and reducing risks earlier, before disruptions, security incidents, or service failures occur.

This shift is visible in how organizations are applying AI to support faster, more informed decisions. At Aon, which has an enterprise grade platform that can operate across solution lines, teams use AI-enabled tools to better assess and respond to risk. To enhance decision quality while maintaining strong governance, they built an Azure-based AI platform called AonGPT that securely connects data and supports consistent, governed analysis, especially in fast-moving situations. During recent California wildfires, Aon’s teams combined near real-time satellite imagery with proprietary data to generate timely insights that helped clients assess damage and plan their response.

AI also enables a shift from paying claims to helping customers reduce exposure before losses occur. Zurich Insurance Group deployed more than 200 AI tools to interpret unstructured inputs in the form of images, reports, and emails in multiple languages, and translate them into clear, consistent risk signals for underwriters. This improves the accuracy and timeliness of risk assessments, helping customers anticipate and reduce potential exposures before losses occur, and supports better informed underwriting decisions.

Prevention can also take the form of making dormant risk visible early enough to act. For example, AI can analyze large volumes of historical risk engineering reports to identify patterns, such as construction materials or design features that are associated with higher structural risk. This can distinguish specific higher-risk properties for expert review—in weeks rather than months in some cases—letting insurers engage earlier, prioritize inspections, and reduce the likelihood of disruption.

Emerging external data sources help improve risk prevention

Many prevention types depend on spotting and interpreting early signals, often from outside of core insurance systems. Using generative AI and machine learning, insurers can integrate third-party signals with internal data to help create new ways to refine risk selection, pricing, event readiness, customer outreach, and more. Sources such as external research, disclosures, regulatory filings, sensor data, and geospatial imagery can have immense impact, provided they are reliably accessible.

Initiatives from Microsoft Research and AI for Good highlight advances in third-party data that can significantly enrich the power of predictive solutions:

• First, Aurora is a foundation model of the atmosphere that produces fast, high-resolution forecasts, especially during extreme and fast-moving conditions. For insurers and reinsurers, that means more timely environmental intelligence to support underwriting, catastrophe modeling, claims surge planning, and reinsurance response.
  
• Second, SPARROW uses solar-powered devices with cameras, microphones, and sensors to detect meaningful changes on the ground and send near real-time insights to the cloud. For insurers, it shows how AI and sensor data can enable earlier risk detection, faster intervention, and reduce loss severity.
  

Earlier, more precise forecasting can inform proactive risk alerts, giving customers and commercial clients time to take preventive actions (for example, securing property or adjusting operations) and support coordination among insurers, risk engineers, brokers, and public authorities. The objective is straightforward: Improve analysis, lead time, and decision quality to mitigate large losses.

Priorities for success with AI and risk prevention

For leaders, realizing measurable value from AI across the business, including enhancing prevention, can happen in a matter of months or quarters. Microsoft’s view of industry patterns indicates that successful approaches often prioritize the following:

• Define a clear strategy and start with a small number of high‑value, extendable use cases aligned to core business priorities.
  
• Build strong data foundations and effective governance.
  
• Balance innovation with credibility and responsible adoption.
  
• Pursue business-led process re-architecture, change management, and talent skilling.
  
• Commit to stretch goals with active leadership, resourcing, and accountability.
  

Insurers who employ this comprehensive approach and tailor AI to their unique business requirements can improve the most critical aspects of their operations. Critically, they can enhance prevention as an important part of their future growth strategies.

Learn more

• To explore how leading insurers are using agentic AI to transform claims, underwriting, and customer experience, read our ebook.
• To explore solutions and resources for insurers, visit Microsoft for Insurance.
• To learn how frontier firms in financial services are using AI to improve efficiency, innovation, and customer satisfaction, get the e-book.
  
• Visit our blog for stories of how Microsoft for Financial Services helps firms accelerate business value.
  

¹ Swiss Re, “Hurricanes, severe thunderstorms and floods drive insured losses above USD 100 billion for 5th consecutive year, says Swiss Re Institute,” December 2024

² International Cooperative and Mutual Insurance Federation, “Balancing AI innovation with member-driven values at mutual and cooperative insurers,” February 26, 2025

³ BCG, “Insurance Leads in AI Adoption. Now It’s Time to Scale.” September 04, 2025

The post From risk transfer to risk prevention: How AI supports long-term financial resilience in insurance appeared first on The Microsoft Cloud Blog.

• Author: You’re producing the work, calling on AI to help as needed — a line of code, a sentence, a chart.
• Editor: You set the intent and AI creates the first draft for you to edit and approve.
• Director: You create a spec and hand off entire tasks for AI to execute in the background.
• Orchestrator: You design a system where multiple agents run in parallel across a workflow, flagging exceptions and escalations to you.

Every business leader knows the world is changing, but far fewer have a clear picture of what to do about it. These four patterns are the place to start. The real work ahead for leaders is redesigning their firm’s operating model around the collaboration patterns.

As agent use increases, human involvement doesn’t disappear — it changes shape. What declines is the amount of tactical, step-by-step execution work humans do themselves. And what rises is the need for humans to set direction, define standards and evaluate outcomes.

Ultimately, the goal is not to move every task and business process to the fourth pattern. Instead, it’s up to leaders to help their organizations develop clarity around matching workstreams to the right collaboration pattern. That’s the shape of the Frontier Firm: defined by how deliberately leaders design work across functions, matching the level of human involvement to the outcome.

What the data shows

Our 2026 Work Trend Index research reinforces this shift across roles and industries. We analyzed trillions of anonymized Microsoft 365 productivity signals and surveyed 20,000 workers using AI across 10 countries. We also spoke with leading experts in AI, work and organizational psychology to help us unpack the insights from the data and understand where all this is going. The conclusion is consistent: the constraint is no longer what people can do, it is how work is structured around them.

• AI lifts individual potential. A privacy-preserving analysis of more than 100,000 chats in Microsoft 365 Copilot shows that 49% of all conversations support cognitive work — helping workers analyze information, solve problems, evaluate and think creatively. This shift is already visible in output, with 58% of AI users saying they’re producing work they couldn’t have a year ago, rising to 80% among Frontier Professionals, the most advanced AI users in our research. Additionally, when AI users were asked which human skills are most important as AI takes on more work, they said two topped the list: quality control of AI output (50%) and critical thinking — that is, analyzing information objectively and making a reasoned judgment (46%).
• The Transformation Paradox. We are seeing a pressure point emerge within the organization where the pull to perform collides with the push to transform. 65% of AI users surveyed fear falling behind if they don’t use AI to adapt quickly, yet 45% say it feels safer to focus on current goals than to redesign work with AI. And only 13% of workers say they’re rewarded for reinvention of work with AI even if results aren’t met. The same forces accelerating AI adoption are holding it back.
• Every organization is a learning system. Our results show that organizational factors like culture, manager support and talent practices account for more than 2X the AI impact of individual factors like mindset and behavior (67% vs. 32%). Specifically, the findings underscore the importance of an AI-ready environment: a culture that treats AI as a strategic advantage and encourages experimentation, managers who model and incentivize AI use and talent practices that build skills and create space to apply them. The real question isn’t whether people have the right skills, it’s whether the organization is built to unlock them.

The firms that build a new operating model today won’t just move faster in the short term. They’ll build something more durable, setting themselves up to create value in ways that we can’t yet conceive of: an organization that learns faster than its competitors, compounds its own intelligence and gets harder to catch with every cycle.

For deeper analysis, see the 2026 Work Trend Index Report.

Enabling the Frontier Firm with Copilot Cowork — now mobile, extensible and enterprise-ready

None of an organization’s system scales without infrastructure that brings people and agents into the same flow of work with connected data and the ability to manage and govern it all. Microsoft 365 Copilot is built for exactly that.

Today, we’re expanding Copilot Cowork with new capabilities for Frontier customers to help organizations move from isolated AI tasks to coordinated, multistep work. Cowork enables people to define outcomes and delegate work across apps, business systems and data, with execution that stays directed and controlled throughout.

This update introduces Copilot Cowork Mobile for iOS and Android, along with a growing plugin ecosystem for Cowork, bringing more of an organization’s tools and data into these experiences. This includes native plugins across Microsoft services like Dynamics 365 and Fabric, and partner integrations available in the coming weeks like LSEG (London Stock Exchange Group), Miro, monday.com, S&P Global Energy and more. Organizations can also build custom plugins to turn their own workflows and expertise into reusable, scalable processes. Additionally, a first wave of federated Copilot connectors in Researcher and Microsoft 365 Copilot Chat is generally available today from partners like HubSpot, LSEG (London Stock Exchange Group), Moody’s, Notion and more.

Together, these updates extend Copilot Cowork from a task-based assistant into an extensible platform that helps orchestrate work across Microsoft and third-party systems. With management and governance through Microsoft Agent 365, organizations can deploy and scale agents across core business functions like sales, service and operations.

For more on these product innovations: Microsoft 365 blog.

AI is no longer an experiment. It is an execution challenge. Employees are already working across all four patterns. The open question for every leadership team is whether they can catch up. Access to AI won’t be the advantage for much longer. How the work is designed around it will be.

Jared Spataro, CMO, AI at Work at Microsoft, shapes how every organization applies AI and agents to reduce costs, create new value and define the future of work. He leads research, strategy and product across Copilot, Copilot Studio, Microsoft 365, Dynamics 365 and Power Platform.

The post How Frontier Firms are rebuilding the operating model for the age of AI appeared first on The Microsoft Cloud Blog.

Return on intelligence and trust

For media and entertainment organizations, unlocking value from AI at scale depends on two things: intelligence and trust.

Built on three complementary elements—Work IQ, Fabric IQ, and Foundry IQ—Microsoft IQ is the intelligence layer that connects AI, data, and context across the media value chain. It gives AI agents a deep understanding of how creative teams work, how content moves through production and distribution, and how business decisions are made. This shared intelligence accelerates content creation, personalizes audience engagement, streamlines operations, and opens new paths to monetization—all while keeping human intent and creativity at the center.

None of this works without trust. Media organizations operate under intense intellectual property (IP), regulatory, anti-piracy, and contractual constraints. Frontier transformation depends on intelligence that is secure, governed, and observable by design. Microsoft delivers this through an AI control plane, with Agent 365 providing unified governance, identity, and observability across agents—ensuring they are discoverable, auditable, and policy‑controlled as they operate across creative, operational, and business workflows. Combined with Microsoft’s end‑to‑end security and compliance stack—spanning Microsoft Entra, Microsoft Purview, Microsoft Defender, Fabric, and Foundry—media organizations can scale AI confidently while protecting creative IP on a global scale. 

At NAB Show 2026, Microsoft is showcasing how media companies can move beyond experimentation to real business impact with AI. Through a single, unified platform that brings together AI, data, intelligence, and governance, Microsoft enables connected, actionable insights that help media organizations use intelligent work, AI-powered creation, agentic operations, and new growth with AI.

Read more to see where frontier media organizations are already achieving this.

Intelligent work

Frontier media organizations start by transforming how people work. Instead of being spread across dashboards and systems, intelligence shows up directly in the flow of work through Copilot, agents, and Microsoft IQ. See how a few examples of frontier media organizations are embedding intelligence into everyday work:

• Publicis Groupe announced it is expanding its partnership with Microsoft to enable intelligent, agent‑driven work for its more than 110,000 employees while powering the future of agentic marketing for its customers worldwide. Publicis is rolling out Microsoft 365 Copilot across its workforce to embed AI into daily work. Additionally, Publicis Sapient’s Slingshot framework will use Microsoft’s cloud, while Sapient AI solutions will integrate Microsoft Copilot Studio, Microsoft Agent 365, and Microsoft IQ, enabling customers to embed AI directly into core business processes. Sapient’s Bodhi platform will then allow organizations to deploy and scale secure, enterprise-grade AI agents across the business. The partnership is anchored in Epsilon, Publicis’ IP intelligence layer. AI agents built on Microsoft Fabric and powered by Epsilon will be able to reason, decide, and act on trusted, real-world data, to deliver impact that extends beyond model performance to sustained business value.
• The New York Jets are using technology to turn one of the most high‑pressure moments in sports—the NFL Draft—into an example of intelligent work in action. Through their Microsoft powered Titan platform and Copilot enabled tools, coaches, scouts, and front office leaders bring together film, analytics, historical data, and real‑time insights to make faster, better‑informed decisions. By augmenting human expertise with AI and cloud intelligence, the Jets show how intelligent work helps teams operate with speed, alignment, and confidence when every decision matters.

Together, these organizations show how intelligent work starts by meeting people where they already work and embedding intelligence directly into daily media workflows.

AI-powered creation

For creators and content teams, intelligence must move as fast as the moment. Frontier media organizations connect content, audience signals, and creative context in real-time, so insight immediately translates into action. See how frontier media organizations are using AI-powered creativity to scale their content:

• Collective Artists Network is working with Microsoft to support creators with AI-native content systems that keep human storytelling at the center. By embedding intelligence into filmmaking workflows, the collaboration aims to help teams iterate faster while preserving director-led creative vision.

We’re using technology being developed here in India to take our culture and history to a global audience, at a scale that wasn’t possible earlier. For us, this is a long-term priority, building stories that are rooted in who we are, but can travel anywhere in the world.

—Vijay Subramaniam, Founder and Group CEO, Collective Artists Network

• The NBA uses Microsoft Azure AI to power dynamic highlights, real‑time stats, and in-game insights embedded directly into fan touchpoints like the NBA App—bringing fans closer to the action through personalized, data‑driven experiences.

Microsoft has also announced new Microsoft AI models in Microsoft Foundry and Microsoft AI Playground to help media organizations further accelerate this shift. MAI-Transcribe-1 delivers state-of-the-art speech-to-text transcription across the top 25 most-used languages.¹ MAI-Voice-1 generates natural, realistic speech, that preserves speaker identity even across long-form content. MAI-Image-2 was created with photographers, designers, and visual storytellers, delivering natural lighting, accurate skin tones and texture, and clear in-image text for diagrams, layouts, and graphics.

Empowering creators is not about adding AI features. It is about orchestrating intelligence across content, data, and delivery—so creativity becomes action in real time.

Agentic operations

The most profound transformation in media today is operational. Frontier organizations are embedding intelligence across the entire media supply chain—from production and post to rights, distribution, and monetization—using agentic systems to replace manual handoffs with coordinated, end-to-end workflows.

• Penguin Random House is using agentic AI to modernize accessibility at scale, embedding governance and human oversight into core publishing workflows to improve efficiency and compliance.

Penguin Random House leverages Azure AI to scale the creation of high‑quality, context‑aware Alt-Text content across our e-book catalog. This initiative advances our accessibility commitments while materially reducing manual effort, cost, and operational complexity. By embedding Azure OpenAI into our accessibility workflow with a human‑in‑the‑loop governance model, we can generate image descriptions at scale, strengthening regulatory compliance and enabling a more accessible and efficient publishing process. 

—Christopher Hart, CIO Penguin Random House 

• The International Tennis Federation (ITF) is using Microsoft Azure and AI orchestration to power a real‑time intelligence platform that unifies match telemetry and delivers instant, on‑court insights to coaches and players. By processing more than 700,000 data points per match and generating over 1,500 statistical combinations in real time, the ITF is enabling teams to make faster, data‑driven decisions during play through applications like Match Insights, helping standardize access to advanced analytics across more than 140 competing nations regardless of their resources.

• Kantar is using Microsoft Copilot Studio to deploy teams of AI agents that automate complex data preparation tasks across its global operations. By breaking down manual workflows such as translating documents, validating policies, and organizing HR content into smaller subtasks handled by specialized agents, Kantar enabled its People Team to clean, tag, and structure 4,000 artifacts into 400 policy documents in just six weeks, laying the operational foundation for scalable, agent‑driven workflows that support employee queries across 60 countries.

With Foundry IQ and Fabric IQ, agents now operate with shared context across data, workflows, and knowledge—allowing operations to scale without chaos and intelligence to move end-to-end.

Additional partner solutions continue to enable agentic operations:

swXtch.io will introduce swXtch.ai and the swXtch AI Router, a platform that integrates with Microsoft Fabric and NVIDIA AI to enable real-time AI in live media workflows through a simple chat-driven interface, reducing the need for custom pipelines or specialized expertise.

New growth with AI

The clearest signal of frontier leadership is how media organizations innovate. Instead of experimenting at the edges, leaders are building AI‑native platforms that unlock entirely new creative and commercial opportunities.

See how some of these frontier organizations have experienced new growth with AI:

• Microsoft recently announced a partnership with the Mercedes‑AMG PETRONAS Formula 1 Team to apply cloud and enterprise AI across race strategy, team operations and business intelligence, transforming massive volumes of telemetry into real‑time intelligence from the factory to the circuit. With each car generating more than a million data points per second, Microsoft technology helps turn complex race data into faster insights that power smarter decisions and more effective strategies in the moments that matter most. Together, the companies are harnessing data as intelligence to drive performance and strategy, enabling teams to move from raw information to sustained competitive advantage both on and off the track.
• Art Basel is using Microsoft Foundry to power the Art Basel Companion app, unlocking new digital pathways for audience growth and artist discovery across its global fairs. With AI‑powered features such as personalized recommendations and instant artwork recognition through the Art Basel Lens, the platform creates new opportunities for deeper visitor engagement—helping attract new audiences, increase return visits, and expand how collectors and fans interact with galleries through AI‑enabled discovery.
• The Premier League is using Azure AI and Foundry to unify decades of match statistics, editorial content, and video into real‑time, personalized digital experiences for its global fanbase. By enabling rapid innovation through agentic AI and real‑time personalization, the League has unlocked new forms of fan engagement across its owned platforms, driving a 20% year‑over‑year increase in engagement and activating more than 60 million users in the early months of rollout.

Additional partner solutions continue to unlock new growth with AI:

SymphonyAI’s Revedia is an AI‑first platform supporting over $40B in industry content revenue, rapidly ingesting and normalizing third‑party data to deliver accurate revenue and viewership insights at scale. Beyond data management, the Revedia Suite provides prescriptive intelligence—recommending actions and forecasting outcomes to maximize distribution performance and revenue. Revedia is trusted by a broad cross‑section of the media industry, including major studios, broadcasters, cable networks, and Direct-to-Consumer (D2C) platforms.

The Microsoft and MediaKind partnership continues to accelerate, with MK.IO emerging as the proven cloud-native streaming platform for live sports. Built on Azure, MK.IO supported DAZN’s delivery of the FIFA Club World Cup 2025, streaming 63 matches to audiences across over 200 markets with consistent, broadcast-quality performance. It reflects a broader industry shift toward platforms that combine reliability with the agility of API-driven services. A transformation MediaKind is showcasing at NAB 2026 through MK.IO’s self-serve platform and large language model (LLM)-optimized documentation, with live demonstrations in Microsoft’s booth highlighting AI-assisted workflows in action. This momentum continues to grow through MediaKind and Microsoft’s collaboration on some of the most prestigious sports ecosystems in the world, including ongoing work supporting top-tier football experiences such as the Premier League. 

Join us at NAB Show 2026

Frontier media organizations are already proving what is possible when intelligence, data, and trust come together on a single platform. Join Microsoft at NAB Show 2026 to see how Copilot, agents, Microsoft IQ, Foundry, and Fabric come to life through real deployments, live demos, and customer stories shaping the future of media.

¹ Top 25 languages by Microsoft product usage

The post Powering intelligent media: How frontier organizations realize a return on intelligence with Microsoft appeared first on The Microsoft Cloud Blog.

This evolution reflects a broader shift in how healthcare approaches security. Rather than responding to risk after the fact, organizations are embedding security across identity, data, infrastructure, and applications—building resilience as a foundational capability that supports innovation at scale.

For some organizations, AI is being adopted faster than traditional governance structures can keep pace. According to Microsoft’s 2026 Data Security Index, only 47% of organizations across industries report implementing specific generative AI security controls, underscoring a need for clearer security visibility to support safe AI adoption. A multinational survey of more than 1,700 data security professionals commissioned by Microsoft from Hypothesis Group found that 29% of employees have already turned to unsanctioned AI agents for work tasks.¹ 

Together, these trends are creating new challenges around data handling, security visibility, and compliance, especially as AI tools interact with sensitive or unstructured data. As AI moves into autonomous agents embedded in workflows, these gaps in governance and visibility become exponentially harder to manage.

At the same time, healthcare leaders are responding. Healthcare organizations are accelerating investment in technical and operational safeguards and implementing more specialized controls to govern AI responsibly. The message is clear: governance and security foundations play an important role in responsible AI adoption.

Operating security at a global scale gives Microsoft a unique perspective on how threats evolve and how defenses must adapt. Microsoft processes more than 100 trillion security signals every day,² applying insights from a global network of security engineers and partners to develop protections that support the unique regulatory requirements of environments like healthcare.

What real-world impact looks like in healthcare security

Across healthcare, organizations are facing expanding digital environments, rising threat volumes, and teams under constant pressure to protect patient data. The following examples illustrate how some organizations are approaching these challenges as they modernize their security operations.

St. Luke’s University Health Network: Scaling security operations without slowing care delivery

With 15 campuses, 300 outpatient sites, and more than 2.5 petabytes of data in motion, St. Luke’s University Health Network manages a highly complex digital environment. Protecting that environment while maintaining operational continuity requires security operations that can scale efficiently and respond quickly to potential threats.

Like many large health systems, St. Luke’s faced fragmented visibility across multiple security platforms. Analysts were overwhelmed by user‑reported suspicious emails and false positives, slowing response times and increasing the risk that real threats could be missed.

To modernize its Security Operations Center, St. Luke’s adopted Microsoft Security Copilot, giving analysts unified, real‑time visibility and AI‑assisted investigation. By consolidating information across security tools and using AI‑assisted analysis, the organization reduced manual effort for analysts and improved consistency in how potential threats are reviewed and prioritized.

The impact:

• Nearly 200 hours saved per month.
• Thousands of false positives automatically resolved.
• Faster, more consistent threat response at scale.

Providence Care: Unifying security to improve visibility and response

Serving more than 15,000 patients across over 14 sites, Providence Care faced a challenge around complexity. A patchwork of disconnected security tools created visibility gaps and operational strain for a small IT team responsible for thousands of users and devices.

This fragmented approach made it harder to detect issues early and respond quickly, keeping the team stuck in reactive mode. Providence Care needed to simplify its environment while strengthening protection across identities, devices, and data.

By consolidating on Microsoft 365 E5 and unified Microsoft security capabilities, including Microsoft Defender and Microsoft Purview, Providence Care established a modern, cloud‑native security foundation. Consolidation reduced complexity and gave the IT team time back to focus on higher‑value work.

The impact:

• Reduced tool sprawl and improved visibility.
• Faster detection and response.
• IT teams shifted from reactive work to analytics, automation, and AI readiness.

Mitsubishi Tanabe Pharma: Modernizing security to scale innovation

As life sciences organizations expand digital transformation efforts, the volume and value of sensitive research and clinical data continue to grow, along with the cyber threats targeting it. Advancing its long‑term vision for data‑driven innovation and precision medicine, Mitsubishi Tanabe Pharma faced increasing security alert volumes across cloud environments and rising pressure on specialized teams responsible for protecting critical systems and data.

Fragmented security visibility limited context for rapid analysis, slowing response times and making it harder to securely scale digital initiatives across the organization. To address these challenges, Mitsubishi Tanabe Pharma modernized its security operations by unifying cloud visibility and security monitoring, strengthening threat detection and incident analysis, and improving security literacy across teams. This approach established a more resilient, cloud‑ready security foundation aligned to its broader digital strategy.

The impact:

• Reduced manual effort through automation and consolidation.
• Improved focus for security and IT teams.
• A shift from reactive investigation to proactive risk management.

Across providers and life sciences, the same fundamentals show up again and again: simplify, unify visibility, and reduce the noise that slows response. AI-powered, end-to-end security helps healthcare organizations run security operations across complex IT environments.

Building secure AI foundations with a phased approach

Strengthening healthcare security is a journey. A phased approach helps organizations address the most critical risks first while building long-term resilience. Microsoft’s Cloud Adoption Framework outlines three phases: Govern AI, Manage AI, and Secure AI. This approach helps healthcare organizations establish responsible AI practices and reduce risk as innovations like AI agents reshape how data is accessed and used. Grounding this work in Zero Trust principles, “never trust, always verify,” helps ensure interactions are authenticated, authorized, and continuously monitored as part of a broader security strategy.

Healthcare leaders are navigating AI adoption in one of the most regulated and trust‑sensitive industries in the world. Microsoft brings a distinct advantage to this moment: decades of experience supporting healthcare organizations, combined with security operations at global scale.

Through its Secure Future Initiative, Microsoft applies lessons learned from operating one of the world’s largest security platforms and translates them into practical patterns and practices designed for highly regulated environments like healthcare. When security is embedded as a foundation, not an afterthought, organizations are better positioned to govern AI responsibly, protect patient trust, and move forward with confidence.

From real‑world impact to practical next steps

Across these examples, the common thread is not technology alone, but disciplined progress, building security foundations that can support increasingly autonomous AI scenarios over time. For healthcare leaders navigating similar pressures, progress often starts with a phased, intentional approach rather than a single, all-at-once transformation.

As healthcare organizations introduce new AI innovations like agents, establishing a strong security foundation rooted in Zero Trust principles helps leaders move forward with confidence and control. While achieving Zero Trust takes time, adopting a phased strategy allows for steady progress and builds confidence in securely integrating AI. 

Extending the conversation

Security is a shared responsibility, and progress depends on collaboration across the healthcare ecosystem—including customers, technologists, and partners. Through open dialogue and shared learning, healthcare leaders can continue strengthening resilience as technologies and threats evolve.

Explore guidance on building a more resilient healthcare security posture, covering cloud security, compliance, and governance in an AI‑enabled world.

• Stay ahead with our Healthcare Security Brief podcast, offering practical insights from Microsoft security partners on AI‑era security, privacy, and compliance. Listen to the podcast on Spotify, Amazon Music, and Apple Podcasts.
• Read the e-book: Strengthen cybersecurity and compliance in the era of AI.
• Download the infographic: How AI can help fortify security and compliance.
• Deep dive into the Microsoft Data Governance and Security Guide.

¹ July 2025 multi-national survey of more than 1,700 data security professionals commissioned by Microsoft from Hypothesis Group.

² Microsoft Digital Defense Report 2025: Safeguarding Trust in the AI Era, Microsoft Security, 2025.

The post Building secure foundations for responsible AI in healthcare with Microsoft appeared first on The Microsoft Cloud Blog.

Across banking, capital markets, and insurance, some of the fastest-moving institutions are not simply “adopting AI.” They are becoming Frontier Firms, AI-powered organizations built around human-agent collaboration. In a sector where the cost of error is high, the financial services sector is emerging as an early proving ground for the Frontier Firm model.

The Microsoft 2025 Work Trend Index highlights a widening AI divide. While many organizations remain stuck in pilot mode, Frontier Firms are scaling agentic AI across their operations.

Our work with financial services leaders worldwide shows a clear pattern. The winners in the next generation of innovation will be those that combine human judgment with AI and agents, without compromising security, compliance, or customer trust. Critically, these advantages are best enabled through migration to a modern cloud foundation that can scale AI responsibly and reliably.

The crossroad: Modernize or let legacy debt grow?

Legacy systems have powered financial services for decades. Yet the very qualities that once made them indispensable—custom integrations, tightly coupled architectures, and deeply embedded processes—now create friction and fragility. Increasingly, they can be expensive to maintain, slow to change, and difficult to secure end-to-end. Worse, they can inherently constrain data access across the business, which limits advanced analytics and AI from delivering full value in key areas like customer engagement, fraud prevention, credit decisions, underwriting, and financial crime.

In many institutions, this accumulated technical debt is, in effect, an understated balance-sheet liability. It can increase operational overhead, complicate resilience planning, and broaden the cyber-attack surface. At the same time, regulators are demanding that firms prove stronger controls while, competitively, digital-native challengers are showing what’s possible when technology is designed for continuous change.

Modernization can help answer many of these challenges by helping position firms to gain competitive advantages that go well beyond cost efficiency. As workloads become increasingly cloud-native (in other words, designed to be built, updated, and scaled continuously in the cloud rather than tied to legacy infrastructure), organizations can launch new services faster, respond with agility, and use AI as part of everyday operations.

Waiting to migrate can increase risk and cost

A variety of factors are converging to increase the urgency of modernizing.

• Regulatory pressure is growing. Requirements for operational resilience, third-party risk oversight, data governance, and AI accountability are becoming more explicit and more enforceable. In Europe, the Digital Operational Resilience Act (DORA) raises the bar on stress testing, incident reporting, and information and communication technology (ICT) governance. In parallel, the European Union AI Act introduces demanding expectations for high-risk AI, including transparency, explainability, and bias mitigation. Globally, frameworks shaped by Basel guidance and securities regulators continue to push for stronger risk management, auditability, and controls across financial operations.
• Customer expectations are becoming non-negotiable. “Digital-first” now means more than building a polished mobile app. It means enabling instant transactions, proactive service, and personalized guidance—delivered consistently across channels. Doing all this at scale means that data must move securely and quickly, products should evolve continuously, and controls must be embedded rather than bolted on.
• The threat landscape is getting scarier. Threat actors are using automation and AI to increase both scale and sophistication. In a legacy environment, security improvements often arrive as point solutions, unevenly applied, and hard to validate. Cloud architectures, implemented with the right governance, help enable consistent identity controls, continuous monitoring, and policy-based protection that can be audited and improved over time.

Migration as a lever for innovation

Migration is too often framed as a technology initiative. For business and risk leaders, the more useful long-term view is as to regard it as a control and value strategy, a way to embed governance into the operating fabric of the firm.

This is why many transformation leaders manage cloud adoption as a sequence rather than a singular initiative, with a pathway from rehosting (“lift-and-shift”) through optimization and ultimately to AI acceleration. In this framing, modernization is not the finish line; it is the first step of compounding advantage.

Cloud migration, when managed well, can support a compliance‑by‑design approach, by which policy, identity, and data protections are consistently enforced. It can strengthen operational resilience through architectures that are built for redundancy, automated recovery, and continuous validation. And it can create an innovation pathway by making agentic AI practical to deploy and manage.

The AI-first divide: Cloud as operating model

As we see with Frontier Firms in financial services, innovation leaders tend to treat cloud architecture as more than an infrastructure choice. They use it as an operating model to standardize controls, build reusable platforms, and design processes that are increasingly AI-operated but human-led. The payoff can show up in faster deployment cycles, a lower cost per transaction, and predictive insights that make customer experiences more personal and operations more resilient.

Reaching that maturity typically requires progress across four transformation engines:

• Infrastructure modernization
• Legacy systems migration
• Systems modernization (including new business systems)
• Data modernization with AI integration

Financial services firms face stricter scrutiny than most industries, so the differentiator is not speed alone, it’s the ability to sustain speed while continuously demonstrating security, compliance, and control effectiveness.

We see this in practice across the industry. For example, UBS, following its acquisition of Credit Suisse, migrated a mission‑critical records platform from mainframe to a cloud‑native service on Microsoft Azure, reducing total cost of ownership by nearly 60% and improving their ability to meet regulatory demands. After LSEG migrated its high-volume, mission-critical Autex Trade Route (ATR) trading network from on-premises to Azure, the gains in scalability and resilience helped them absorb a sudden 400% surge in trading volumes with zero incidents. And the National Bank of Greece modernized document processing to improve accuracy and enable faster, more digital customer journeys. The common thread is not a single tool or model, it’s a cloud foundation that supports governed data, resilient operations, and repeatable innovation.

Turning migration into long-term value

For many firms, the hardest part of migration is not the technology; it’s making the journey auditable, repeatable, and aligned to risk appetite. That’s why a structured approach matters.

The Microsoft Cloud Adoption Framework, tailored for financial services, is designed to help institutions align cloud modernization to business outcomes while addressing the governance realities of the industry: data sovereignty expectations, operational resilience, and security-by-design. Importantly, cloud migration need not undermine data sovereignty; done right, migration strengthens locality, control, and compliance through governed architectures.

In practice, migration means helping businesses to build a compliant foundation, innovate responsibly, and maintain continuous control visibility as they scale. Microsoft supports this with financial-services-ready architectures, built-in governance and security capabilities, and a broad set of certifications and controls. Just as importantly, we work closely with customers and regulators globally to help ensure that cloud adoption can be evidenced properly in terms of risk reduction, resilience, and measurable operating improvement.

Trustworthy AI starts with the cloud foundation

Boards and regulators are right to focus on AI governance. Generative AI, agentic systems, and intelligent automation can improve productivity and customer outcomes, but only when they operate on governed data, with strong identity controls, clear lineage, and auditable policies. Those prerequisites are difficult to achieve in fragmented legacy environments.

Cloud migration creates the conditions for AI to be adopted responsibly, with modern data platforms and pipelines, elastic compute for experimentation and scale, consistent policy enforcement, and continuous monitoring.

To help institutions navigate migration with confidence, Microsoft combines a financial-services-tailored methodology with practical tooling and built-in governance. The Cloud Adoption Framework for financial services provides a proven, risk-aligned approach to planning and executing secure migrations. Azure Migrate and the Azure cloud migration and modernization programs help accelerate discovery, modernization, and execution with guidance and incentives. And capabilities like Microsoft Purview and Microsoft Defender for Cloud help establish compliance guardrails and security posture management from day one.

Lead the next generation with cloud

Migration is not the end state of digital transformation. It is the foundation for Frontier transformation, one which can enable firms to innovate faster, demonstrate stronger controls, and adapt quickly to new demands and opportunities.

The financial services firms that lead in the next generation of financial services will not be those that move the fastest in a single quarter. They will be the ones who modernize with technology that is durable, designed for operational resilience and evidence-based governance, and that makes innovation repeatable. Cloud migration is the inflection point where these powerful advantages become possible.

Learn more

• To explore a five-phase, risk-aligned approach to cloud migration that helps build the foundation for AI-first financial services, read the e-book: Becoming an AI-First Firm in Financial Services.
• Register for the Migrate and Modernize Summit to learn from industry leaders.
• Explore the Microsoft Cloud Adoption Framework for Financial Services.

The post Why cloud migration is key to realizing AI value in financial services appeared first on The Microsoft Cloud Blog.

Manufacturing is moving beyond local optimization toward a closed loop of end-to-end intelligent orchestration. Looking back at CES 2026, we can see that the industry narrative is quiet but fundamentally shifting. 

Across what we’re seeing with customers globally, three shifts stand out. First, the system shift. The operational foundation is evolving from digital to intelligent: more resilient, more real-time, and critically, more governable. Second, the data shift. The digital thread is no longer a static archive. It is becoming a living system—continuously updated and directly powering decisions as conditions change. Third, the work shift. We’re moving from copilots that assist individuals to agents that can collaborate and take on tasks—so the workflows themselves become more self-driving.

Together, these forces are raising the bar. Companies now need an end-to-end intelligent chain that turns AI from isolated point solutions into an organizational capability—reusable, scalable, and auditable. Drawing on Microsoft’s long-term work with manufacturers worldwide, and on how technology is evolving, I’d like to offer a practical framework for building that intelligent chain—so leaders can convert insight into action, and pilots into capabilities that scale.

AI use-case map for manufacturing: End-to-end intelligence from design to service

Scene One: Digital Engineering: Turning R&D into a profit engine

The role of the digital thread is evolving. Traditionally, it served primarily as a system of record—aggregating and archiving data. With AI and a unified data platform, it is becoming a real-time decision backbone spanning design, manufacturing, and service. Knowledge generated at one stage can now be applied immediately to improve outcomes in another. Generative and agentic AI are accelerating the core engineering loop—design, simulation, manufacturability analysis, and engineering change management—shortening iteration cycles and pushing risk discovery earlier in the process. Engineering data is no longer an R&D-only asset; it increasingly informs factory scheduling, quality strategies, maintenance policies, and service feedback loops.

This shift is already visible in practice. HARTING, a leader in industrial connectors, has deployed an AI assistant powered by Azure OpenAI and Microsoft Cloud for Manufacturing, making connector design faster, simpler, and more intuitive than ever before. Customers can describe their requirements in natural language, and the AI translates these inputs into technical specifications, guiding them to the right product within a minute. Customers can also visualize their configurations in 3D, enhancing confidence in their decisions. Siemens DI provides comprehensive cutting-edge software, hardware, and product lifecycle management solutions for industries including automotive and aerospace.

Using Microsoft Azure AI, Siemens DI developed a Microsoft Teams application for its industry-leading product lifecycle management (PLM) solution, Teamcenter. This solution analyzes unstructured voice content in multiple languages, automatically generates summary reports, and delivers information precisely to the relevant design, engineering, or manufacturing experts within Teamcenter. Through this intelligent collaboration mechanism, field issues are resolved faster, and knowledge transfer efficiency is significantly enhanced.

Scene Two: Intelligent Factory: AI is rewriting scheduling, quality, and maintenance

Production, maintenance, quality, and inventory remain the four core modules of factory operations—and that does not change in a smart‑factory context. What is changing is how these modules run. AI is systematically reshaping their operating logic: inventory management is moving from static rules to dynamic optimization based on real-time signals; quality management is shifting toward earlier, more precise judgments through computer vision, time‑series forecasting, and anomaly detection; and maintenance is evolving from after‑the‑fact repairs to predictive maintenance—progressing further toward adaptive process control.

As OT and IT capabilities mature, factories are gaining the ability to reason and respond directly at the point of value creation—on the shop floor, in real time. Frontline teams, empowered by multimodal Microsoft Copilot, can push the boundaries of what they can diagnose, decide, and execute. Over time, this human‑machine collaboration forms operational “agents” that can be deployed into production lines and day‑to‑day routines—turning intelligence into repeatable execution.

Global candy maker Mars operates manufacturing facilities across 124 locations worldwide. To safeguard its global equipment network, Mars partnered with Microsoft to deploy the Microsoft Defender for IoT solution. This enables visual management and threat detection for industrial equipment within stringent air-gapped production environments. Simultaneously, the solution transmits critical security data to a centralized system, enhancing data visibility while ensuring production continuity. International technology group Körber has transformed its market-leading PAS-X MES product into a cloud-based software as a service (SaaS) solution to address the stringent and multifaceted production management demands of the pharmaceutical sector. Using the robust stability of Microsoft Azure, Microsoft for Manufacturing, and Microsoft Azure Kubernetes Service, this solution enables customers to achieve greater flexibility and scalability. Simultaneously, by integrating data from IT and OT systems such as enterprise resource planning (ERP), supply chain management (SCM), and manufacturing execution system (MES), it delivers near real-time, actionable insights from diverse systems to employees. This significantly enhances equipment uptime, employee productivity, product quality, and overall output.

Scene Three: Resilient supply chain: From insight to execution with agentic AI

Early AI in supply chains mostly provided forecasts and dashboards. Valuable as they were, humans still needed to translate insights into action. The next step is agentic AI that executes—coordinating with suppliers, triggering replenishment or re-planning, optimizing inventory, and managing exceptions in logistics. When this happens, the traditional plan–execute–feedback loop transforms into a continuous intelligent system. The result is more than improved service levels—it enhances structural resilience and sustainability, as the system senses disruptions earlier, acts faster, and learns continuously.

A China-based electronics manufacturer, Xiaomi has built a unified after-sales supply chain management platform based on Microsoft Dynamics 365 and Microsoft Power Platform, using Azure for system integration and multilingual support. Utilizing Dynamics 365 Customer Service, Xiaomi has created a work platform that integrates financial processes, data integration, and security authentication across multiple communication channels. This platform also visualizes current inventory and proactively monitors and manages inventory levels in real time, enabling collaborative management between frontline services and backend supply chains. As a global leader in the smart terminal and home electronics industry, TCL is reshaping the industry landscape with its “Hardware + AI + Ecosystem” strategy, building a full-scenario ecosystem spanning multiple devices. Beyond driving innovative applications of Azure cloud and AI technologies in manufacturing, supply chains, and user experiences, TCL has pioneered the integration of Azure OpenAI, multimodal interaction, the intelligent Microsoft Copilot® assistant, and the Artificial Intelligence Generated Content (AIGC) ecosystem into smart TVs, smartphones, tablets, air conditioners, and other home appliances. This enables seamless cross-device connectivity and immersive experiences.

Scene Four: Connected customer: The product doesn’t end at delivery

In an AI-native model, product delivery is no longer the finish line. Customer experience continues through Over-the-Air (OTA) updates, AI-guided diagnostics, predictive service, and personal recommendations. AI enables a true closed loop—from customer feedback to engineering, factory, service, and back—turning experience into a growth driver rather than a cost center. None of this can scale without trust. As AI moves from recommendation to execution, governance becomes essential. Organizations need model governance, data and access control, OT and endpoint security, and explainability with rollback capabilities. This layer underpins all use cases, ensuring AI operates safely and reliably.

Epiroc, a Swedish mining and infrastructure equipment manufacturer, uses Microsoft Azure Machine Learning to build predictive maintenance and equipment performance models, transforming machine data into actionable customer insights. By identifying potential failures in advance and optimizing maintenance planning, Epiroc delivers a more proactive and transparent service experience, deepening customer relationships while opening new service-driven growth opportunities. Lenovo partnered with Microsoft to deploy the Microsoft Dynamics 365 Sales platform, thereby transforming its global customer relationship management (CRM) system.

By consolidating fragmented customer data and standardizing sales processes onto a unified digital platform, Lenovo achieved end-to-end visibility from lead management to opportunity tracking. The transformation improved collaboration efficiency, strengthened data-driven decision-making, and reinforced a more customer-centric operating model. In the “Hyper-Competition in High Dimensions” of the smart electric vehicle industry, NIO significantly boosts R&D efficiency by generating 610,000 lines of code daily through its intelligent GitHub Copilot® copilot, achieving an acceptance rate of up to 33%. The in-vehicle assistant NOMI, built on Azure OpenAI, enhances driving safety and user experience through precise contextual interaction. Simultaneously, Microsoft security solutions safeguard NIO’s complex IT environment and hybrid AI platform, automating daily threat detection and enabling cross-device security coordination.

Scene Five: Trust, safety, and OT security: The non-negotiable foundation

None of these AI use cases can scale without trust. Once AI moves from a recommendation system to an execution system, governance becomes essential. Manufacturing organizations need four core trust capabilities: model governance (ModelOps and Responsible AI), data and access control (Zero Trust architecture and industrial data protection,) OT and endpoint security, and explainability with controllability and rollback, so decisions can be understood, constrained, and safely reversed when needed. This is not a separate chapter; it forms the operating layer beneath all use cases, ensuring AI operates safely and reliably across the organization.

Ford, a longstanding automotive manufacturer synonymous with innovation, has deployed Microsoft solutions—including Microsoft Defender, Microsoft Sentinel, and Microsoft Purview—across its global operations. This initiative enhances visibility, automates responses, and strengthens data governance within its hybrid environment as companies worldwide face escalating cybersecurity threats. AI models learn from every interaction to improve detection capabilities and reduce false positives. With a unified security platform, Ford can focus on business strategy while reducing complexity and boosting operational efficiency. Smart pet device leader PETKIT is currently upgrading its systems on the Azure platform to achieve standardized device connectivity, telemetry data aggregation, and global compliance and security for users worldwide. Microsoft’s products and services not only enhance the company’s technological depth but also provide a cloud-plus-AI platform for global market replication.

2026: The inflection point when AI shifts from “more” to “different”

Once an end-to-end intelligent chain is in place, AI’s role inevitably shifts from offering advice to executing processes—and manufacturing moves from isolated efficiency gains toward full system redesign. In this sense, 2026 will be the year this transformation is proven on a scale. It will be a demanding moment for industry, but also a rare opportunity for leaders to make a true step change. This shift is becoming visible across several dimensions.

In 2026, AI in manufacturing will no longer exist as a collection of pilots. Instead, it will function as an enterprise nervous system—continuously sensing, learning, and coordinating decisions across functions. Organizations will move from experimenting with AI to running with AI, shifting from exploratory adoption to responsible, repeatable execution at scale.

Second, the ability to scale AI will become a key competitive differentiator. AI should not be confined to isolated applications but integrated into cross-departmental and cross-business collaboration to unlock its full potential. In other words, the gap between enterprises no longer lies in whether they deploy AI, but in their ability to achieve scalable implementation across the entire end-to-end value chain. Research from MIT and McKinsey suggests that leading enterprises can achieve up to four times the impact in half the time by building unified data and governance foundations.¹

Third, technical readiness will help define 2026. Edge inference, OT and IT integration, industrial networking, and model governance have matured to the point where AI can operate directly where value is created—on the plant floor, in real time, and within the flow of work. AI is moving beyond general content generation toward deep operational integration, spanning equipment, processes, quality, and logistics, and becoming an integral part of closed-loop industrial control.

Beyond technology, people, governance, and culture will emerge as true differentiators. In 2026, the primary constraint for many manufacturers will be organizational readiness—the ability to share data responsibly, collaborate across silos, and build AI literacy and operating rhythms that sustain change. Research on scaling AI highlights the “10–20–70 rule”: roughly 10% of success comes from algorithms, 20% from technology and data foundations, and 70% from people and processes.¹ Scaling AI effectively therefore requires building skills, accountability, and safety-and-governance capabilities in parallel with the technology itself.

Finally, the maturation of industry standards and ecosystems will accelerate broader AI adoption. Manufacturers face converging pressures—from geopolitics and cost to compliance and supply chain resilience. According to public records, 81% of manufacturers cite fear of falling behind as a primary driver of adoption.² The implication is clear: the question is no longer “Do we need AI?” but “Can we afford not to evolve?” As industrial data semantics, standardized APIs, reference architectures, and increasingly packaged solutions mature, time-to-value will shorten and complexity will fall—making AI feasible for a much broader set of manufacturers.

From insight to action: A 2026 checklist for manufacturing leaders

At this point, the question is no longer abstract: can your organization turn AI capabilities into sustainable, day-to-day operations—rather than pilots and demos? In conversations with manufacturers around the world, this question consistently separates leaders from laggards:

• Strategic clarity: Have you defined the core business problems AI must solve, beyond simply “adopting AI”?
• Data foundation: Can your data platform support real deployment, not just proof-of-concept results?
• Operational readiness: Are your factories and supply chains prepared for AI-powered routines in daily execution?
• Workforce capability: Does your workforce have the baseline skills to work effectively with AI systems?
• Ecosystem usage: Do your partners and platforms support continuous upgrades and rapid scaling?
• Governance and security: Is governance strong enough for AI to move from recommendation to execution?
• Resilience impact: Is AI measurably strengthening operational resilience?

We can already see the direction of travel toward the future. But trends alone do not create leaders. Execution does. The real differentiator will be who can turn AI from concept into action, from tool into capability, and ultimately from capability into resilience.

Advancing intelligent manufacturing with Microsoft

Manufacturing is entering a new phase—powered by actionable data, increasingly autonomous systems, and a more empowered workforce. Companies that unify their data, drive autonomy across planning and execution, and integrate the value chain through digital threads and digital twins will be best positioned to convert operational excellence and innovation into sustained growth.

Against this backdrop, Microsoft continues to work closely with manufacturers to expand what is possible across design, production, supply chain, and service. By combining cloud, data, and AI platforms that are advanced yet practical to deploy, we aim to help organizations build end-to-end intelligent operations—accelerating innovation while maintaining security, responsibility, and scale.

¹ KPMG, Intelligent manufacturing A blueprint for creating value through AI-driven transformation.

² businesswire, Ninety-Five Percent of Manufacturers Are Investing in AI to Navigate Uncertainty and Accelerate Smart Manufacturing, June 2023.

The post Manufacturing at the 2026 inflection point: How Frontier companies are entering the agentic era appeared first on The Microsoft Cloud Blog.

Deepfakes threaten trust in news, elections, brands and everyday interactions, leading us to question what’s real. Determining what’s authentic or manipulated is the subject of Microsoft’s “Media Integrity and Authentication: Status, Directions, and Futures” report, published today. The study evaluates today’s authentication methods to better understand their limitations, explore potential ways to strengthen them and help people make informed decisions about the online content they consume.

The authors conclude that no single solution can prevent digital deception on its own. Methods such as provenance, watermarking and digital fingerprinting can offer useful information like who created the content, what tools were used and whether it has been altered.

People can be deceived by media if they lack information like its origin and history, or if its information is low-quality or misleading. The goal of the report is to provide a roadmap to deliver more high-assurance provenance information the public can rely on, according to Jessica Young, director of science and technology policy in the Office of the Chief Scientific Officer at Microsoft.

Helping people recognize higher-quality content indicators is increasingly important as deepfakes become more disruptive and provenance legislation in various countries, including the U.S., introduce even more ways to help people authenticate content later this year.

Media provenance has been evolving for years, with Microsoft pioneering the technology in 2019 and cofounding the Coalition for Content Provenance and Authenticity (C2PA) in 2021 to standardize media authenticity.

Young, co-chair of the study, explains more about what it all means:

What prompted the study?

“The motivation was two-fold,” Young says. “The first is the recognition of the moment we’re in right now. We know generative AI capabilities are becoming increasingly powerful. It’s becoming more challenging to distinguish between authentic content — like content that was captured by a camera versus sophisticated deepfakes — and as a result, there’s a huge uptick right now in interests and requirements to use those technologies that exist to disclose and verify if content was generated or manipulated by AI.

“The moment has been building, and we have a desire to help ensure that these technologies ultimately drive more benefit than harm, based on how they’re used and understood.”

Young adds that the paper is meant to inform the greater media integrity and authentication ecosystem, including creators, technologists, policymakers and others to understand what is and isn’t possible currently and how we can build on it for the future.

What did the study accomplish, and what did you learn?

The report outlines a path to increase confidence in the authenticity of media. The authors propose a direction they refer to as “high-confidence authentication” to mitigate the weaknesses of various media integrity methods.

Linking C2PA provenance to an imperceptible watermark can bring relatively high confidence about media’s provenance, she says.

She notes the report has a lot of caveats too, such as how provenance from traditional offline devices like cameras, which often lack critical security features, can be less trustworthy because it’s easier to alter.

It isn’t possible to prevent every attack or stop certain platforms from stripping provenance signals, so the challenge, Young says, “is figuring out how to surface the most reliable indicators with strong security built in — and, when necessary, reinforce them with additional methods that allow recovery or support manual digital-forensics work.”

How is this study different from others?

Young says their study investigated two “underexplored” lines of thought for the three methods of verification. They define the first as sociotechnical attacks, where provenance information or the media itself could be manipulated to make authentic content appear synthetic or fake content seem real during the validation process.

“Imagine you see an authentic image of a global sporting event with 80% of the crowd cheering for the home team,” she says. “The away team engages in an online argument claiming, ‘Hey, no, that’s all a fake crowd.’ Someone could make one small, insignificant edit to a person in the corner of the picture and current methods would deem it AI generated — even if the crowd size was real. These methods that are supposed to support authenticity are now reinforcing a fake narrative, instead of the real one.

“So, knowing how different validators work, even through really subtle modifications, you could manipulate the results the public would see to try to deceive them about content,” she says. The second key topic builds on the C2PA’s work to make content credentials more durable, while also addressing reliability. This is where the research is especially novel, Young says. “We looked at how provenance information can be added and maintained across different environments — from high-security systems to less secure, offline devices — and what that means for reliability.”

Why is verifying digital media so difficult?

Authenticating media is complex because there’s not a one-size-fits-all solution, Young says.

“You have different formats that have different limitations or trade-offs for the signals they can contain,” she explains. “Whether it’s images, audio, video — not to mention text, which has a whole different array of challenges — and how strong the solutions can be applied there.”

Young says there are different requirements and opinions about what level of transparency is appropriate as well. In some cases, users might not want any of their personal information included in the digital provenance of a piece of media, while in others, creators or artists might want attribution and to opt-in for having their information included.

“So, you have different requirements or even considerations about what goes into that provenance information,” she says. “And then, similar to the field of security, no solution is foolproof. So, all the methods are complementary, but each has inherent limitations.”

Where do we go from here?

Young says that as AI-made or edited content becomes more commonplace, the use of secure provenance of authentic content is becoming increasingly important. Publishers, public figures, governments and businesses have good reason to certify the authenticity of the content they share. If a news outlet shoots photos of an event, for example, tying secure provenance information to those images can help show their audience the content is reliable.

“Government bodies also have an interest in the public knowing that their formal documents or media are reliable information about public interest matters,” Young says.

She adds that as AI modifications to media become “increasingly common” for legitimate purposes, secure provenance can provide important context to help prevent an average reader or viewer from simply dismissing that content as fake or deceptive.

“For the industry and for regulators, we note how important continued user research in this area is to drive towards more consistent and helpful display of this information to the public — to make sure it’s actually meaningful and useful in practice,” Young says.

“We have a limited set of technologies that can assist us, and we don’t want them to backfire from being misunderstood or improperly used.”

Learn more on the Microsoft Research Blog.

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Yet despite broad cloud adoption, migration and modernization remain complex. Legacy architectures, fragmented environments, and persistent skills gaps continue to slow progress, pushing organizations to find ways to migrate faster while minimizing operational risk. 

The IDC study highlights agentic AI as a critical unlock. These intelligent systems automate assessments, orchestrate migration and modernization efforts, and optimize operations across hybrid environments—helping organizations shift from periodic, manual initiatives to continuous, adaptive modernization. This momentum is driving unprecedented growth, with IDC forecasting the public cloud services market will reach USD1.9 trillion by 2029. 

While migration frameworks may be horizontal, their real-world impact is industry-specific. Healthcare, financial services, and manufacturing each face unique constraints shaped by regulation, operational risk, and mission-critical systems. 

In this blog, we explore the key migration and modernization challenges across these three industries—healthcare, manufacturing, and financial services—through real customer stories that highlight the tangible impact cloud adoption is delivering today.

Healthcare: Modernizing securely while powering next-generation clinical experiences

Healthcare faces the toughest modernization headwinds: strict regulations (HIPAA/HITECH, HITRUST), fragmented clinical data across electronic health records (EHRs) and imaging systems, aging on-premises infrastructure resulting in high Capex, and heightened exposure to ransomware.¹ Clinical environments also demand extremely low latency and high reliability.

The IDC study notes that these constraints slow modernization—but accelerate the need for it, as organizations push to scale telehealth, imaging workloads, genomics pipelines, and AI-powered clinical workflows.¹ 

What healthcare organizations need, according to the IDC study: 

• Secure, compliant integration across EHRs, picture archiving and communication systems (PACS), genomics systems, and Internet of Things (IoT) medical devices.¹
• Elastic compute for high-throughput imaging and genomics. 
• Stronger disaster recovery and recovery time performance.¹
• Ambient documentation and AI-supported diagnostics.
• Secure clinician collaboration and modern patient digital front doors.

Customer spotlight: Franciscan Health

Facing aging infrastructure and disaster recovery risks, Franciscan adopted a pragmatic workload placement strategy—moving its Epic EHR to Microsoft Azure.

The results included: 

• $45 million in savings over five years after migrating Epic to Azure.
• 90% faster disaster recovery compared to the prior environment.
• Around a 30-minute failover, reduced from hours.
• $10–$12 million per day in potential downtime risk avoided.

Learn more about Franciscan Health’s journey to migrate its Epic EHR to Azure.

Healthcare’s modernization mandate is clear: reduce operational risk, meet regulatory demands, and harness cloud AI to improve patient outcomes. 

Financial services: Enabling real-time intelligence and automated compliance

Financial institutions operate in one of the most regulated environments, including the payment card industry data security standard (PCI DSS), the Sarbanes-Oxley Act (SOX), the Gramm-Leach-Bliley Act (GLBA), Basel capital frameworks, and know your customer (KYC) and anti-money laundering (AML) requirements, and rely heavily on legacy mainframes that are difficult to modernize. Today, regulatory pressure is intensifying further as new frameworks such as the EU’s Digital Operational Resilience Act (DORA) and the EU AI Act raise the bar for operational resilience, third-party risk management, model transparency, and ongoing compliance monitoring. Under DORA, financial services firms must demonstrate continuous information and communication technology (ICT) risk management, advanced incident reporting, and resilience testing across critical systems and cloud service providers. Meanwhile, the EU AI Act introduces governance requirements for high-risk AI systems, including explainability, data lineage, human oversight, and auditability—with direct implications for fraud models, credit scoring, and customer decisioning platforms.

IDC interviews highlight accelerating demand for real-time risk analytics, fraud detection, digital onboarding, and infrastructure elasticity to support peak activity—capabilities that are increasingly mandated, not optional.¹

Key challenges the IDC study identifies: 

• Strict data residency, model risk governance, explainability, and eDiscovery requirements.¹
• Heightened expectations for operational resilience, cyber defense, and third-party risk oversight.
• Legacy systems and common business-oriented language (COBOL)-based batch processes resistant to change.
• Rapidly evolving regulatory mandates requiring continuous compliance rather than point-in-time audits.

Cloud—especially especially platform as a service (PaaS) and managed services—helps financial institutions shift from static, batch-driven compliance to continuous controls and real-time observability. By reducing batch windows from hours to minutes, modern cloud platforms enable real-time insights, automated evidence collection, resilient architectures, and policy-driven compliance workflows aligned with DORA and AI governance requirements.¹ Learn more about how Microsoft can help financial institutions navigate these requirements. 

Customer spotlight: Crediclub

To accelerate product innovation and meet expectations from Mexico’s national banking and securities commission (CNBV), Mexican fintech Crediclub modernized its databases to a serverless platform as a service (PaaS) architecture and adopted microservices.¹

The impact:

• Uptime improved from around 80% to 99.5%.
• 90% reduction in network latency through Multiprotocol Label Switching (MPLS) and dark fiber.
• Rapid deployment of new financial products via Kubernetes and DevSecOps.

For financial institutions, modernization is no longer just about efficiency—it is foundational to resilience, trustworthy AI, and regulatory compliance at scale. 

Manufacturing: Unifying IT and OT for predictive, data-driven industrial operations

Manufacturers operate in one of the most complex operating environments—defined by legacy and proprietary operational technology (OT) protocols, historically air-gapped manufacturing execution systems (MES) and supervisory control and data acquisition (SCADA) systems, and globally distributed supply chains. Stringent low-latency requirements for safety-critical systems, intermittent connectivity at the edge, and the need to protect intellectual property further compound the challenge. The ability to modernize and unify these environments—without compromising safety, reliability, or performance—represents a critical inflection point for industrial transformation.

Unique modernization challenges according to the IDC study:

• Ultra-low latency requirements for safety-critical operations.
• Massive telemetry ingestion and time-series analytics at scale.
• Operational complexity across global, distributed supply chains.
• Secure protection of intellectual property across edge and cloud environments.

Opportunities unlocked by cloud:

• Predictive maintenance with IoT ingestion.¹ 
• Reduced unplanned downtime and improved overall equipment effectiveness (OEE).
• Digital twins for plants, lines, and products.
• Computer vision for real-time quality and safety. 
• High-performance computing (HPC) simulations for engineering and design. 
• Standardized, global data models.

Customer spotlight: ASTEC Industries

ASTEC unified fragmented systems across its rock to road value chain—from aggregate processing through asphalt production and paving—by adopting Azure, modernizing to timeseries databases, and building a universal connectivity platform using Azure IoT Hub, Azure Events Hub, and Power BI.¹

The results:

• Realtime operational visibility across fleets.
• Predictive maintenance for reducing downtime.
• New digital services supported by connected equipment.

Manufacturing’s modernization imperative: unify OT and IT, scale real-time intelligence, and enable global efficiency. 

Microsoft’s approach: Continuous, intelligent, collaborative modernization 

Microsoft’s strategy is grounded in a simple principle: modernization should be continuous, intelligent, and collaborative. The IDC study emphasizes that successful enterprises adopt a balanced, multipath migration strategy, blending rehost, replatform, refactor, and software as a service (SaaS) substitution based on workload criticality.¹

Microsoft enables this approach through a comprehensive set of tools and offerings, including Azure Copilot and GitHub Copilot. Agentic automation enables:

• Discovery and dependency mapping.
• Security assessment and 6R recommendations.
• Application refactoring, code remediation, and modernization. 

Azure Migrate provides unified discovery, assessment, migration execution, and modernization services. Azure Accelerate complements this with a coordinated framework that includes:

• Guided deployments through Cloud Accelerate Factory.¹ 
• Funding and Azure credits for planning, pilot, and rollout. 
• Expert partners and tailored skilling programs.

The IDC study concludes that organizations using Microsoft Azure for migration and modernization achieve lower operational costs, improved resiliency, faster modernization timelines, and stronger security postures—especially in regulated industries.¹

Looking ahead: Agentic modernization as the foundation for AI-ready enterprises

Across all industries, IDC’s findings are consistent: agentic AI is emerging as the new force multiplier for modernization, enabling organizations to keep pace with rising complexity, regulatory demands, and competitive pressure. 

Healthcare, financial services, and manufacturing each face unique constraints—but cloud modernization remains the foundation for innovation, operational excellence, and enterprise AI. 

Microsoft’s approach gives organizations the unified automation, intelligence, and tooling they need to modernize securely and at scale. 

• Explore how Azure Copilot accelerates cloud migration.
• Discover GitHub Copilot for app modernization.
• See how Azure Accelerate supports transformation.

¹ IDC White Paper, Cloud Migration and Modernization Strategies for Healthcare, Financial Services, and Manufacturing, February 2026.

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Yet social services leaders are under growing pressure to deliver both human outcomes and financial stewardship at scale. Backlogs, fragmented records, and manual evidence reviews strain frontline staff, while delayed verification and siloed data expose programs to error and misuse. The challenge is no longer choosing between inclusion and integrity. Modern eligibility systems must deliver both. 

Why does this matter now? 

The financial implications are significant. Around the world, governments are confronting the cost of improper payments, fraud, and administrative inefficiencies: 

• In the United States, the Government Accountability Office reports that 16 federal agencies estimated about $162 billion in improper payments in FY2024, with roughly 84% due to overpayments.¹ 
• In the United Kingdom, public sector analyses estimate £33 Billion to £59 billion annually in fraud and error.² 
• In Australia, the Australian National Audit Office reports that in 2021–2022, Services Australia delivered $124.7 billion in welfare payments, with an estimated 6.71% in overpayments.³ 
• In India, a government press note summarizing a quantitative assessment highlights ₹3.48 lakh crore in cumulative savings attributed to leakage reduction enabled by the country’s Direct Benefit Transfer program.⁴ 

At the same time, large-scale digital identity and cash transfer reforms around the world demonstrate  what’s possible when delivery systems modernize. These transformations show that improving both inclusion and fiscal stewardship is not only possible—it’s already underway. Modernizing eligibility is no longer just an IT upgrade. It is a service delivery transformation, a fiscal stewardship strategy, and a trust- building effort between governments and the people they serve.

Microsoft’s point of view 

Microsoft’s point of view is simple: modern eligibility is not about replacing human judgment with automation. It is about augmenting frontline staff with secure, interoperable, AI-enabled tools that fit into the systems governments already rely on. 

That’s why our approach emphasizes identity as infrastructure, evidence as data, and AI with humans in the loop—so agencies can modernize incrementally, maintain accountability, and adapt as policies evolve. 

What changes when eligibility is designed around real lives? 

When eligibility systems are designed around programs rather than people, friction is inevitable. Households move across life events faster than policies or systems can adapt, forcing staff to reconcile fragmented records, incomplete documentation, and outdated rules. 

Leading agencies are addressing this by treating eligibility not as a one-time decision, but as a continuous, connected process—grounded in strong identity, structured evidence, and shared data across programs. 

What modern eligibility looks like

Modernization is not a monolithic system replacement. It is a set of incremental, coordinated capabilities that governments can adopt without wholesale replacement.

Below are the core capabilities that define modern eligibility today. 

Identity as eligibility infrastructure 

Eligibility starts with a foundational question: Who is applying, and is it really them? 

Identity theft doesn’t just divert public funds—it can lock legitimate residents out of help. Treating identity as a side project is increasingly a risk. 

In South Australia, the Department of Human Services uses Microsoft Entra ID to strengthen identity protection through role-based access controls, multifactor authentication, and print and screen access safeguards. These steps help protect sensitive records and support secure self-service—without adding friction for legitimate users. 

Turning documents into usable data 

Documents are often the hidden tax on benefit delivery. Much of the delay in eligibility processing comes not from policy rules but from handling paperwork—reading scans, re-entering information, or chasing missing pages. 

The Czech Republic’s Ministry of Labor and Social Affairs addressed this by using Azure AI Document Intelligence to extract data from paper forms and accelerate payment of childcare allowances. The Jenda portal also gives families visibility into application status and connects them to upskilling opportunities—illustrating how digitizing evidence can improve both speed and experience. 

Connecting fragmented records to see the full picture 

A resident may interact with multiple programs, often across separate systems. Fragmented data can lead to duplication, inconsistent decisions, or missed support. 

Singapore’s Central Provident Fund Board modernized its data management approach with Azure Databricks to serve more than four million people with a more holistic view—a strong example of how connected data improves outcomes while reinforcing integrity. 

Aligning eligibility with life events

Eligibility is not static. Circumstances change: employment shifts, caregiving arrangements evolve, households expand or contract. 

Modern systems use AI, responsibly and with humans in the loop, to: 

• Collect and structure evidence 
• Surface relevant context 
• Reduce administrative effort 
• Route complex cases to specialists 

The Washington, DC Child and Family Services Agency (CFSA) built an AI-powered platform that saves 45 minutes per intake and expects even greater time savings for investigations, while enabling new features to be deployed faster and at lower cost. 

All AI capabilities described here align with Microsoft responsible AI principles and maintain human accountability throughout the process. 

Detecting anomalies earlier to protect funds

Fraud and error often exploit timing: delayed verification, siloed data, or missing crosschecks. 

European public sector fraud authorities are increasingly looking to augment AI‑powered analytics platforms with broader datasets, such as sanctioned entities and dormant companies, to strengthen early detection capabilities and help investigators surface potential risks sooner.

A practical path forward for social services and government leaders

Many eligibility modernization efforts stall because they focus on a single dimension—speed, cost reduction, or compliance—at the expense of the others. Microsoft’s approach is designed to advance service delivery, integrity, and trust together, using platforms that governments already operate and govern. That balance is what allows modernization to endure beyond a single program or funding cycle. 

Whether a program is just beginning modernization or aiming to scale next-generation capabilities, leaders can start with achievable, high-value steps: 

• Start where friction is highest: Identify the program with the heaviest documentation burden or the largest backlog. Early wins build momentum and trust. 
• Treat identity as foundational: A strong identity layer protects against impersonation and enables secure self-service for residents and staff. 
• Digitize the evidence pipeline: Use document intelligence to convert evidence into structured data so staff can focus on exceptions—not re-keying information. 
• Connect data to reduce duplication and missed support: A holistic view—especially at the household level—helps ensure decisions reflect real circumstances and prevents duplicative benefits. 
• Embed continuous integrity: Use signals, analytics, and network insights to focus oversight where risk is highest without creating barriers for eligible residents. 
• Measure what matters: Track speed, accuracy, integrity, and resident experience together. Modernization that improves only one dimension rarely endures. 

This is where Microsoft differentiates—enabling agencies to modernize eligibility without sacrificing accountability, trust, or program continuity.

A more trusted, human-centered future for benefits 

For social services leaders, the next step isn’t a wholesale system replacement. It’s identifying where eligibility friction is highest—and where stronger identity, smarter evidence handling, or connected data could immediately improve outcomes for residents and staff. 

Learn how agencies are applying these capabilities today and explore where modernization can start in your own programs.

Are you attending HIMSS Global Health Conference and Exhibition in March this year? Make sure to check out the Microsoft sessions and expo booth.

¹US Government Accountability Office

²Global Government Finance

³Australian National Audit Office

⁴Government of India Press Information Bureau

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