While adoption of AI technology is now widespread, impact is not. Many organizations are experimenting and running pilot programs, but far fewer have the operating discipline to become what we call Frontier Firms—companies that scale AI in ways that meaningfully reshape work, decisions, and value creation. According to IDC’s Business Opportunity of AI Survey (August 2025), 68% of all respondents use GenAI and only 22% of organizations worldwide are Frontier Firms.¹ These companies are seeing a return on investment in the technology that is several times greater than companies that are slow to adopt.

This gap is why Microsoft developed a newly revised 2026 edition of the AI Decision Brief, a handbook designed to help leaders and business decision-makers embrace the opportunities of Frontier Transformation. It addresses how AI can become a durable source of advantage: where to focus, how to measure value, how agents change workflows, and how trust, governance, and responsibility enable scale. “This is not simply the next stage of technology adoption,” writes Brad Smith, Microsoft Vice Chair and President. “Frontier Transformation is a leadership moment that asks organizations to fundamentally rethink how people, processes, and decisions work together.

We believe that this brief answers the questions many executives are asking about how to stay ahead of the curve. The questions below surface what we’re hearing from business leaders across industries as they plan investments, assess readiness, and look ahead. Each reflects a theme explored in depth in the AI Decision Brief and points to how organizations can begin turning AI execution into lasting impact. 

1. How can my company get the biggest impact from AI? 

The biggest impact comes when AI changes how the business operates—not just how fast someone answers an email. “Frontier Transformation is a holistic reimagining of business, aligning AI with human ambition to achieve an organization’s highest aspirations and growth potential,” writes Judson Althoff, CEO of Microsoft commercial business.

What does this mean in practice? Frontier Firms are leveraging AI to transform customer engagement, core processes, decision-making, and innovation. For them, AI isn’t confined to one team or one tool. Instead, it’s embedded across the enterprise in an average of seven business functions. That’s when the outcomes compound. These organizations are monetizing AI and outperforming slow adopters with roughly 3x higher returns.¹ Agents are accelerating that shift because they don’t just make recommendations; they can take action and complete tasks.

2. How do you graduate beyond early wins with AI adoption?

While AI can boost individual productivity—drafting documents, summarizing meetings, and automating the more tedious aspects of jobs—it can do so much more, according to Jaime Teevan, Chief Scientist and Technical Fellow at Microsoft. “The real opportunity is bigger: not just helping individuals work faster, but enabling teams and organizations to work better, together,” she writes. 

Most AI initiatives stall for the same reason most transformations stall: teams prove their value in specific use cases, but leaders don’t change the system around them. The model isn’t the bottleneck—processes, decision rights, and trust are. Frontier leaders, on the other hand, pick a small number of priority workflows and redesign them end to end. That’s how you move from “we got a nice pilot result” to “AI is embedded in how we run the business.”

3. How do I identify the priority workflows where AI can meaningfully change outcomes? 

“AI integration is often framed as a technical problem: which models to use, how to connect systems, how to mitigate risk,” writes Jared Spataro, Microsoft CMO of AI at Work. “But for most organizations, the real constraint on value is not technology, it’s how work is organized and governed. The bigger challenge is centered on management.”

Frontier organizations don’t ask, “Where can we plug in AI to automate a task?” They ask, “Which workflows most directly affect revenue, cost, risk, customer experience, or speed of decision-making?” Frontier leaders focus on embedding AI, agents, and data directly into those areas of high impact. 

4. As AI agents take more action on behalf of employees and teams, how does my role as a leader need to change?

Leadership has become even more important in the agentic era. “When AI systems can plan and execute over many steps, leadership and engineering rigor become the real bottlenecks,” writes Kevin Scott, CTO of Microsoft. “You need teams that are explicit about goals, careful about feedback and evaluation, and thoughtful about where autonomy is earned versus constrained.” 

The greatest risks are unclear intent, ownership, and accountability. Frontier leaders get ahead of this by redefining roles and decision rights early. Humans set outcomes, constraints, and success measures, while agents operate within clearly governed boundaries. That means treating agents like new employees or privileged service accounts—with named owners, least-privilege access, continuous monitoring, and regular review. 

5. How do you measure the success of AI when it’s embedded across workflows, decisions, and teams—not just individual tasks?

“Early productivity gains from AI are now expected,” writes Alysa Taylor, Microsoft CMO of Commercial Cloud and AI. “But Frontier leaders see beyond those short-term efficiency wins. They understand how AI can also help grow revenue, increase customer acquisitions, reshape processes, and improve operational efficiency.” 

Frontier leaders measure ROI the way they run the business: at the workflow and outcome level, not by counting isolated tasks. Yes, they track early productivity signals, but they don’t stop there—they tie AI to business metrics like faster cycle times, higher quality and consistency, better customer experience, lower risk, and faster decision-making.  

6. We’re under pressure to move fast with AI. Can we tackle security later on?

Great question! The answer is simple: absolutely not. “The AI opportunity is incredible, but speed without security, observability and governance opens the door to significant risk. By embedding these elements from the start, organizations can innovate rapidly while building and fostering trust,” writes Vasu Jakkal, CVP of Microsoft Security Business. 

The moment AI moves beyond pilots and starts touching real data, customers, and decisions, issues with security and accountability can offset gains in efficiency. According to Microsoft’s 2026 Data Security Index, less than half (47%) of companies have fully implemented data security controls for AI. Frontier leaders build observability, Zero Trust security, and clear ownership from day one, so teams can move faster with confidence instead of stopping to clean things up later.  

7. How do you scale AI across an organization without losing control or trust?

“Scaling AI is less about deploying tools and more about preparing people,” writes Nathalie D’Hers, Microsoft CVP of Employee Experience. “A workplace culture grounded in a growth mindset is more important than ever.” Frontier Firms embrace continuous learning and agility. This helps teams fundamentally reimagine processes and think bigger.  

Crucially, Frontier organizations also pair empowerment with guardrails. They give employees access to AI where work actually happens—through copilots, low-code tools, and approved platforms—so innovation isn’t bottlenecked by a small group of specialists. At the same time, they’re very clear about boundaries. That includes shared governance frameworks, approved data sources, identity and access controls, and observability at every layer. That’s what allows creation to scale safely.  

8. How do I balance Frontier Transformation with sustainability? 

“AI and sustainability are often treated as separate agenda items, but they are fundamentally connected,” writes Melanie Nakagawa, Chief Sustainability Officer at Microsoft. “Leaders should understand both sides of that equation: the resource footprint of AI as well as the opportunity it brings to help them operate more efficiently, build smarter, more resilient systems, and lower carbon emissions.”  

As AI grows, it brings real resource and trust questions about environmental impact, supply chains, community impact, and whether the benefits of AI are broadly shared. The Frontier view is that designing for efficiency, responsibility, and equitable diffusion isn’t a nice-to-have; it’s how you unlock durable growth while avoiding backlash, constraints, and extra work later.

At Microsoft, we’re building out AI infrastructure with sustainability in mind while also using AI as a force multiplier for climate progress by optimizing systems, accelerating materials discovery, and improving resource efficiency.     

Next steps to lead in the era of Frontier Transformation

Read the full AI Decision Brief to understand what it takes to lead in the era of Frontier Transformation. The insights, leadership advice, and practical tips found within our brief will help prepare your company to properly utilize and scale a powerful AI strategy. Once you have that knowledge base, you’ll need a trusted, reliable set of AI tools to execute that strategy. 

Explore Microsoft AI tools and solutions for your Frontier Transformation. 

¹ IDC InfoBrief: sponsored by Microsoft, What Every Company Can Learn From Frontier Firms Leading the AI Revolution, IDC # US53838325, November 2025 

The post AI Decision Brief: How leaders can drive Frontier Transformation appeared first on The Microsoft Cloud Blog.

With the help of Microsoft partner SP Peru, María Almenara took the first step towards its digital transformation process. The bakery migrated to Azure, Microsoft’s cloud, leaving acquisition costs or digital infrastructure maintenance behind. “Thanks to the database, we can analyze customer buying frequency and average purchase amounts, optimizing our processes and reducing pressure on the shop and the manager. These steps directly affect the customer experience,” states Carlos Armando de la Flor, the bakery’s General Manager.

Integrating cloud functionality

When María Almenara decided to become a data-driven business, one goal was to reach a 90% fill rate. This indicator shows the ability to serve customers without running out of stock. Today, the bakery has reached a 99% fill rate, assuring an optimal experience for its customers.

Based on the work done with SP Peru, a system was also created with Azure Machine Learning. Its integration with the Enterprise Resource Planning System (ERP) and the development of a specific mathematical technique allows for daily and weekly predictions. This is how the bakery obtained sales estimates for each store and product, allowing for planning and adjustments to cover demand for each of the 8 locations, as well as the ability to ship precise orders.

Furthermore, with a goal of complete business transparency and real-time decision making, the bakery used different Human Resources survey systems like SAP, among others. With the help of Microsoft’s Power BI, management created a control panel to view 18 indicators in 3 areas: finances, expenses and budgets; human resources; and customer satisfaction.

The mathematical technique used for these predictions undoubtedly played an important role in this process. This technique was later replicated and tested by the Massachusetts Institute of Technology, where local partner SP’s technique performed better than that of the team from the prestigious academic institution.

Serving the person, not just the consumer

Thanks to integrating these changes and its technological foresight, the bakery was able to weather a year as challenging as 2020—and managed to reach a milestone for the industry. This also reflects a change in María Almenara’s ethos, which is made of three fundamental pillars: a) a scalable culture and business model with the single goal of making hearts happy; b) data as an essential asset for leading in the digital economy and c) focus on the person, that is, on partners and customers.

With each step of the digital transformation process, María Almenara realized that its partners had to grow with the company. This is reflected in its turnover rate, which is less than 1%. The industry’s turnover rate is usually 25%. Without a doubt, incorporating technology has created business growth and satisfaction for its 223 partners.

Carlos Armando de la Flor concludes: “Here at María Almenara, we see technology as a helpful tool, not just something to solve things. Thanks to the omnichannel retailing platform our business uses, we’ve been able to establish a way to work that allows pregnant women or women with young kids to serve customers from home, prioritizing their health and comfort, and reducing turnover rates.”

COMPANY INFORMATION

• Customer: María Almenara
• Partner: SP Peru
• Products and Services: Microsoft Azure
• Industry: Other
• Organization Size: Medium (50 – 999 employees)
• Country: Peru
• To contact this Partner, click here
• Click here to learn more about this company
• Tags: Customer Stories, María Almenara, Microsoft Azure, Perú

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Over the past several years, we have seen customer concerns evolve materially. Early conversations focused primarily on privacy and lawful data handling. Today, those concerns have expanded. Leaders are now asking how they maintain operational continuity during disruption, how they adopt AI responsibly without losing control, and how they protect national, organizational, and customer interests in an increasingly volatile global environment.

These questions are not abstract. They surface in boardrooms, procurement decisions, architecture reviews, and crisis simulations. They reflect a broader shift in how trust is evaluated in digital systems. Today in Brussels we brought together attendees from around the world—policy makers, IT leaders, and enterprises—to approach these questions from the multiplicity of perspectives to move the conversation from headlines to action.

From privacy to resilience and beyond

Privacy remains foundational. But it is no longer the sole lens through which sovereignty is assessed.

Customers are increasingly concerned about business continuity in the face of cyber incidents, geopolitical tension, supply chain disruption, and network instability. They want to understand how critical workloads operate if connectivity is constrained, if dependencies fail, or if policy conditions change with little warning.

At the same time, innovation pressures have intensified. AI is becoming central to public service delivery, national competitiveness, and economic growth. Organizations cannot afford to pause progress while sovereignty questions are debated in isolation. They need approaches that allow them to move forward responsibly, balancing opportunity with control.

What we hear consistently is this: sovereignty concerns will continue to evolve. Any approach that treats them as static is already behind.

For four decades, Microsoft has operated under some of the world’s most demanding data protection, competition, and digital governance frameworks. Working closely with European institutions, regulators, and customers has shaped how we think about sovereignty—not as a regional exception, but as a discipline that must function at scale, under scrutiny, and over time. That experience matters because many of the sovereignty questions now emerging globally were first tested in Europe, long before they became mainstream elsewhere.

A consultative approach to risk management

This is why we believe digital sovereignty must be approached as consultative risk management, not a checkbox or a predefined deployment model.

Every organization faces a unique mix of regulatory obligations, cyber risk, operational exposure, and innovation goals. Even within a single institution, sovereignty requirements differ by workload. Some demand strict isolation and local control. Others require global scale, advanced security capabilities, and rapid innovation.

Our role is to help customers navigate these tradeoffs deliberately. That means working with them to assess risk, align architecture to policy realities, and design environments that reflect both today’s constraints and tomorrow’s unknowns.

This work sits at the intersection of cybersecurity, compliance, resilience, and frontier transformation. It requires ongoing engagement, transparency, and the willingness to adapt as conditions change.

Digital sovereignty posture in practice

A digital sovereignty posture that is flexible recognizes that no single approach can address every requirement. Instead, it focuses on giving organizations options, visibility, and control across a continuum of environments.

Customers operating in public cloud environments expect clear data residency options, strong encryption and access controls, and visible operational discipline. Just as important, they look for transparency into how cloud systems are governed and how exceptional situations are managed, particularly as regulatory scrutiny increases.

Those expectations do not disappear when workloads move closer to the edge. In fact, they intensify. For workloads that require greater isolation, local processing, or operation in constrained environments, hybrid and disconnected solutions become essential. In February, Microsoft announced the expansion of disconnected operations, enabling customers to run critical workloads in air-gapped environments while retaining consistent governance and operational control. This capability extends cloud-based practices into disconnected settings, supporting operational continuity without abandoning security and innovation. 

That commitment shows up in concrete safeguards that customers can independently evaluate and apply. The EU Data Boundary is one example, supporting data storage and processing within the EU and European Free Trade Association (EFTA) regions for cloud services, alongside longstanding investments in encryption, access controls, auditability, and operational transparency. These measures provide practical mechanisms for aligning cloud operations with regulatory and risk requirements, rather than relying on abstract assurances. 

At the same time, we are expanding options across hybrid and private cloud environments to support continuity, resilience, and local control where required. These investments reflect a simple reality: customer needs are not converging toward one model. They are diversifying.

Underpinning all of this are Microsoft’s digital commitments, which frame how we approach privacy, security, transparency, and responsible AI. These commitments are not marketing statements. They guide how systems are built, operated, and governed, and they provide a foundation for long-term accountability.

Practical guidance for leaders navigating sovereignty

As digital sovereignty becomes embedded in policy and procurement decisions, leaders benefit from a practical lens. Based on what we hear from customers and stakeholders, there are a few consistent themes shaping successful approaches:

• Sovereignty requirements will continue to expand beyond privacy to include continuity, resilience, and AI governance.
• Risk management is now inseparable from digital transformation strategy.
• Flexibility and optionality matter more than rigid architectures.
• Transparency and accountability are as important as technical capability.
• Sovereignty posture must consider protections against cyberthreats.

Addressing these realities requires partners who understand the full scope of the challenge and are willing to engage over the long term. It requires platforms and collaboration designed with sovereignty in mind from the start.

So what does this mean for you?

Digital sovereignty is not a destination. It is an ongoing discipline shaped by changing technology, regulation, and global conditions.

At Microsoft, we approach this work with humility and responsibility. We recognize that customer concerns will continue to evolve, and that our own platforms and practices must evolve with them. We remain committed to expanding our sovereign cloud continuum, strengthening our cloud capabilities, and delivering solutions that balance innovation with control.

Most importantly, we remain focused on delivery. Because in moments of uncertainty, what matters most is not what technology promises, but what it allows organizations to do with confidence.

Where does digital sovereignty go from here?

The future of digital sovereignty will be defined by implementation, not rhetoric. Success will depend on collaboration between governments, industry, and civil society, as well as a shared commitment to transparency and continuous improvement.

As we look ahead, our focus remains on helping organizations turn sovereignty principles into durable, scalable outcomes. That means continuing to invest in capabilities that support trust, engaging constructively with policymakers, and listening closely to the evolving needs of our customers.

Digital trust is built over time, through consistent action and openness, and that trust is one of the most important foundations we can help create.

The post Navigating digital sovereignty at the frontier of transformation appeared first on The Microsoft Cloud Blog.

At Microsoft, we see this shift clearly in our conversations with customers globally. Leaders are moving quickly to scale AI, while remaining accountable for sustainability commitments to customers, investors, regulators, and employees. Too often, these goals are positioned as tradeoffs. In practice, they are reinforcing. When AI transformation is approached with intent and discipline, it can drive stronger business performance while advancing sustainability outcomes.

That belief is the foundation of our new Strategic Guide: Aligning AI Transformation with Sustainability Goals.

Why AI transformation and sustainability belong together

The most meaningful impact from AI comes not from isolated pilots, but from transformation—when intelligence is embedded across strategy, operating model, and culture. That’s the premise of Microsoft’s Frontier transformation AI vision, where organizations are enriching employee experiences, reinventing customer engagement, reengineering core business processes, and bending the curve on innovation.

What’s often overlooked is that these same shifts deliver sustainability gains. More efficient processes require less energy and fewer resources, better data reduces waste and overproduction, and modern cloud and AI architectures—when designed intentionally—can shrink digital footprints while increasing speed and resilience.

Five practices for sustainable AI transformation

Our new Strategic Guide: Aligning AI Transformation with Sustainability Goals makes this connection explicit and practical, offering five essential practices leaders can apply today to turn AI ambition into measurable business and sustainability outcomes.

1. Adopt a modern cloud strategy.
   Moving workloads to efficient, hyperscale cloud environments is often the single biggest step organizations can take to reduce energy use while improving performance. Modern cloud platforms enable organizations to scale AI intelligently—optimizing compute, storage, and cooling in ways that are difficult to achieve on‑premises.
2. Assess your cloud provider’s sustainability and trust goals.
   An organization’s environmental footprint increasingly extends beyond its own walls. Transparency, renewable energy commitments, and responsible datacenter operations matter because your partners’ practices become part of your sustainability equation.
3. Manage data responsibly for efficient and accurate AI.
   Efficient data pipelines, strong governance, and thoughtful lifecycle management do more than reduce risk. They also reduce unnecessary compute and storage, helping AI systems become more accurate, scalable, and sustainable.
4. Optimize cloud workloads.
   As AI moves from pilots to production, sustainability outcomes increasingly depend on how workloads are designed and run in the cloud. Right‑sizing compute, reducing idle resources, and streamlining data movement lowers energy use while improving performance and cost control.
5. Fit the model to the mission.
   With efficient cloud foundations in place, leaders can focus on selecting the right AI models for the right jobs. Aligning model choice with business objectives, performance requirements, and sustainability goals enables organizations to scale AI responsibly—maximizing impact without unnecessary complexity or resource use.

Together, these practices help leaders move beyond aspiration to execution—delivering what the guide describes as a dual return: stronger business performance alongside reduced environmental impact.

What the research shows

AI can deliver better results—faster and more sustainably

In a simple experiment highlighted in the Strategic Guide: Aligning AI Transformation with Sustainability Goals, Microsoft set out to understand how efficiently AI could perform a common knowledge work task.

Five professionals were asked to summarize a 3,000-word technical report into 200 words. Completing the task took a median of 41 minutes and consumed an estimated 13.7 watthours of laptop energy.

Using a single prompt, Microsoft Copilot completed the same task in under a minute—using just 0.29 watthours of datacenter energy. That’s roughly 55 times faster and 47 times more energy efficient. Independent reviewers also rated the AI-generated summary higher for clarity, accuracy, completeness, and overall quality.

The takeaway is clear: when AI is applied thoughtfully, it can reduce time, energy consumption, and friction—while delivering stronger outcomes.

What this looks like in practice

Across industries, organizations are already demonstrating how AI transformation and sustainability reinforce one another.

ABB, a global leader in electrification and automation, is using AI to help energy and asset intensive industries operate more efficiently while meeting increasingly ambitious sustainability goals. The Genix Industrial AI Platform helps ABB customers deliver from 25% efficiency gains in data centers to 18% energy savings in cement production.

In the construction sector, Giatec is tackling one of the world’s most carbon intensive materials: concrete. Built on Microsoft Azure, Azure IoT Hub, and Azure OpenAI in Foundry Models, Giatec’s intelligent platform optimizes mix designs, reduced 2.5 million tons of carbon emissions, and increased profit margins for concrete producers by up to 100%.

Space Intelligence uses AI to turn vast amounts of satellite data into trusted, actionable insights for global climate and conservation efforts. The company moved to Microsoft Foundry and the Planetary Computer ecosystem to reduce the time required to map the world’s forests by 75%, completing coverage of more than 50 countries in just one year, something that would’ve taken six years—delaying the ability to drive and verify real world climate impact.

Becoming a Frontier organization—responsibly

These examples point to a broader trend: the organizations leading in AI are also redefining what responsible innovation looks like. Frontier organizations don’t treat sustainability as a separate initiative or reporting exercise. They design it into their transformation from the start.

Solving systemic challenges like climate change requires collaboration—across value chains, ecosystems, and sectors. It also requires leaders who are willing to ask better questions about how technology is deployed, measured, and governed.

This perspective is demonstrated by Microsoft’s recent announcement on community-first AI infrastructure. As we scale AI, we have a responsibility to consider not only what these systems can do, but how and where they are built. That means investing in infrastructure that supports local communities, prioritizes renewable energy, manages water responsibly, and is designed with transparency and long-term partnership in mind. Building AI responsibly isn’t just about reducing risk—it’s about earning trust and ensuring that the benefits of innovation are shared broadly—from the datacenter outward.

Used thoughtfully, AI can help us make smarter decisions, operate more efficiently, and unlock entirely new ways of creating value—while staying within planetary boundaries. Used carelessly, it risks accelerating the very challenges we’re trying to solve.

That’s why clarity matters. Frameworks matter. And practical guidance matters.

What leaders can do next

If you are responsible for shaping your organization’s AI strategy, sustainability agenda, or both, I encourage you to explore the Strategic Guide: Aligning AI Transformation with Sustainability Goals. It is designed to help you cut through complexity, identify where to start, and move forward with clear actionable strategies.

At Microsoft, we’re committed to helping our customers become Frontier organizations that lead with innovation, responsibility, and impact.

The challenges we face are complex. But with the right strategy, the right technology, and a shared commitment to progress, AI can help us build a more sustainable and prosperous future—for everyone.

Strategic Guide: Aligning AI Transformation with Sustainability Goals

Read the guide

The post Beyond Davos 2026: 5 practices to align AI transformation and sustainability appeared first on The Microsoft Cloud Blog.

Across industries, organizations are racing to harness the power of AI. The potential in intelligent automation alone motivated a $252.3 billion corporate AI investment in 2024,¹ and those investments have been evolving almost as quickly as this rapidly changing technology itself.

While longer-standing AI technologies like machine learning and chatbots continue to perform well, agentic AI has moved to the front of the pack, offering the kind of autonomous decision-making that companies crave. Early wins with generative AI—drafting emails, summarizing documents, automating routine tasks—have shown what’s possible when a single intelligent agent is put to work.

Microsoft defines agentic AI as the pairing of traditional software strengths—such as workflows, state, and tool use—with the adaptive reasoning capabilities of large language models (LLMs). This allows agents to understand intent, take action, and interact with other systems dynamically, moving beyond the limits of rule-based automation.

As organizations look to scale AI across more of their operations, many are finding that a single agent can’t always manage complex, multi-step tasks. This is where multi-agentic systems become valuable. 

Multi-agentic systems use a series of agents, with a single coordinating agent, to work as a sort of AI team. The coordinating agent works to understand complex queries and delegate workflows to other agents, making multi-step, multi-system queries possible. In collaboration with people who are essential for escalation, understanding significant ambiguity, and creative thinking, multi-agentic systems are becoming integral to digital-first workforces.

Because these AI teams often operate across different tools and systems, organizations need solutions that are secure and enterprise-ready. With Microsoft technologies, agentic systems are built with the security, compliance, and reliability businesses expect. For a deeper dive on multi-agentic AI, read “Designing Multi-Agent Intelligence” on Microsoft Dev Blogs.

Today, Microsoft customers are already seeing the impact of multi-agentic AI. Here are three stories out of the Microsoft AI Co-Innovation Lab in San Francisco that show how multi-agentic AI is transforming security, science, and retail.

Three real-world examples of multi-agentic AI transformation

1. Contraforce: Turning the tide in cybersecurity

In cybersecurity, every second matters. For managed service providers (MSPs), responding to threats quickly can mean the difference between business as usual and a major incident. Contraforce, a Microsoft partner, set out to change the game with a multi-agentic security delivery platform built on Microsoft Foundry.

The multi-agentic solution automates 90% of incident investigations and response tasks, working as an always-on security operations team to analyze security data, identify suspicious activities, and autonomously managing incidents. These autonomous AI agents don’t just automate tasks—they help create a new cyber defense workforce.

The results are striking:

• Incident response times plummeted from 30 minutes to just 30 seconds.
• The cost per incident dropped from $15 to less than $1.
• MSPs can now scale their services without scaling their teams.

Contraforce’s story is a testament to how agentic AI can transform security operations from reactive to proactive, delivering speed, scale, and cost-efficiency.

3. Stemtology: Accelerating discovery in health sciences

Medical innovations can move slowly, and sometimes for good reason. But in regenerative medicine, lengthy research cycles and complex data analysis can be optimized with AI intervention.

Regenerative medicine innovator Stemtology worked with the Microsoft AI Co-Innovation Lab to accelerate biomedical discovery using a multi-agentic platform.

By combining Azure Cognitive Search, GPT-based agents, and domain-specific knowledge graphs, Stemtology’s system allows agents to:

• Parse scientific literature
• Generate therapeutic hypotheses
• Design and evaluate experiments

The impact? Research timelines have been cut by up to 50% at Stemtology. Minimum viable products are delivered in weeks instead of months. And the path from idea to patient-ready therapy is shorter than ever. This has freed up researchers to focus on highly complex evaluation and design strategies for treatments, rather than spending hours on gathering and synthesizing research.

Stemtology’s journey shows how agentic AI can support critical human discovery and bring life-saving treatments closer to reality.

3. SolidCommerce: Personalizing customer engagement at scale

For retailers, delivering personalized experiences while managing vast product catalogs and backend operations is a constant challenge. SolidCommerce specializes in providing AI solutions that address these challenges in the retail industry.

Hoping to address time-consuming support processes, inconsistent customer communications, and operational inefficiencies handling customer support, they approached the Microsoft AI Co-Innovation Lab in San Francisco to create an AI agent that could automate accurate and brand-aligned responses to meet customer needs.

Their solution brings together multiple agents for customer triage, FAQ handling, account management, product recommendations, and compliance checks. Built on Microsoft’s Agentic AI framework and integrated with Microsoft Copilot Studio and Foundry Agent Service, the system is easy to deploy and scale.

The payoff:

• Richer, multimodal customer experiences
• Scalable automation across channels
• Real-time personalization with memory and context

SolidCommerce’s story demonstrates how multi-agentic AI can turn retail complexity into seamless, intelligent engagement, ensuring customer satisfaction to keep pace with technological change.

Learn more about the agentic advantage

Microsoft customers are realizing benefits every day across industries. As we’ve seen in the customer examples above, multi-agentic AI delivers speed and scale in operations, accelerates innovation in research and development, and enables personalized engagement at scale.

Microsoft AI Co-Innovation Labs

Accelerate your AI projects with personalized help from our Microsoft Technology Experts

Learn more

Multi-agentic AI isn’t just a technical upgrade—it’s a strategic shift. And companies that harness these systems to transform legacy processes can benefit not only from automation, but from truly intelligent optimization.

Learn how other customers are transforming with AI and explore creating your own generative AI proof of concept at Microsoft AI Co-Innovation Labs.

¹ The 2025 AI Index Report, Stanford HAI.

The post Multi-agentic AI: Unlocking the next wave of business transformation appeared first on The Microsoft Cloud Blog.

“The game’s not stopping. You have 40 seconds between each play or 25 seconds out of a clock stoppage. These decisions happen quickly,” says Los Angeles Rams coach Sean McVay. 

“There are external factors that distract you from being able to make the best decisions. You look back and say, ‘What was I thinking?’ By being able to have this technology, it will help you be able to make more consistent decisions that are in alignment with what you want to do to ultimately put your players in the best places in a game that has so many moving parts.” 

Today, the NFL and Microsoft announced a multi-year strategic partnership extension to help usher in a new era of AI innovation throughout the league. Microsoft Copilot and Azure AI will help enhance the way coaches and players connect insights from the sideline to play on the field. It will also transform the workplace experience for football and business operations staff off the field.  

The NFL is one of the world’s most popular sports leagues, with 335 events each season and hundreds of millions of fans across the globe. Incorporating the new Microsoft solutions will help drive innovation and enhance the game day experience leaguewide from the sideline to team headquarters to the league office.  

“We are entering a new era of innovation at the NFL through our collaboration with Microsoft to deploy AI across key areas of the business,” says Gary Brantley, CIO of the NFL. “Enhancing the league is a responsibility we take seriously, and Microsoft has been a trusted sideline technology partner for over a decade. With Microsoft’s AI technologies, including Copilot, there are tremendous opportunities to elevate the game day experience for our clubs and deliver an even more compelling product to our fans.” 

https://youtube.com/watch?v=gIjiQVbHO2Q%3Ffeature%3Doembed%26enablejsapi%3D1%26origin%3Dhttps%253A%252F%252Fnews.microsoft.com

AI on the sideline 

From game day insights to strategic decision-making, utilizing tools like the Sideline Viewing System (SVS) powered by Copilot will enable coaches and players to access and analyze data in real-time to help make more informed decisions in a more efficient and customized way. 

For example, in what formation was the defense when it forced a turnover? An offensive unit can use the SVS and Copilot to filter game-changing moments like that to help gain some insight on why a play turned out the way it did.  

McVay has been one of the coaches at the forefront of using technology to assist with his game day preparation and in-game adjustments. The Super Bowl-winning coach of the Rams says being able to give his players the information they need in the heat of battle is key. 

“This is a space that we’ve really leaned heavily into,” McVay says. “It’s coming and it’s going to be a valuable tool. You can’t run away from it. This is an opportunity for us to say – in a league that has such small margins of victory week in and week out because of the level of competition – what are some of the ways that we can create edges or win in the margins?”  

This season, the SVS has been upgraded with 2,500-plus Surface Copilot+ PCs to equip 32 teams, roughly 1,800 players and more than 1,000 coaches and team football staff with real-time game data and insights.  

Coaches and players can access a new SVS feature built with GitHub Copilot to filter real-time key moments like penalties, fumbles and scoring plays, and collaborate between the sidelines and the coaches’ booth to analyze plays through their devices.  

While some players and position groups may be more comfortable with using sideline devices during the game, some of the hidden benefits of using AI solutions can occur during the week leading up to the contest, when players are being asked to absorb a large amount of information about themselves and their opponents.  

“If we can really be able to say that the amount of information we want to give to a player can be provided in a digestible manner in 30 minutes as opposed to an hour, well now, that’s 30 minutes he can spend maybe resting and recovering,” McVay says. “That’s something we’re always hunting up, because time is one of our most valuable resources. If we’re able to get a lot more done in less time, I think that allows us to be at our best.”  

With so many devices featuring so much critical information, functionality and security are essential. Microsoft worked closely with the NFL to ensure that the SVS works smoothly if it’s a snowy day in Green Bay or when the league goes abroad to Dublin, Ireland for the first time in September. 

Security is also paramount. The SVS system is connected to NFL-managed Windows servers that enable teams to use the devices without any concern of outside interference. 

“What does it mean to roll out technology in our environment?” says Aaron Amendolia, the NFL’s deputy chief information officer. “The elements are super important. We play in all different types of stadiums. There’re covered domes. There’s weather exposure. The device has to work in all these conditions. The battery has to be reliable. And it also has to have connectivity across all regions of the world.  

“You’ve got 2,500 devices in play here. There’s a partnership (with Microsoft) to make sure these devices have all the right patches for security, that the device itself is robust, that we’ve built security into the designs of our applications, and that the AI has governance and security and trust around it. Because this is our most sensitive data around the game.”  

Beyond the sideline 

While AI on the sidelines allows teams to make decisions with speed and confidence, there are other scenarios where technology helps teams push for an edge on the road to game day. In addition to upgrading the SVS, this year the NFL is deploying an upgraded dashboard created with Excel and paired with Microsoft 365 Copilot to assist team data analysts – one of the fastest-growing staff positions in the NFL as more teams utilize this unique role to help pull data insights to bolster game strategies. 

The new dashboard can help with formula building, data visualization and improved data types. The dashboard is found on a Surface Laptop 7 that is connected to each team’s analyst and can’t be used outside of game day. The analyst gains control of the spreadsheet 30 minutes before kickoff in the coaches’ booth.  

For the Rams, McVay notes that having the analysts use Copilot will speed up the process of gathering information, which can be critical in recognizing offensive and defensive formations, seeing how teams dial up defenses based on down and distance, and making halftime adjustments. 

“We have people up in the booth who are responsible for charting a lot of the things that Copilot can sequence and segment in a much more accelerated manner, and so that’s going to allow us to be able to make better in-game decisions,” he says. “And it’s going to increase the overall efficiency of what we’re trying to get to our players in real-time. It’s going to be a big deal for us.” 

The latest developments in the partnership between the NFL and Microsoft are the next steps in a 10-plus year relationship between the organizations that began with the shared vision of harnessing technology to unlock new levels of performance and insights. The results are a long way from the old days of teams sending pictures of formations from the coaches’ box to the sideline via a wire.  

“We used to do a lot of this work with paper on the sidelines,” Amendolia says. “We had printers and a big infrastructure to support that. And then we digitized and moved to the Surface device and that was sort of the first step. And now AI and Copilot are going to be very impactful.” 

The future of football 

That impact goes beyond the sideline into overall game operations and as teams search for the next generation of stars. The NFL is using Microsoft AI for several off-the-field use cases for football and business operations staff. 

During the 2025 NFL Combine, scouts and coaches used an enhanced app built with Microsoft Azure AI Foundry to provide more intelligent and real-time insights from more than 300 prospects. Individual clubs like the Tampa Bay Buccaneers, New York Jets and Minnesota Vikings used Copilot to help with marketing, promotion efforts and fan engagement. 

The NFL and Microsoft also are looking into other ways Copilot can boost the game day experience, including an operations dashboard to track and plan for elements that could impact game day operations, and Copilot-powered game summaries for both NFL teams and fans to gain a deeper understanding of what’s happening on the field. 

As the 2025 season kicks off, fans should get used to the sight of coaches and players throughout the NFL scouring their SVS systems to help them achieve optimal outcomes, as more teams and players get comfortable with the benefits the technology provides. 

“When I look at when I started coaching back in 2008 to where it is now, it’s amazing to me,” McVay says. “The amount of information that’s at your fingertips is so valuable. When you look at the accelerated pace at which this is coming into our game and what a prominent part of our game it’s become, it’s important to embrace it. Because you’ll be behind if you don’t.” 

Learn how the NFL is using AI on and off the field to enhance operations. 

Top photo: Houston Texans running back Joe Mixon (28) shows the offensive line a play on a Microsoft Surface device during a game against the New York Jets, Oct. 31, 2024, in East Rutherford, N.J. (Margaret Bowles via AP)

The post ‘It’s going to be a big deal’: The NFL and Microsoft expand their partnership and introduce sideline technology using AI innovation appeared first on The Microsoft Cloud Blog.

Forty-two years ago, Microsoft released the very first version of Microsoft Word. It was a major milestone in the company’s journey to enhance people’s productivity through innovation. It also marked the young and growing company’s first big step in Europe with the first Microsoft product localized in multiple European languages, starting with German and French.

Since then, our economic reliance on Europe has always run deep. We recognize that our business is critically dependent on sustaining the trust of customers, countries, and governments across Europe. We respect European values, comply with European laws, and actively defend Europe’s cybersecurity. Our support for Europe has always been–and always will be–steadfast.

In a time of geopolitical volatility, we are committed to providing digital stability. That is why today Microsoft is announcing five digital commitments to Europe. These start with an expansion of our cloud and AI infrastructure in Europe, aimed at enabling every country to fully use these technologies to strengthen their economic competitiveness. And they include a promise to uphold Europe’s digital resilience regardless of geopolitical and trade volatility.

As a multinational company, we believe in trans-Atlantic ties that promote mutual economic growth and prosperity. ​We were pleased the Trump administration and the European Union recently agreed to suspend further tariff escalation while they seek to negotiate a reciprocal trade agreement. We hope that successful talks can resolve tariff issues and reduce non-tariff barriers, consistent with the recommendations in the recent Draghi report.

We will always be dedicated to creating jobs, promoting economic opportunities, and strengthening cybersecurity on both sides of the Atlantic. The five commitments below, like the very first European version of Microsoft Word, take our support for Europe another step forward.

1. We will help build a broad AI and cloud ecosystem across Europe

We recognize that European nations want and need a world class and broad AI and cloud ecosystem. Today, we are announcing plans to increase our European datacenter capacity by 40% over the next two years. We are expanding datacenter operations in 16 European countries. When combined with our recent construction, the plans we’re announcing today will more than double our European datacenter capacity between 2023 and 2027. It will result in cloud operations in more than 200 datacenters across the continent.

This expansion will play an important role in boosting Europe’s economic growth and competitiveness. We believe that broad AI diffusion will be one of the most important drivers of innovation and productivity growth over the next decade. Like electricity and other general-purpose technologies in the past, AI and cloud datacenters represent the next stage of industrialization. They are creating real-world capabilities to fuel business and manufacturing innovation, run national health systems, enable secure government services, and support digital tools in education—all while keeping data and operations close to home, subject to European laws and regulations.

Public cloud datacenters

Our public cloud datacenters are a foundation for the diversified cloud ecosystem we are committed to supporting across Europe. This includes the Microsoft Cloud for Sovereignty, a package of technologies and configurations to help governments and other customers run on Azure in our public cloud datacenters with greater control over data location, encryption, and administrative access.

Sovereign cloud datacenters

A second aspect of our diversified approach involves sovereign cloud datacenters. In France, Microsoft has partnered with Capgemini and Orange, who formed a joint venture named Bleu. Designed as a “cloud de confiance” (trusted cloud) platform, Bleu offers a broad range of Microsoft Azure cloud services and Microsoft 365 productivity tools operated under French control. In Germany, a similar sovereign cloud initiative is underway through a partnership between Microsoft, SAP, and Arvato Systems (a Bertelsmann IT subsidiary). This effort, through SAP’s subsidiary, Delos Cloud GmbH, is creating a sovereign cloud platform for the German public sector, hosted in German datacenters and operated by German personnel.

Support for European cloud providers

A third aspect of our work involves our collaboration with European cloud providers to offer Microsoft applications and services on their local cloud infrastructure. This partnership provides these European providers with the opportunity to run Microsoft applications on more favorable terms than we make available to Amazon and Google. Additionally, we are developing new technology and licensing solutions tailored for these European providers and the markets they serve.

Emerging options

Given recent geopolitical volatility, we recognize that European governments likely will consider additional options. Some of these may involve public financing to support European home-grown offerings. We recognize the importance of a diversified technology ecosystem, and we are committed to collaborating with European participants across the tech ecosystem.

Respect for European laws

Microsoft is investing tens of billions of dollars annually in expanding its datacenters across Europe. These investments aren’t on wheels. They are permanent structures and subject to local laws, regulations, and governments. Like every citizen and company, we don’t always agree with every policy of every government. But even when we’ve lost cases in European courts, Microsoft has long respected and complied with European laws.

We understand that European laws apply to our business practices in Europe, just as local laws apply to local practices in the United States and similar laws apply elsewhere in the world. This includes European competition law and the Digital Markets Act, among others. We’re committed not only to building digital infrastructure for Europe, but to respecting the role that laws across Europe play in regulating our products and services.

2. We will uphold Europe’s digital resilience even when there is geopolitical volatility

By building a European cloud for Europe, Microsoft is committed to helping Europe navigate the uncertain geopolitical and trade environment and better manage risk by strengthening the continent’s digital resilience. We will always strive to be a voice of reason that promotes mutual opportunities and stable ties across the Atlantic. We in fact believe that even amidst current trade and tariff disputes, there is a strong consensus in Washington supporting the sustained flow of digital services from the United States to Europe.

We also are listening closely to the views of European governments and leaders. We recognize that European countries, like nations everywhere, need to have rock-solid confidence in the digital infrastructure on which they rely. To ensure this confidence, we will take the following three steps:

A European cloud for Europe

Microsoft is headquartered in the United States, but we provide cloud services to Europe through corporate entities headquartered in Europe. To further cement the nexus between Microsoft and Europe, going forward our European datacenter operations and their boards will be overseen by a European board of directors that consists exclusively of European nationals and operates under European law.

A Digital Resilience Commitment

In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court. By including a new European Digital Resilience Commitment in all of our contracts with European national governments and the European Commission, we will make this commitment legally binding on Microsoft Corporation and all its subsidiaries.

Microsoft has a demonstrated history of pursuing litigation when that has been needed to protect the rights of our customers and other stakeholders. This includes four lawsuits we filed against the U.S. Executive Branch during President Obama’s tenure, including to protect the privacy of our customers’ data in the United States and Europe. It also included, during President Trump’s first term, a successful decision before the U.S. Supreme Court to uphold the rights of employees who are immigrants. When necessary, we’re prepared to go to court.

We are confident of our legal rights to ensure continuous operation of our datacenters in Europe. And we are prepared to back this confidence with our contractual commitments to European governments.

Business continuity partnerships

Finally, we will designate and rely upon European partners with contingency arrangements for operational continuity in the unlikely event Microsoft were ever required by a court to suspend services. We are already enabling our partners in France and Germany to do this for the Bleu and Delos datacenters, and we will pursue arrangements for our public cloud datacenters in Europe. We will store back-up copies of our code in a secure repository in Switzerland, and we will provide our European partners with the legal rights needed to access and use this code if needed for this purpose.

3. We will continue to protect the privacy of European data

Microsoft has long been at the forefront in designing and implementing technology solutions to protect customer data. We enable customers to control where their data is stored and processed, how it is encrypted and secured, and when Microsoft can access it. We offer customers robust capabilities across the entire cloud stack from infrastructure to platform to software as a service, from Azure to Microsoft 365 to Dynamics 365. We back our technical solutions with strong contractual commitments and, as noted above, a demonstrated history of going to court on behalf of our customers.

The EU data boundary project

Reflecting our continuing commitment to innovation, we recently finished implementing our EU Data Boundary project. This offers European customers the ability to have their data stored and processed in Europe. Since January 2024, our European commercial and public sector customers have been able to store and process their data and personal identifiers for Microsoft core cloud services—including Microsoft 365, Dynamics 365, Power Platform, and Azure services—within the EU and EFTA regions. Three months ago, Microsoft completed the project by extending the EU Data Boundary to include professional services data from technical support interactions. And, critically, we make these solutions available in all our European cloud regions and throughout our tech stack, from IaaS, to PaaS, to SaaS, including M365 Copilot.

Additional security and encryption options

In addition to the EU Data Boundary, we provide European customers with multiple options for securing and encrypting their data. Our Confidential Compute offerings in Azure eliminate the ability of third parties—including Microsoft—to access customer data by ensuring data is processed within a trusted environment the customer alone controls. We enable customers to create a “lockbox” around their data across Azure, Dynamics 365, and Microsoft 365 by giving them the ability to review and approve before Microsoft accesses their data for customer and service support operations. We also enable customers to secure their data with encryption keys that they, not Microsoft, control with Azure Key Vault and Microsoft Purview Customer Key. Our Microsoft Cloud for Sovereignty offers customers a range of other tools to secure data, protect against unauthorized access, and satisfy legal requirements.

A strong legal track record

In addition to technical measures, we will continue our fight to protect the rights of European customers. Microsoft has a strong track record of going to court in the rare instances that we need to protect European data from unauthorized access. We have consistently fought legal demands that conflict with European law and have taken our challenges all the way to the Supreme Court of the United States. In 2018, as a direct result of litigation Microsoft brought on behalf of our European customers, the U.S. Congress enacted legislation that guarantees our right to object to U.S. law enforcement demands to access European data that conflict with EU law.

We codified our promise to protect our European customers’ data with our Defending Your Data commitment, in which we agreed to challenge any government demand for EU public sector or enterprise customer data where we have a legal basis for doing so. We have included that commitment in our customer contracts and backed it up with a promise to compensate customers if we disclose their data in violation of EU law.

New opportunities for innovation

Today we commit to further strengthen and expand solutions that allow European customers to control and protect their data. We are embarking on new steps to listen to and consult with European customers to build on what already is the most complete, widest range of privacy, security, and sovereignty solutions that any cloud services provider now offers to customers in Europe. We look forward to sharing in the coming months the conclusions that emerge and the new steps we decide to take.

For more details about Microsoft’s data protection and compliance programs, see the Microsoft Trust Center.

4. We will always help protect and defend Europe’s cybersecurity

As war erupted in 2022, Microsoft immediately helped evacuate Ukraine’s critical data and technology services to our datacenters across Europe. This move ensured Ukraine’s continued digital operation outside the range of cruise missile and air attacks. In many ways, this illustrates the role that a broad network of datacenters plays in supporting not only digital but broader resilience, both for a country and a continent.

Uninterrupted, world-class cybersecurity protection

In addition to safeguarding the country’s data, we immediately helped Ukraine’s officials and citizens defend their nation from Russian cyberattacks. Since the start of the war, Microsoft has provided more than $500 million of free technology and financial assistance to Ukraine and has sustained our substantial support to this day. Without interruption, we have provided cybersecurity support to NATO, Ukraine, and other European governments, including by sharing cybersecurity threat intelligence, protecting elections, and disrupting attacks against European governments, companies, and citizens.

New measures to protect against new threats

More than three years since the start of the war in Ukraine, European governments and countries confront ongoing cyberattacks from Russia, China, Iran, and North Korea. As these threats grow in number and sophistication, strong cybersecurity protection and coordination are more important than ever, as is the ability to respond rapidly to regional demands. That is why today we are announcing the following cybersecurity steps, which will be followed by additional announcements in the coming weeks.

A new Deputy CISO for Europe

Today, our Chief Information Security Officer (CISO) Igor Tsyganskiy announced that we are appointing a new Deputy CISO for Europe as part of the Microsoft Cybersecurity Governance Council. This senior executive will be dedicated to Microsoft’s security responsibilities in Europe. Last year we created this council, consisting of our Global CISO and Deputy Chief Information Security Officers (Deputy CISOs) representing each of our technology services. This Council oversees the company’s cyber risks, defenses, and compliance across regions and domains.

The appointment of a Deputy CISO for Europe reflects the importance and global influence of EU cybersecurity regulations and the company’s commitment to meeting and exceeding those expectations to prioritize cybersecurity across the region. This new position will report directly to Microsoft’s CISO. The Deputy CISO for Europe will be accountable for compliance with current and emerging cybersecurity regulations in Europe, including the Digital Operational Resilience Act (DORA), the NIS 2 Directive, and the Cyber Resilience Act (CRA). These laws will prove transformative not only in EU markets, but worldwide, and Microsoft is actively engaged in preparing for what lies ahead.

New security steps under the Cyber Resilience Act

We believe the CRA will reshape the regulatory landscape as a new gold standard for cybersecurity, much as the GDPR did for privacy. We will build on the work of our Secure Future Initiative and dedicate additional resources to comply with the CRA. As its deadlines approach, we look forward to continuing our years of engagement with the European Commission, industry partners, and customers on CRA implementation efforts. We are committed to our role as a member of the European Commission’s Expert Group on Cybersecurity of Products with Digital Elements.

To that end, Microsoft will continue to engage with stakeholders across a range of CRA topics. These will include incident and vulnerability reporting, security by design and default, cybersecurity best practices and improving open-source security and attestation. We will share our innovations that support implementing the CRA essential security requirements to help European economic operators also prepare for CRA compliance.

Security is the foundation of trust. To sustain that trust, we will engage an independent auditor to verify and validate our commitments to Europe. We know that people will only use technology that they trust, which is why we are dedicating resources to accelerate our compliance with the CRA and committing to independent validation.

5. We will help strengthen Europe’s economic competitiveness, including for open source

Our AI Access Principles

We recognize the importance of ensuring open access to our AI and cloud platform and infrastructure across Europe, including for open-source development. That is why we announced last year a set of AI Access Principles and we will introduce new enhancements to these commitments in the coming months.

Open access across Europe

These principles have ensured that our Azure AI platform and infrastructure is open to a variety of business models—both open-source and proprietary. We now host more than 1,800 AI models. Most of these models are open-source models, such as those from European-based AI developers Mistral and Hugging Face. And they are all available via public APIs to facilitate interoperability. This means that customers can choose which models to use and where to build their AI-powered solutions: on Azure, in another public cloud, or in their own datacenter. Finally, we enable customers to export and transfer their data. Last year we eliminated fees for the transfer of data when customers choose to switch to another cloud provider.

A foundation for European competitiveness

Over the past year, we have seen European startups, established businesses, and other organizations take advantage of the open access to models and tools that we provide to innovate, grow, and compete in the new AI economy. This includes technology startups such as Factorial in Spain to build AI-driven automation for HR professionals, iGenius in Italy to develop AI solutions for regulated industries, and Visma in Norway to provide AI solutions for companies in accounting, payroll, invoicing, and beyond. And it includes the Institute Curie in France to research new therapies for cancer, UBS in Switzerland to create the future of banking, and Heineken in The Netherlands to boost employee productivity.

Building European infrastructure for Europe’s future

We recognize that Microsoft must constantly remain focused on earning and sustaining our “license to operate” in each country across Europe. With datacenters and digital technology, this starts with each local community and country and includes officials with continental-wide responsibilities.

Since we first brought the first version of Microsoft Word to Europe 42 years ago, digital technology has changed the ways people work many times over. Yet as we look forward, we believe the second quarter of the 21^st century may bring even bigger changes ahead. Artificial intelligence offers what may become the most powerful tool for people in the history of humanity. And like all tools, there will be some who will seek to turn it into a weapon.

More than ever, it will be critical for us to help Europe harness the power of this new technology to strengthen its competitiveness. We will need to partner with smaller and larger companies alike. We will need to support governments, non-profit organizations, and open-source developers across the continent. And we will need to listen closely to European leaders, respect European values, and adhere to European laws. We are committed to doing all these things well.

As we celebrated Microsoft’s 50^th birthday earlier this month, we recognized that our longstanding presence in Europe has been a lynchpin of our success. Europe has treated us well. Our support for Europe has always been—and always will be—steadfast.

The post Microsoft announces new European digital commitments appeared first on The Microsoft Cloud Blog.

As the technology continues to advance, new Microsoft AI agents unveiled over the past few weeks can help people every day with things like research, cybersecurity and more.

First things first: What is an AI agent? 

Imagine having a personal assistant that doesn’t just respond to commands but anticipates your needs, does complex tasks and keeps learning from every interaction — meaning it actually improves over time. 

AI agents analyze their environment, make decisions and take actions, tackling tasks with you or on your behalf based on your goals and guardrails. That means that instead of doing repetitive tasks, you can save time and focus on more creative and strategic work.

 Agents that use reasoning to help you do more 

Two new reasoning agents announced in late March for Microsoft 365 Copilot can help you be more productive in the office. Named Researcher and Analyst, both can securely analyze your work data — emails, meetings, files, chats and more — and the web to deliver highly skilled expertise on demand.

Researcher helps you tackle complex, multi-step research at work. It can build a detailed marketing strategy based on your work data and broader info from the web, identify opportunities for a new product based on emerging trends and internal data, or create a comprehensive quarterly report for a client review. It can also integrate data from external sources such as Salesforce, ServiceNow and Confluence directly into Microsoft 365 Copilot.

Researcher combines OpenAI’s deep research model with Microsoft 365 Copilot’s advanced orchestration and deep search capabilities.

Analyst, built on OpenAI’s o3-mini reasoning model, thinks like a virtual data scientist. It can take raw data scattered across multiple spreadsheets to do things like forecast how much demand there will be for a new product or build a visualization of customer purchasing patterns. 

Agents that help automate cybersecurity tasks

Other new agents can help organizations defend against cyberthreats, handling certain security tasks to help human teams be more efficient.

These agents, introduced March 24, are designed to autonomously assist with critical areas such as phishing, data security and identity management. 

For example, a new phishing triage agent in Microsoft Security Copilot can handle routine phishing alerts and cyberattacks, freeing up human cybersecurity teams to focus on more complex cyberthreats and proactive security measures.

And the new Alert Triage Agents in Microsoft Purview can triage data loss prevention and insider risk alerts, prioritize critical incidents and continuously improve accuracy based on administrator feedback.

Agents to help developers build and deploy AI securely

Agents are giving developers new options as well.

Two new ones are accessible in Azure AI Foundry — a platform where developers and organizations build, deploy and manage AI apps, providing the infrastructure developers need to create intelligent agents on a large scale. 

Microsoft Fabric data agents allow developers using Azure AI Agent Service in Azure AI Foundry to connect customized, conversational agents created in Microsoft Fabric. These data agents can reason over and unlock insights from various sources to make better data-driven decisions.

For example, NTT DATA, a Japanese IT and consulting company, is using data agents in Microsoft Fabric to have conversations with HR and back-office operations data to better understand what is happening in the organization.

And the new AI Red Teaming Agent, now in public preview, systematically probes AI models to uncover safety risks. It generates comprehensive reports and tracks improvements over time, creating an AI safety-testing ecosystem that evolves alongside your system.

Learn more about the latest in agents at Microsoft Build 2025 — registration is now open.

Image was created using Microsoft Designer, an AI-powered graphic design application.

The post 3 new ways AI agents can help you do even more appeared first on The Microsoft Cloud Blog.

From the world’s biggest companies using agents to automate business processes that run tens of thousands of times a day to each of us now having the power to quickly create custom AI assistants using plain language—agents are reshaping work for both organizations and individuals.  

In this edition, we hear from Charles Lamanna, Corporate Vice President of Business and Industry Copilot, who is spearheading the work at Microsoft to bring AI agents to organizations. In this Q&A, Charles shares his insights on how we arrived at this moment in AI transformation, agents in the workplace for the organization and the individual, why customers that are AI-first are thriving, and where agents will start to show up outside of work.  

Let’s learn more from Charles about the transformative potential of agents and where this technology is headed next. 

What is a good analogy to describe the AI moment we are in right now? 

AI can feel abstract, but to understand the moment we’re in, it’s helpful to think about other turning points in history where technology became a force multiplier for people.  

Take the tractor, for example. Two hundred years ago, nearly everyone in America farmed for a living. Now, it’s less than 2%, because tractors completely changed the game, freeing people up to innovate elsewhere. Or clothing—not that long ago, most people owned a few outfits. Then mechanized looms came along and clothing became abundant. 

Steve Jobs famously called computers a “bicycle for the mind” because just as a bicycle helps humans move far more efficiently, computers amplified what our minds could achieve. Stretching that analogy, if computers are the bicycle, AI is the jetpack of the mind. It’s not just speeding us up, it’s lifting us to entirely new heights.  

If computers are the bicycle, AI is the jetpack of the mind. It’s not just speeding us up, it’s lifting us to entirely new heights.”

—Charles Lamanna

We’re at an exciting time where AI puts deep expertise directly at everyone’s fingertips, breaking down barriers to knowledge. Just as tractors transformed farming and mechanized looms changed clothing production, AI agents are transforming fields like law, medicine, and software development. They’re the tractors for lawyers, the mechanized looms for doctors, and combustion engines for developers.  

Why is the shift to an “AI-first mindset” so important for businesses?  

Adopting an AI-first mindset is crucial because it fundamentally transforms the way businesses operate. AI isn’t just a novelty—it’s a core capability that is necessary to stay relevant.  

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Businesses embracing AI-first thinking reach new levels of scale that are just not possible without the speed and power of AI. For example, global supply chains are enormously complex. AI can quickly process vast amounts of data, predict trends, and take actions in real time—tasks that would take people weeks or months can now happen in hours or minutes. AI agents can generate reports or even actively make informed decisions under human oversight.  

A core component for an AI-first company is agents—think of them as the new apps. They can execute core tasks with and on behalf of people, unifying business data, apps, email, chat platforms, and more. Agents can range from simple to advanced, doing everything from addressing customer service inquiries, to doing the heavy lifting of data analysis.  

Imagine replicating this efficiency across every element of a company: human resources, logistics, sales, finance, and research and development. You can see how profound this transformation is across the business.   

When do you think AI agents will go from being an add-on to the main driver of business? 

Right now, we’re seeing the beginnings of a major transformation where AI agents are shifting from being used as helpful “add-ons” to becoming the core drivers of business. We can think about this AI journey in a few stages.  

Initially, we’re seeing AI augment people in an organization—everyone has a powerful AI assistant that deeply understands their specific work, makes them more productive, and makes daily tasks easier.  

As organizations move further along this journey, we’ll see a big jump. AI agents will evolve to become key team members, capable of autonomously managing complex workflows and boosting efficiency considerably. People will set high-level strategies, provide direction and manage these agents. And this will continue to evolve.   

I think companies that have adopted an AI-first mindset are already working towards that future as more advanced agent capabilities are added.  

Who do you think is doing a good job of working with AI and agents? 

It’s exciting to see companies adopting AI agents in a big way. 

Take Estée Lauder Companies, for instance. They have 80 years’ worth of valuable consumer data from surveys, clinical trials, promotions, and product usage. With an agent called ConsumerIQ, built using Microsoft Copilot Studio, employees can instantly tap into insights that used to take hours of manual research. They can ask, “What are the latest trends for mascara use among Gen Z?” and within seconds, the agent will collect, summarize, and deliver the answer. 

Dow spends billions annually on freight shipping and receives thousands of invoices daily. They built agents that analyze and detect anomalies and have already uncovered billing errors—like catching a $30,000 charge that should’ve been $5,000.  

At Microsoft, we’re also using agents, and one example is on Azure.com. With more than 400 product and service pages, customers struggled to find the information they needed. The team built an AI assistant using Copilot Studio, and visitors who used the AI assistant showed 70% more pages visited per session and a 21.5% increase in conversion rates.  

Where do you see agents changing our daily lives beyond the workplace?  

We’re going to see agents show up more in our daily lives, and I think people will be excited about it. Imagine having a personal agent that handles annoying tasks no one enjoys—sorting emails, paying bills, or making appointments.  

In healthcare, agents can become personal health assistants, proactively monitoring your wellness and reminding you about medications. This could make life easier for those managing chronic health problems. 

On top of all this, anyone will be able to create agents for their own use without any coding experience. It won’t be something that only developers or coders are trusted to do.  

Looking ahead, the possibilities are limitless. Imagine a future where agents effortlessly handle life’s complexities, freeing you up to spend more time on the people and activities that bring you joy and meaning. That’s the future we’re building towards, and it’s closer than you might think. 

Learn more about Microsoft’s innovation with AI agents 

AI agents are an exciting space for business leaders to explore, from being able to assist with document creation at an individual worker’s level to taking on the most intensive and critical business processes at a company. Agents will vary in complexity, and they’ll come from many different sources—from the agents built by Microsoft or our partner ecosystem to the custom agents tailored to take on your exact challenge. With this rise of AI agents, we will see even more ways for AI deliver on the promise of real business value.

Interested in learning more?

Here are a few recommended resources:

• Register for the Business Applications Launch Event
• Refactor your skills at Microsoft Build 2025
• Read AI agents — what they are, and how they’ll change the way we work
• Begin your AI learning journey with the AI learning hub 

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It leverages the world’s first topoconductor, a breakthrough type of material which can observe and control Majorana particles to produce more reliable and scalable qubits, which are the building blocks for quantum computers.

In the same way that the invention of semiconductors made today’s smartphones, computers and electronics possible, topoconductors and the new type of chip they enable offer a path to developing quantum systems that can scale to a million qubits and are capable of tackling the most complex industrial and societal problems, Microsoft said.

“We took a step back and said ‘OK, let’s invent the transistor for the quantum age. What properties does it need to have?’” said Chetan Nayak, Microsoft technical fellow. “And that’s really how we got here – it’s the particular combination, the quality and the important details in our new materials stack that have enabled a new kind of qubit and ultimately our entire architecture.”

This new architecture used to develop the Majorana 1 processor offers a clear path to fit a million qubits on a single chip that can fit in the palm of one’s hand, Microsoft said. This is a needed threshold for quantum computers to deliver transformative, real-world solutions – such as breaking down microplastics into harmless byproducts or inventing self-healing materials for construction, manufacturing or healthcare. All the world’s current computers operating together can’t do what a one-million-qubit quantum computer will be able to do. 

“Whatever you’re doing in the quantum space needs to have a path to a million qubits. If it doesn’t, you’re going to hit a wall before you get to the scale at which you can solve the really important problems that motivate us,” Nayak said.  “We have actually worked out a path to a million.”

The topoconductor, or topological superconductor, is a special category of material that can create an entirely new state of matter – not a solid, liquid or gas but a topological state. This is harnessed to produce a more stable qubit that is fast, small and can be digitally controlled, without the tradeoffs required by current alternatives. A new paper published Wednesday in Nature outlines how Microsoft researchers were able to create the topological qubit’s exotic quantum properties and also accurately measure them, an essential step for practical computing.

This breakthrough required developing an entirely new materials stack made of indium arsenide and aluminum, much of which Microsoft designed and fabricated atom by atom. The goal was to coax new quantum particles called Majoranas into existence and take advantage of their unique properties to reach the next horizon of quantum computing, Microsoft said.  

The world’s first Topological Core powering the Majorana 1 is reliable by design, incorporating error resistance at the hardware level making it more stable.

Commercially important applications will also require trillions of operations on a million qubits, which would be prohibitive with current approaches that rely on fine-tuned analog control of each qubit. The Microsoft team’s new measurement approach enables qubits to be controlled digitally, redefining and vastly simplifying how quantum computing works.

This progress validates Microsoft’s choice years ago to pursue a topological qubit design – a high risk, high reward scientific and engineering challenge that is now paying off. Today, the company has placed eight topological qubits on a chip designed to scale to one million.

“From the start we wanted to make a quantum computer for commercial impact, not just thought leadership,” said Matthias Troyer, Microsoft technical fellow. “We knew we needed a new qubit. We knew we had to scale.”

That approach led the Defense Advanced Research Projects Agency (DARPA), a federal agency that invests in breakthrough technologies that are important to national security, to include Microsoft in a rigorous program to evaluate whether innovative quantum computing technologies could build commercially relevant quantum systems faster than conventionally believed possible.  

Microsoft is now one of two companies to be invited to move to the final phase of DARPA’s Underexplored Systems for Utility-Scale Quantum Computing (US2QC) program – one of the programs that makes up DARPA’s larger Quantum Benchmarking Initiative – which aims to deliver the industry’s first utility-scale fault-tolerant quantum computer, or one whose computational value exceeds its costs. 

‘It just gives you the answer’

In addition to making its own quantum hardware, Microsoft has partnered with Quantinuum and Atom Computing to reach scientific and engineering breakthroughs with today’s qubits, including the announcement last year of the industry’s first reliable quantum computer.

These types of machines offer important opportunities to develop quantum skills, build hybrid applications and drive new discovery, particularly as AI is combined with new quantum systems that will be powered by larger numbers of reliable qubits. Today, Azure Quantum offers a suite of integrated solutions allowing customers to leverage these leading AI, high performance computing and quantum platforms in Azure to advance scientific discovery.

But reaching the next horizon of quantum computing will require a quantum architecture that can provide a million qubits or more and reach trillions of fast and reliable operations. Today’s announcement puts that horizon within years, not decades, Microsoft said.

Because they can use quantum mechanics to mathematically map how nature behaves with incredible precision – from chemical reactions to molecular interactions and enzyme energies – million-qubit machines should be able to solve certain types of problems in chemistry, materials science and other industries that are impossible for today’s classical computers to accurately calculate.

• For instance, they could help solve the difficult chemistry question of why materials suffer corrosion or cracks. This could lead to self-healing materials that repair cracks in bridges or airplane parts, shattered phone screens or scratched car doors.
• Because there are so many types of plastics, it isn’t currently possible to find a one-size-fits-all catalyst that can break them down – especially important for cleaning up microplastics or tackling carbon pollution. Quantum computing could calculate the properties of such catalysts to break down pollutants into valuable byproducts or develop non-toxic alternatives in the first place.
• Enzymes, a kind of biological catalyst, could be harnessed more effectively in healthcare and agriculture, thanks to accurate calculations about their behavior that only quantum computing can provide. This could lead to breakthroughs helping to eradicate global hunger: boosting soil fertility to increase yields or promoting sustainable growth of foods in harsh climates.

Most of all, quantum computing could allow engineers, scientists, companies and others to simply design things right the first time – which would be transformative for everything from healthcare to product development. The power of quantum computing, combined with AI tools, would allow someone to describe what kind of new material or molecule they want to create in plain language and get an answer that works straightaway – no guesswork or years of trial and error.  

“Any company that makes anything could just design it perfectly the first time out. It would just give you the answer,” Troyer said. “The quantum computer teaches the AI the language of nature so the AI can just tell you the recipe for what you want to make.”

Rethinking quantum computing at scale

The quantum world operates according to the laws of quantum mechanics, which are not the same laws of physics that govern the world we see. The particles are called qubits, or quantum bits, analogous to the bits, or ones and zeros, that computers now use.

Qubits are finicky and highly susceptible to perturbations and errors that come from their environment, which cause them to fall apart and information to be lost. Their state can also be affected by measurement – a problem because measuring is essential for computing. An inherent challenge is developing a qubit that can be measured and controlled, while offering protection from environmental noise that corrupts them.

Qubits can be created in different ways, each with advantages and disadvantages. Nearly 20 years ago, Microsoft decided to pursue a unique approach: developing topological qubits, which it believed would offer more stable qubits requiring less error correction, thereby unlocking speed, size and controllability advantages. The approach posed a steep learning curve, requiring uncharted scientific and engineering breakthroughs, but also the most promising path to creating scalable and controllable qubits capable of doing commercially valuable work.

https://youtube.com/watch?v=wSHmygPQukQ%3Ffeature%3Doembed%26enablejsapi%3D1%26origin%3Dhttps%253A%252F%252Fnews.microsoft.com

The disadvantage is – or was – that until recently the exotic particles Microsoft sought to use, called Majoranas, had never been seen or made. They don’t exist in nature and can only be coaxed into existence with magnetic fields and superconductors. The difficulty of developing the right materials to create the exotic particles and their associated topological state of matter is why most quantum efforts have focused on other kinds of qubits.

The Nature paper marks peer-reviewed confirmation that Microsoft has not only been able to create Majorana particles, which help protect quantum information from random disturbance, but can also reliably measure that information from them using microwaves.

Majoranas hide quantum information, making it more robust, but also harder to measure. The Microsoft team’s new measurement approach is so precise it can detect the difference between one billion and one billion and one electrons in a superconducting wire – which tells the computer what state the qubit is in and forms the basis for quantum computation.

The measurements can be turned on and off with voltage pulses, like flicking a light switch, rather than finetuning dials for each individual qubit. This simpler measurement approach that enables digital control simplifies the quantum computing process and the physical requirements to build a scalable machine.

Microsoft’s topological qubit also has an advantage over other qubits because of its size. Even for something that tiny, there’s a “Goldilocks” zone, where a too-small qubit is hard to run control lines to, but a too-big qubit requires a huge machine, Troyer said. Adding the individualized control technology for those types of qubits would require building an impractical computer the size of an airplane hangar or football field.

Majorana 1, Microsoft’s quantum chip that contains both qubits as well as surrounding control electronics, can be held in the palm of one’s hand and fits neatly into a quantum computer that can be easily deployed inside Azure datacenters.

“It’s one thing to discover a new state of matter,” Nayak said. “It’s another to take advantage of it to rethink quantum computing at scale.”

Designing quantum materials atom by atom

Microsoft’s topological qubit architecture has aluminum nanowires joined together to form an H. Each H has four controllable Majoranas and makes one qubit. These Hs can be connected, too, and laid out across the chip like so many tiles.

“It’s complex in that we had to show a new state of matter to get there, but after that, it’s fairly simple. It tiles out. You have this much simpler architecture that promises a much faster path to scale,” said Krysta Svore, Microsoft technical fellow.

The quantum chip doesn’t work alone. It exists in an ecosystem with control logic, a dilution refrigerator that keeps qubits at temperatures much colder than outer space and a software stack that can integrate with AI and classical computers. All those pieces exist, built or modified entirely in-house, she said.

To be clear, continuing to refine those processes and getting all the elements to work together at accelerated scale will require more years of engineering work. But many difficult scientific and engineering challenges have now been met, Microsoft said.

Getting the materials stack right to produce a topological state of matter was one of the hardest parts, Svore added. Instead of silicon, Microsoft’s topoconductor is made of indium arsenide, a material currently used in such applications as infrared detectors and which has special properties. The semiconductor is married with superconductivity, thanks to extreme cold, to make a hybrid.

“We are literally spraying atom by atom. Those materials have to line up perfectly. If there are too many defects in the material stack, it just kills your qubit,” Svore said.

“Ironically, it’s also why we need a quantum computer – because understanding these materials is incredibly hard. With a scaled quantum computer, we will be able to predict materials with even better properties for building the next generation of quantum computers beyond scale,” she said.

Related links:

Learn more: Introducing Microsoft Majorana 1

Read more: Microsoft unveils Majorana 1, the world’s first quantum processor powered by topological qubits

Learn more: Microsoft’s Quantum Ready program

Learn more: Azure Quantum Solutions  

Read more: In a historic milestone, Azure Quantum demonstrates formerly elusive physics needed to build scalable topological qubits

Read more: Nature: Interferometric Single-Shot Parity Measurement in InAs-Al Hybrid Devices

Read more: arXiv: Roadmap to fault tolerant quantum computation using topological qubit arrays

Top image: Majorana 1, the first quantum chip powered by a Topological Core based on a revolutionary new class of materials developed by Microsoft. Photo by John Brecher for Microsoft. 

The post Microsoft’s Majorana 1 chip carves new path for quantum computing appeared first on The Microsoft Cloud Blog.