I drink a lot of tea. English breakfast, usually, in a real cup, every day. So, when my team came to me with an idea for a new series where they wanted to provide a platform for AI leaders to share how they are learning the name felt relatable. What’s the tea? captures something I find genuinely energizing right now: the pace at which leaders are transforming their organizations with AI, and how generously and honestly they’re sharing what they’re learning with one another.

That generosity is the whole reason my podcast, What’s the Tea?, exists. As I told Rachel Thornton, Enterprise CMO at Adobe, in our very first conversation, what excites me most about this moment isn’t only the speed of change, it’s “the eagerness for leaders to learn from one another.” This is the most significant technology shift of our careers, and it’s playing out not in years, but in days. I thought there was no better way to make sense of it than to get leaders together over a cup of tea and ask them, plainly, what they’re seeing inside their businesses. We bring in people who are driving real transformation, pour the tea, and drink in what they spill. That’s the tea.

Across five conversations—with CMOs at Adobe, Lumen, and Sitecore, a behavioral scientist who studies how teams perform, and one of the most provocative voices in modern marketing—a clear pattern emerged. Transformation is a question of mindset that supersedes any technology question. This first post is about the shift in how leaders and their people relate to AI, and why that shift is the precondition for everything else.

The fear has flipped and adoption is now an enterprise expectation

A year ago, the dominant emotion around AI in most organizations was apprehension. Rachel named it precisely. She described “the shift from maybe some trepidation around AI and what would it mean,” to people realizing, “Hey, this is really a game changer.” I’ve watched that exact arc play out, not just in marketing but across functions: the move from quietly wondering whether these tools would replace people, to discovering they can compress work that used to take weeks into minutes.

Ryan Asdourian, EVP and Chief Marketing Officer at Lumen Technologies, took the point to its logical conclusion, and his framing has stuck with me. Reflecting on the instinct to apologize for using AI, he said he’d flipped it entirely: “You should almost apologize if you don’t use AI and you don’t use tools.” For a leader running a function inside a large enterprise, that’s a profound reset of the default. Adoption is no longer the exception to be justified; it’s the expectation. The leadership task is to normalize it—to make it, as Ryan put it, “just common practice to say that, of course I use AI.”

How enterprise AI creates collective intelligence across teams

The trepidation faded fastest wherever leaders stopped framing AI as a personal-productivity gadget and started treating it as a way to raise the intelligence of the whole organization. Jon Levy, the behavioral scientist and author of Team Intelligence, made the sharpest case. The earliest phase of AI adoption, he observed, fixated on cost savings and reductions—which is what happens at the start of every technological revolution. But the real prize is bigger. “The ultimate goal of any organization,” he told me, “is to be as smart as possible. How quickly can you and your team solve the problem?”

That reframing matters enormously for transformation, because it moves the unit of value from the individual to the team and ultimately, the enterprise. Ryan gave me the line I now repeat most often: an individual versus an individual with AI, a team versus a team with AI—”the team with AI always wins.” Rachel described the healthy version of the same idea, that AI “amplifies what I can do, supports what I can do. Not necessarily, oh, this is totally replacing me.” Enterprise impact doesn’t come from a thousand people each saving a few minutes. It comes from teams solving harder problems faster, together—across customers, operations, and growth.

Scaling AI successfully requires leadership, culture, and change management

If the fear has flipped and AI genuinely raises collective intelligence, the decisive variable becomes leadership. Specifically, the ability to move an organization from scattered experimentation to scaled adoption. Every one of my guests came back to this.

Ryan made the case for leading visibly and vulnerably. “Vulnerability as a leader is so important,” he said, “to show how we are using these tools to enhance what we can do with our team.” He practices it: in a company town hall with roughly five thousand people on the call, he used Copilot live, in the moment, to verify an answer before giving it. That’s a leader modeling the behavior he wants to scale.

Rachel described the structural side of the same work—building what she calls “a culture of experimentation,” where training, reskilling, and upskilling become “critically important” and happen continuously, in bite-size pieces, every week rather than once a quarter. That cadence is how experimentation becomes an operating model rather than a pilot.

Jon offered the deeper psychology of why scale so often stalls. People, he reminded me, don’t relate to the present—they relate to the future they believe they’re heading toward. “It is the responsibility of leadership,” he said, “to make sure that their people feel the future will be brighter.” I learned that the hard way. I once unveiled an impressive AI-native platform to my team without first painting the picture of where it would take them, and I watched the energy leave the room. All they could see was a tool that might replace what they did every day. I hadn’t given them a future to walk toward—and without that, adoption never scales.

That’s the through-line of this series. The technology is extraordinary, but transformation is dependent on leaders bringing people with them.

In the episodes ahead, I’ll explore how AI is reshaping the way work gets done and the outcomes it produces, and what the agentic enterprise looks like. For now, the tea is simple: the fear is fading, the value compounds at the level of teams and the enterprise, and the leaders who move deliberately from experimentation to scale are the ones whose organizations will transform.

Watch What’s the Tea? episodes

• What’s the Tea? with Rachel Thornton | Why Marketers Aren’t Afraid of AI Anymore
• What’s the Tea? with Ryan Asdourian | The New Expectations of AI
• What’s the Tea? with Jon Levy | The Human Side of AI
• What’s the Tea? with Michelle Boockoff-Bajdek | AI’s Impact on Customer Experience
• What’s the Tea? with Gary Vaynerchuk | What Leaders Are Missing About AI

The post What’s the Tea? Lessons from leaders navigating AI transformation appeared first on The Microsoft Cloud Blog.

As operators move from experimentation to execution, the opportunity is not just to adopt more AI, but to build systems that combine intelligence with trust across networks, data, and customer operations. TM Forum DTW Ignite 2026 focuses on how those capabilities come together to drive measurable business outcomes.

Composable IT and ecosystems

Complexity continues to slow progress across telecom. Tightly coupled systems, fragmented integration paths, and years of technical debt make it harder to launch new services, adapt quickly, and deliver consistent experiences across channels.

TM Forum continues to position Open Digital Architecture as both a practical migration path away from legacy complexity and the architectural foundation for AI-native operations, with tools, standards, Open APIs, and reusable components designed to support more modular, cloud-native, and interoperable platforms.

That is why the Composable IT and Ecosystems summit sits so centrally in this year’s event: it reflects a broader industry shift from digital transformation as a long-running aspiration to reinvention for the AI era, where openness, composability, and governance become prerequisites for scaling intelligent operations.

For operators, the value is practical. Modular environments make it easier to modernize in stages, improve interoperability across business and network domains, and create a stronger foundation for ecosystem plays such as CAMARA and Open Gateway. This is where solutions such as Infobip’s Network API offering become relevant—helping operators turn standardized capabilities like number verification, SIM swap detection, and device location into practical services that expand revenues, strengthen trust, reduce fraud, and reach more developers.

With Microsoft, teams can standardize platforms, simplify integration, and create an environment where new capabilities can be introduced with greater speed and confidence.

That conversation will continue in the panel discussion “The AI-Native ODA Roadmap.” The session will explore how operators can build AI-native operations on common foundations across IT and networks, with emphasis on interoperability, governance, reusable patterns, and business value. It is a timely example of how TM Forum DTW Ignite 2026 is connecting architectural change to the strategic and operational priorities telecom leaders are navigating now.

That same modernization path is also reshaping the business side of telecom through Agentic Business Support Systems (BSS). Instead of hard-coded workflows, operators can use AI agents to interpret intent, orchestrate actions across catalog, ordering, billing, and care, and accelerate the path from request to resolution.

With Microsoft, TM Forum Open APIs, and a composable architecture, BSS can evolve into a more adaptive, outcome-driven system that enables faster service creation, stronger customer experiences, and new monetization opportunities across the ecosystem.

This direction is reinforced by recent Microsoft Build 2026 announcements, where capabilities such as Work IQ and Agent 365 introduce a consistent way to ground AI agents in enterprise context, apply governance by design, and orchestrate actions across systems. Together, these capabilities make it easier for operators to move from isolated automation to agent-driven workflows that are composable, secure, and production-ready at scale.

This evolution also reflects the emergence of more persistent, context-aware agents—exemplified by experiences such as Microsoft Scout—that can operate continuously across tasks and systems, moving from reactive copilots to proactive digital coworkers that help coordinate work across the enterprise.

Autonomous networks

The industry is moving beyond manual processes toward systems that can interpret signals, recommend next actions, and automate response within clear controls. That shift sits at the heart of the Autonomous Networks summit at DTW Ignite 2026, where the focus is on how operators can make autonomy practical in day-to-day operations.

AT&T offers a strong example for incident management. By improving observability, creating better context across operational data, and accelerating the path from detection to action, operators can improve reliability and shorten the time between issue discovery and resolution. Microsoft supports this direction with cloud-scale data services, AI capabilities, and a platform approach that helps teams operationalize intelligence rather than isolate it in pilots.

 Microsoft’s Network Operations Agent (NOA) framework extends this vision by enabling operators to deploy coordinated AI agents across network operations—helping interpret signals, orchestrate actions, and drive closed-loop automation with greater consistency and control.

The broader direction is clear. Operators are moving toward more predictive operations, more intelligent assurance, and more trusted automation that improves resilience, experience, and efficiency.

AT&T will also bring this story to the Park stage at DTW Ignite 2026, where the discussion is expected to highlight how End-to-End Incident Management uses current context, observability, and AI to move faster from detection to action. It adds a timely, customer-led example of how operators are applying agentic decision-making to improve reliability, reduce disruption, and make autonomy more practical in live network operations.

By bringing more context and intelligence into incident management, we are improving how quickly teams can identify issues, coordinate response, and restore service with confidence. This type of advanced agentic technology is helping us keep our customers connected and provide a better experience for them.

—Mark Austin, Vice President Data Science, AT&T

Underpinning this shift is the emergence of unified data and AI platforms that can ground agents in real-time operational context. With Microsoft Foundry and Foundry IQ, its knowledge layer, operators can connect data across network, service, and customer domains, enabling agents to reason more effectively and support closed-loop decisioning that moves from insight to action with greater speed and consistency.

Microsoft’s recent work in Azure Networking operations adds an important operational lens to this shift. Rather than treating agents as simple assistants, the model is evolving toward more persistent digital coworkers that help coordinate the messy middle of operations across incidents, repairs, vendors, and validation steps. In large-scale environments, that can reduce manual effort, shorten mitigation time, and free engineers to focus more on judgment, oversight, and higher-value decisions while agents keep execution moving across systems and teams.

Trustworthy AI and data

AI creates value only when it is grounded in trusted data, strong governance, and a clear path to action. In telecom, that standard matters because operators work in highly regulated environments and depend on reliable decision-making across critical services.

That is why the Trustworthy AI and Data summit at DTW Ignite 2026 matters. The conversation is not only about model capability. It is about data readiness, governance, observability, and the controls required to scale AI responsibly across the business.

This is reinforced by Microsoft’s perspective on local AI, where operators extend the AI execution model closer to where data is generated—improving latency, resiliency, and control while keeping data private. Running inference locally or at the edge can also shift the cost profile, reducing dependency on centralized compute for time-sensitive or high-volume workloads while enabling new real-time scenarios.

SoftBank brings that point into focus through its AI-powered customer platform, where the value shows up in responsiveness, service quality, and workload reduction. In its work with Microsoft, SoftBank is applying Microsoft Foundry, Azure OpenAI in Foundry Models, Azure AI Search, and Semantic Kernel to help build a more intelligent call center experience that reduces wait times, improves response quality, and supports more scalable customer operations. The example reinforces that AI success depends on the right data foundation and a disciplined link to measurable outcomes.

Microsoft sees telecom ontologies as an important part of the foundation for trustworthy AI. By creating a shared semantic model across network, service, customer, and operations data, they help AI systems reason with more context, improve explainability, and support more consistent decisions across domains. Combined with Microsoft Fabric as the unified data foundation, Fabric IQ as the intelligence layer, and Microsoft’s broader data and AI platform, that structure can help operators reduce fragmentation and move with greater confidence from isolated use cases to governed, reusable intelligence.

That theme will also come through in Alberto Manuel Fernandes Dias’ panel, “Data products at scale—the blueprint for AI-native telcos.” The discussion reinforces that scaling AI in telecom depends on more than models alone. It requires well-designed data products, clear ownership, and disciplined governance to turn fragmented information into reusable, high-quality, and AI-ready assets. For operators, that blueprint matters because it creates the consistency, trust, and lifecycle discipline needed to support autonomy at speed and scale.

Accelerating transformation through partner innovation

Transformation in telecom does not happen in isolation. Across TM Forum DTW Ignite 2026, Microsoft and its partners are working together to help operators modernize networks, simplify operations, and bring AI into real business processes.

From composable IT and cloud-native BSS modernization to agentic marketplaces, digital twins, and voice AI pilots, these collaborations reflect how the industry is moving from experimentation to scalable, outcome-driven innovation.

• Amdocs is highlighting continued momentum in cloud-first modernization through its expanded work with Lumen, helping accelerate enterprise billing transformation on Microsoft Azure. Separately, Amdocs is also showcasing how its Entitlement Server on Azure is setting new performance benchmarks for digital service delivery, reinforcing the value of scalable, AI-ready cloud infrastructure for telecom providers.
• Beyond Now is also demonstrating how AI is reshaping telecom monetization through its work on agentic marketplace experiences. In collaboration with Microsoft, the company is highlighting how operators can use intelligent automation and AI-powered ecosystems to accelerate service innovation, streamline partner engagement, and unlock new digital revenue opportunities.
• Kenmei is advancing how operators can make network data more usable for AI-powered operations through its new Network Performance Data Product built on Microsoft Fabric. Running natively in Azure, the solution combines governed network KPIs with a telecom ontology layer, helping operators accelerate agent-ready use cases while keeping data secure, unified, and under their own control.
• By integrating Nokia Data Suite with Microsoft Fabric, operators can access on-demand telecom data products that simplify data integration across complex, multi-vendor environments. This unified data foundation enables faster adoption of AI, generative AI, and automation, supporting the journey toward autonomous networks.
• Norwood is demonstrating how voice AI is becoming more practical for telecom providers through its OpenSpan Voice platform. In collaboration with Microsoft, the company is piloting AI-powered small and mid-sized businesses (SMB) voice capabilities with a major United Kingdom and Australian telecommunications provider, demonstrating how operators can deliver more intelligent, responsive customer communication experiences at scale.
• Tech Mahindra and Microsoft are advancing telecom innovation with a 5G Network Digital Twin, an intelligent virtual replica that enables AI-powered optimization, proactive issue resolution, and new monetization opportunities. Built on Microsoft Azure and Fabric, the solution unifies data, simulates network scenarios, and drives measurable impact across cost efficiency, network slicing, service assurance, and autonomous operations, while maintaining enterprise-grade governance and data sovereignty.

Customer momentum: From blueprint to production

The strongest signal in telecom today is that customer stories are moving from blueprint to production. Leaders want to see where transformation is working in practice and where AI is delivering value beyond the pilot stage.

• MEO stands out because its modular AI factory connects strategy to execution, giving the company a more repeatable path to scale new use cases across the business. AT&T highlights the operational side of the story, with incident management illustrating how better data and more intelligent workflows can improve detection, triage, and resolution.
• TIM Brazil adds a security-focused example, showing how integrated signals and intelligent protection can strengthen operational resilience while reducing noise and improving response. Together, these examples show how operators are turning transformation into something more tangible, operational, and repeatable.

TM Forum also shows how quickly AI can move from experimentation to scaled impact. Using Microsoft 365 Copilot and Microsoft Copilot Studio, the organization moved rapidly from early pilots to production with internal and member-facing agents. Its cross-functional productivity agent, Buddy, is already delivering measurable ROI across multiple departments, while Navigator—launched in time for TM Forum DTW Ignite 2026—simplifies access to standards and articles for members. The result is a strong example of how AI can improve internal productivity, strengthen knowledge access, and create a foundation for broader support across the innovation cycle, from catalyst to production.

That momentum is visible across the telecom landscape. Recent public examples show operators using Copilot to strengthen leadership decision-making, workforce productivity, and sales execution—from Singtel and Ooredoo Qatar to KPN—while large-scale deployments across Accenture, Cognizant, Infosys, TCS, and Wipro reinforce how quickly the supporting ecosystem is scaling the skills, services, and implementation capacity needed to help enterprises and operators move from pilots to broader adoption. Together, they point to the same shift: AI is becoming part of day-to-day work, with measurable impact on speed, decision quality, and business outcomes.

That is why TM Forum DTW Ignite 2026 feels timely. Innovation matters, but adoption matters more. The next chapter of telecom will be shaped by operators that can turn transformation into repeatable outcomes.

Join us in Copenhagen

TM Forum DTW Ignite 2026 arrives at a pivotal moment for the telecom industry. TM Forum has structured the event around three mission summits all designed to help operators move from ambition to real change:

• Composable IT and Ecosystems
• Autonomous Networks
• Trustworthy AI and Data

We look forward to continuing these conversations in Copenhagen and sharing how Microsoft, together with customers and partners, is helping telecom organizations translate strategy into measurable progress. In the end, the next chapter of telecom will be shaped by operators that can pair intelligence with trust at scale.

Microsoft for telecommunications

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The post TM Forum DTW Ignite 2026: From strategy to execution in the AI era of telecom appeared first on The Microsoft Cloud Blog.

This momentum is changing not only how insights are generated, but also how decisions are prepared, governed, and executed. As Microsoft Build 2026 made clear, the next phase of agentic AI is not just better outputs. It is governed execution grounded in enterprise context, with systems designed to coordinate action across research, portfolio construction, risk, and compliance under human supervision. For asset managers, this shift is profound.

This is not simply a technology transition; it is a fiduciary moment. For asset managers, Microsoft’s Frontier Tuning points toward institution-shaped intelligence: models tuned not only on enterprise knowledge, but on the workflows, conventions, and decision patterns that define how a firm operates inside its compliance boundary. In a fiduciary setting, that is indispensable because trust depends not just on what AI knows, but on whether its outputs and actions align with approved controls, human oversight, and reproducible governance.

The critical challenge, then, is to maintain trust. AI cannot merely improve performance; its actions must be governed, explainable, and attributable in line with fiduciary duty.

From analytics to homeostasis: AI as a trust-control layer

In biology, homeostasis is how living systems stay stable by sensing change, making small corrections, and restoring balance. In asset management, agentic AI makes it possible to build a similar closed-loop layer across workflows defined by governance parameters, helping keep activity within agreed boundaries of risk appetite, policy, and intent even when markets move faster than humans can triage.

Historically, AI in asset management has centered on prediction, such as forecasting spreads, detecting anomalies, or scoring counterparties. Agentic systems add the ability to observe, decide, and act across workflows under human guidance, gathering evidence, reconciling sources, drafting outputs, escalating exceptions, and coordinating next steps. Used well, these systems can create a homeostatic effect, helping firms maintain operational equilibrium and resilience.

The shift to a homeostatic approach

AI is being used in capital markets not only to deliver new capabilities but to help strengthen trust as a cornerstone of infrastructure. Trust can be infused throughout the platform by design, helping to ensure that data and operations remain safe, responsive, and governed even in fast-changing conditions.

In trading workflows, for example, the LSEG and Microsoft partnership is integrating licensed market data into Microsoft 365 Copilot and agent experiences so that decisions can be informed with authoritative, permissioned context at the point of execution. This is increasingly the right pattern for agentic systems: not intelligence separated from governance, but intelligence grounded in trusted context and controlled inside the systems where work happens.

By combining licensed data with built-in governance capabilities, trust is embedded into how intelligence is delivered, orchestrated, and acted on across the workflow, rather than managed downstream.

Likewise, Moody’s has federated decision-grade credit intelligence directly into Microsoft 365 Copilot, Researcher, and Excel, grounding AI-assisted analysis in authoritative, auditable context so that trust can be enforced by the system, not retrofitted after the fact.² Similarly, Morningstar has embedded proprietary research as entitlement-aware context for copilots and agents, keeping advisor workflows reviewable and aligned to licensed sources and user permissions. UBS is also bringing together internal and market data into AI-assisted advisor workflows, enabling client advisors to access unified, permissioned insights in real time.

Further, at Nasdaq, AI is being applied directly into the boardroom experience while preserving the strict controls those workflows demand. Its Nasdaq Boardvantage platform helps members turn hundreds of pages of board materials into concise, decision‑ready insights. This reduces review time by up to 60% while ensuring that outputs are fully auditable, remain grounded in proprietary data, and are protected by design.

Together, these examples show that intelligence can scale when workflows are auditable, permissioned, and attributable by default.

Getting started: Three moves asset managers can make now

The path forward is not theoretical; it is operational. Asset management firms can begin by focusing on three priorities:

• Invest in data readiness. Start by unifying internal and external datasets into a governed data foundation that can support agentic AI. Platforms like Microsoft Fabric are increasingly designed not only to bring data together, but to create the shared business context that agents need to operate consistently across teams and workflows. That matters because the bottleneck in scaling agents is no longer just model capability. It is whether each system can access the same governed definitions, permissions, and operational data foundation needed to move from isolated experiments to production-ready agent systems.

• Operationalize governance and enterprise ontology. Define ownership, approval paths, and audit checkpoints directly into AI-enhanced workflows under human supervision. A broader contextual intelligence layer is now emerging to connect how people work, how the business is modeled, and how knowledge is grounded across enterprise systems. Within that picture, Microsoft Work IQ remains an important component, helping make sense of activity across emails, meetings, documents, and chats while honoring existing permissions, sensitivity labels, and governance controls. Applied consistently in AI-assisted experiences, this kind of shared context helps turn governance from a static framework into a living system embedded in everyday work.

• Enable model-agnostic intelligence. Explore the comprehensive catalog of AI models so that you can select the best ones as needs evolve. Microsoft Foundry increasingly represents the production layer for agents, bringing together models, hosted agent services, memory, observability, evaluation, and guardrails in one governed environment. That gives firms more flexibility as requirements change while helping them move from pilot use cases to durable, production-scale systems.

Once these foundations are in place, firms can layer agentic workflows across research, operations, and risk while keeping clear human ownership at every material decision point and standardizing evidence trails so material outputs are reproducible and traceable. The goal is not automation alone, but structural operating leverage that scales intelligence with observability, governance, and security.

Making trust measurable and operational

Trust is not abstract in capital markets; it is the product of repeatable controls including lineage, entitlements, validation, and oversight. In practice, this is increasingly operationalized within the systems where work already happens. The idea is to bring productivity, security, identity, and agent management into a more unified operational layer, so that trust-related controls are enforced upstream in the flow of work rather than applied after the fact. Microsoft 365 E7 for Enterprise is one example of this broader architectural direction.

Accordingly, many firms focus on AI-enabled workflows defined by a common set of “trust signals,” including:

• Traceability: Every output must link back to authorized data, policies, and model versions.
• Explainability: Decisions must be not just technically correct but contextually defensible.
• Human accountability: Ownership must be explicit: who reviewed, who approved, and who can intervene.
• Controls and monitoring: Guardrails must operate continuously, especially under stress conditions.
• Regulatory evidence: Every decision path must be reproducible when challenged.

These are not abstract ideals but key operational expressions of responsible AI practices, helping asset managers ensure that AI is compatible with fiduciary duty.

The bottom line: Improving operational leverage

As firms mature in AI adoption, the focus evolves from products to platforms and ultimately to systems. The difference is not incremental; it is structural.

Value is no longer created by isolated use cases, but by integrated intelligence loops running on trusted infrastructure that connect external market signals with internal data, workflows, and decision rights. When orchestrated well, AI can serve as a coordination layer for action at scale in line with fiduciary requirements.

That is what drives operational leverage. Instead of adding incremental tools or headcount, firms can embed intelligence directly into workflows so the organization can better align decision-making, sensing, and action. Trust is thus inherent within systems and is no longer merely a byproduct.

Take the next step

We work with institutions to move from experimentation to production by embedding governance into multi-agent systems and operations so that fairness, reliability, privacy, and accountability are built into the foundation where AI runs. Our end-to-end approach can help unify enterprise and market intelligence into a shared operating context that turns fragmented insights into coordinated action at scale. Because most financial markets professionals already use Microsoft tools, it can also help lower deployment effort and improve adoption while keeping human oversight at every material decision point.

This is a rare and urgent invitation to the custodians of fiduciary capital to architect a homeostatic system of intelligence. It marks the convergence of capital and cognition, redefining how enduring organizations create and sustain value over time.

Explore how to best adopt AI

To learn more about how your organization can adopt AI, start by engaging with your Microsoft representative or service provider and explore these resources:

• Read our blog for stories about how Frontier Firms are using agentic AI to gain an edge in capital markets.
• To learn how Frontier Firms in capital markets lead with AI, visit Microsoft for Financial Services.
• For a practical transformation framework, read our new ebook, Frontier Transformation in Capital Markets.

¹ EY, Unlocking strategic advantage: Generative AI in wealth and asset management, September 16, 2025.

² Moody’s, Moody’s advances decision-grade credit intelligence across enterprise AI workflows, powered by Microsoft 365 Copilot, April 21, 2026.

The post Trust as infrastructure: How agentic AI is rearchitecting asset management at scale appeared first on The Microsoft Cloud Blog.

Summary How responsible AI is giving the world’s most stretched profession its time, its insight, and its humanity back.

Shared as part of the 2026 APHSA National Human Services Summit, this article speaks to the Summit’s theme: Leadership for a Stronger Tomorrow. For the leaders of state, county, municipal, tribal, and territorial human services agencies, that tomorrow will be shaped by a single decision—how to put AI to work in ways that strengthen the workforce, sharpen practice, deepen community trust, and turn evidence into action. The paragraphs that follow share what Microsoft is seeing across the world’s most ambitious human services organizations—and where the next opportunity lies.

Microsoft’s booth at APHSA National Human Services Summit is located above the lobby in the Atrium area.

Behind every case file is a person—a child waiting for a safer home, an elder who has stopped answering the door, or a family one missed appointment away from losing housing. And behind every one of those people is a social worker carrying a caseload that often exceeds what any human should reasonably bear.

Social workers are the connective tissue of modern society, bridging many services. Yet the systems built to support them often work against them—pulling professionals away from the very people they entered the field to serve. AI has the potential to change that, not by replacing the human heart of social work, but by giving it room to breathe.

A profession under pressure

The numbers tell a structural, not cyclical, story. The United States Bureau of Labor Statistics counts 810,900 social workers in 2024 and projects roughly 74,000 openings each year through 2034.¹ Across the OECD, health and social services sit among the highest-vacancy sectors, with shortages intensifying as populations age.² In England, 75% of social workers surveyed stated that they feel that society does not value the profession and 42% would not recommend it as a career.³ At Cafcass, 93% of family-court advisers reported unpaid overtime they could not take back.⁴

Behind these numbers is a more painful one: too much of a social worker’s day is spent on documentation rather than people. The United Kingdom Department for Education has now dedicated an entire workstream of its National Workload Action Group to AI in case recording—a quiet acknowledgement that paperwork, not policy, is where time is being lost.⁵

A global shift already underway

From local councils in the United Kingdom to child welfare agencies in the United States, from health systems across Europe to nonprofits serving the world’s most vulnerable, public organizations are moving from reactive to proactive, from siloed to coordinated, and from paper-driven to insight-driven. With administrative friction reduced, the worker–beneficiary relationship—the actual instrument of change in social work—is being restored. Four impact areas show where the evidence is now in.

1. More time with the people who need it

The single most powerful thing AI can do for social workers is give them their time back. Generative AI can draft case notes from a recorded conversation, populate forms from existing records, and turn a 45-minute write-up into a five-minute review. Backlogs shrink, compliance improves, and workers can spend more time in deeper client engagement—enabling higher quality assessments, and more timely care. Returning that time is also a workforce strategy: it eases burnout, raises retention, and gives agency leaders a tangible answer to the recruitment pressures the sector now faces.

The evidence is now consistent:

• In Wales, Torfaen County Borough Council rolled out Microsoft 365 Copilot across children’s services and corporate teams: minute-taking that previously consumed two to three hours per session is now produced in minutes, and frontline workers describe the time returned as time given back to families.
• In the United States, Washington, DC’s Child and Family Services Agency built its platform on Microsoft Dynamics 365, Power Apps, Azure AI, and Microsoft Copilot Studio—saving caseworkers around 45 minutes per intake, delivering new features roughly 20 times more cheaply than the legacy system, and using Copilot Studio agents to automate routine intake work.
• Barnsley Council is taking a similar path on Microsoft 365 Copilot to serve its residents with increasing demand for services with fewer resources.
• Buckinghamshire Council also calls out potential to provide users with Copilot licenses to support accessibility and inclusion, outlining how some of the capabilities mesh well with the needs of the neurodiverse workforce and workers with other accessibility needs.

2. Real-time insights from a single source of truth

Social workers shouldn’t have to be detectives. Yet building a complete picture of a beneficiary often means logging into five systems and hoping nothing falls through the cracks. AI on a unified data foundation changes that—surfacing a 360° view, supporting transparent triage, forecasting demand, and routing each request to the right service the first time. It also gives evaluation and research teams the foundation they need to measure outcomes consistently, link evidence to practice, and demonstrate impact to the communities they serve.

Real world examples include:

• North Yorkshire Council is transforming children’s social care with Microsoft Azure and Azure OpenAI, helping social workers quickly see the full context around a child or family and focus their time on early help and meaningful intervention.
• The Department of Human Services South Australia built its Family Safety Portal on Dynamics 365, Microsoft Power Platform, Azure, and Power BI, replacing paper-based information sharing with a real-time, multi-agency view for high-risk domestic and family violence cases. Ten government agencies including police, health, justice, child protection, and housing now coordinate around a single source of truth, with Chief Information Officer Shikha Sharma noting that centralized data and real-time analytics have transformed how decisions get made.

3. Cross-sector collaboration for person-centered care

The lives of vulnerable people don’t fit inside any single agency’s mandate. A child in care interacts with schools, doctors, courts, and community programs. AI-powered case management combined with modern citizen contact centers is finally making these worlds work together. This is the interoperability work behind aligning Medicaid, housing, public health, child welfare, and economic supports around the same family—and it is where modern AI is now meeting longstanding system-modernization goals.

• Healthcare institutions like the City of Hope are empowering physicians with the tools for more focused, personalized patient care. By using the power of Azure, they developed a generative AI solution that could rapidly process and summarize hundreds of pages of patients’ medical history documents, transforming physician workloads, and enriching new patients onboarding. A similar approach could be applied in social care, supporting the onboarding of new cases with complex, multi‑agency histories.
• Derby Council is using Azure OpenAI to automate around 43% of customer interactions, handling over 1.1 million telephone and web queries, and freeing officers to handle the most complex cases personally.

One experience for the citizen, one coordinated response from government.

4. The social worker of the AI era

The future of social work isn’t a profession diminished by automation—it’s a profession amplified by it. Mornings begin with an AI-prepared briefing of the families a worker is seeing today; home visits are captured by voice-to-text and drafted into case notes for review, not authoring; AI-powered agents flag a school-attendance dip or a missed appointment before it becomes a crisis. Strategic decisions—to escalate, to remove, and to reunify—remain firmly in human hands, supported by transparent and auditable evidence. Designing that future well means co-creating it with the people who use these services, including those with lived experience—so AI strengthens trust rather than displacing it.

Responsible innovation

Empowering social workers with AI demands the same care we expect from social workers themselves: privacy and security by design, fairness testing at every stage, transparency so workers can challenge what AI suggests, human oversight on every consequential decision, and co-design with frontline workers—not just for them. These are the disciplines documented in the Microsoft 2025 Responsible AI Transparency Report and the foundation on which Microsoft 365 Copilot, Azure AI, Dynamics 365, and Microsoft Power Platform are deployed in public sector organizations in selected deployments.

A good example is Northumbria Healthcare NHS Foundation Trust, which uses Azure Machine Learning and the Microsoft responsible AI dashboard to build surgical risk and triage models with explicit fairness and bias checks built-in—a working blueprint for social-care contexts.

King County Housing Authority chose Microsoft 365 Copilot to draft scripts, build training materials, and experiment in real time, enabling secure, compliant adoption aligned with public sector requirements.

As a public agency, we have a responsibility to protect data, comply with records requirements, and maintain trust. Copilot gave us a way to move forward with AI inside the guardrails we already rely on.

—Steven Hellyer, Chief Technology Officer, KCHA

A call to the sector

AI in social work is no longer experimental—it is already delivering impact.

The opportunity now is to move beyond pilots and scale what works, responsibly and with the workforce at the center. There are many common challenges across global social care but also shared opportunity.

Done well, this is not about technology transformation. It is about restoring the conditions for better human decisions—earlier, clearer, and closer to those who need them most.

More time. Better understanding. More human connection.

Meet Microsoft at the 2026 APHSA National Human Services Summit

June 14 to 17, 2026—Arlington, Virginia

Microsoft is proud to be a Summit Sponsor of the 2026 APHSA National Human Services Summit. Stop by our booth above the lobby in the Atrium area to see these capabilities live, share what is working in your jurisdiction, and explore what is possible together.

Beyond technology: How Microsoft partners for the long term 

Embracing the paradigm shift of generative AI obviously begins with technology. The table stakes of modernization for government include migrating to a modern cloud platform and the adoption of a comprehensive AI development solution from a vendor who demonstrates a deep commitment to security and responsible AI practices. 

Microsoft invests heavily in all these areas. However, success involves much more than just technology. Governments also depend heavily on the contributions of trusted solution providers, and we believe our global partner ecosystem sets us apart, with expertise in all corners of the world. Then, the final unique benefit we offer is the deep experience of our industry advisors and the many highly experienced government veterans on the Microsoft for government team. 

Our job is to help build the bridge between the technical and the strategic, on realistic terms. When we sit down with customers, we help clarify challenges and goals, educate on important challenges (for example, how governments can tackle cybersecurity and AI skilling), and share our experiences with other governments facing similar challenges—sometimes even connecting them to help foster learning.

Then, we embark on identifying and exploring use cases, evaluating impact, and taking the knowledge gained for further innovation.

Discover more

We are excited to work with governments to empower social workers with the tools and skills for deeper client engagement. To learn more about how Microsoft is helping to create opportunities that support vulnerable communities, contact your account team to learn how Microsoft can address your organization’s challenges. You can also visit our Microsoft social services and public health website, and learn more about Microsoft for government. 

¹ U.S. Bureau of Labor Statistics, Occupational Outlook Handbook.

² OECD Employment Outlook 2024.

³ Social Work England, Social Work Employment Survey Results 2024.

⁴ Community Care, Caseloads fall at Cafcass but social workers still struggling.

⁵ GOV UK, National workload action group: reports on social worker workload.

The post 4 impactful ways AI is empowering social workers appeared first on The Microsoft Cloud Blog.

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.