These stories don’t have much in common on the surface, but together, they point to a broader shift: AI is helping nonprofit organizations across the globe tackle some of society’s most pressing challenges.  

Animal Protection Denmark, Answer ALS, and Everything Suarve are three nonprofits that turned to Microsoft to solve different problems. Today, AI is helping them expand opportunity, strengthen communities, and create new possibilities for the people, animals, and causes they serve—extending their impact far beyond what their size or resources might otherwise allow.  

Animal Protection Denmark: From guesswork to insight in kitten care

Every year, Animal Protection Denmark prepares for “kitten season,” when shelters see a surge in vulnerable animals needing care. As the organization grew, so did the volume of data flowing across shelters, foster networks, volunteers, and supporters. Teams often spent long hours every month reconciling information from different systems, making it harder to forecast needs and coordinate resources.

Using Microsoft data and AI capabilities, Animal Protection Denmark unified that data into a single source of truth. Teams can identify trends earlier, forecast demand for foster placements, and monitor shelter capacity in real time. Staff can also access complete records for each animal, helping ensure continuity of care and supporting faster adoption decisions.

By combining a unified data foundation with AI-powered insights, Animal Protection Denmark spends less time managing information and more time acting on it. The result is earlier planning, faster decisions, and better outcomes for the animals that depend on them.

Answer ALS: Turning data into discovery

Answer ALS was created to accelerate progress toward treatments and a cure for amyotrophic lateral sclerosis (ALS), a progressive neurodegenerative disease that affects over 450,000 people worldwide. Together with Microsoft, the organization built Neuromine, one of the world’s largest ALS research hubs, bringing together trillions of data points contributed by more than 2,500 people living with the disease. Azure AI Search powers Neuromine’s query function so researchers can quickly learn details about an individual’s disease trajectory or even their DNA, which helps pinpoint cell lines to further study.

Additionally, Answer ALS is developing a chatbot in Microsoft Foundry that uses generative AI to answer user questions and direct researchers to relevant data. Before Neuromine, researchers often spent months, and sometimes more than a year, assembling data and biological samples before meaningful analysis could begin. Today, researchers around the world can access hundreds of patient lines and related clinical data in hours rather than months, helping them move more quickly from questions to insights.

By making high-quality research data easier to explore, share, and build upon, Answer ALS is helping accelerate research by as much as 65% over the next few years. The platform is enabling researchers around the world to collaborate more effectively, uncover new patterns in the data, and advance the search for better treatments and, ultimately, a cure.

Everything Suarve: Scaling second chances with AI 

Everything Suarve helps young people in Australia rebuild their lives through job training, mentorship, mental health support, and practical life skills. Many participants arrive after facing challenges such as housing insecurity, unstable home environments, or trauma. For a small team, the work depends on trust, consistency, and showing up for young people when they need support most.

As demand for its programs grew, so did the administrative burden. Referrals arrived through emails, paper forms, and phone calls, while staff tracked participant progress across disconnected systems. To streamline operations, Everything Suarve used Microsoft data and AI capabilities to build a solution that centralizes enrollment, case management, reporting, and communications. The organization also uses Microsoft 365 Copilot to help with grant writing, document summarization, and other administrative tasks, reducing the time spent on manual work.

Today, Everything Suarve’s staff can manage referrals, case notes, reporting, and participant communications in a single workflow. The new platform saves up to eight hours per participant during enrollment, while Copilot reduces grant application work by as much as two weeks. By automating processes and putting AI to work, Everything Suarve is reducing administrative overhead and creating more time to help young people build confidence, skills, and a path forward toward employment, education, and long-term stability.

What other nonprofits can learn from these stories

These three organizations serve different communities and pursue different goals. Yet together they show that organizations create the most value from AI when they use it to strengthen human expertise and start with a problem worth solving or a mission worth advancing.

At Animal Protection Denmark, staff can spot needs before they peak. At Answer ALS, researchers are compressing years of discovery into months. At Everything Suarve, staff spend less time on forms and more time with young people rebuilding their lives.

Together, these stories reflect a broader shift already underway across organizations of every size. AI is becoming part of how decisions are made, how services get delivered, and how people work. Success is no longer defined by the technology alone. It comes from combining technology with human judgment, experience, and purpose.

We call this Frontier Transformation: to move beyond isolated tools and individual tasks to rethink how they achieve their mission. Sometimes the result is greater efficiency. Often, it creates something more meaningful: the ability to reach more people, respond more quickly, and extend impact in ways that were previously out of reach.

As AI becomes more accessible, these nonprofits are showing that meaningful transformation is not reserved for the largest enterprises. It can begin anywhere people are willing to pair innovation with a clear sense of purpose.

The post Inside nonprofits using AI to extend their impact appeared first on The Microsoft Cloud Blog.

The more time I spend working with AI, the more convinced I become that what matters most for her future isn’t how quickly she can answer. It’s whether she has the judgment to know when an answer can be trusted.

I’ve spent decades at Microsoft watching this tension play out: first building tools for other developers, then working across AI as models moved from research curiosities to systems deployed at scale. Now we’re building Microsoft IQ, where we’re exploring how an organization’s collective intelligence can become its greatest advantage. Through every one of those chapters, one thing has remained true: it’s never enough for a system to be powerful; it must also be trustworthy.

Trust is what turns assistance into delegation. When we can trust an agent to do what we intend, within the limits we set, we can hand off the work we never wanted to spend our lives on: the repetitive tasks that drain attention, the mundane work that fills a day without moving anything meaningful forward, the dangerous work humans should not have to do, the work too vast for any individual or team. Agents should take on that toil, extend our reach, and give us back our time for the work that calls for something only humans bring.

My daughter doesn’t know any of this yet. But by the time she’s grown, most of the work that rewards speed and repetition will be work we delegate. What will matter then is exactly what gave her teachers pause: the patience to stay with a hard problem, reason through it, and decide when she’s reached a conclusion she can trust. The very thing they feared might hold her back could be exactly what the next era prizes most.

So no, I’m not worried about the timed test. I hope she grows up in a world where software carries the toil and people are freed for the work that is unmistakably ours—to think, to judge, to create, to care for one another. That is the future I want agents to make real. But my hope is not evidence it will happen. The future I just described depends on a single question: can we trust agents to do the work? Trust is earned one task at a time. So, I went looking for evidence of where it’s been earned, and where it hasn’t.

We partnered with MIT Technology Review Insights on new research that draws directly from the technical leaders building this frontier: not the people talking about it, but the people doing it. We surveyed 300 technical experts across AI, data, and cloud domains, spanning 12 industries and 4 regions of the world, asking them to rank their confidence across 101 of the top tasks. What we got back is the 2026 Agent Confidence Index, an honest map of where agents are delivering real value, so our community can see what’s working and move forward together with conviction.

Learn from where confidence is highest

Across the 101 tasks measured, average confidence already lands at 64 out of 100, and thirty tasks clear 70. The highest scores cluster on work that is both predictable and draining: the late nights, the interruptions, the low-value repetition. Automated report generation leads at 83.5. Boilerplate code generation for new features sits at 82.5—the hours a developer no longer spends rewriting the same patterns, freed for the work that challenges them. Certificate expiration monitoring and renewal, at 81.5, ends the scramble that pulls engineers off high-stakes problems for something entirely routine. Real-time data stream monitoring follows at 80.5, and release note generation from commit history at 79.5—the manual end-of-sprint commit review, gone. This is where frontier teams are already delegating to agents, regularly.

The pattern holds across every discipline. In developer and AI workflows it extends to API client maintenance and code identification; in cloud operations, to ticket routing and cost optimization; in data, to anomaly detection. Wherever it sits in the stack, this is work technical teams now trust agents to own.

What matters most here isn’t what the data says about the tasks; it’s what it says about the people delegating them. When technical experts believe in something deeply enough to hand it real work, that belief ripples outward. It becomes the recommendation they make to their leadership, the solution they build for their customers, and the culture they create for their teams.

Even the toughest agent tasks are gaining traction

Here’s what strikes me most: the tasks ranked lower on the index are still high in absolute terms. Service mesh configuration and troubleshooting sits at 37.5, database schema migration scripting at 46.5, memory leak detection at 48.5. These sit at the very frontier, the interconnected, high-stakes work where investment and innovation are concentrated right now.

Consider what they demand. Service mesh configuration touches many systems at once. Database migration carries real stakes, requiring precision across data, application, and infrastructure layers at the same time. Memory leak detection means diving deep into a system’s behavior under load, accounting for conditions that shift from one deployment to the next. These are the challenges that have separated great engineers from exceptional ones—and even here, experts see agents helping. Not carrying the work alone, but contributing where it used to be unthinkable. That confidence is still climbing, and that’s telling.

We’re shipping new capabilities constantly to support this momentum. Database migration tooling in GitHub Copilot now covers not just scripts but the full application and infrastructure migration story. The Azure Site Reliability Engineering (SRE) Agent brings decades of experience operating Azure at scale and deep profiling capabilities directly into memory analysis and performance diagnosis.

Why human judgment remains paramount

When we asked technical experts how they’re navigating agent adoption, 59% named “keeping humans in the loop” as their top priority—ahead of better observability, ahead of governance documentation, and ahead of everything else. That’s a mark of maturity. Teams moving forward with clarity treat agent oversight as non-negotiable, regardless of how capabilities evolve.

The boundary itself is straightforward. Agents excel at well-specified, high-volume, reversible work: they synthesize data, automate known workflows, and surface anomalies at a speed and scale no human team could match. The moment a decision becomes high-stakes, context-dependent, or hard to undo, a human signs off. That isn’t a limitation of the technology; it’s the architecture of a trustworthy system.

What’s changing, and what remains underappreciated, is the skill it takes to draw that boundary well: the discipline of full-lifecycle evaluations and guardrails. Success means measuring agent output against intent and keeping behavior inside your business strategy. It’s new territory for most engineering teams, and it’s becoming table stakes for modern software faster than most organizations realize. The good news: the same tools generating the work can help you build the harness. Ask GitHub Copilot to write the evals and it will. Frontier teams are already doing this, and it’s why they’re pulling ahead.

Agents are opening career doors for engineering

Across system reliability and site operations, evaluations and quality assurance, and data pipeline management, 80% or more of respondents see meaningful career opportunity ahead. We believe this is one of the most significant moments in the history of building software, not because agents replace what technical people do, but because what’s left when they take on the toil is the work that defines a career: the judgment calls, the architectural vision, the reasoning to navigate complexity under pressure. That fluency will define the next generation of technical leadership.

We’re living this shift at Microsoft, right alongside our customers. Junior developers are using agents to explore codebases on their own and arriving at mentoring conversations with sharper, more sophisticated questions. Senior engineers are covering more ground because the repetitive work that used to fill their days is now delegated, and the work that’s left is harder, interesting, and consequential. Both are growing into more capable versions of themselves. For me, that’s the outcome I’ve always believed technology could deliver.

An integrated approach to intelligence and trust

Designing more sophisticated agent systems has made one thing clear: agents thrive in well-integrated environments, working best when your whole stack draws on a single source of truth. The high-confidence tasks are the ones we’ve already figured out; the meaningful frontier is the harder, interconnected work, and that’s exactly where observability, governance, security, and unified intelligence have to operate as one.

Microsoft IQ brings your enterprise context into a single, continuous intelligence layer. Within it, Work IQ builds semantic understanding of how your business operates across email, calendar, meetings, chats, files, people, and collaboration patterns. Such depth of knowledge is the reason technical teams choose us, and it’s what drives my focus and passion in learning how people actually work so their agents get them. My colleague Kim Manis, CVP of Product for Microsoft Fabric, has written specifically about what this means for data professionals, and the integral role of Fabric IQ.

It’s all part of the Microsoft Agent Platform, which is becoming the operating system for enterprise AI at scale. From building in GitHub and contextualizing with Microsoft IQ, to running in Microsoft Foundry and governing in Microsoft Agent 365, Microsoft is uniquely positioned to help customers bring together data, models, agents, and human judgment into a continuously improving and secure system.

Frontier transformation is being led by builders like you.

Next steps:

• Download The 2026 Agent Confidence Index from our partners at MIT Technology Review Insights. It is a free, ungated deep dive into all 101 tasks, broken out by role and workflow, with the patterns and reasoning behind where confidence is strongest and the frontier is expanding.

• Join us at the AI Engineering World’s Fair (June 29-July 2) where our very own Pablo Castro will keynote, and our teams will offer 16 breakout sessions and 4 labs. Swing by the Microsoft booth as well to explore an interactive 3D visualization of the Index data. We want to hear what’s working for you.

• Learn more about Microsoft IQ and how it connects across Work IQ, Fabric IQ, Foundry IQ, and the newly announced Web IQ. You can catch up on all the developer innovation from Microsoft Build through Satya Nadella’s keynote, Kyle Daigle’s blog post, and the Microsoft Build CLI.

What’s Working in Agentic AI

The 2026 Agent Confidence Index report reveals where agents are trusted, the challenges they face, and what leaders should do next

Download the 2026 Agent Confidence Index

The post The 2026 Agent Confidence Index: Where 300 builders see real momentum 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.

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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.

1. Will AI amplify the intelligence of my organization and the attributes that make my company unique within its industry to grow my business; or will it use my intelligence for its own benefit, learning from my most important business flows and leveraging my intellectual property?
2. Can I trust that the outcomes are providing durable return on investment and that these solutions are running within the confines of my governance and security standards?
3. How do I get the visibility, control, flexibility and business model innovation needed to manage the costs associated with AI and maximize value?

I consistently advise customers that they need to build their own IQ on a platform of intelligence that is model-diverse, open and heterogeneous at every layer of the stack. Models are commoditizing. No company should be dependent upon any one model or any one model’s harness. Over the weekend, Satya warned of a world where every company across every sector is ceding value to a few models that eat everything they see. AI that is intended for growth should amplify the intelligence of an organization so that it compounds from within.

Companies also need an observability platform that provides governance, management, security and Financial Operations (FinOps) to ensure the ROI with AI. This enables AI to be trusted within the environment over which it reasons and puts the business in control of the outcomes.

Intelligence + Trust is embedded across Microsoft 365 Copilot, GitHub Copilot and Copilot Studio, where model diversity aligns cost and performance to each task. Microsoft IQ optimizes workflows, so context is routed efficiently and reduces unnecessary compute. Agent 365 is the control plane to observe, govern, manage and secure agents. We have built a system to manage AI spend as a core enterprise capability, not an afterthought. It is delivered across clouds and model providers without locking customers into a single approach.

Managing costs at scale

As agent usage scales, organizations need a clear set of levers to manage cost:

Model diversity. Any given inferencing model, model harness or agentic loop on its own does not help build out an organization’s IQ in ways that compound its intelligence. Both Microsoft 365 Copilot and GitHub Copilot are model-diverse by design without locking customers into a single provider. Different models — like GPT-5.5 or Claude Opus 4.8 — serve distinct roles with different economics. Matching the right intelligence to each task optimizes performance and cost.

Your IQ. Agents struggle with raw data. Significant compute is spent interpreting structure and context before useful work begins. The Microsoft IQ platform empowers your IQ by turning raw data into usable intelligence, continuously building a semantic understanding of how your organization operates across Microsoft 365 and line-of-business systems. It provides agents with the context they need upfront rather than requiring them to reconstruct it. The result is measurable: faster execution, higher accuracy and lower token usage. This is how intelligence compounds within your organization.

Financial operations. FinOps became critical when companies moved to the cloud and requires even greater attention as AI shifts from fixed pricing to usage-driven models. With Foundry and Agent 365, we are providing tools to help our customers optimize their AI costs today.

Frontier business models

Business models are evolving as we use AI to drive business outcomes. The User Subscription License (USL) has become the foundation, providing a package of capabilities for a predictable per-user-per-month fee. Usage-based licensing has emerged for long-running, multi-tasking agents, where cost aligns directly to the work performed.

Microsoft gives customers a unique combination of business model flexibility and integrated product experiences that is unmatched in the market. Microsoft 365 Copilot and GitHub Copilot use both models — a USL offering with not only value and capabilities, but flexible consumption on top. Today we’re announcing the general availability of Copilot Cowork worldwide, which requires the Microsoft 365 Copilot USL and is then usage-based.

Our model-diverse strategy allows customers to purchase capacity with the flexibility to use the right model for the job based on model strengths, economics and the latest innovations. Microsoft Agent Factory provides a single consumption model spanning Microsoft 365 Copilot (including Cowork), GitHub Copilot and agents built in Fabric, Foundry and Copilot Studio.

Our integrated product experiences put AI in the flow of work for both knowledge workers and software developers and manage capacity fluidly across the two. Historically these personas have been distinct, but increasingly the line between them is blurring. Coding is becoming a mainstream knowledge worker skill and chat and Cowork are becoming modalities important for software development. With Microsoft 365 and GitHub, we offer market-leading tools for both roles and make it easy to seamlessly manage capacity based on availability and need.

Agent 365: The control plane

As organizations adopt agents from Microsoft, another provider or build their own, a control plane is essential. Agent 365 gives IT and security leaders a single place to observe, govern, manage and secure agents across the organization. It builds on the Microsoft stack that enterprises trust: Entra for identity, Defender for threat protection, Purview for data governance and Intune for endpoint management. We are extending Agent 365 to include cost management, so organizations can monitor and manage agent spend alongside security and compliance. As the Frontier Firm operating model takes hold, leaders will manage human and agentic work as a single system, with visibility into both performance and cost.

The two most essential elements in any AI solution are Intelligence + Trust. At Microsoft, this conviction shapes how we design every layer of our AI platform. Microsoft IQ enables organizations to harness their own unique IQ, bringing context to data and embedding AI directly into the flow of work to deliver faster, more accurate and more trusted outcomes while safeguarding assets and protecting intellectual property. Agent 365 provides that trust layer, ensuring every agent and AI artifact is observed across the environment so organizations can move decisively from experimentation to enterprise impact with confidence. As Jay Parikh put it at Build, AI alone will not change your business. The system running it will.

We have built this system for our customers and partners, where intelligence compounds from within and every agent operates with control, visibility and trust. Together, we can scale human ambition and define how AI delivers measurable business impact across every role, organization and industry.

Judson Althoff is the chief executive officer of the commercial business at Microsoft. He is responsible for the product strategy, sales, services, support, marketing, operations and revenue growth of the company’s commercial business, which operates in more than 120 regional and national subsidiaries globally.

The post Achieving success with AI 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.

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MWC26 Barcelona, the GSMA’s flagship connectivity event, brought the global ecosystem together at scale: GSMA reported over 105,000 attendees from 207 countries and territories. In that backdrop, one theme kept surfacing in nearly every discussion I had: telecoms have moved past debating whether AI creates value and into the harder question of how to scale it across the enterprise with the right security, governance, and operating model.

In other words, the industry is shifting from isolated pilots to enterprise execution, embedding AI into customer engagement, network operations, and day-to-day workflows. This recap shares what we heard, what we showed, and what it signals for the next phase of telecom transformation.

Ahead of the event, we shared our point of view on how telecoms can realize AI ROI with a unified, trusted AI platform in our industry blog: MWC 2026: Microsoft Helps Telecoms Realize AI ROI. We described how Microsoft helps telecoms achieve return on intelligence and trust by scaling AI through a single intelligence platform—Microsoft IQ—with built‑in, carrier‑grade trust and governance so operators can innovate with confidence. During the week, additional customer and partner momentum included:

• AT&T unveiled Connected AI for Manufacturing and Connected Spaces for Enterprise, powered by Azure, enabling real-time data integration across factories, supply chains, buildings, and campuses to improve efficiency, safety, and decision-making.
• Tech Mahindra launched an ontology-driven agentic AI platform built on Microsoft Fabric and Azure AI Foundry to help operators modernize complex data environments and move from AI experimentation to production across use cases such as network optimization, fraud detection, and revenue assurance.
• Orange introduced Sharlie, a next-generation voice assistant for Sosh built with Microsoft AI, expected to handle more than 3 million customer conversations annually at full rollout.

What changed at MWC this year

The most important shift I saw wasn’t a single product announcement, it was a change in posture. Telecom leaders are increasingly treating AI as a core capability to be industrialized, not a set of experiments to be evaluated. The questions sounded less like “What use cases should we try?” and more often pointed to a simple reality: Scaling AI is a systems challenge. It requires bringing data, security, governance, and operational processes together so insights consistently turn into action. That’s the idea behind Microsoft’s Return on Intelligence—measurable business outcomes created when intelligence is embedded end-to-end across the telecom value chain.

At MWC, our goal was to make this practical, showing how AI can be applied across customer experience, operations, and growth, with trust built in from the start. Three themes came up repeatedly in these conversations:

• Data readiness: Connected intelligence that brings network, customer, and operational data together so models and agents can act with context.
  
• Trust at scale: Security, privacy, compliance, and governance that are designed in, not bolted on after pilots.
  
• Operationalization: Integrating AI into workflows, tools, and KPIs so teams can adopt it and leaders can measure outcomes.

That’s why we focused on an end-to-end story: Not just what AI can do, but how it can be delivered responsibly and repeatedly across the business. The show floor is where those ideas get tested quickly, so we designed the booth experience to reflect the real priorities operators are working on now.

What we showed: Turning intelligence into action

In the Microsoft booth, we brought Return on Intelligence to life with hands-on experiences designed around real operator workflows. The intent was simple: show how AI moves from insight to execution when it’s connected to the data people rely on, the tools they already use, and the guardrails organizations need.

Across 14 interactive demo stations, we explored five priorities many operators are investing in right now. Each one reflects a different place AI can create value and a different set of operational requirements to get it into production.

1. Copilots and AI agents for employees to reduce toil and speed decisions across customer care, operations, and field teams.
   
2. Agentic customer experiences that resolve issues faster, personalize interactions, and escalate to humans when needed.
   
3. Intelligent business operations that streamline order-to-cash and service fulfillment with better orchestration.
   
4. Autonomous network operations to detect, predict, and remediate issues—moving from reactive to proactive operations.
   
5. AI-enabled growth and monetization that helps identify opportunities and launch new offers faster.

What connected these scenarios wasn’t a single model, it was the operational pattern behind them: Unified data, secured access, governed AI, and integration into the workflows where work actually happens. That’s what turns a compelling demo into something a team can deploy, adopt, and measure.

The level of engagement reinforced the momentum behind this shift. Over the course of the week, more than 12,000 customers and partners visited the Microsoft booth. More than 3,200 attendees took part in more than 30 demos across 14 stations, and 1,387 people joined more than 38 in-booth theatre sessions with Microsoft and partner speakers. We also held 396 executive meetings with priority customers and partners—many focused on what it will take to move from pilot success to enterprise-scale execution.

Beyond the booth: Keeping the momentum going

MWC is four days on the calendar, but it’s really a milestone in a longer journey. The weeks before and after the show are where teams align on priorities, validate approaches, and translate interest into concrete next steps.

Our announcement blog helped frame the week by sharing Microsoft’s approach to scaling agentic and autonomous AI on a unified, trusted platform—and we continued the dialogue through customer and partner communications, follow-ups with teams exploring next steps, and ongoing industry programs.

Four takeaways from the week:

1. AI is an operating layer, not an add-on. The most consistent message was that AI is being stitched into how telecoms run: across customer experiences, operations, and growth. That shift changes what leaders prioritize, from isolated tools to enterprise foundations.
   
2. The maturity journey is speeding up. Many conversations reflected the same evolution: From pilot projects to targeted productivity improvements, to enterprise-wide transformation and growth. The winners will be the teams that can standardize what works and scale it across functions.
   
3. Agentic experiences raise the bar on trust. As copilots and AI agents take on more autonomous work—from customer interactions to network operations—security, privacy, and governance can’t be optional. Operators want guardrails, monitoring, and controls that work in production, not just in proofs of concept.
   
4. Outcomes depend on integration. AI delivers ROI when it connects to real data, real processes, and real workflows, so it can move from insight to action repeatedly. That’s why unifying data and AI, embedding security, and governing end-to-end matters: It’s what makes execution scalable.

Together, these themes point to the same conclusion: Telecoms that operationalize AI, securely and at scale, will move faster and compete differently.

What comes next: Moving from momentum to measurable outcomes

The post-MWC opportunity is straightforward: take the excitement and turn it into a repeatable operating model. For most operators, that means industrializing AI as a trusted layer, grounded in enterprise data, secured by design, governed end-to-end, and integrated into the workflows where customer experience and operational performance are won.

MWC 2026 made one thing clear: The telecoms that lead in the next cycle won’t just deploy AI, they’ll operationalize it. The organizations that can reliably turn intelligence into action, measure impact, and scale what works will set the pace for the industry’s next wave of transformation.

Continue the conversation

• Consolidated list of MWC announcements and news: Return on Intelligence: Powering the AI-First Telco
• Fierce Network: Microsoft & Nokia; Microsoft & Lumen; Microsoft, PWC & Orange

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The post MWC 2026 recap: From AI pilots to enterprise execution in telecom appeared first on The Microsoft Cloud Blog.

• Watch global leaders discuss the future of industrial intelligence: Register now 
• Get the latest insights on industrial transformation: Get the e-book 
• New: The Procurement Agent in Dynamics 365 Supply Chain Management 

Three global industrial leaders—ABB, Krones, and TK Elevator (TKE)—are redefining their industries by using advanced AI and trusted cloud platforms to become Frontier industrial organizations. With Microsoft, they’re turning data, processes, and context into intelligence that drives efficiency, agility, and innovation. Every Frontier organization gets two fundamental things right: intelligence and trust. They amplify what’s unique in their people and operations with AI that is governed securely on their own terms. Trust isn’t added at the end; it ensures intelligence is used responsibly and outcomes happen as intended. Hannover Messe 2026 is where these transformations take center stage, showing how Frontier organizations are shaping the next era of manufacturing.  

• ABB—AI as a Real-Time Industrial Co-Pilot: ABB, a global technology leader in electrification and automation, will showcase its cloud-powered Genix Industrial AI platform running on Microsoft Azure. Genix acts as a real-time industrial co-pilot on the factory floor by analyzing streaming data from equipment and sensors and delivering actionable insights and recommendations to operators and managers in real-time. At Hannover, ABB’s demos illustrate how Genix enables closed-loop, AI-driven optimization of production processes on the fly, for example, by automatically adjusting parameters to improve energy efficiency, asset performance, and reduce unplanned downtime. Designed with a modular, scalable architecture, Genix integrates seamlessly with existing industrial systems, eliminating the need for large‑scale platform replacements and enabling rapid time to value. With the integration of generative and agentic AI, the platform not only provides insights, but also automates actions, while keeping humans “in the loop” for all critical decisions to ensure safety and operational decisions. This approach demonstrates how ABB is moving toward autonomous, self-optimizing operations without sacrificing human oversight, a hallmark of a Frontier organization. 

• Krones—From Bottling Machines to “Bottle-as-a-Service”: Krones, one of the world’s largest bottling equipment manufacturers, is using AI to reinvent its business model and engineering process. With Microsoft’s help and the ecosystem of trusted partners Ansys (part of Synopsys), NVIDIA, Softserve, and CADFEM, Krones integrated advanced AI-based fluid simulation into its digital twin of a filling line, packaged with a multi-agent experience, for their engineers to create these complex simulations with natural language queries. This innovation has slashed simulation times from four hours to under five minutes (a 95% reduction), allowing engineers to optimize machine parameters virtually and dramatically shorten commissioning time. The payoff is huge—Krones can now rapidly tailor designs for each customer and ensure optimal throughput. At Hannover Messe 2026, Krones will demonstrate how these AI-powered digital twins let them forecast and fine-tune production faster and more flexibly than ever, turning a traditional machinery business into a Frontier digital services company.

• TK Elevator—Digital-Native Elevators and Agentic AI: TK Elevator (TKE) is revolutionizing mobility for 1.5 billion users by combining digital-native products, secure cloud and data platforms, and agentic AI, all in partnership with Microsoft. At Hannover Messe, TKE highlights its EOX and HELIX elevators, which are eco-efficient, AI-ready, and IoT-enabled as part of the MAX on Azure platform. Azure Databricks supports their unified analytics, ensuring data governance and enabling scalable AI workflows. TKE’s specialized AI agents, alongside the Digital Operations Center, streamline service by assembling contextual briefings before technician visits and capturing insights afterward, turning technician knowledge into organization-wide intelligence. 

These three examples are among many Microsoft customers and partners joining us at Hannover Messe 2026, with live demos showing how industrial intelligence turns data into faster decisions, safer operations, and more resilient manufacturing. 

Industrial Intelligence Unlocked, Microsoft’s overarching theme for Hannover Messe 2026, reflects the belief that manufacturing’s next era will be driven by human ingenuity and AI—grounded in trust. Microsoft provides a unified intelligence layer for the tools your employees use; Work IQ understands how people collaborate and decide. Fabric IQ delivers real-time visibility across assets, production, and supply chains. And Foundry IQ combines institutional knowledge like procedures, standards, and history with AI. Together, they help manufacturers connect teams, processes, and technology across the value chain. 

1. Redefine product lifecycle intelligence

This neighborhood focuses on uniting engineering and operations through data-driven intelligence, so manufacturers can design and deliver better products in less time. Here you’ll see how Microsoft is helping companies create a closed-loop product lifecycle —connecting every stage from design and simulation to production feedback. For example, Microsoft and NVIDIA are collaborating to power the next generation of physical AI by integrating NVIDIA Omniverse libraries with Microsoft Fabric.  

By blending real-time data, AI, and virtual simulation in one environment, companies can iterate designs faster with greater confidence. Imagine optimizing a new machine design virtually (with accurate physics and live data) before anything is built—reducing costly physical prototypes and accelerating time-to-market.  

In short, the product lifecycle intelligence zone shows how integrating data + simulation + AI yields smarter product decisions and faster innovation. 

Microsoft ecosystem partners showcased in this area: Aras, Brembo Solutions, Celebal Technology, NVIDIA, PTC, Tata Consultancy Services (TCS).

2. Run AI-powered factories 

In our AI-Powered Factories area, we demonstrate how to coordinate machines, materials, and people with AI, turning traditional facilities into adaptive, self-optimizing operations. Microsoft supports the ability to scale these operations with a unified intelligence layer powering AI insights and a consistent framework for managing agents, models, data and infrastructure with the adaptive cloud approach. 

A highlight here is Microsoft’s approach to industrial edge AI. Foundry Local on Azure Local enables manufacturers to deploy and run AI models, including those from the Foundry model catalog —directly on factory equipment or on-premises servers for scenarios that require ultra-low latency, data locality, or offline operation. This capability supports high-speed vision inference for quality inspection, anomaly detection, and predictive maintenance, all in real time without relying on constant cloud connectivity. Manufacturers can choose curated open-source models from the managed catalog or deploy custom OCI/Docker models on CPU or GPU systems.

Discover how the latest Azure IoT Operations release simplifies OT data management—now with no-code pipelines, seamless device control from cloud to edge, and direct support for third-party MQTT brokers and Litmus Edge gateways. In addition, upgrades to Azure IoT Hub and firmware analysis, enabled by Azure Arc make it easier for industrial organizations to securely manage and update large device fleets with unified Azure security and certificate management via Azure Device Registry integration. Learn more about how Microsoft and our partners are providing the foundation to initiate and scale industrial AI projects in our two-part blog series: Making Physical AI Practical for Real-World Industrial Operations: Part 1 and Part 2. 

Together, these capabilities come to life in Microsoft’s Factory of the Future demo—showing how adaptive cloud, edge intelligence, and Physical AI work together in a real manufacturing environment. The Factory of the Future demo shows how Physical AI comes to life when design, simulation, and execution are connected into a single, adaptive manufacturing system. In collaboration with Hexagon, Siemens, NVIDIA, KUKA, Advantech, and others, Microsoft demonstrates an end-to-end scenario where AI-assisted product design is validated in simulation and then executed in a live manufacturing cell. Real-time telemetry flows from the factory floor through Azure IoT Operations at the edge and into Microsoft Fabric, where AI agents’ reason across operational signals to proactively detect issues and support action.  

Microsoft ecosystem partners showcased in this area: Accenture, Advantech, Avanade, AVEVA, Hexagon, Kuka, NVIDIA, Schneider Electric, Siemens, Sight Machine, Rockwell Automation.

3. Build trust across human–agentic teams

As AI agents move from pilots to daily operations, trust becomes the factor that separates insight from impact. In manufacturing environments, AI only delivers value when people are confident enough to act on its recommendations. For frontline workers, trust means clarity at the moment of action. AI agents assemble contextual briefings that bring together equipment performance, recent alerts, maintenance history, and safety guidance, so technicians arrive informed and prepared. Recommendations are visible, explainable, and designed to support human judgment, not replace it. For engineers, planners, and operational leaders, trust means confidence at scale. As AI agents operate across factories, service networks, and supply chains, organizations need visibility into how decisions are made, what data is used, and when human approval is required. Governance, auditability, and clear accountability ensure AI actions align with operational priorities and policies. 

Manufacturers can now use Researcher in Microsoft 365 Copilot in Dynamics 365 Field Service. Powered by WorkIQ, teams can bring together signals from work orders, service history, parts availability, and Microsoft 365 context to investigate issues faster and take informed action, improving first-time fix rates, reducing downtime, and maintaining governance. 

This human–agent operating model reflects Microsoft’s approach to industrial AI. Intelligence proposes that. People decide. Trust is built into the system so AI can move beyond insights and support real operational action across the enterprise. 

Microsoft ecosystem partners showcased in this area: Bosch Connected Industry, Cognite, Kongsberg Digital, SymphonyAI. 

4. Orchestrate supply chains with AI agents

The fourth booth zone looks beyond the factory floor to the end-to-end value chain, where volatility, constraints, and customer expectations converge. Here we show how manufacturers can go from reactive coordination to agentic supply chains. From networks of suppliers, plants, and logistics partners connected by AI agents that continuously scan for change, reason across data, and support action in real time. These systems go beyond visibility, helping leaders anticipate disruption and respond with speed and confidence. 

Procurement is often first to feel disruption, where speed, context, and control matter most. The Procurement Agent in Dynamics 365 Supply Chain Management helps teams handle supplier communications and exceptions, assess downstream impact, and keep people in review.  

AI-assisted agents reduce manual effort while keeping our people in control…strengthening collaboration and improving outcomes.

—Andre Scheepers, Chief Digital Officer, Farmlands Cooperative

AI agents help organizations move from delayed reaction to proactive control. By detecting demand volatility, supplier risk, or inventory imbalances earlier, teams can evaluate tradeoffs, align cross functional responses, and act before issues escalate into revenue loss or excess cost. Embedding these insights directly into operational workflows shortens decision cycles, reduces manual intervention, and improves outcomes such as on-time, in full delivery, inventory turns, and working capital efficiency. 

This approach reflects a shift in how supply chains create value. AI strengthens human decision‑making by improving speed, consistency, and coordination across the value chain. Thus, enabling supply chains to operate with greater predictability, control, and customer confidence, even in volatile environments. 

Microsoft ecosystem partners showcased in this area: Resilinc, Fractal, C3.ai 

Join us—onsite or online—Live from Hannover Messe 2026

Microsoft is hosting a series of executive conversations at our Hannover Messe booth, where top manufacturing leaders will share how they’re navigating the journey to an AI-powered, data-driven future. The conversations feature voices from companies like Siemens, Accenture, Schneider Electric, TK Elevator, Bosch Connected Industries, and more. Register here to watch for strategic insights into how global manufacturers are using AI to connect data, systems, and workflows.

We’re also thrilled to invite everyone to the Hannover Messe Center Stage keynote by Deb Cupp, Microsoft’s President and Chief Revenue Officer. Deb will present “Return on Intelligence: The Next Frontier of Manufacturing,” exploring how organizations can move beyond incremental efficiency gains to achieve transformative growth with AI. This keynote takes place on April 20 at 2:00 PM CET (opening Monday) on the main stage.  

For a quick recap of Microsoft’s Hannover Messe 2025 presence and to see what to expect in 2026, check out the 2025 recap video: 

Learn more about how Microsoft helps Frontier organizations prioritize efficiency, agility, and innovation 

• The Industrial Frontier: Four ways manufacturers can unlock intelligence across the value chain. Get the e-book

The post Industrial intelligence unlocked: Microsoft at Hannover Messe 2026 appeared first on The Microsoft Cloud Blog.

Exactly one year ago, we outlined how generative AI is creating a new era of efficiency and innovation for logistics and supply chain. We mapped AI use cases across the value chain, from demand forecasting to AI-based customer service, and introduced two new reference architectures for logistics and supply chains: adaptive cloud and AI‑enhanced experiences, alongside innovations in Microsoft Dynamics 365.

Since then, technology has rapidly evolved. We are now in the agentic era of AI with agents being capable of reasoning, planning, and taking action across complex supply chain workflows. End-to-end agent hosting like in Microsoft Foundry and open protocols such as Model Context Protocol (MCP) have made it easier for AI agents to connect with each other as well as enterprise systems, tools, and data.

Additionally, there have been significant advances in 3D simulations, robotics, and embodied intelligence. Open platforms for physical AI like NVIDIA Cosmos with world foundation models (WFMs) as well as the OSMO edge-to-cloud compute framework on Azure enable machines and humanoid robots to act more effectively in the physical world, resulting in broader automation across warehouses, distribution centers, and transportation. This new article picks up Microsoft’s perspective on supply chain and logistics one year after our previous blog article and explores how our own logistics teams as well as frontier customers and partners use this new wave of innovations together with Microsoft.

Microsoft supply chains: Our own “customer zero” story

Microsoft operates one of the world’s most far-reaching cloud supply chains spanning more than 70 Azure regions, over 400 datacenters, and a network of more than 600,000 km of fiber. Our datacenters are the backbone of Microsoft Azure powering everything from AI infrastructure and collaboration tools to networking and security. Microsoft also runs supply chains for Microsoft Windows and Devices with Surface hardware and PC accessories as well as Xbox consoles and gaming hardware.

All of our supply chains have undergone a fundamental transformation over the past decade, evolving from a reactive, manual environment into a rapidly emerging autonomous, agentic supply chain. In the past, our operations were dominated by Excel-based reporting, limited visibility, and siloed data. In 2018, we consolidated more than 30 systems into a single supply chain supply chain data lake on Azure, enabling predictive analytics and the first generation of cognitive supply chain capabilities. In 2022, we began experimenting with generative AI, followed by the development of an AI platform to operationalize agents at scale. Today, this foundation is accelerating to fully autonomous agents, and more than 25 AI agents and applications have been deployed. Below are three examples:

• The Demand Planning Agent drives AI‑based demand–simulations for non‑IT rack components—improving forecast accuracy and reducing manual reconciliation.
• The Multi‑Agent DC Spare‑Part Space Solver uses computer‑vision‑driven monitoring and multi‑agent reasoning to forecast spare‑part storage needs and proactively mitigates space or stockout risks.
• The CargoPilot Agent continuously analyses transport modes, routes, cost structures, carbon impact, and cycle times—providing optimized shipment recommendations that balance speed, sustainability, and efficiency.

The goal is to operate over 100 agents by the end of 2026 and equip every employee with agentic support. The impact today is already huge: AI in logistics is saving our teams hundreds of hours each month demonstrating how agentic operations are translating directly into efficiency and business value. Both in our own Microsoft supply chain transformation and Frontier customers we work with, we have seen that unifying the data estate is key. Yet, it’s what organizations do next that truly generates value with AI.

In supply chain, we believe real value gets unlocked by driving three elements:

• Enabling AI-powered supply chain simulations.
• Building agentic supply chains.
• Integrating first physical AI innovations.

Simulations: The digital twins of supply chains

As supply chains become larger, more interconnected, and more exposed to global volatility, simulating scenarios before they unfold is becoming a critical capability to reduce risk and increase resilience. Discrete event-based simulations (DES) within supply chains enable the development of a virtual risk-free model to test how a complex system reacts to interventions and variables before implementation. With Microsoft’s advanced modelling tools such as Azure Machine Learning and the new machine learning model in Microsoft Fabric with Power BI semantic models, organizations in supply chain and logistics can simulate demand patterns, shortages, or supply chain disruptions.

Our partner paiqo offers with prognotix an AI-powered Forecasting Platform available on the Microsoft Marketplace. More than 70 algorithms enable supply chain experts to generate and optimize highly accurate demand forecasts directly within their Azure environment. Cosmo Tech offers an AI simulation platform for Advanced Supply Chain Risk Management on Azure, offering enterprise customers dynamic digital twins that simulate how disruptions and decisions impact system-wide performance. InstaDeep uses Azure in high-performance compute for AI-enabling deep reinforcement learning and predictive analytics that optimize last-mile delivery, inventory levels, and fleet utilization.

The next level of simulation combines multiple physical simulations in 3D environments and discrete event-based simulations to enable teams to build comprehensive digital twins of warehouses, distribution centers, production lines, and logistics networks. These virtual environments allow organizations to model both the physical behavior of assets and the dynamic flow of operations. By integrating these simulation methods within a digital twin and applying AI, teams can predict future outcomes, optimize performance, and prescribe actions that drive continuous operational improvements. This can help customers lower capital expenditure, shorten commissioning, and ramp up phases, as well as improve operational key performance indicators (KPIs).

Taking warehouses as an example, customers and partners can build advanced, AI-enabled 3D visualizations for four key scenarios:

• Warehouse planning (such as greenfield and brownfield).
• Warehouse monitoring (like real-time monitoring and people movement heatmaps).
• Warehouse improvement (for example trailer dwell time optimization and collision detection for safety and automation).
• Warehouse maintenance (like asset monitoring in real-time, detect quality issues, and reduce rework).

In collaboration with NVIDIA we offer access to NVIDIA libraries and frameworks including NVIDIA Omniverse™, NVIDIA Isaac Sim™, and NVIDIA Omniverse Kit App Streaming that enable developers to build applications and workflows to simulate and test intelligent machines in digital twins before building or deploying anything in the real world. Applications built on these libraries and frameworks allow developers seamlessly integrate geometry data (such as 2D, 3D, and point clouds), AI capabilities (for example large language models, Volume Shadow Copy Service (VSS), and Solvers), and Internet of Things (IoT) signals across operational technology (OT) environments.

The reference architecture below illustrates how to combine cloud and edge computing using NVIDIA Omniverse Kit App Streaming to visualize warehouse operations in real-time with graphics processing unit (GPU) accelerated Kubernetes clusters natively deployed on Azure to remotely monitor, analyze, and optimize warehouse performance with greater precision and situational awareness.

Inside the physical warehouse, operational data from robotic arms, conveyors, and warehouse sensors are captured on the edge using Azure IoT Operations running on Arc-enabled Kubernetes and using MQTT broker. The architecture adopts the Universal Scene Description format (OpenUSD) to ensure that 2D, 3D, and point cloud geometry from the warehouse can be seamlessly integrated into the digital twin. Microsoft Fabric takes up the data in the cloud to provide a unified analytics foundation. Eventstream and eventhouse capture incoming telemetry as real-time streams or batch data. Microsoft OneLake acts as the governed, centralized data lake that consolidates all warehouse data. Digital twin builder transforms raw IoT signals into a contextualized virtual representation by mapping telemetry to the warehouse’s digital model. Powered by NVIDIA Omniverse, high-fidelity simulation and spatial computing occur creating a real digital twin which is streamed directly to the browser—eliminating the need for high-end local hardware. Tools such as Microsoft Copilot Studio and Microsoft Foundry enable natural language interaction. Across all stages, security is maintained through Azure Arc, ensuring consistent governance, configuration, and policy enforcement across edge and cloud.

SoftServe has proven to be an excellent delivery partner for digital twin applications. Together with Microsoft, they seamlessly integrated AI agents built on NVIDIA libraries and open models into beverage production simulations at Krones, enabling physical-accurate digital twins that reduced cycle times from hours to under five minutes. Similarly, at Toyota Material Handling Europe, SoftServe built a digital twin for simulating autonomous forklifts in virtual warehouse environments, enabling rapid testing, optimization, and safer deployments, helping to reduce the training times of autonomous systems by more than 30%.

TeamViewer’s augmented reality platform Frontline provides an additional simulation angle. Wearables such as smart glasses or wrist-mounted devices bring data seamlessly to frontline workers to get guidance in a hands-free manner for picking and packing as well as AI‑assisted counting. At DHL Supply Chain, TeamViewer’s solution is deployed globally to support vision picking of over 1,500 workers across 25 United States sites with fully hands‑free processes.

Agentic supply chains: The multi-agentic web

Agentic supply chains mark a new era of autonomous AI systems that proactively manage and optimize end-to-end supply chain operations. These agentic systems aim to continuously improve overarching KPIs like operating margin or cash conversion as well as specific KPIs such as lead time or freight cost per unit, ensuring that every agentic action contributes to measurable business impact.

Agentic supply chains are built on today’s human-driven tasks and encode the underlying decision-making logic. They include single purpose agents such as “troubleshooters” that constantly diagnose issues and propose fixes as well as “orchestrator agents” like planners or organizers that coordinate multistep workflows. These agents become functional through modern data fabrics, robust systems of record, and event-driven architectures that provide real-time information and governance.

Below is an overview of supply chain agents we have identified along the value chain through multiple customer and partner discussions.

Frontier Firms have already created value with multi-agentic systems.

• CSX Transportation has deployed a multiagent system that validates customer eligibility, routes complex requests, and supports rail operations with multistage coordination.
• Dow Chemical operates invoice analysis agents that review thousands of freight invoices each day, automatically detecting discrepancies and saving the company millions across its global shipping network.
• C.H. Robinson has rolled out a large fleet of generative AI agents including fast quoting agents that deliver tailored freight quotes and automating key steps along the shipping lifecycle.
• Blue Yonder has created an off-the-shelve Inventory Ops Agent on the Microsoft Marketplace that identifies supply–demand mismatches in real-time and recommends corrective actions such as alternate sourcing or demand swaps to keep inventory levels optimized.
• Resilinc offers an agentic supplier risk platform on Azure with pre-built AI agents (like for disruption, tariffs, and compliance) that autonomously evaluate potential impacts, initiate supplier engagement and recommend mitigation strategies.
• o9’s Digital Brain platform on Azure has been enhanced with various AI agents taking over simple tasks like getting specific data and more complex like creating full demand reviews.
• GEP recently added to their source-to-pay GEP SMART and supply chain solution GEP NEXXE (both built natively on Azure), a portfolio of AI agents that cover sourcing, negotiation, contract lifecycle, spend analysis, and market intelligence.
• Kinaxis offers its Maestro supply chain planning platform including AI agents that sense disruptions, run scenario simulations, and provide prescriptive insights through natural language.

Additionally, several delivery partners have used Microsoft tools like Microsoft Foundry and Copilot Studio to build agents for customers at high speed.

• Avanade, for example, offers concrete off-the-shelf agents including a trade compliance agent, a digital twin agent, and lead-2-cash agents.
• Softserve offers a catalyst with 3 customized agents in 30 days.
• NTT DATA is developing a simulation-driven, agentic AI-powered decision-support system for supply chain network agentic rebalancing platform.
• PwC delivers end-to-end agentic AI consulting services, powered by distinctive industry expertise.
• Capgemini is currently building an agentic end-to-end offering using the latest Microsoft IQ technology to be released at Hannover Messe in April 2026.

Microsoft Work IQ, Foundry IQ and Fabric IQ together form an intelligence layer for supply chains—from demand planning to inventory and customer service—that connects how people work, how the business operates, and what the organization knows. This gives AI agents full enterprise context so that agents can reason, simulate scenarios, and act in line with real-world constraints and KPIs such as inventory turnover to support better decisions.

Together with our strategic partner Celonis we have developed a new reference architecture leveraging Fabric IQ and the Celonis Process Intelligence Graph to transform fragmented supply chain data into agentic workflows. A collaborative stack that integrates raw data at the bottom and creates intelligent, automated actions at the top.

On the System of Record (SoR) layer, data is often siloed and does not “speak the same language,” leading to a fragmented understanding within the supply chain. Microsoft Fabric unifies this data through mirroring, streaming, or multi-cloud shortcuts with the goal to create a zero-copy connection and ensure the data is fresh and accessible without the weight of traditional extract, transform, and load (ETL) processes. Fabric IQ provides a reasoning layer that translates raw, unified data in OneLake into context-aware insights. This is the basis for Celonis’ Process Intelligence (PI) Graph which sits between data and the automation and uses process mining to map out how the supply chain actually runs—generating operational supply chain insights and suggesting improvement potentials from a process point of view. It communicates with Microsoft Fabric through Rest APIs, providing the knowledge and context that AI needs to make sense of the data. The agentic layer is divided into three functions:

• Building: Use Copilot Studio, Microsoft Foundry, and Power Automate to create custom AI agents.
• Orchestrating: Use MCP and Agent2Agent Protocol (A2A) to manage how different agents work together.
• Overseeing: Use the control plane for agents in Agent 365 (generally available in May 2026) to monitor agent activities and ensure performance as expected.

On the top layer, with the help of Microsoft Entra ID, insights and suggested actions are shown in tools employees use, such as Microsoft Teams, Microsoft 365 Copilot, Dynamics 365, Power Apps or in the Celonis UI.

A large global pharmaceutical company is using the above architecture to unify fragmented logistics data, enabling real-time identification of temperature-critical pharmaceutical returns and designing an agentic return process that unlocks multi-million euro annual productivity gains. Uniper automated material and service needs with Celonis and Microsoft. Microsoft Copilot in Teams and Power Automate orchestrate approvals, SAP actions, and replace manual component planning with proactive, agentic workflows that ensure timely material availability.

Physical AI: From warehouse handling to last mile deliveries

Physical AI is the final evolution of supply chain intelligence, building on simulations and agentic AI and embodying that intelligence directly in the physical world. In the near future, humanoid robots and robotic systems will physically take over more and more operational tasks along supply chains and logistics: from trailer unloading and sorting, pallet handling and replenishment, to packing and labelling and autonomous last‑mile deliveries. As intelligence moves from screens into machines, supply chains and logistics may gain a new level of physical agility.

Microsoft is pushing the frontier of physical AI with it’s new Rho‑alpha robotics model that combines natural language, visual perception, and tactile feedback to make robots more adaptive and autonomous. Microsoft has launched an early access research program with selected partners to advance co‑training and domain adaptation and aims to integrate the model in Microsoft Foundry in the coming months. Already today, customers and partners may take the below robotics toolchain reference architecture to train and deploy warehouse robotics with NVIDIA Osmo on Azure.

This toolchain is an open-source, production-ready framework that integrates Azure cloud services with NVIDIA’s physical AI stack, from simulation to training and deployment. It combines Azure Machine Learning, Azure Kubernetes Services (AKS), Microsoft Fabric, Azure Arc, and NVIDIA’s robotics and AI stack. NVIDIA Isaac Sim and Isaac Lab enable high-fidelity simulation and reinforcement learning, while NVIDIA OSMO orchestrates scalable training workflows across cloud and edge environments.

Detailed information can be found here.

Hexagon Robotics has started to deploy this architecture using Azure IoT Operations as well as Fabric Real-Time Intelligence in Microsoft Fabric to provide production-ready humanoid robotic solutions. Their industrial humanoid robot, AEON, combines dexterity, locomotion, and unique spatial intelligence to tackle complex industrial use cases for warehousing and logistics such as inspection and inventory taking.

Figure AI, funded by Microsoft, enables the deployment of their humanoid robots in real-world logistics environments using Azure’s AI infrastructure. Their latest model Figure 03 can take over warehouse tasks such as sorting packages at conveyor belt speeds and help at last-mile delivery with near human-level precision.

KUKA and Microsoft jointly developed iiQWorks.Copilot, an AI-powered assistant that enables natural language robot programming and significantly simplifies automation tasks. By integrating Azure AI services, the solution allows users to design, test, and deploy robot workflows faster and more safely—cutting programming time for simple tasks by up to 80%. This has benefitted all KUKA robotics deployed in warehouses and logistics.

Wandelbots’ NOVA software layer combined with Azure cloud services unifies heterogeneous robots and brings adaptive automation to the shop floor. Wandelbots NOVA streamlines warehouse and fulfillment operations such as palletizing by simplifying robot programming, accelerating deployment, and enabling AI-powered path planning and scaling across multiple robot brands. Together, these capabilities position Wandelbots NOVA as a physical AI platform for orchestrating and scaling AI-powered automation across supply chain operations.

Get in touch with us

Contact us directly at screquests@microsoft.com or go to Microsoft for Manufacturing to explore how Microsoft technologies can transform your supply chain. Join us at Hannover Messe in April 2026 to hear directly from our industry leaders, explore cutting-edge ideas, and connect with peers.

The post Supply Chain 2.0: How Microsoft is powering simulations, AI agents, and physical AI appeared first on The Microsoft Cloud Blog.

AI is delivering real, measurable returns for telecom

AI is already delivering measurable business impact across industries, and telecom is among the leaders. A recent IDC study shows operators are achieving 2.8 times return on generative and agentic AI investments, with many leading companies reaching up to 5 times return. Frontier telecoms are realizing even greater returns from AI by making it foundational to how their business operates—from employees and core workflows to the end‑to‑end value chain. These leaders are moving beyond incremental efficiency by using an end-to-end AI platform and unified data approach that embeds AI into everyday operations, enabling faster decisions, tighter execution, and continuous performance improvements across their organization.

With more than 80% of the Fortune 500 building active AI agents, Microsoft Copilot is rapidly becoming essential to how employees think, collaborate, and deliver results. As AI proves its value, telecoms are moving beyond pilots to connected intelligence that elevates customer experiences, replaces manual workflows with autonomous operations, hardens and self‑heals networks, and drives new revenue opportunities. Connected intelligence will differentiate fast-moving telecoms across every area of business operation.

Read more about Frontier telecoms here.

Return on intelligence and trust

For telecoms, achieving value from scalable AI depends on two factors: intelligence and trust. Built from three complementary IQ elements—Work IQ, Fabric IQ, and Foundry IQ—Microsoft IQ is the intelligence layer that connects AI, data, and context across the business. It gives AI agents deep awareness of how people work, how the business operates, and how decisions are made. This intelligence layer accelerates decisions, improves customer experiences, automates operations and networks, and unlocks new ways to monetize AI‑based services. Trust is built through Microsoft’s carrier‑grade control plane, which provides built‑in monitoring and governance across the entire AI platform, including AI agents from our partner ecosystem, to allow telecoms to innovate responsibly, support regulatory compliance, and scale AI with confidence.

At MWC 2026, Microsoft is announcing new technologies that will help telecoms move forward with AI and use intelligence to drive the business.  Microsoft delivers this through a single platform that brings AI, unified data, trust, and governance together to enable telecoms with connected, actionable insights to accelerate innovation and growth.

Building the sovereign, AI-ready edge for telecom

For telecoms, thriving in the era of agentic intelligence begins with a resilient foundation. Today, we’re advancing Microsoft Sovereign Cloud with fully disconnected operations, extending cloud capabilities and AI-ready infrastructure deeper into operator networks than ever before. As demand accelerates for low-latency services, real-time processing, and stronger assurances around data sovereignty and regulatory compliance, the edge has become a critical extension of telecom networks and foundational layer of modern digital infrastructure. This is especially true for regulated industries and mission-critical scenarios where operational resilience and control over data are paramount.

To support these confidential environments, Azure Local offers full stack capabilities that support customers across connected, intermittently connected, and fully disconnected modes. This is essential for sovereign environments where uninterrupted access to operational, network, or customer-facing systems is non-negotiable. Azure Local disconnected operations keeps critical services running securely without connectivity to the cloud. At the same time, Foundry Local will be able to offer modern infrastructure and support for large AI models. Using the latest graphics processing unit (GPU) infrastructure from partners like NVIDIA means customers with sovereign needs will now be able to run models locally on their own hardware, inside strict sovereign boundaries enabling powerful, local AI inferencing in fully disconnected environments.

Customers can deploy and govern workloads inside their own datacenters, using familiar Microsoft Azure experiences and consistent policies, without depending on continuous connection to public cloud services.

AT&T uses Azure to support its cloud and edge strategy, enabling consistent operations across a distributed network footprint. By applying Azure’s management and governance capabilities across environments, AT&T can bring compute and data processing closer to where services are delivered while maintaining strong security and operational oversight.

“As we expand our network edge capabilities, Azure plays a key role in helping us apply cloud-native principles across our distributed infrastructure. The scalability and flexibility of Azure’s adaptive cloud approach allow us to deploy services closer to our customers, maintaining control while providing the reliability and performance they expect from AT&T. This long-standing partnership enables us to innovate and deliver next-generation experiences at the edge.”

—Sherry McCaughan, Vice President, Mobility Core and Services

Azure’s cloud-native management capabilities and global platform enable organizations like AT&T to modernize and scale edge environments, supporting next-generation services while maintaining consistent governance, security, and operational control. Native management capabilities and a global platform enable organizations like AT&T to modernize and scale edge environments, supporting next generation services while maintaining consistent governance, security, and operational control. 

We’re also investing in multi-rack deployment capabilities for Azure Local, extending scale points to support large-scale infrastructure for the most demanding, mission-critical workloads. Customers will be able to expand from single-node and cluster deployments to multi-rack environments designed for high availability, fault isolation, and operational simplicity at scale. Multi-rack deployment on Azure Local is currently in preview and will be available in the coming months.

Microsoft is collaborating with telecom operators to deliver sovereign cloud platforms and managed services that combine hyperscale innovation with local control, enabling enterprises to meet data residency, regulatory, and security requirements while accelerating trusted digital and AI transformation.

Agentic customer experiences that drive growth

With this foundation in place, telecoms can move beyond isolated use cases to scale intelligence across experiences and growth models. The same agentic capabilities that transform customer engagement also unlock new ways to monetize services, reduce cost to serve, and create differentiated value.

Today, telecom customer journeys are fragmented. Customers often switch channels to complete tasks, driving abandonment and cost. AI agents turn customer intent into end‑to‑end action across systems. Microsoft is now offering a telecom agentic store reference framework to replace click‑based journeys with natural‑language interaction. Coordinated AI agents handle discovery, sales, service, billing, and partner offers in the background—customers state their goal and agents deliver the outcome. The result is higher digital completion, faster resolution, and better experiences. This framework also creates a new monetization platform, enabling federated AI marketplaces with built‑in identity, billing, and sovereign deployment for trusted ecosystem commerce at scale. Telecoms are already working with Microsoft and system integrators to adopt this architecture—unifying sales and service, reducing cost‑to‑serve, and creating a scalable foundation for partner‑led innovation. 

FiberCop modernizes edge cloud and contact center

FiberCop runs Italy’s most advanced, far-reaching and pervasive digital network infrastructure. FiberCop recently announced that it has integrated Azure Local into its network, transforming the access infrastructure into an edge cloud platform capable of delivering cloud-native services, virtualized network functions, and advanced workloads while meeting sovereignty and compliance requirements. Today, FiberCop announces that it is accelerating its agentic transformation, moving to an AI‑first contact center model where autonomous AI agents, Copilot, and human expertise work together. By adopting Dynamics 365 Contact Center, FiberCop has begun modernizing customer engagement with unified data, intelligent routing, and AI‑powered self‑service and assisted service that delivers more efficient operations and better customer experiences at scale.

Introducing Ericsson Enterprise 5G Connect to reimagine customer experience

Ericsson announces ongoing collaboration with Microsoft introducing the Ericsson Enterprise 5G Connect solution—validated on Microsoft Surface 5G Copilot+ PCs and built on top of Windows 11’s Enterprise Cellular Managed Connectivity (ECMC) capabilities. This new offering enables enterprises to centrally manage secure, seamless 5G connectivity for mobile and hybrid employees, using automatic network switching and robust policy enforcement to enhance productivity and security. IT teams gain scalable management and control, while end users benefit from uninterrupted, AI-powered experiences across private and public 5G networks. The solution is currently being piloted by Ericsson and is in private preview. To learn more, visit our Windows IT Pro blog.

Intelligent business operations, built for telecom

Delivering connected customer experiences depends on what happens behind the scenes. Telecom operations require trusted, governed access to network and customer data. That’s why operators are moving from legacy data warehouses to a modern lakehouse that unifies business and network data.

Microsoft Fabric provides a single, policy‑governed data foundation for real‑time, operational, and analytical data to speed AI insights at scale. Building on this foundation, today we’re announcing Azure Databricks Lakebase will be available in March 2026, giving telecom operators a managed PostgreSQL environment with next generation separation of storage and compute for transactional data, providing instant availability, instant clones, and scale-to-zero. This brings online transaction processing (OLTP) capabilities to the Databricks Data Intelligence Platform on Azure designed for developer performance with low total cost of ownership (TCO), eliminating the traditional gap between operational systems and the lakehouse.

Partners are building on this data foundation as well. For example, Nokia integrates its data suite with Fabric to securely unify network telemetry and reduce AI use case development time by up to 80%.

MTN transforms fraud prevention with AI

In today’s rapidly evolving digital landscape, identity theft and first-party fraud are escalating at alarming rates, posing significant risks to individuals and businesses across South Africa. MTN has made a bold move to transform its fraud management approach by harnessing advanced Microsoft technologies. Shifting from traditional, reactive methods to a proactive, AI-powered ecosystem, MTN is not only protecting its customers and strengthening revenue defenses but also reinforcing national digital resilience and contributing to a safer, more secure digital economy for all.

Amdocs powers intelligent business operations

Amdocs is making several announcements with Microsoft that deepen integration to deliver next-generation solutions. The first is AI-powered application modernization through the Amdocs Agentic Services platform, embedding Microsoft AI solutions such as Azure OpenAI and Microsoft Foundry into end-to-end modernization and migration to Azure. Second, Amdocs Cognitive Core platform built on amAIz, offering prebuilt agent libraries, cross-domain insights, and telecom-specific AI that integrates with any business or operating system stack and runs securely on Azure. Colt Technology is working with Amdocs and Microsoft to streamline operations and accelerate service delivery with real-time insight.

To learn more about transforming the OSS/BSS with agentic AI, read this blog.

Power autonomous networks with built-in trust and control

As intelligence is embedded across data and operations, the next frontier is the network itself. Agent-driven operations enables networks to move from reactive management to autonomous executions that respond faster, reduce risk, and improve resilience at scale.

To help operators move from pilots to production at scale, Microsoft is evolving its network operations agent (NOA) reference architecture—a proven framework shaped by real world deployments, industry collaboration, and learnings from Microsoft’s NetAI program.

NOA is built for today’s telecom realities: exploding event volumes, rising complexity, and persistent skills gaps. The latest evolution deepens integration with Microsoft AI and collaboration platforms, strengthens alignment with open standards, and delivers a modular, production-ready path to autonomy—without compromising telco-grade safety, governance, or human oversight. Operators engage AI directly through Microsoft 365 Copilot and Microsoft Teams, while Microsoft Foundry and the Microsoft Agent Framework provide a governed, observable runtime for multi-agent orchestration at scale. Expanded support for TM Forum Open APIs helps ensure interoperability across existing business and operations support systems, making NOA an open, secure foundation for autonomous networks. Read more about NOA.

Leading operators such as Far EasTone Telecom and Vodafone are already applying this blueprint to modernize network operations, reduce human error, accelerate recovery times, and enable engineers to focus on higher value work.

Far EasTone Telecom (FET) is turning agentic AI into real operations impact 

FET exemplifies how leading operators are turning this architecture into real operational impact. FET is using the NOA framework to redefine cloud native network operations by embedding agentic AI across its NOC and change management workflows. Today, nearly 60% of its NOC operations are AI-assisted, with about 10,500 operational tasks executed per month, including incident summaries, automated ticket closure, network checks, and proactive voice notifications. AI agents now handle largescale alarm correlation and root cause analysis in seconds, supporting nearly 7,000 monthly operational queries with an average response time of 16 seconds, and enabling most maintenance actions to complete within one minute. This shift has significantly reduced human error, accelerated recovery times, and allowed engineers to focus on higher value work.

Vodafone’s journey toward intelligent network operations

Vodafone is working with Microsoft to apply this proven AI‑powered blueprint for autonomous network operations across transport infrastructure and field‑force management. The collaboration combines Vodafone’s deep network expertise with Microsoft Foundry and the NOA framework to modernize how large‑scale telecom networks are operated.

This blueprint is built on Microsoft’s own experience running autonomous agents across its global Azure transport network, where AI continuously monitors performance, identifies root causes, and autonomously manages more than 65% of fiber‑break field dispatches—improving time to repair by up to 25% and accelerating root‑cause analysis by 80%. By applying these proven capabilities to Vodafone’s transport network, the two companies are accelerating the shift toward intelligent, automated transport network operations across the telecom industry.

“By working with Microsoft, we’re combining deep network expertise with proven AI‑powered operations to create something greater than either could achieve alone. Together, we’re building intelligent, automated transport network operations that empower our teams and deliver faster, more resilient connectivity networks for our customers.”

—Alberto Ripepi, Chief Network Officer, Vodafone

Other operators, including AT&T, T-Mobile, Telefónica, and MEO, are adopting Microsoft Foundry as a blueprint for scaling agentic AI across complex, multi-vendor networks. 

Today, Kenmei announces it is collaborating with Microsoft to help operators accelerate their path toward autonomous networks by combining Kenmei’s telecom intelligence offer with Azure and Microsoft Fabric to enable scalable analytics and agentic AI–powered operations. Already in use at leading operators like Telefónica and Etisalat (e&), this collaboration brings proven deployments into a broader cloud and AI ecosystem designed to reduce manual effort, speed decision‑making, and unlock new levels of network automation.

Microsoft achieves global milestone to extend internet access with Starlink

As telecoms scale intelligence across networks, operations, and experiences, connectivity remains the starting point. Because AI only delivers impact where access exists, expanding internet access is foundational to an intelligent and inclusive telecom future.

Today, 2.2 billion people around the world remain unconnected.¹ To help overcome this barrier, Microsoft pledged to bring access to 250 million people by 2025. We are pleased to share that we’ve expanded internet access to 299 million people through the power of technology and partnerships in communities around the globe. But we know there is more work to do to support unconnected communities and enable global participation in the AI economy.

In support of this on-going effort, we are unveiling a new collaboration with Starlink designed to bring Microsoft’s experience with governments, local operators, and community partners together. With more than 9,000 satellites in low-Earth orbit, Starlink will extend digital infrastructure to rural, agricultural, and hard-to-reach communities. You can read more about how we met this milestone and are continuing to extend AI-enabled connectivity aligned with community needs.

Join us at MWC 2026 to learn more

Frontier telecoms are already proving what’s possible when AI, data, trust, and governance come together on a single platform to power faster operations, autonomous networks, intent-driven engagement, and real return on intelligence.

Join Microsoft At MWC 2026 to see how operators and partners are moving from AI promise to production through real deployments, live demos, and customer stories.

¹Facts and Figures 2025, ITU.

The post Microsoft accelerates telecom return on intelligence with a unified, trusted AI platform appeared first on The Microsoft Cloud Blog.

Manufacturing’s moment: Why AI, why now?

Today, AI isn’t just a buzzword or a distant promise. It’s a practical lever for manufacturers to unlock new value, drive efficiency, and build resilience for the future.

At Microsoft Ignite 2025, our team explored how industrial AI is reshaping the economics of manufacturing. Drawing from real-world customer stories and the latest research, we’ll unpack where the ROI is real, what’s driving it, and how you can take the next step on your own AI journey.

Drive measurable outcomes with AI

Return on Intelligence: Scaling Business Value with Industrial AI

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From siloed data to intelligence on tap

Every manufacturer knows the pain points: unplanned downtime, inefficiencies that eat into margins, and supply chain blind spots that disrupt delivery. Too often, these issues are compounded by fragmented systems and a lack of real-time data visibility. The result? Slow decision-making and missed opportunities.

But the landscape is changing. According to a 2025 commissioned  Forrester Consulting Total Economic Impact™ study on the economic impact of industrial transformation with Microsoft AI, manufacturers that invest in unified data platform and bring together data across IT and Operations Technology (OT) systems could see the following benefits¹:

• Up to 50% reduction in defects
• Up to 50% fewer inventory shortages
• Up to 40% decrease in frequency of equipment failures
• Up to 457% projected ROI over three years

Take KUKA, a global automation leader. Facing fragmented systems and a growing robotics skills gap, KUKA turned to Microsoft Azure AI and Microsoft Foundry Models. The result? Programming time cut by up to 80%, democratizing robotics and accelerating workflow deployment. With predictive insights and real-time analytics, KUKA broke down data silos and empowered teams to innovate faster.

Sustainability: A greener, more profitable path

Manufacturers today are under intensifying pressure from regulators, customers, and their own boards to reduce emissions, increase energy efficiency, and eliminate waste. Yet many sustainability challenges stem from the same root problem: disconnected systems that make it difficult to measure, optimize, and scale improvements across facilities.

But the momentum is shifting. According to the Forrester study on the economic impact of Microsoft’s industrial AI capabilities, manufacturers see AI as a critical lever to drive measurable environmental and financial gains by optimizing energy usage, refining processes, and reducing carbon emissions. With Microsoft AI solutions, surveyed manufacturers who are Microsoft Azure customers expect to achieve:

• 78% expect to reduce energy consumption
• 88% expect to improve energy efficiency
• 53% expect to reduce CO₂ emissions

Take Schneider Electric, a global leader in energy management with ambitious sustainability goals to reduce environmental impact and improve efficiency across its operations. By integrating Azure OpenAI and Azure Machine Learning into its EcoStruxure platform, Schneider gained real‑time insight into energy usage, carbon‑related performance, and optimization opportunities. The impact? AI‑powered models that surface efficiency recommendations, accelerate sustainability decision‑making, and help facilities cut waste at scale. And because EcoStruxure underpins thousands of customer deployments, these AI‑powered insights also lets its customers pursue their own sustainability goals with greater speed, accuracy, and measurable operational improvements.

Empowering people: AI as a workforce multiplier

Labor shortages, rising workload complexity, and persistent training bottlenecks continue to stretch manufacturing teams thin. Many frontline and knowledge workers spend too much time searching for information, navigating outdated systems, or performing repetitive tasks that slow productivity and sap morale.

But AI is shifting this dynamic. Manufacturers are adopting intelligent assistants, predictive tools, and automated workflows that free employees to focus on higher‑value work. According to recent industry data, organizations are already seeing material gains:

• 66% of repetitive tasks automated
• 70% of organizations report productivity gains
• 75% reduction in onboarding time

Take Audi AG, a global automotive leader navigating rising internal demand for support and process guidance. To alleviate mounting human resources and IT strain, Audi launched its first AI-powered self-service assistant using Foundry that was deployed in just two weeks. The impact? Faster access to information, fewer routine queries, and more time for teams to focus on meaningful, high-value work. Audi’s example shows how AI doesn’t replace people but amplifies them.

The agentic era: What’s next?

Manufacturers are moving beyond task‑level automation toward a new operating model where AI works alongside teams to coordinate decisions, optimize workflows, and adapt to changing conditions in real time. This next era isn’t about experimenting on the margins, but about treating AI as a core capability that strengthens every part of the enterprise.

Platforms like Azure OpenAI, Microsoft Fabric, Foundry Models, and Microsoft 365 Copilot are already helping organizations make that shift. And the economic signal is strong. Forrester’s Total Economic Impact study attributes the financial upside of the broader Industrial AI value stack to improvements across operations, productivity, and supply chain performance:

• Up to 457% projected ROI over three years

These gains compound as AI becomes embedded across the business, accelerating impact as intelligent systems take on more routine work, surface insights faster, and support teams in making better decisions at every stage of production. Manufacturers who fail to operationalize AI risk falling behind peers who are building intelligence directly into their processes, products, and customer experiences.

A practical path forward: How to get started

To fully realize this next chapter, manufacturers need a clear, actionable roadmap grounded in governed data, scalable AI systems, and measurable business outcomes.

Here’s a practical roadmap from aspiration to action:

• Identify high-impact use cases: Focus on areas like predictive maintenance, supply chain optimization, and quality control where AI can deliver quick, measurable wins.
• Define success metrics: Set clear key performance indicators (KPIs) to track ROI and impact across teams and facilities. What gets measured gets managed.
• Leverage proven platforms and partners: Don’t reinvent the wheel. Use established AI platforms like Azure and work with partners who understand both technology and manufacturing.
• Start small, scale fast: Begin with urgent, actionable business challenges. Build on proven frameworks and architect for scale. As Audi AG showed, operational AI can be deployed at enterprise scale in weeks, not years.
• Invest in data foundations: Migrating legacy systems to the cloud and breaking down data silos are essential. Unified, AI-ready data is the backbone of successful industrial AI initiatives.

Learn how industrial AI can transform your business

Industrial AI is no longer a vision for the future, but a proven source of measurable value today. The manufacturers pulling ahead are the ones building AI into how they operate, scale, and compete. Whether you’re laying the groundwork or accelerating existing initiatives, now is the moment to turn momentum into impact.

Return on Intelligence: Scaling Business Value with Industrial AI

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¹ New Tech: The Projected Total Economic Impact™ Of Microsoft Artificial Intelligence Solutions For Industrial Transformation. Results are over three years for a composite organization based on interviewed and surveyed customers.

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