As Customer Zero for Microsoft 365 Copilot, we embedded the technology into our employees’ daily workflows and carefully monitored the results. That journey from early experimentation to broad adoption of the tool across our organization continues to guide the company as we explore what comes next.

Today, that’s agents.

“Copilot changes how our employees work. Agents are changing how the work gets done. Our focus is to make the technology practical and valuable, so people want to use it daily.”

Stephan Kerametlian, senior director, business program management, Microsoft Digital

We’ve reached a level of maturity with Copilot that allows us to move from individual productivity to systems that can reason and collaborate on our behalf. Our focus now is on driving the adoption of agents across the company, grounding them in our workflows to solve problems.

“Copilot changes how our employees work,” says Stephan Kerametlian, a senior director in Microsoft Digital. “Agents are changing how the work gets done. Our focus is to make the technology practical and valuable, so people want to use it daily.”

Adoption doesn’t happen without trust

As we’ve empowered employees with more capable AI tools that can help automate tasks and make decisions, we’ve been equally focused on making sure the right safeguards are in place.

Innovation and safety are extremely important—the challenge is to enable both at the same time. And this is where governance comes in.

“We’ve spent a lot of time getting governance right. This means giving people confidence, not slowing them down. When employees know the guardrails are there, they feel empowered to experiment and innovate safely.”

David Johnson, principal PM architect, Microsoft Digital

At Microsoft, good governance is what makes innovation sustainable. It’s how we protect the company, our data, and our customers, while still giving employees the freedom to build and push boundaries with AI.

“We’ve spent a lot of time getting governance right,” says David Johnson, a principal PM architect in Microsoft Digital. “This means giving people confidence, not slowing them down. When employees know the guardrails are there, they feel empowered to experiment and innovate safely.”

If you go

Attend our Microsoft 365 Community Conference sessions.

How Microsoft does IT: Managing and governing agents—empower with risk-aligned oversight

Session description: See how Microsoft Digital empowers employees with tools to build and manage agents. From agent management with Microsoft Agent 365, to securing our environment with Microsoft Defender, to managing our productivity estate with Microsoft Purview, this session offers broad insights into how we use our own technology to accelerate agentic innovation while mitigating risk.

Speakers: David Johnson, Naveen Jangir, and Mike Powers

David Johnson leads our internal Microsoft 365 and productivity services with responsibility for tenant strategy, architecture, and governance. He manages how we empower employees with guardrails and manages our capability onboarding and tenant configuration.

Naveen Jangir is a principal architect in Microsoft Digital. He drives Microsoft 365 security and compliance strategy and leads tenant architecture and capability onboarding, while overseeing secure adoption of services across the enterprise.

Mike Powers is a senior service engineer and AI administrator in Microsoft Digital who manages Copilot features, Agent 365, and enterprise AI operations. He partners with internal product groups and security stakeholders to make sure AI tools and agents are deployed responsibly and governed effectively.

Sign up for the session

“How Microsoft does IT: Managing and governing agents—empower with risk-aligned oversight.”

More on AI agents and governance at Microsoft

• Read the guide to how we’re tackling Microsoft 365 Copilot governance internally at Microsoft.
• See how we’re embracing the agentic future to become a Frontier Firm.
• Learn how we deployed the Employee Self-Service Agent at Microsoft. 

Inside Microsoft: Reclaiming engineering time with AI in Azure DevOps

Session description: AI tools embedded directly into Azure DevOps (ADO) are changing how engineering teams work, eliminating manual tasks without creating separate tools or increasing cognitive load. This session explores how ADO AI Chat and the AI Work Item Assistant accelerate coding workflows at Microsoft. You’ll learn how to improve your backlog quality, sprint hygiene, and downstream effectiveness of GitHub Enterprise and Copilot, helping your teams reclaim capacity and focus on the work that moves products forward.

Speakers: Gopal Panigrahy and Sumit Dutta

Gopal Panigrahy is a product leader and member of our product management team in Microsoft Digital. He’s an advocate for our customer-first approach to product development and is passionate about helping people overcome challenges in the era of AI.

Sumit Dutta is a product-minded technology leader working at the intersection of AI, enterprise platforms, and scalable product design. Offering a strong blend of engineering knowledge and product strategy, he focuses on building systems that are not just functional but also extensible and reliable.

Sign up for the session

“Inside Microsoft: Reclaiming engineering time with AI in Azure DevOps.”

More on AI and IT engineering at Microsoft

• Learn how we’re reclaiming engineering time with AI in Azure DevOps at Microsoft.
• Read about powering the new age of AI-led engineering in IT at Microsoft.
• Discover how we’re streamlining engineering at Microsoft with Azure DevOps.

How Microsoft does IT: Microsoft 365 governance in the age of Copilot and agents

Session Description: Microsoft 365 Copilot and Copilot agents are powerful tools, but without proper governance, you could be putting your company at risk. In this lightning talk, you’ll learn how Microsoft Digital protects our enterprise while enabling employee innovation with Copilot and agents.

Speaker: David Johnson

Johnson brings hands-on experience operating Copilot and AI-powered agents inside Microsoft, with a focus on identity, permissions, data boundaries, and real-world misuse prevention. He takes real-world lessons and makes them practical for others.

Sign up for the session

“How Microsoft does IT: Microsoft 365 governance in the age of Copilot and agents.”

More on governance at Microsoft

• Learn about how we’re tackling Microsoft 365 Copilot governance internally at Microsoft.
• Check out our guide to deploying Microsoft 365 Copilot in five chapters.
• Read how we’re powering data governance with Purview Unified Catalog.

Accelerating AI adoption with Copilot controls: Lessons from Microsoft Digital

Session description: Microsoft 365 Copilot and AI agents unlock productivity gains, but without careful oversight they can also introduce security and compliance risks. The session covers how the Copilot Control System helps scale AI safely, including adoption insights and satisfaction signals. You’ll also see demos of popular agents, including the Employee Self-Service Agent and the Admin agent.

Speakers: Amy Ceurvorst and Reshma Kapoor

Amy Ceurvorst is a director of business programs In Microsoft Digital. She’s worked extensively with Copilot controls and evangelizes a unified way to view Copilot health reports that help administrators understand Copilot health.  

Reshma Kapoor is a senior product manager in Microsoft Digital with 20 years of experience leading and shipping products at scale. She is customer‑obsessed, grounding product decisions in real customer signals to deliver intuitive, high‑impact experiences.

Sign up for the session

“Accelerating AI adoption with Copilot controls: Lessons from Microsoft Digital.”

More on AI and Copilot adoption and deployment

• Read how we’re shaping AI management at Microsoft with Agent 365 and Copilot controls.
• Explore our five-chapter guide to deploying Microsoft 365 Copilot internally.
• Learn how we deployed Microsoft 365 Copilot in Viva Engage at Microsoft.

How Microsoft does IT: Driving adoption of Microsoft 365 Copilot and agents across Microsoft

Speakers: Cadie Kneip and Stephan Kerametlian

Session description: Our team at Microsoft Digital led the first enterprise-scale deployment of Microsoft 365 Copilot, launching to more than 300,000 employees and vendors worldwide. Learn how the team drove adoption using change management strategies to encourage employees to thread Copilot into their daily work. Now we’re doing the same for agents across the enterprise. Learn best practices for accelerating adoption and maximizing value while guiding your own journey with Copilot and AI agents.

Cadie Kneip is a senior business program director and the Copilot Champs community lead in Microsoft Digital. She specializes in turning complex AI initiatives into confidence-building pathways that help employees thrive in an AI-powered workplace. 

Stephan Kerametlian is a senior director in Microsoft Digital, where he leads our global change management efforts for Copilot and agents. He thrives on learning how people use AI and on finding ways to get more people to embrace the technology.

Sign up for the session

“How Microsoft does IT: Driving adoption of Microsoft 365 Copilot and agents across Microsoft.”

More on adoption and deployment of Copilot and agents

• Explore our guide on how we deployed Microsoft 365 Copilot internally.
• Find out how we’re skilling up for the future of work at Microsoft with Agent Launchpad.

Real-world adoption stories: A fireside chat with a key customer

Session description: Pull back the curtain on the customer experience with Copilot adoption. Join this fireside chat with a Microsoft customer to hear about lessons learned and the real impact that Copilot is delivering across their organization. You’ll glean practical insights you can apply immediately at your own company. 

Speakers: Karuana Gatimu and Sam Crewdson

Karuana Gatimu is a director of Customer Advocacy – AI & Collaboration in Microsoft Digital and a solution architect driven by a passion for people, storytelling, and leadership. With 30 years of experience at the intersection of technology and human impact, she turns complex innovation into compelling narratives that help organizations adopt change and deliver business value.

Sam Crewdson, a principal product manager in Microsoft Digital, is passionate about turning user insights into product improvements. His work focuses on driving adoption of the latest SharePoint features and helping users take advantage of the power of both SharePoint and OneDrive. Working at the intersection of IT, users, feedback, and strategy, he translates real‑world business needs into collaborative experiences that scale.  

Sign up for the session

“Real-world adoption stories: A fireside chat with a key customer.”

More insights on Copilot adoption

• Learn about how we’re tackling Microsoft 365 Copilot governance internally at Microsoft
• Check out our guide for deploying Microsoft 365 Copilot in five chapters.
• Read our executive-level guide covering our Copilot deployment.

Try it out

• Explore the Microsoft 365 Community Conference official site.
• Start using Microsoft 365 Copilot.
• Learn how to build your own AI-powered agents and workflows.

Related links

• Find out more about the 2026 Microsoft 365 Community Conference.
• See how we’re serving as Customer Zero at Microsoft in the era of AI.
• Read about Copilot Control System security and governance.
• Learn about deploying Microsoft Agent 365: How we’re extending our infrastructure to manage agents at Microsoft.
• Discover how the Employee Self-Service Agent helps employees quickly complete IT and HR tasks.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Unfolding our AI in IT story: What to expect at the 2026 Microsoft 365 Community Conference appeared first on Inside Track Blog.

• Our journey to becoming a Frontier Firm at Microsoft
• Chapter 1: Advancing good governance to meet the agentic moment
• Chapter 2: The Microsoft roadmap for implementing agents
• Chapter 3: Driving adoption to capture value across the organization
• Chapter 4: Providing support at the agentic frontier
• Chapter 5: Tracking the impact of your agents
• Applying lessons from our agent deployment at your organization

A how-to guide for governing, implementing, adopting, supporting, and measuring the impact of AI agents from Microsoft Digital, the company’s IT organization.

The agentic future: Our journey to becoming a Frontier Firm at Microsoft

A new way of working, a modern way to achieve more

The rate of change for AI tools and technology continues to accelerate, and new opportunities to reimagine business processes and employees’ day-to-day workflows are emerging. Agents are the driving force behind this next leap forward.

As a result of this technological shift, a new organizational blueprint is emerging. It blends machine intelligence with human judgment to create systems that are AI-operated but human-led.

We have a name for an organization that enacts this model: The Frontier Firm.

As organizations progress toward this goal, they move from foundational AI assistance through escalating levels of agentic maturity and complexity. First, humans operate with help from an AI assistant like Microsoft 365 Copilot. Then, human-agent teams work together. But the future lies in humans leading teams of agent users: AI agents that perform core labor with relative autonomy.

This has been a three-year process for us at Microsoft, and throughout our journey, we’ve had to allow adequate time for deliberate planning and careful execution. Just as importantly, we invested early in clear, consistent internal communications to help employees understand what agents are, why they matter, and how they could safely participate in building them. That shared understanding created the confidence and momentum required to scale agent creation across a global workforce.

“It’s a truly transformative time,” Brian Fielder, vice president of Microsoft Digital. “What we’ve learned from embracing the agentic future at Microsoft is only making us more eager to see organizations empower their employees to take the lead in a world where human judgment and machine intelligence work in harmony.”

Our Frontier Firm journey so far

Within Microsoft Digital, the company’s IT organization, we’re taking a leadership role in reimagining core processes and workflows. These efforts rest on four pillars of practice:

• We envision and implement the AI-first workplace of the future.
• We empower our employees to build their own agents that help supercharge their productivity by providing the training, resources, and inspiration they need.
• We define guardrails and safeguard our environment so our employees can maximize the power of AI while keeping our enterprise safe and secure.
• We’re the voice of company’s internal AI transformation, and we provide the blueprint for our customers to accelerate their own AI journeys.

To guide our steps, we’ve established a cross-disciplinary initiative we call Agents at Microsoft. We’re looking at agentic transformation from an end-to-end perspective that reaches into every aspect of building, publishing, governing, managing, and getting the most value out of agents.

As we’ve incorporated agents into more and more aspects of our organization, key questions have surfaced:

• How do we balance freedom for employees to create agents against the need to manage sprawl?
• How do we put guardrails around agentic capabilities so they can be useful, without introducing undue risks?
• How do we differentiate between agents of different complexity and capability, and how do we adjust our strategies around them accordingly?
• Where can we use agents to fill enterprise functions, and who should be responsible for creating those crucial tools?
• How can we adapt existing software development standards to AI tools?
• How can we minimize the risk of data over-exposure through AI?

It’s possible you’re also considering where agents fit into your organization. If so, it’s likely that you’re wrestling with many of the same questions. We’re here to help.

This guide shares our experience as Customer Zero for agents at Microsoft. As you read, you’ll be able to follow our journey to defining what it means to govern agents safely, implement them effectively, guide their adoption by employees, build a foundation for support, and track their impact through effective measurement.

We’ll share some of the most important lessons we’ve learned so far, along with readiness checklists and resources that can help you advance agentic maturity at your organization. With this guide in your toolkit, you’ll have a framework for building a strategy that incorporates agents into your business goals safely, responsibly, empathetically, and impactfully.

“As we harness the transformative power of AI agents, it’s our responsibility in IT to ensure that technology not only enhances decision making but also fosters a culture of innovation and collaboration across the organization,” says Stephan Kerametlian, a business program management senior director in Microsoft Digital.

The agentic future is here. We’ve explored the path forward, and we’ve seen the exciting places it leads. This guide can help you take your first steps and start realizing those possibilities today.

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Expert insights

“It’s a truly transformative time. What we’ve learned from embracing the agentic future at Microsoft is only making us more eager to see organizations empower their employees to take the lead in a world where human judgment and machine intelligence work in harmony.”

Brian Fielder, vice president, Microsoft Digital

“As we harness the transformative power of AI agents, it’s our responsibility in IT to ensure that technology not only enhances decision-making but also fosters a culture of innovation and collaboration across the organization.”

Stephan Kerametlian, business program management senior director, Microsoft Digital

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Chapter 1: Advancing good governance to meet the agentic moment

Maintaining privacy, security, and compliance while respecting regulatory frameworks

Agents offer powerful opportunities to enhance employee productivity, but they also introduce concerns. For example, how do we keep privileged information where it belongs? And how do we keep employees from building agents that violate company policies?

In answering these questions, Microsoft Digital’s governance team focused on the value the company is trying to derive from agents.

We wanted to give employees and teams the freedom to build without risk to the business or introducing agent duplication and sprawl. We wanted to weave robust, reliable agentic experiences into enterprise workflows. We also needed to secure and protect confidential data while respecting responsible AI principles.

“Our principles haven’t changed, but they’ve evolved,” says David Johnson, a tenant and compliance architect at Microsoft Digital. “With AI, the need for proactive governance is far greater than ever before, so we’re putting structures in place that take some of the labor around managing agents off of IT.”

There are some cornerstone constructs that underpin our agent governance strategy. There’s a tenant that holds employees accountable, a reasonably clean data estate, a lifecycle for the agents users-they disappear when the employee leaves. 

We’ve developed six core principles to guide our approach to governing agents:

1. We ensure a strong data hygiene foundation so we can trust our data estate as employees build and use agents.
2. We empower employees to build personal agents that can access services and data sources those users can already access to help automate and accelerate their tasks.
3. We empower teams and lines of business to build agents with known lower risk patterns to accelerate impact.
4. We provide a smooth release path for engineering teams to develop agents designed for enterprise functions so they can access all of the services and sources they need.
5. We accelerate innovation through agent and automation templates while maintaining an AI Center of Excellence (CoE) to help teams think through their opportunities.
6. We reimagine employee experiences and task execution to simplify and optimize productivity.

As a result of our experience establishing strong governance for Microsoft 365 Copilot, we’d already laid a firm foundation for an agent-ready data estate. In some ways, governance is tool-agnostic, rooted in basic principles. With appropriate data labeling, data hygiene, and well-managed permissions in place alongside tools that respect labels by default, we can confidently give every employee the ability to build basic agents and trust in our governance guardrails.

A matrixed approach to agent governance

The sheer diversity of agents and their use cases means we need a multifaceted approach to governance. A matrix of different parameters applies to any agent, and each of those elements requires its own approach to policy.

In practice, agent governance structures echo our overall maturity approach. Simple, personal, lower-risk agents with built-in guardrails act as a starting point for employee experimentation and require very little oversight. As a result of our robust data hygiene foundation, if an employee has access to the grounding content, these agents are low-risk accelerators for things they can already do on their own. Meanwhile, higher-impact agents demand greater attention that echoes our security development lifecycle (SDLC) for internal apps, which include more extensive, cross-disciplinary reviews.

To accommodate agent-creation experiences across this spectrum, we’ve enabled several different building platforms and processes employees and teams can use to create the AI tools they need.

1. We opened up Agent Builder in Microsoft 365 Copilot for all employees to create read-only declarative agents.
2. We created an environment strategy and governance in Power Platform to manage personal environments featuring data connectors with lower risk but high value.
3. We enabled a process to flow the data that teams need into production Power Platform environments featuring data connectors. These agents initially come with sharing limits until the agent receives risk approval.

This structure provides the ability to safely create agents of increasing complexity while ensuring they remain secure and contained until they get the necessary reviews for wider sharing and data exposure.

Our governance guardrails, review policies, and publishing scope varies based on the tool used to create an agent, the level of technical proficiency it requires, its grounding in knowledge sources, its capabilities, the actions it can take, the plug-ins it requires, and whether it includes a custom engine or a bring-your-own model.

The following examples illustrate two different agent scenarios:

As you consider your own governance structures and policies, think about where agents and the ability to create them fit your needs and risk tolerance. Then learn from the different parameters of our governance matrix to access a working model for your own agentic transformation.

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Expert insights

“Our principles haven’t changed, but they’ve evolved. With AI, the need for proactive governance is far greater than ever before, so we’re putting structures in place that take some of the labor around managing agents off of IT.”

David Johnson, tenant and compliance architect, Microsoft Digital

As you consider your own governance structures and policies, think about where agents and the ability to create them fit your needs and risk tolerance. Then learn from the different parameters of our governance matrix to access a working model for your own agentic transformation.

Aisha Hasan, Power Platform and Copilot Studio product manager, Microsoft Digital

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Balancing utility and manageability in our agent ecosystem

Empowering employees and teams to simply and securely create agents has been a top priority as we move toward AI maturity at Microsoft, but we also want to eliminate agent sprawl.

Aside from complicating agent management, sprawl has several user-side disadvantages. For example, if more than one team were to create an agent that points to HR information, the employee experience would suffer, because our users wouldn’t be sure which agent serves as the authoritative source of truth.

Our team in Microsoft Digital partners with other internal organizations to ensure we’re prioritizing the right agent development projects and avoiding agent sprawl. Ideally, these engagements take place before teams start building their agents so we can avoid wasted effort or duplicate work.

If a pre-existing agent fits the target scenario, we encourage a team to use that agent instead of creating a redundant solution. For employees who want to create their own agents, we recommend that they first search for an existing tool in our agent catalog to avoid duplication.

User-based lifecycles and periodic attestation are also key pieces of the puzzle. Requiring attestation helps ensure that agents cease to exist once they’re no longer useful or their owner leaves the company.

The release of Microsoft Agent 365, now in early access, represents the next step forward in agent observability and management, two key aspects of agent governance and sprawl mitigation. This control pane for agents incorporates many of Microsoft’s Digital’s learnings as we’ve bridged governance gaps through IT intervention.

• The registry provides a complete view of agents. The enterprise agent store makes it easy to find the right agents for each role and business process within familiar workflows in Microsoft 365 Copilot and Teams.
• Visualization provides the observability layer, including role-specific oversight, compliance and audit features, and performance measurement that can help organizations track their agents’ impact and see where they contribute value.
• Interoperability ensures Agent 365 is open to any Microsoft-built or partner ecosystem, while also delivering work intelligence through access to data and Microsoft 365 apps.
• Security features provide crucial confidence through visibility into security posture, detection and response capabilities, and intelligent runtime defense.

“The next step in our governance journey will be using AI to help us govern AI,” says Aisha Hasan, Power Platform and Copilot Studio product manager at Microsoft Digital. “We’re looking at ways AI can help us manage this new space, and we believe Agent 365 will be the foundation for our deterministic approach to governance.”

As you strategize to deepen AI maturity at your organization, our experience will help you operationalize many of the aspects of governance we’ve pioneered as Customer Zero for agentic AI, especially with the wide release of Agent 365. By adopting the principles we’ve illustrated in this chapter, you can accelerate your transformation and advance your maturity rapidly and securely.

Learning from our experience with agent governance

A strong data foundation is crucial

We’ve built respect for labeling and data governance policies into the tooling for AI assistants and agents, but it’s dependent on a well-governed data estate. Invest time and effort in establishing that foundation.

Decide on your comfort level with risk

Bring cross-disciplinary experts together from across your organization to determine what level of risk is acceptable for different agents and their use cases. Put guardrails in place for low-risk scenarios and establish processes for supporting more complex or sensitive use cases. Evaluate what data sources agents can extract information from. Do you have confidence that users haven’t over-shared data access?

Agents aren’t always like applications—adjust your processes accordingly

We quickly learned that reasonable processes, approvals, and workflows for internal application development didn’t scale well with agents. Consider a risk-based assessment model.

Change is constant

Plan to reassess and revise your governance structure regularly. This technology is evolving rapidly, as is the tooling surrounding it, so maintaining good governance will be an ongoing practice.

Governance is a value driver for employees

Governance isn’t just about protecting your organization. It also provides the right patterns to make sure your employees are getting value from agentic technology. Establish strong measures of value and a robust pane for management and assessment. Observability and telemetry will be foundational, so ensure you build that into your governance efforts.

Continue non-agentic workstreams

Enterprise technology environments are additive and incremental. Don’t cease your efforts to create and govern other internal technologies. Instead, maintain a holistic ecosystem.

Key takeaways

Use these tips based on what we learned here at Microsoft to tackle agent governance at your company:

• Establish a cross-disciplinary agent center of excellence: Bring together stakeholders across the organization to define priorities, goals, and shared practices for agent adoption.
• Put strong data and information protection policies in place: Establish clear governance for your data estate, including labeling and information protection, to support responsible agent use.
• Right-size oversight based on risk: Determine your organization’s risk tolerance and define which agents require more or less involvement from IT, security, and compliance teams.
• Define a clear agent building tool strategy: Decide which tools employees and teams can use to create agents, balancing empowerment with governance.
• Operationalize agent oversight and management: Establish an oversight model and implement tools like Agent 365 that help manage agents at scale.
• Create a centralized governance and information hub: Provide employees and agent builders with a single place to find guidance, standards, and governance information.

Learn more

How we did it at Microsoft

• Explore our IT playbook for the AI era and learn how we’re becoming a Frontier Firm. This article shares our journey as an IT organization in support of this new operating model.
• Read our five-step guide for IT leaders who want to drive greater AI maturity. This resource can help you chart a course through AI maturity to reimagine what’s possible for the enterprise.
• Discover how Microsoft is becoming an AI-first Frontier Firm. This story shares how we’re approaching the idea of an “agentic future.”
• Learn from our experience tackling Microsoft 365 Copilot governance. This article explains the foundation of our governance efforts in the AI space and can serve as a starting point for agentic governance.
• Discover our six dimensions of agent value. They provide our framework for measuring the impact of AI at Microsoft.

Further guidance for you

• Secure your agents at scale with Microsoft Agent 365 guidance for unified identity, compliance, and control across platforms.
• Find out more about security and governance in Microsoft Copilot Studio with our product‑level guidance on DLP, environment controls, audit logs, and security features specific to Copilot Studio agents.

Chapter 2: The Microsoft roadmap for implementing agents

Developing a plan to advance AI maturity while unlocking agentic value at every level of our organization

Implementing agents across your organization is intertwined with your larger AI transformation efforts. At Microsoft, we’ve adopted an escalating maturity model that unfolds across five stages.

Putting the Microsoft AI maturity model into practice

Whatever stage you’re at in your AI journey, you’ll likely experience many of the same challenges and opportunities we do at Microsoft.

Stage 1: Awareness and foundation

Building a foundation means setting a bold vision for your AI journey, anchored in clear business outcomes. At this stage, it’s important to engage your executive sponsors early to foster cross-functional collaboration and empower experimentation.

At Microsoft, we established our AI Center of Excellence (CoE) to help guide and drive adoption of Microsoft 365 Copilot, as well as a Data Council that powers our AI-ready data strategy. As we’ve moved into the agentic future, these teams have been instrumental in maintaining forward momentum.

The company also established the Office of Responsible AI (ORA) to advance AI development, deployment, and secure and trustworthy innovation through governance, legal expertise, internal practice, public policy, and guidance on sensitive uses and emerging technology. ORA partners closely with product and engineering teams alongside other trust domains like privacy, digital safety, security, and accessibility to align our work with Microsoft’s six responsible AI principles:

• Fairness
• Reliability and safety
• Privacy and security
• Transparency
• Accountability
• Inclusiveness

Target outcomes include

A foundational strategy, governance principles, and leadership buy-in to kickstart AI projects.

Stage 2: Active pilot programs and skill building

We started by launching targeted pilot projects across different areas of the company. This process encouraged experimentation and used hackathons to surface a broad range of ideas. From there, we selected the most promising initiatives by evaluating business value against implementation effort and focused resources on a select group of high-impact projects.

To establish early-stage governance, we required all pilots to undergo responsible AI and architectural reviews.

Target outcomes include

The first tangible benefits of AI, including efficiency gains, time and cost savings, quality improvements, and an emerging internal talent pool that paves the way to scale successful solutions.

Stage 3: Operationalize and govern

At this point, we worked to scale and integrate AI solutions across the company. We strengthened our data and AI infrastructure to support this transition by formalizing enterprise governance with clearly defined steering teams. Our AI CoE, Data Council, and Office of Responsible AI helped accelerate implementation, ensure the ongoing quality of structured data, and oversee ethical AI use and compliance. Collaboration among these groups was crucial for ensuring our AI initiatives remained within acceptable bounds while delivering tangible business impacts.

Target outcomes include

Multiple AI use cases running at enterprise scale under robust oversight, with cross-functional alignment on AI objectives and the business value they’re delivering.

Stage 4: Enterprise-wide adoption

To consolidate our gains and achieve AI adoption across the enterprise, we prioritized making AI a core consideration in every new project and process by asking where AI-driven intelligence could deliver real impact. That could be by boosting efficiency, enhancing user experiences, or unlocking new business value. From there, we aligned our AI initiatives with our organization’s strategic goals by empowering business leads to synchronize efforts and continuously update our AI roadmap.

We also cultivated a data-driven culture through ongoing, large-scale training while making AI tools a natural part of everyday work. To accomplish that, we established rigorous impact tracking with clear measurement of the amount of value delivered. Key metrics include time savings, cost reduction, and quality improvements. We reviewed these outcomes regularly at the leadership level to maintain accountability.

Our Continuous Improvement CoE has been instrumental in the process of aligning AI initiatives with our organizational goals and providing a framework for progress. It operates according to four principles:

1. A clear definition of winning, based on expectations
2. Disciplined execution
3. Constrained problem-solving with urgency
4. Sustained replication and acceleration

Target outcomes include

Measurable, data-driven monitoring of AI for your business that’s powered by a continuous improvement mindset.

Stage 5: Transforming your business with agentic AI

At stage five, we’ve been working to embed AI into every aspect of our operations and culture. We started by leveraging the expertise of our AI CoE to foster innovation, drive continuous improvement, and keep our AI initiatives evolving using structured mechanisms like a Kaizen funnel to crowdsource, prioritize, and advance ideas that extend the impact of AI across the enterprise.

We also further strengthened governance to address the advanced challenges of agentic applications, including responsible scaling of generative AI and effective mitigation of AI hallucinations. Finally, we focused on refining human-AI collaboration so our teams can offload routine tasks to AI agents and concentrate on higher-value work.

One tactic that’s been highly successful here at Microsoft Digital is conducting “Fix, Hack, Learn” weeks, where we encourage employees to identify opportunities for improving our services. So far, these initiatives have yielded multiple AI-powered breakthroughs that are already in production.

Target outcomes include

Significant efficiency gains and innovations from AI, including recognition as a leader in enterprise AI adoption.

As you advance along the AI maturity curve at your organization, keep these essential ingredients in mind:

1. Executive sponsorship and governance
2. Responsible AI by design
3. Data foundations, architecture reviews, and technical readiness
4. Talent, skills, and culture
5. Impact tracking and accountability
6. Change management and communication
7. Continuous improvement, innovation, and partnerships

It’s important to remember that these elements aren’t static, but iterative. You’ll need to continue to evolve them over time as your enterprise AI transformation continues. But the five stages of enterprise AI maturity we’ve outlined in this chapter form an overarching framework to keep you moving forward.

Learning from our agent implementation experience

Invest in data infrastructure and AI platforms

Building robust data infrastructure ensures your organization is prepared to leverage AI, supporting scalable, innovative, and secure AI-driven solutions.

Foster a culture of innovation and collaboration

Champion an AI-forward culture where innovation and collaboration drive the adoption of agentic AI.

Align AI initiatives with strategic business goals

Ensuring AI initiatives align with business goals maximizes impact and positions your organization to succeed in the rapidly evolving world of agentic AI.

Implement ethical practices based on our responsible AI principles

Adopting ethical AI practices builds trust, ensures responsible innovation, and prepares your organization to navigate the evolving landscape as AI becomes central to business operations and decision-making.

Position IT to facilitate the transition to a Frontier Firm

At a minimum, your IT leaders and practitioners need to prepare your data estate for agentic workloads, partner to identify and enable prioritized business scenarios, and then actively participate in enterprise transformation through skilling, change management, and measurement activities.

Evolve your enterprise IT infrastructure to embrace dynamic and adaptive agent-based systems

Moving from traditional deterministic systems to agentic systems that introduce probabilistic behaviors, autonomous decision-making, and continuous learning requires new architectural thinking, audit capabilities, and governance models.

Key takeaways

Here are some key tips for implementing agents at your organization, based on what we’ve learned through our own experience here at Microsoft:

• Align agent efforts with business priorities: Partner with leadership to establish clear business priorities that guide agent adoption and investment.
• Define success and how you’ll measure it: Determine business goals and metrics of success that allow you to track impact and value over time.
• Put the right governance structures in place: Establish steering committees across implementation, data, responsible AI, and continuous improvement to guide decision-making.
• Start with early adopters and focused pilots: Identify enthusiastic users and promising pilot programs to validate value and refine your approach.
• Scale what works across the enterprise: Determine which initiatives deliver the greatest value and are ready for broader, enterprise-wide adoption.
• Support change through targeted skilling and enablement: Develop skilling and change management strategies that address the needs of both technical and nontechnical employees.

Learn more

How we did it at Microsoft

• Take a look inside the councils steering AI projects at Microsoft. This article describes the overall impact of our AI CoE, data council, and Office of Responsible AI at Microsoft.
  • Learn more about our AI CoE.
  • Learn more about our Microsoft Digital Data Council.
  • Learn more about our Office of Responsible AI.
• See how we’re building an AI-powered continuous improvement culture at Microsoft. This story outlines the work of our Continuous Improvement CoE as it identifies and tracks AI opportunities at Microsoft.
• Learn how we’re unleashing API-powered agents at Microsoft. This article shares our internal learnings and a step-by-step guide.

Further guidance for you

• Follow the Microsoft 365 Copilot Agents Deployment Blueprint to enable agents at scale with security, governance, and measurement strategies.
• Microsoft Copilot Studio implementation guidance on how to plan, build, manage, and improve Copilot Studio agents.
• Get our AI Agent adoption guidance for planning, governing, building, and managing AI agents across your organization.
• Define your solution architecture with architecture-level guidance for designing scalable, enterprise-ready agents.

Chapter 3: Driving adoption to capture value across the organization

Readying our workforce for the agentic future through targeted enablement, skilling, and cross-company collaboration

Change management is an important part of our AI maturity journey. All the technical readiness in the world means nothing if we don’t build a transformative culture. The spectrum of agents, use cases, and creation methods is wide, but enabling them all requires one thing: an AI-first mindset.

Driving adoption for agents represents a fundamental shift from an AI assistant like Microsoft 365 Copilot, which delivers a comparable experience for every employee. With the agentic mindset, the point is for individuals to be selective about the agents they choose to use—and more significantly, the agents they choose to create.

We also structure our enablement efforts to channel employees into different behaviors based on what’s available and what they might need to build:

• First, we enable employees to discover and use agents that are already published and available.
• If an agent that serves their use case doesn’t exist, employees can build their own, starting with simple no-code agents.
• For complex agents, we channel employees, teams, and lines of business into using Copilot Studio and other, more full-featured pro-code tools.

Regardless of the behavior we’re trying to enable, we follow a four-phase strategy that takes inspiration from Prosci’s ADKAR model, which progresses through awareness, desire, knowledge, ability, and reinforcement. Our adoption efforts align with the Microsoft Engagement Framework, which we’ve developed specially for driving adoption of our products. You can learn more about our overarching approach in our Microsoft 365 Copilot readiness guide.

“An important part of agentic adoption is telling stories to help people understand where AI’s value comes alive or why they should build agents,” says Amy Rosenkranz, a principal product manager on the Copilot Extensibility team within Microsoft Digital. “Examples from peers and real-world use cases are two of our most effective methods for getting people into the AI-first mindset.”

We’re applying several tried-and-tested change management techniques to our organization-wide adoption efforts. These are relevant to both non-developer employees who want to create simple agents and professional developers working on tools for their teams, lines of business, and the entire enterprise.

Cohort-based coordination

We divide our adoption campaigns along two pivots: Internal organizations like legal or sales and marketing, and regions like North America or Europe. Different cohorts have different focuses, but the strategy is similar. Our company-wide adoption leads spearhead our efforts, and we identify members of target cohorts who can support the adoption, including change managers, leadership sponsors, and employee champions.

Adoption communications

We treat internal communications as a primary driver of agent adoption and creation, not just a distribution channel for training. Our initial communications focused on building confidence, reducing fear, and reinforcing clear norms for responsible agent building. We used consistent messaging across leadership communications, learning content, and employee channels to normalize experimentation and help employees understand when to create an agent, when to reuse one, and where to go for guidance.

AI Agent Launchpad

During our deployment of Microsoft 365 Copilot, we experimented with event-driven skilling in the form of Camp Copilot and Copilot Expo. Now, we’ve adapted these kinds of skilling events to agents as well. AI Agent Launchpad takes employees on a learning path through five modules to help them discover, use, and build agents confidently:

1. AI mindset in motion: Employees learn about the concept of the Frontier Firm.
2. Introduction to agents: This module covers the basic principles and definitions of AI agents to establish a foundation of understanding for agent creation and usage.
3. Explore existing agents: Participants build the new habit of discovering available agents to see if any existing tools meet their needs.
4. Build agents with ease: Employees polish their agent building skills in Copilot Chat and SharePoint with an expert in a hands-on lab environment.
5. Build with Copilot Studio: This module goes deeper into designing, connecting, testing, and publishing more powerful agents.

Each module features self-learning readiness, live sessions, gamification, and Credly badges. Instead of a global, centralized event, we’ve modularized the experience so local or organization-level leaders can adapt it to their particular cohort’s needs, while still providing support from centralized adoption leads. We’ve also created a freely available resource organizations can use to plan and run their own virtual skilling events around AI adoption.

Copilot builder champs

Our initial AI rollout showed us first-hand the power of peer leadership in driving adoption, so we adapted the strategy behind our highly successful Copilot Champs Community into our Copilot builder champs program. This initiative makes use of peer connections, success stories, and a Viva Engage community, and we refocused it on enabling employees to create the agentic solutions they need.

These champions represent some of our strongest adoption evangelists on their respective teams. We also created a Microsoft SharePoint hub with resources, best practices, agent publishing information, and more.

Integration and incentivization

We collaborate with managers to integrate AI into their teams’ routines. Often, we’ll use mini-challenges or gamification strategies to encourage agent usage. We recognize top contributors with shout-outs or small awards. We’ve also found that it makes these efforts more engaging to blend work tasks with personal interests.

Formalizing change management for professional developers

We apply more focused adoption initiatives for the professional developers who create team, line-of-business, and enterprise agents. Because their efforts are reimagining how work gets done across the organization, we need to ensure these agents are aligned with business goals, built securely and responsibly, and drive the impact the company needs. The process unfolds across five steps.

Whatever your goals and whichever segment of your workforce you target, it’s important to understand that adoption doesn’t happen by accident. True workforce transformation won’t take place without appropriate adoption activities.

As you launch your own adoption initiatives, consider who your audience is, what they need to build confidence and competence, and how you can unlock agentic value for them across your organization.

Learning from our agent adoption experience

Be thoughtful about your audience

Vary your efforts between non-developer and developer audiences, different geographies and internal organizations, and specific goals. Put together a methodology for thinking about what agents you want and what benefits they’ll provide, then determine who the best builder is.

Don’t just enable agents—empower the enterprise

Your goal isn’t just to activate agents for agents’ sake. Think carefully about what workflows and value you’re trying to unlock, and how agents can get you there. Break down aspects of roles and workflows, and see how agents fit in.

Establish multiple vectors for skilling

Different modalities work for different employees. Use every tool at your disposal, from live events to peer leadership to self-guided learning, and communicate them across all available channels.

In many ways, this is a reset

Your employees may have just become comfortable with Copilot, and agents might feel like a whole new horizon. That’s true. Have patience and understand that this is an entirely separate adoption path.

Showcase and celebrate success

People need to see value and possibilities for agents in their own work. When pilots or personal agents create results, socialize them widely and encourage employees to try them out. Nothing encourages experimentation with agents like successful usage.

Leadership sponsorship is absolutely crucial

Leaders both set expectations and bear the standard of your organization’s culture. They can be the figureheads of transformation by setting priorities, participating in communications, and leading by example.

Key takeaways

Here are some important steps to keep in mind as you embark on your own adoption and change management efforts for agents:

• Establish strong adoption leadership early: Assign a dedicated adoption lead, form a cross-functional adoption team, and align change managers, executive sponsors, and employee champions around clear ownership and cadence.
• Design adoption around real work and real people: Identify priority cohorts, personas, and usage scenarios, then tailor messaging, enablement, and communications to how each group works and learns.
• Define success before you deploy: Set clear KPIs and success criteria likefeature usage, scenario adoption, and employee sentiment, and put a measurement and feedback plan in place from day one.
• Enable employees through structured onboarding and learning: Combine readiness communications, live learning, self-service resources, and a centralized enablement asset library to help employees build confidence and momentum.
• Activate champions and leadership to amplify adoption: Launch champion communities, empower leaders to model usage, and use internal channels to reinforce behaviors and share progress.
• Continuously listen, learn, and iterate: Gather feedback through surveys and listening sessions, surface success stories, and apply insights to refine adoption, reinforcement, and resistance management plans.
• Extend and optimize for professional developer teams: Support advanced agent ideation, development, discovery, and advocacy while using ongoing feedback to drive workforce transformation at scale.

Learn more

How we did it at Microsoft

• Revisit our adoption practices for Copilot. This chapter of our Copilot readiness guide will help lay a base for your understanding of AI adoption practices.
• See how we made AI engagement fun with Camp Copilot. This article tells the story of our skilling event series to show you how this kind of initiative could look at your organization.
• Try our 7 tips for driving Microsoft 365 Copilot adoption with a virtual skilling event.  This post distills our learnings from Camp Copilot into a handy list for change leaders.
• See how we enabled meaningful AI adoption with a Microsoft 365 Copilot Expo. This story outlines our follow-up and evolution of the Camp Copilot experience into Copilot Expo, a more flexible and modular skilling event.
• Learn how we drove Microsoft 365 Copilot adoption with our Copilot Champs Community. This article showcases the peer leadership efforts that supported Copilot adoption at Microsoft.

Further guidance for you

• Download the Agentic Automation Adoption Guide to learn migration strategies, governance models, and business value for agentic automation.
• Explore the company’s official AI agent adoption guidance to plan, govern, and operate agents using proven frameworks and best practices.
• Visit the AI Agents Hub on Microsoft Adoption to access webinars, quick-start guides, and business scenarios for Copilot, Foundry, and Copilot Studio.
• Check out our Copilot user engagement tools and templates, which we used to encourage adoption across our organization.

Chapter 4: Providing support at the agentic frontier

Bolstering agentic transformation through solid groundwork, human oversight, and AI-driven support

With many forms of technology, support is fairly simple. You identify pain points and common issues with a relatively static technology, create self-service tools to help users with those challenges, and make subject matter experts available in the form of a dedicated support team.

But AI is evolving too quickly for that model, and agents are too diverse and individualized for a static approach. As a result, our support apparatus for agents needs to be much more flexible. Within Microsoft Digital, our goal is to make it easy for employees to engage with agentic tools freely and adaptably while maintaining safety and responsibility.

The path to this objective relies on a three-pronged approach to governance:

• Embedded governance functionality: The ideal state is that our agent creation and publishing tools should incorporate good guidance, governance, and guardrails out of the box so the agents people create are essentially self-governing.
• IT oversight: This is a new space and a new way of working, so it isn’t feasible for all agents to self-govern at this point. As an IT organization, Microsoft Digital fills gaps in governance through reviews and oversight. We do this by establishing risk-based policies around types of agents, exposure and sharing, and other pivots we addressed in our governance chapter.
• User education: It’s almost impossible to predict every governance gap and need, so educating our users helps them avoid accidentally stepping out of bounds. Our Agents at Microsoft team and change managers are the linchpins of these efforts, and employees can lean on resources like Microsoft Learn courses and the Agent Builders SharePoint hub.

Of course, we do have a support team of AI subject matter experts available to employees for any questions they can’t answer themselves. Our HelpDesk support team operates independently from other enablement vehicles, but human support representatives can only accomplish so much. It’s important not to create bottlenecks by relying on conventional support. After all, the promise of AI is to reduce the burden on humans, and that’s no different for our support teams.

“On our journey to Frontier Firm, we’re working really hard to accelerate processes and remove roadblocks so people can get to value much faster. This is crucial for agentic scenarios because we’re using these iterations to polish and improve the tools we create.”

Mykhailo Sydorchuk, Customer Zero lead for Microsoft 365 integrated experiences, Microsoft Digital

AI itself is becoming a cornerstone solution for this challenge. An AI-driven approach aligns with the idea of the Frontier Firm, where humans lead and agents operate, in this case by supporting other humans as they explore AI more deeply.

This is a relatively new approach, but we’re already using agents to provide support in several ways:

• We operate an agent called Ask MICA (Microsoft Intelligent Compliance Agent). This tool provides information and support for compliance issues.
• Agents help us evaluate the risk profiles of other agents. Automating risk assessment accelerates publishing by minimizing human reviews or questions to support specialists.
• We use an agent to perform checks against standards for responsible AI, security, privacy, and access to sensitive information.
• We’re also partnering with our product groups to develop automated agent-building enablers and accelerators that can support ideation and evaluation for new ideas instead of relying on groups like the AI CoE to step in for that kind of support.

In reimagining the support experience this way, we’re focused on maximizing efficiency so that humans remain in the loop, but only for edge cases where AI can’t help. That’s the best use of their time and unique human talent. Meanwhile, we’re continuing to develop and implement agents to support employees for increasing numbers of non-edge cases.

Continuous improvement practices help propel this work forward. Much of that work comes from targeted conversations around pain points. For example, an agent builder might share that it’s taking too long to get security reviews for their projects. To us, that signifies that a security review agent may be useful.

“On our journey to Frontier Firm, we’re working really hard to accelerate processes and remove roadblocks so people can get to value much faster,” says Mykhailo Sydorchuk, a Customer Zero lead for Microsoft 365 integrated experiences at Microsoft Digital. “This is crucial for agentic scenarios because we’re using these iterations to polish and improve the tools we create.”

It’s important to remember that humans will always need to be involved in supporting other humans. But the more assistance agents can provide your support specialists, the more they can focus on tasks that absolutely require human attention. As you consider where AI might fit into your support efforts, our journey can shed some light on the possibilities agents represent.

Learning from our experience with providing support around agents

Emphasize proven agents to minimize the need for support

If you’ve built dedicated first-party agents within your organization, encourage employees to favor those through internal communications. They’re less likely to require support in the first place.

Identify opportunities for AI-driven support

Listen to employees’ pain points and concerns. Recurring themes and issues probably mean there’s an opportunity for agentic support.

Meld adoption and support

Education and skilling initiatives build employee competency to minimize their need for support. If people understand standard use cases thoroughly or know where they can find the right information, they’re more likely to reach out to support specialists only on real edge cases.

Backstop support as much as possible

Microsoft is working to make our tools as self-service as possible. Where gaps appear for your organization’s specific use cases, fill those with IT backstops and employee enablement resources. Hopefully, your support team can be your final resort.

Key takeaways

Here are some key things to remember as you develop your support plan for agents at your company:

• Build agent expertise within support teams early: Provide targeted training, skilling, and early access so support teams can become trusted agent subject matter experts.
• Reduce support demand through proactive enablement: Identify IT backstops and employee enablement opportunities that prevent common issues before they require support intervention.
• Operationalize agentic support at scale: Identify recurring issues across non-developers and professional developers, select high-value opportunities for agentic support, build and test support agents, and actively promote them to drive adoption.

Learn more

How we did it at Microsoft

• Revisit our support practices for Copilot. This chapter will help you lay a base of understanding for AI adoption practices.
• Access our eight steps for managing your support team content with AI tools. This resource demonstrates one way AI can boost your support team’s efforts.
• See how AI is revolutionizing the way we support corporate functions at Microsoft. This story outlines ways that AI tools can contour to different functions across your organization.

Further guidance for you

• Get our Microsoft Agent 365 overview documentation for our control plane for managing, governing, and securing agents across the enterprise.
• Learn how to manage AI agents across your organization. This article provides guidance on integrating AI agents into business workflows and managing their lifecycle from deployment to retirement.

Chapter 5: Tracking the impact of your agents

Building the apparatus for effective measurement to ensure our agentic ecosystem drives business value

Effective governance, implementation, adoption, and support don’t mean anything if your agents aren’t driving the impact your organization wants. But how do you understand that impact if you can’t track and measure it? And what should your measurement criteria be?

Within Microsoft Digital and the company’s leadership team, we’re currently thinking through these ideas to ensure we’re capturing all the value agents have to offer. We’re still developing our approach, but the questions we’ve asked and our measurement parameters will be helpful to consider as you track your own agents’ impact.

First, there’s a difference between tracking agent volume, agent usage, and agent value. Employees creating massive numbers of agents that never get used don’t drive impact. Agent usage is closer to the mark, and it can be a good indicator of which tools are meaningful to employees or might deserve potential promotion for use throughout your organization. Still, usage doesn’t necessarily correlate to business value.

To really articulate value, you need to dive into the specifics of what you intend your agents to do. There are several dimensions to consider:

• Types of agents: First-party enterprise agents, third-party agents, line-of-business or team-based tools and individually created agents all have different purposes and capabilities. They need different measurement strategies.
• Personas: Who is creating the agent, and what are their maturity and needs? What value does a user get compared with a developer or administrator? There’s also team versus individual value. For teams, we tend to measure impact in terms of workflows automated or pain points relieved. For individual users, it’s all about satisfaction, productivity, quality, and efficiency gains.
• Data: Different agents access varying degrees of data. How do you assess the ways they provide access and deliver insights?
• Creation versus discovery and usage: We want to encourage both agent creation when it meets a unique need and agent discovery when a useful agent already exists. Each requires its own measurement parameters.

Our roadmap to agentic impact tracking

We aren’t starting from scratch when it comes to tracking agentic impact. Our Continuous Improvement CoE has already done extensive work aligning targeted and sanctioned AI initiatives with greater business value and tracking them over time. The concept is based on defining top-level value, cascading that value into operational drivers that deliver results, creating action plans and delivering AI solutions to achieve those goals, and then tracking them over time.

We’re currently progressing along a roadmap to a more holistic impact tracking methodology we can use to identify, consolidate, and build agent analytics for all makers, developers, administrators, and Microsoft Digital teams. As time goes on, this approach will accelerate product improvements, improve the builder experience, and cater to reporting and analysis requirements.

Our journey has three main goals:

1. Authoritative, clean, deduplicated data
2. A baseline for creation and usage, and well-defined key performance indicator (KPI) targets
3. Advanced insights to accelerate the agentic ecosystem at Microsoft

In service of these goals, we’re progressing through a five-phase process:

As this methodological structure for tracking agentic impact has come together, we’ve used various tools to help us gain visibility. These include Viva Insights, Microsoft 365 admin center, and an internally built declarative agent tracker, with visibility typically provided by Microsoft Power BI. With the release of Microsoft Agent 365, now available through the Frontier program, we’ve gained a more streamlined vehicle for observability and telemetry.

Three feature sets will be especially useful for tracking value:

• Registry provides a complete view of agents to give us maximum visibility and trackability across our entire agentic ecosystem.
• Visualization includes measurement features to track agent performance, speed, and quality so we can assess ROI and make informed deployment decisions.
• Interoperability ensures we can connect to an open ecosystem of both Microsoft and partner tools.

As Customer Zero for Agent 365, we’re excited to have a platform for observability and telemetry that encompasses everything from agentic creation through usage.

We plan to use the following capabilities to improve the overall ecosystem:

• Filtering our agent inventory on specific criteria like the type of agent or how it was built
• Enhancing governance-specific actions we can take with agents in areas like ownership and quarantining
• Gaining visibility into trends like agent usage
• Ingesting agent blueprints and defining policy templates

We’re still in the midst of our agentic measurement journey at Microsoft, but the blueprint for tracking already exists. Your organization may be in the early stages of agent readiness and deployment. If that’s the case, it will be helpful for you to internalize the lessons we’ve learned as Customer Zero and apply them as early as possible in your own journey to AI maturity.

Learning from our approach to tracking agentic impact

Think proactively, not retroactively

If you put effort into tracking agentic impact early in your AI maturity journey, you’ll be poised to start capturing insights immediately instead of applying your methodology after the fact.

Involve a wide array of stakeholders

This workstream needs oversight from different kinds of stakeholders, including your leadership team, IT, Microsoft 365 administrators, agent developers and builds, and employee champions. That will provide the sponsorship, expertise, and perspective you need for success.

Establish a continuum of value

Agents need to tie into real business goals, so it’s important to establish metrics that actually speak to those objectives. Cascade business goals to concrete KPIs with well-defined timelines and track those diligently.

Embrace the red

Try to think of underperformance not as failure, but as data. Performance data over time helps you course correct or pivot, making sure you invest where it matters.

Key takeaways

Here are some tips as you develop a strategy for measuring the impact of agents at your organization:

• Assemble a cross-functional analytics and adoption team: Bring leadership, IT, Microsoft 365 administrators, agent builders, and employee champions together to ensure shared ownership and accountability.
• Clarify analytics and insight requirements up front: Identify, source, and clearly articulate the data and insights needed to measure agent adoption and impact.
• Build an analytics foundation and iterate over time: Consolidate data sources, establish baselines, and develop initial analytics that can evolve as usage grows.
• Define and standardize agent KPIs: Finalize a clear, consistent set of metrics aligned to business outcomes and adoption goals.
• Turn insights into action through reporting: Apply analytics and reporting to inform decisions, optimize adoption efforts, and drive continuous improvement.

Learn more

How we did it at Microsoft

• Find out how we’re deploying Microsoft Agent 365 internally. This story shares our intentions for using our unified control pane for agents.
• See how we’re building an AI-powered continuous improvement culture at Microsoft. This article outlines our approach to continuous improvement.
• Learn how we’re reshaping Microsoft with continuous improvement and AI. This post discusses the importance of continuous improvement for accelerating AI at Microsoft, including three initiatives already underway.

Further guidance for you

• Read this guide for measuring adoption and business value with Copilot Analytics.
• Get our guidance on using Microsoft 365 admin center activity reports. This resource shows you how to get insights into how people in your business are using Microsoft 365 services.

Applying lessons from our agent deployment at your organization

You’ve learned from our AI maturity journey. It’s time to get started on yours.

Becoming a Frontier Firm might seem daunting. But the agent-building and agent-adoption practices we’ve articulated in this guide can help you gradually and thoughtfully progress toward a new organizational blueprint, one that blends machine intelligence with human judgment. It can help you build systems that are AI-operated but human-led.

By capitalizing on the lessons we’ve learned during our internal deployment, you can both speed up the process of building and deploying agents at your company while avoiding frustrating pitfalls. If you anchor your work in careful planning and use the steps and resources we’ve provided here, you’ll be on the path toward true business transformation through agentic workflows.

“Embracing AI transformation is an opportunity for IT leaders to take part in defining the future of their organizations. Our role as technical professionals has never been more revolutionary, and our team can support yours as you reimagine workflows to make AI part of your everyday reality.”

Vijaya Alaparthi, principal group product manager, Microsoft Digital

You’re not in this alone. If you’re looking for support or knowledge on any aspect of your deployment, reach out to our customer success team.

“Embracing AI transformation is an opportunity for IT leaders to take part in defining the future of their organizations,” says Vijaya Alaparthi, a principal group product manager at Microsoft Digital. “Our role as technical professionals has never been more revolutionary, and our team can support yours as you reimagine workflows to make AI part of your everyday reality.”

Frontier opportunities are present across every aspect of your organization today. Partner with us and take your first steps toward this exciting agentic future.

Key takeaways

This guide captures what we’ve learned as we’ve deployed agents across our entire global organization. Here are the key things to remember as your company moves from early AI adoption to a large and thriving agentic ecosystem:

• Advance governance early: Establish a strong and trusted data foundation that includes labeling, protections, and a risk-based governance model before enabling broad agent creation. Establishing your governance foundations for Microsoft 365 provides the confidence to open up Copilot without hiding data. Clear guardrails, differentiated oversight, and lifecycle management help ensure safe innovation without sprawl.
• Follow a maturity roadmap: Use an escalating AI maturity model that progresses from awareness to enterprise-wide adoption and agentic transformation to sequence your rollout. This staged approach aligns AI investments with business goals while building the culture, skills, and infrastructure you need to scale.
• Drive targeted adoption: Treat agent adoption as its own transformation journey, distinct from assistant-based tools like Microsoft 365 Copilot. Cohort-driven skilling, champion communities, localized learning, and leader-led communications accelerate confidence and empower both makers and users.
• Empower builders at all levels: Support no-code creators and professional developers with tailored enablement, clear publishing workflows, and accessible resources. This ensures individuals can create personal agents while teams can safely build enterprise-grade tools that unlock high-value scenarios.
• Reimagine support with AI: Blend embedded governance, flexible IT backstops, and AI-driven support agents to reduce friction and scale help resources. As employees experiment with agents, automated checks, accelerators, and intelligent support tools keep humans focused on true edge cases.
• Track impact holistically: Distinguish between agent creation, usage, and value by establishing KPIs that map directly to real business outcomes. A unified telemetry and observability layer powered by tools like Microsoft Agent 365 enables clear measurement, optimization, and proof of return on investment.
• Continuously evolve toward becoming a Frontier Firm: Advance your culture, architecture, governance, and workforce practices iteratively as agentic capabilities grow. By combining human judgment with autonomous agentic operations, your organization can unlock transformational efficiency, innovation, and scale.

Learn more

How we did it at Microsoft

• Discover how we’re deploying Microsoft Agent 365 internally. This story shares our intentions for using Microsoft’s unified control pane for agents.
• Explore our IT playbook for the AI era and learn how we’re becoming a Frontier Firm. This article shares our journey as an IT organization in support of this new operating model.
• Learn how we’re building an AI-powered continuous improvement culture at Microsoft. This story outlines the work of our Continuous Improvement CoE as it identifies and tracks AI opportunities at Microsoft.
• Access our eight steps for managing your support team content with AI tools. This resource demonstrates one way AI can boost your support team’s efforts.

Further guidance for you

• Secure your agents at scale with Microsoft Agent 365 guidance for unified identity, compliance, and control across platforms.
• Learn about the Responsible AI policies and practices we use to guide our use of AI at Microsoft.
• Follow the Microsoft 365 Copilot Agents Deployment Blueprint to enable agents at scale with security, governance, and measurement strategies.
• Download the Agentic Automation Adoption Guide to learn migration strategies, governance models, and business value for agentic automation.
• Visit the AI Agents Hub on Microsoft Adoption to access webinars, quick-start guides, and business scenarios for Copilot, Foundry, and Copilot Studio.

Try it out

Get started with Microsoft Agent 365 at your company.

We’d like to hear from you

Want more information? Email us and include a link to this story and we’ll get back to you.

The post Becoming a Frontier Firm: A guide for deploying AI agents based on our experience at Microsoft appeared first on Inside Track Blog.

Microsoft Azure DevOps (ADO) is our company’s end-to-end software development lifecycle (SDLC) solution for planning, coding, testing, and delivery. It combines tools for work tracking, source control, pipelines, and artifacts so teams can manage the entire SDLC in one environment.

Although ADO excels at streamlining the development process, we found that users were still spending significant time performing repetitive administrative tasks, like creating and breaking down work items, writing and managing queries for reporting, and reclaiming lost permissions.

Our Engineering Systems Platform team successfully embedded AI into ADO, resulting in ADO experiences that replace manual workflows and free up our IT professionals to concentrate on work that makes a real impact.

Identifying the opportunity

The Engineering Systems Platform team supports 15,000 active users across one of the largest ADO platforms at Microsoft.

“We saw the toll these processes took on users, whether they were compiling information or performing manual tasks. Even with automation, there was still an opportunity to give time back to engineers.”

Gopal Panigrahy, principal product manager, Microsoft Digital

Three years ago, the team began exploring opportunities to automate repetitive ADO tasks like creating and updating work items, navigating project data, gathering statuses, and breaking large initiatives into sprint-ready work.

While they found ways to automate some of these tasks, they discovered decision-making and information synthesis still consumed valuable time and occasionally introduced some human errors.

“We saw the toll these processes took on users, whether they were compiling information or performing manual tasks,” says Gopal Panigrahy, a principal product manager in Microsoft Digital. “Even with automation, there was still an opportunity to give time back to engineers.”

Adding AI to ADO workflows

ADO spans a vast area at Microsoft, serving a wide range of enterprise use cases and personas. What these workers have in common is heavy workloads. With this in mind, different categories of ADO users expressed the desire for AI-powered experiences that could help streamline workflows and speed up day-to-day development tasks.

As generative AI matured, our team explored whether they could embed AI technology inside ADO to act as a real-time assistant, handling administrative work and answering contextual questions using natural language.

“We saw it as a win-win experiment. If we could give engineers back in ADO, they could spend it building, not managing artifacts.”

Debashis Sahoo, principal group engineering manager, Microsoft Digital

The guiding principles of the experiment were simple: Stay in context and preserve user control while aligning with existing ADO permissions and processes.

That vision led to the creation of two complementary Microsoft Copilot agents: The DevOps Assistant and the AI Work Item Assistant.

“We saw it as a win-win experiment,” says Debashis Sahoo, a principal group engineering manager in Microsoft Digital. “If we could give engineers time back in ADO, they could spend it building, not managing artifacts.”

What makes this initiative distinctive is it brings AI closer to the core ADO product and its users. It allows for secure, confidential, and context-rich ADO data to be used safely for meaningful AI-powered experiences.

DevOps Assistant offers conversational, in-context support

DevOps Assistant is a chat‑based experience present in the ADO user interface (UI). It’s activated in a side panel where users can ask natural language questions to retrieve information, check project statuses, and run common DevOps actions without navigating away from their main ADO display.

The DevOps Assistant enables cross-source discovery, which reduces context switching and discovery time and helps lower the cognitive load for engineers and product managers. By reducing the time it takes to switch contexts and search for information, the DevOps Assistant helps ADO users move faster and stay focused on product delivery.

Under the hood, the DevOps Assistant is a constellation of specialized agents, each of which is focused on a different segment of the DevOps lifecycle:

• Work Item Agent creates, refines, and scopes work into sprint-ready backlogs
• Knowledge Board Agent surfaces the right DevOps knowledge at the right moment
• Permission Agent handles access and permission requests
• Bulk Complete Agent runs repetitive, large-scale updates
• Sprint Board Agent summarizes sprint status and provides instant, prompt‑driven insights

“We didn’t just build a chatbot. We built a distributed system of agents that understands the intent of the DevOps user and acts on it securely and in context.”

Apoorv Gupta, principal software engineer, Microsoft Digital

Agents are built in Copilot Studio and coordinated by Orchestrator Agent, Copilot Studio’s front door.

For example, if a user asks to create or refine work items, the Orchestrator Agent routes the request to the Work Item Agent to handle. If the question is about permissions, then it delegates the work to the Permission Agent. It does this for each task.

“We didn’t just build a chatbot,” says Apoorv Gupta, a principal software engineer in Microsoft Digital. “We built a distributed system of agents that understands the intent of DevOps user and acts on it securely and in context.”

At present, the DevOps Assistant is available across all our internal ADO environments at Microsoft. The plan is to make it available to external customers soon.

AI Work Item Assistant provides inline assistance

The AI Work Item Assistant is a real-time embedded experience within ADO work items. Powered by Microsoft Foundry, it helps users create and refine work items using context and business requirements.

The assistant works immersively, keeping users focused and within ADO as they structure work items or generate child items from the parent.

For product and program managers who start with high‑level ideas, the assistant understands intent. It can automatically suggest logical, sprint‑ready breakdowns, helping to dramatically reduce the time spent on planning, sorting, and prioritizing work items.

Turning newfound time into innovation

The key to reclaiming time for your workforce isn’t just the introduction of new AI-driven features. It’s using the technology to enforce structure and quality at the beginning, so that everything downstream moves faster.

Panigrahy describes the practice as three reinforcing feedback loops.

The first loop is upstream quality amplification. AI agents help consistently structure work items with clear acceptance criteria and templates. The structure then feeds other tools (such as GitHub Copilot), allowing them to generate higher-quality code and more predictable outcomes—shortening the overall software development lifecycle.

The second feedback loop is acceleration of execution. In a typical sprint planning session, a team of eight engineers might:

• Take an hour (or more) to manually break user stories into more than 100 tasks
• Create different tasks in their own style, introducing inconsistency and ambiguity
• Generate uneven details, then spend time clarifying data later

With DevOps Assistant and AI Work Item Assistant, that same task breakdown turns into a prompt-driven action that no longer requires hours of work.

“It burns a lot of time for everyone to manually create each item in their own way, making sure they’re using the correct inputs from the product manager and confirming they aren’t missing anything,” Panigrahy says. “Now, with AI magic, it takes less than three minutes.”

The third feedback loop is capacity reinvestment. Instead of spending hours on tactical DevOps mechanics, teams can now spend more time on engineering judgment, resulting in better estimation, technical decisions, and design. They can use these reclaimed hours to learn new tools, experiment with new agents, and innovate on the SDLC.

“Capacity saving keeps giving back, in a loop,” Gupta says. “You get more capacity back. You innovate. You learn. You do better.”

What’s next on the AI-in-ADO journey

The DevOps Assistant and the AI Work Item Assistant can help change user behavior, shifting from time spent doing tactical DevOps tasks to performing higher‑value, judgment-based work. These tools can help teams increase work quality and reduce wasted time.

“Our next chapter is about making AI smarter, more action-oriented, and truly agentic,” Sahoo says. “The goal is to reduce cognitive load and allow the experience to live wherever users are—from Azure DevOps to Microsoft Teams and Microsoft 365—so the agent works seamlessly across their workflow.”

AI-driven productivity gains are arguably the biggest opportunity in the industry. It’s fundamentally redefining the engineering experience at an unprecedented pace.

“While we’ve made huge strides embedding AI into the everyday Azure DevOps experience, it still feels like we’re just getting started,” Sahoo says. “Staying relevant means continuously evolving to deliver ever-greater value and efficiency to engineers.”

Key takeaways

Keep these tips in mind as you get started on your own journey with AI and Microsoft ADO:

• Treat AI as a strategic accelerator, not as an add-on. Identify where your engineering process can use AI to move from simple assistance to transforming your workflows.
• Target high-effort, high-volume tasks first. Analyze where your teams are spending significant manual time, even if AI tools are already in place in those workflows.
• Validate productivity with measurable data, not intuition. Track time reclaimed, workflow efficiency, reduction in manual steps, and user satisfaction. Tangible data can help your initiative earn trust and justify the expansion of AI tool use on your team.

Try it out

Get started using the AI Work Item Assistant in Azure DevOps.

Related links

• Discover how we’re powering the new age of AI-powered engineering in Microsoft IT.
• Learn how to build and manage agents in Copilot Studio.
• Read about ways we’re transforming our enterprise IT operations at Microsoft using AI.
• Check out our IT playbook for becoming a Frontier Firm in the era of AI.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Reclaiming engineering time with AI in Azure DevOps at Microsoft appeared first on Inside Track Blog.

With agent usage growing rapidly, our team here in Microsoft Digital, the company’s IT organization, has invested in events and learning sessions to help employees adopt agentic approaches and get more value from Microsoft 365 Copilot.

One example was Camp Copilot, a peer‑led virtual training event dedicated to building employee Copilot skills. We also offered a Copilot Expo, which delivered a more formal, large‑scale learning program focused on role‑specific skills and deeper daily usage.

Now, we’ve consolidated learnings from those programs into Agent Launchpad, an accessible, multifaceted six‑module curriculum. Our instructional program is designed to develop our employees’ agentic AI skills, empowering them to take advantage of existing agents in their day-to-day work and build their knowledge and confidence to create new agents.

Why we built Agent Launchpad

Companies that fail to grasp the growing role of AI and agents in the workplace risk falling behind teams and organizations that are already redesigning their work around hybrid human-agent teams. We created Agent Launchpad to acknowledge this shift, demonstrate the power of agents, and show how they can be integrated into everyone’s daily work.

Unlike basic assistants that only respond to direct prompts, agents can plan, carry out actions, monitor progress, and iterate until they meet a goal. They can perform tasks like drafting content, analyzing data, automating workflows, scheduling meetings, triggering processes, and coordinating across multiple apps and services.

“Think of an agent as like hiring a really intelligent, enthusiastic university graduate. They may not have deep business experience yet, but they bring a high level of intelligence, energy, and scalability to the tasks you give them.”

Kevin Wooldridge, senior director of business programs, Microsoft Digital

At a higher level, agents can act as proactive collaborators, taking on routine tasks so human workers can focus on higher‑value thinking. Employees who aren’t engineers can create agentic tools, which becomes a cultural differentiator.

“Think of an agent as like hiring a really intelligent, enthusiastic university graduate,” says Kevin Wooldridge, a senior director of business programs in Microsoft Digital. “They may not have deep business experience yet, but they bring a high level of intelligence, energy, and scalability to the tasks you give them.”

Understanding how agents work is the new baseline for staying competitive. It’s the defining trait of the emerging Frontier Firm: A human‑led, agent‑operated organization designed for the AI era. Workers become agent bosses who define outcomes, while autonomous agents plan, reason, and run the workflows to deliver them.

How Agent Launchpad enables agent adoption

Integrating agents into existing workflows and processes can feel overwhelming. Our Agent Launchpad curriculum can help our employees get the most out of the technology.

“Our employees told us they didn’t want someone lecturing over slides. They wanted peer‑to‑peer learning, storytelling, showcases, and hands‑on experiences.”

Tom Heath, senior business program manager, Microsoft Digital

To build our curriculum, our team incorporated input from a variety of stakeholders across Microsoft representing a range of backgrounds and technical expertise. They also included feedback from the Copilot Champs Community.

“Our employees told us they didn’t want someone lecturing over slides,” says Tom Heath, a senior business program manager in Microsoft Digital. “They wanted peer‑to‑peer learning, storytelling, showcases, and hands‑on experiences.”

Baked into our Agent Launchpad program are:

• Detailed, approachable explanations of the existing agents available in the Copilot ecosystem
• Practical guidance for how to use the agents
• Step-by-step, hands-on labs for building new agents—regardless of the employee’s level of technical expertise

“People were being bombarded with information about agents, many of which were already live,” says Stephan Kerametlian, a senior director of business program management in Microsoft Digital. “Launchpad became a way to bring clarity and help them discover what already exists.”

Our curriculum explains how to get the most out of available agents, like our Employee Self-Service Agent. It also supports employees who want to build their own agents, whether by using Agent Builder for no‑code development or utilizing Copilot Studio for light coding (otherwise known as pro‑coding).

“Launchpad covers that full end‑to‑end journey at a time when information feels scattered and overwhelming,” Kerametlian says. “It gives people a structured, guided, modular path from the fundamentals all the way to developing agents, if that aligns with their skills and needs.”

Built for flexibility: Our Agent Launchpad curriculum

Given the broad range of skills and goals that our employees bring to the learning process, our six-module curriculum format was designed around two different tracks: The Explorer path and the Builder path.

“We talk about ‘buffet‑style learning’ a lot at Microsoft, and that applies here—but with AI and agents, many people don’t even know what they need. That’s why we built two learning paths.”

Cadie Kneip, senior business program manager, Microsoft Digital

Participants can sign up for live sessions or, if they prefer a self-guided approach, they can move through our modules on their own schedule. Learners have the option to earn participation badges by finishing modules, completing paths, or achieving other milestones within the curriculum.

“We talk about ‘buffet‑style learning’ a lot at Microsoft, and that applies here—but with AI and agents, many people don’t even know what they need,” says Cadie Kneip, a senior business program manager in Microsoft Digital. “That’s why we built two learning paths. We don’t believe everyone needs to be a builder, but everyone benefits from using agents to do their best work. Our goal is high‑quality agents and great usage experiences.”

Each path aligns with specific parts of our curriculum:

• Explorer path, Modules 1-3: Offering both context-setting information as well as examples and usage guidance for existing Copilot agents, our first three modules are for those who want to understand broader agentic context and enhance their day‑to‑day work with available agentic options.
• Builder path, Modules 1-6: For those who want to build their own agents, our full curriculum includes not only the first three modules but also no‑code agent development in Agent Builder (Module 4), agents that involve pro-coding via Copilot Studio (Module 5), and a showcase for new agents with recorded demos and use cases (Module 6).

As an enterprise-level company, Microsoft employs people with a wide variety of skills and backgrounds. That’s part of why Agent Launchpad works: People can choose their own agentic adventure.

“Launchpad provides a centralized starting point, with clear signposting to other assets and a sense of community. It lets us scale across the company and meet people where they are,” Wooldridge says. “If someone is deeply technical, there’s a path for them. If someone isn’t technical but wants to understand the hype and experiment, there’s a path for them too.”

The Frontier Firm mindset: A new way to think about work

While our Agent Launchpad curriculum includes detailed technical guidance for using and building agents, it’s also vital to emphasize the Frontier Firm mindset that employees need as we collectively approach a new era of AI-based work.

“When our core team was designing what Agent Launchpad would look like, we wanted to make sure we weren’t just tackling the technology, but also the mindset and behavioral changes that come with it.”

Alexandra Jones, director of business programs, Microsoft Digital

In the near future, a human‑led, agent‑operated organization built for the AI era—one in which humans define the outcomes they want, but agents decide how to achieve them—will become the new norm. The first module in our curriculum is designed to make sure that concept lands with learners, and it could be the most important part of the training.

“When our core team was designing what Agent Launchpad would look like, we wanted to make sure we weren’t just tackling the technology, but also the mindset and behavioral changes that come with it,” says Alexandra Jones, a director of business programs in Microsoft Digital. “That’s why we decided to cover the concept of the Frontier Firm—why people’s mindsets need to shift, and how we can address common concerns about AI.”

Agentic AI: A shifting landscape

Given the pace of innovation in the AI landscape, our Agent Launchpad program needed to be resilient, flexible, and minimally dependent on product documentation that might soon be outdated.

“It’s challenging to anticipate people’s needs in such a fast‑moving environment,” Wooldridge says. “We’re only slightly ahead of our employees on this journey ourselves, so we’re learning what’s valuable at the same time they are. That means we’re constantly recreating or updating content—it’s a hamster wheel of creation, delivery, revision, and more delivery.”

The pace of change is an ongoing challenge.

“All of this is part of our evolution. Our first immersive learning experience was Camp Copilot. We learned from that and evolved it into Copilot Expo. Now we’ve iterated again and built Agent Launchpad. It’s essentially version 3.0—the best of what we learned from the earlier programs, retooled around agents.”

Stephan Kerametlian, senior director of business program management, Microsoft Digital

New agents ship constantly. The tools evolve every day, and the technology moves at lightning speed. Keeping Agent Launchpad current remains a priority, and our curriculum is continuously adapting.

“All of this is part of our evolution,” Kerametlian says. “Our first immersive learning experience was Camp Copilot. We learned from that and evolved it into Copilot Expo. Now we’ve iterated again and built Agent Launchpad. It’s essentially version 3.0—the best of what we learned from the earlier programs, retooled around agents.”

Driving interest: Enthusiastic responses to Agent Launchpad

Employees are seeing the value of our curriculum, as strong usage data indicates broad interest in the program. In addition to online engagement with our coursework, thousands of our employees have attended in-person sessions. It’s a level of participation that helps drive the goals of both agentic adoption and the Frontier Firm mindset at Microsoft.

Feedback has been overwhelmingly positive, with employees reporting high satisfaction along with a demonstrable uplift in weekly active agent usage across Microsoft. Many thoughtful recommendations have been captured and turned into insights that will inform our next phase of Agent Launchpad.

“Launchpad unexpectedly became extremely popular—it was supposed to be our pilot, and we didn’t promote it heavily,” Kneip says. “Because of that huge engagement, we want to find more ways to lean into rewards and celebrate people who submit their work, so people feel recognized and come back to learn with us again.”

Key takeaways

Here are some things to keep in mind as you develop your own training programs around the new agentic way of working:

• Understanding how agents work is the new baseline for staying competitive. This is the defining trait of the emerging Frontier Firm: A human‑led, agent‑operated organization built for the AI era.
• Agent Launchpad delivers insights to employees about the fast moving agentic AI landscape. By building on our experiences with Camp Copilot and Copilot Expo, the program gives learners a structured, approachable way to understand, use, and build AI agents in their daily work.
• The curriculum is designed to meet employees where they are. With Explorer and Builder paths, Agent Launchpad supports both agent adoption and agent creation—regardless of technical background or learning style.
• The program helps employees develop a Frontier Firm mindset. The curriculum emphasizes not just how agents work, but how human led, agent operated teams are reshaping the future of work and the new habits we all need to build to leverage them.
• Strong engagement and Copilot usage shows that our participants are benefiting from the program. High participation rates and increased agent usage across Microsoft signal growing confidence, capability, and enthusiasm for agentic AI among employees.

Try it out

Check out a comprehensive webinar series that can help you unlock the full potential of our AI agents.

Related links

• Discover how to build your own agents with Copilot Studio.
• Try our 7 tips for driving Microsoft 365 Copilot adoption with Camp Copilot.
• Explore how Microsoft enables meaningful AI adoption with the Microsoft 365 Copilot Expo.
• Learn how the Copilot Champs Community drives AI tool adoption.
• The Frontier Firm: Discover how knowledge workers are forging their own AI tools at Microsoft.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Skilling up for the future of work at Microsoft with Agent Launchpad appeared first on Inside Track Blog.

Our teams across Microsoft Digital—the company’s internal IT organization—leaned in. We built tools, workflows, and AI enabled solutions at speed. Momentum followed, along with real enthusiasm and growth.

“We did a lot of good work building community and excitement. But at some point, we needed to evolve and put more structure around what we’d built.”

Qingsu Wu, principal group product manager, Microsoft Digital

But increasing scale required us to evolve our approach.

As adoption accelerated, we began to see duplication, uneven governance, and growing gaps between strategy and delivery. What helped us move fast early on wasn’t enough to sustain impact over time.

“We did a lot of good work building community and excitement,” says Qingsu Wu, a principal group product manager who leads the AI CoE at Microsoft Digital. “But at some point, we needed to evolve and put more structure around what we’d built.”

AI agents and solutions began appearing across Microsoft Digital. Different teams solved similar problems. Standards were interpreted differently. Reporting was inconsistent, and in many cases manual.

The question was no longer, “How do we help teams try AI?” It became, “How do we turn AI into consistent, measurable outcomes at scale?”

Answering that question required a change in how our CoE operated.

Rather than acting primarily as an advisory group, the AI CoE evolved into an execution‑focused function. Its role expanded from guidance to coordination, helping set priorities, define guardrails, and connect AI work directly to business outcomes.

The goal wasn’t to slow AI innovation down, but to help it move in the correct direction with more agility and better scalability.

Evaluating AI for Microsoft

The AI CoE connects AI strategy to execution across Microsoft Digital. It operates as a cross‑functional coordination layer that sets direction and creates shared accountability for how AI work gets done.

“We can see patterns that a single team can’t. We’re translating AI CoE strategy and enterprise priorities into clear execution plans that work in each organization’s context. That helps us align priorities and make sure the biggest bets are actually landing.”

Ria Khetan, senior program manager, Microsoft Digital

The CoE brings our leaders and practitioners together from AI, data, responsible AI, and operations to answer questions collectively. We use that cross‑disciplinary view to operate above individual projects without losing touch with day‑to‑day reality.

The CoE looks across the organization and answers questions individual teams can’t answer on their own.

• What AI initiatives are already in flight?
• Which ones matter most to the business?
• Where are teams duplicating effort?
• Where do we need clearer standards or stronger governance?

“We can see patterns that a single team can’t,” says Ria Khetan, a senior program manager in Microsoft Digital who helps lead program management for the AI CoE. “We’re translating AI CoE strategy and enterprise priorities into clear execution plans that work in each organization’s context. That helps us align priorities and make sure the biggest bets are actually landing.”

We’ve designed the AI CoE to act as the connective tissue between leadership intent and execution on the ground. It helps ensure that AI work across Microsoft Digital moves forward with purpose, consistency, and measurable impact.

Building transformation on core pillars

The AI CoE establishes a common structure that helps our teams work toward the same outcomes, even when they are building different solutions.

“We use the CoE to bring consistency to how AI work gets done. It gives us a way to step back and ask whether we’re solving the right problems and whether we’re set up to scale.”

Don Campbell, principal group technical program manager, Microsoft Digital

The operating model is intentionally simple.

AI initiatives are reviewed against shared pillars that help teams think beyond individual projects. These lenses ensure the work aligns to business priorities, can scale safely, has a clear delivery path, and supports responsible adoption.

“We use the CoE to bring consistency to how AI work gets done,” says Don Campbell, a principal group technical program manager who leads AI strategy here in Microsoft Digital. “It gives us a way to step back and ask whether we’re solving the right problems and whether we’re set up to scale.”

Our CoE uses these four pillars to guide our work:

• Strategy. We work with product and feature teams to determine what we want to achieve with AI. They define business goals and prioritize the most important implementations and investments.
• Architecture. We enable infrastructure, data, services, security, privacy, scalability, accessibility, and interoperability for all our AI use cases.
• Roadmap. We build and manage implementation plans for all our AI projects, including tools, technologies, responsibilities, targets, and performance measurement.
• Culture. We foster collaboration, innovation, education, and responsible AI among our stakeholders.

These pillars are the common language that helps us connect strategy to execution and make decisions across all teams and scenarios at Microsoft Digital.

Strategy

Our CoE strategy team’s role is to step back and create clarity.

Our strategy is driven from the organization’s top level, and executive sponsorship is crucial to executing our implementation well. When our transformation mandate comes from the organization’s leader, it resonates in every corner of the organization, every piece of work, and every task. We also encourage and welcome ideas from every level of the organization, empowering individuals to contribute their AI insights.

We maintain a centralized view of AI initiatives across Microsoft Digital, including agents, workflows, and AI‑enabled solutions. That visibility allows our CoE team to identify duplication, surface opportunities to scale successful ideas, and align investments to enterprise priorities. This creates a shared intake and prioritization model.

One of our CoE strategy team’s most significant responsibilities is prioritizing the idea pipeline for AI solutions. All employees can feed ideas into the pipeline through a form that records important details. The strategy team then evaluates each idea, analyzing two primary metrics:

• Business value. How important is the solution to our business? Potential cost reduction, market opportunity, and user impact all factor into business value. As our business value increases, so does the idea’s position in the pipeline priority queue.
• Implementation effort. We focus on clearly defining the problem statement—what the problem is, why it matters, who the customer is, the baseline metrics, and the plan to attribute value pre‑production. This ensures we prioritize AI for the most critical business problems and can measure impact before and after deployment.

By anchoring AI work in business outcomes from the start, the strategy pillar helps ensure the organization’s energy is spent on the work that matters most.

Architecture

Our architecture pillar defines how we help teams scale AI solutions without creating security gaps, compliance issues, or technical debt they’ll have to unwind later.

“The CoE introduces a framework to enable design reviews in the early development phase. We help make sure teams are choosing the right platforms and thinking about security and compliance from the beginning.”

Qingsu Wu, principal group product manager, Microsoft Digital

Before solutions move into broader use, our architecture team helps think through data readiness, platform alignment, and governance requirements. The goal isn’t to prescribe a single architecture, but to make sure foundational decisions won’t limit scale or create risk down the line. Many times, this means doing things before development, while other times it means making improvements after the initial development is done and the product or scenario is launched and being used. We also track our efforts with measurable metrics like usage.

One common pitfall is that teams may gravitate toward the most flexible platforms with full control, without fully understanding the associated security and compliance implications. To address this, we publish clear guidance to help teams choose the right platform—one that strikes the appropriate balance between flexibility and the security and compliance effort required.

Our architecture pillar helps prevent that by reinforcing a set of common expectations. Teams still build locally and move fast, but they do so within a framework that supports reuse, interoperability, and responsible operation built on enabling teams and employees to experiment with guardrails that keep our production systems safe.

“The CoE introduces a framework to enable design reviews in the early development phase,” Wu says. “We help make sure teams are choosing the right platforms and thinking about security and compliance from the beginning.”

Teams are encouraged to build on recommended platforms and services that support enterprise‑grade security, observability, and lifecycle management. This helps ensure solutions can be monitored, governed, and supported over time.

Security and compliance are never treated as downstream checkpoints. Architectural guidance reinforces the need to design with identity, access controls, auditability, and responsible AI principles from the start.

When solutions prove valuable, we look for opportunities to reuse architectural patterns, components, or services rather than rebuilding them in isolation. This reduces duplication and accelerates future work.

Roadmap

Our CoE roadmap team examines our employee experience in the context of our AI solutions and governs how we achieve the optimal experience in and throughout AI projects. It focuses on how our employees will interact with AI. Getting the roadmap right ensures user experiences are cohesive and align with our broader employee experience goals.

We’ve recognized AI’s potential to impact how our employees get their work done.

Their experiences and satisfaction levels with AI services and tools are critical. Our roadmap pillar is designed to encourage experiences across all these services and tools that are complementary and cohesive.

We’re focusing on the open nature of AI interaction.

“We’re surfacing AI capabilities and information when the user needs them, according to their context,” Campbell says. “It makes the user experience and user interface for an AI service less important than how the service allows other applications or user interfaces to interact with it and harness its power.”

A key part of this approach is disciplined experimentation.

Rather than treating every idea as a long‑term commitment, the roadmap pillar helps teams validate value early. Our teams know when they’re in an experimental phase and when they’re expected to operationalize. This gives our leaders a more consistent view of progress and risk. The net result is that dependencies between teams surface earlier, when they’re easier to resolve.

Culture

Our culture pillar ensures that AI adoption across Microsoft Digital is intentional, responsible, and sustainable.

Culture underpins everything we do in the AI space. Ensuring our employees can increase their AI skillsets and access guidance for using AI responsibly are critical to AI at Microsoft.

“We’re driving a shift from ad‑hoc AI usage to intentional, outcome‑driven adoption,” Khetan says. “That requires clarity, education, and shared expectations.”

In practice, that means the culture pillar defines how our teams are expected to adopt AI and integrate it into their work, not just what tools they can use.

Our culture team works with AI champions across the organization to translate enterprise AI priorities into local execution. Those champions act as two‑way conduits, bringing real‑world feedback and blockers back to the CoE and carrying guidance, standards, and learnings back to their teams.

Without this structure, AI adoption tends to fragment as teams experiment in isolation.

Our culture team has published training, recommended practices, and our shared learnings on next-generation AI capabilities. We work with individual business groups at Microsoft to determine the needs of all the disciplines across the organization. That work extends to groups as diverse as engineering, facilities and real estate, human resources, legal, sales, and marketing, among others. 

Responsible AI is embedded throughout that work.

The CoE reinforces responsible AI practices as part of everyday decision‑making—during design, experimentation, and scale. Teams are expected to understand not just what they’re building, but the implications of how they build it.

In the AI CoE, culture isn’t abstract. It shows up in how teams propose ideas, how they design solutions and how they measure success.

Fostering agent innovation

The true value of the AI CoE is evident when strategy, architecture, roadmap, and culture come together around real work.

A clear example of that is how we addressed the rapid growth of AI agents across the organization.

“That’s the core problem we’re trying to solve. In the past, admins had to go to multiple portals just to understand how many agents exist, and they all give different answers.”

Garima Tiwari, principal product manager, Microsoft Digital

Our teams were building agents in different platforms, for different scenarios, and at very different levels of maturity. That flexibility accelerated innovation, but it also made it difficult to answer basic questions.

• How many agents exist today?
• Which ones are in production?
• Which ones touch sensitive data?

The strategy lens helped clarify what mattered most. Our goal wasn’t to inventory every experiment. It was to gain visibility into agents that were active, scaling, or depended on by others, and to ensure those agents aligned to business priorities and Responsible AI expectations.

Architecture quickly followed.

As the CoE looked at how agents were built, we quickly discovered that information about agents was fragmented across tools. Different platforms showed different numbers. Ownership wasn’t always clear. And governance signals were hard to reconcile.

“That’s the core problem we’re trying to solve,” says Garima Tiwari, a principal product manager in Microsoft Digital leading our internal strategy and adoption of Agent 365. “In the past, admins had to go to multiple portals just to understand how many agents exist, and they all give different answers.”

This is where Agent 365—which we use to govern agents here at Microsoft—became a critical enabler.

Agent 365 brings together signals from multiple agent‑building platforms into a single, consolidated view. That visibility allows the CoE and administrators to understand agent inventory, ownership, lifecycle state, and governance posture in one place.

“Agent 365 is really about accurate inventory and observability,” Garima says. “It provides one number we can trust and a way to see how agents are behaving, who they’re interacting with, and whether they’re compliant.”

That architectural clarity changed how decisions were made.

Instead of guessing what was safe to scale, the CoE could see which agents were production‑ready, which needed remediation, and which should remain in experimentation. Security, privacy, and compliance considerations moved to earlier in the lifecycle.

“We can’t scale what we don’t understand,” Wu says. “Agent 365 helps us see what’s actually running so we’re not scaling something blindly.”

The roadmap lens then brought structure to execution.

“What changed was the mindset. Teams started thinking about manageability, security, and scale much earlier, not after an agent was already deployed.”

Don Campbell, principal group technical program manager, Microsoft Digital

Rather than standardizing everything at once, the CoE helped teams sequence work. Some agents stayed in pilot. Others moved toward broader rollout, informed by architectural and governance signals surfaced through Agent 365.

Culture and enablement ran alongside that work.

Teams began factoring operational readiness into design decisions instead of treating governance as a final checkpoint. Agent 365 isn’t positioned as a control tool at the end of the process, but as part of building agents the right way from the start.

“What changed was the mindset,” Campbell says. “Teams started thinking about manageability, security, and scale much earlier, not after an agent was already deployed.”

The outcome wasn’t a single standardized solution.

It was a repeatable approach within a shared CoE framework, supported by platforms like Agent 365, that made scaling AI more visible, more manageable, and more intentional.

That’s what the AI CoE enables at Microsoft Digital.

Key takeaways

If you’re just starting to consider AI usage at your organization, or if you’re already creating a standardized approach to AI, consider the following:

• Start with outcomes, not tools. AI work scales faster when teams align on the business problem first and select technology second.
• Design for scale from day one. Early architectural decisions around data, security, and platforms determine whether solutions can grow—or need to be rebuilt.
• Make experimentation disciplined. Clear paths from prototype to production help teams move fast without committing to ideas that haven’t proven value.
• Treat governance as an enabler, not a gate. Visibility and manageability, supported by platforms like Agent 365, make it easier to scale AI responsibly.
• Create shared accountability. Standard metrics and automated reporting turn AI activity into measurable progress.

Try it out

Learn more about how Microsoft Agent 365 enables agent governance and manageability.

Related links

• Discover, create, and onboard an agent in Agent 365.
• Use and collaborate with agents in Agent 365.
• Learn about responsible AI at Microsoft.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Powering the technical veracity of AI at Microsoft with a Center of Excellence appeared first on Inside Track Blog.

Humans can usually spot the signs of outdated information and exclude it when answering a question or addressing a work topic. But what happens when there’s no human in the loop?

At Microsoft, we’ve embraced the power and speed of agentic solutions across the enterprise. This means we’re at the forefront of developing and implementing innovative tools like the Employee Self-Service Agent, a chat-based solution that uses AI to address thousands of IT support issues and human resources (HR) queries every month—queries that used to be handled by humans. Early results from the tool show great promise for increased efficiency and time savings.

In developing tools like this agent, we were confronted with a challenge: How do we make sure all the unstructured data the tool was trained on is relevant and reliable?

Many organizations are facing this daunting task in the age of AI. Unlike structured data, which is well organized and more easily ingested by AI tools, the sprawling and unverified nature of unstructured data poses some tricky problems for agentic tool development. Tackling this challenge is often referred to as data conditioning.

Read on to see how we at Microsoft Digital—the company’s IT organization—are handling data conditioning across the company, and how you can follow our lead in your own organization.

Read our guide

Learn how to deploy an Employee Self-Service Agent based on our experience here at Microsoft.

How AI has changed the game

We already fundamentally understand that the power of AI and large language models has changed the game for many work tasks. The way employee support functions is no exception to this sweeping change.

“A tool like the Employee Self-Service Agent doesn’t know if something is true or false—it only sees information it can use and present. That’s why stale or outdated information is such a risk, unless you manage it up front.”

David Finney, director of IT Service Management, Microsoft Digital

Instead of relying on human agents to answer employee questions or resolve issues, we now have AI agents trained on vast corpora of data that can find the answer to a complex question in seconds.

But in our drive to give these tools access to everything they might need, they sometimes end up consuming information that isn’t helpful.

“A tool like the Employee Self-Service Agent doesn’t know if something is true or false—it only sees information it can use and present,” says David Finney, director of IT Service Management. “That’s why stale or outdated information is such a risk, unless you manage it up front.”

Before AI, support teams didn’t need to worry as much about the buried issues with unstructured content because a human could generally spot it or filter it out manually. After we turned these tools loose, they began reading everything, including:

• Older or hidden SharePoint content that humans would never find—but AI can
• Large knowledge base articles with buried incorrect information
• Region-specific content that’s not properly labeled

“For example, humans never saw the old, decommissioned SharePoint sites because they were automatically redirected,” says Kevin Verdeck, a senior IT service operations engineer. “But AI definitely could find them, and it surfaced ancient information that we didn’t even know was still out there.”

Data governance is the key

A major part of the solution to this problem is better governance. We had to get a handle on our data.

“We needed to determine the owners of the sites and then establish processes for reviewing content, updating it, and defining how it should be structured. I would highly encourage that our customers think about governance first when they are launching their own AI tools, because everything flows from it.”

Olivier Cherel, senior business process manager, Microsoft Digital

The first step was a massive cleanup effort, including removing decommissioned SharePoint sites and deleting references to retired programs and policies. The next step was making sure all content had ownership assigned to establish who would be maintaining it. This was followed by setting up schedules for regular content updates (lifecycle management).

Governance was the first priority for IT content, according to Olivier Cherel, a senior business process manager in Microsoft Digital.

“We had no governance in place for all the SharePoint sites, which were managed by the various IT teams,” Cherel says. “We needed to determine the owners of the sites and then establish processes for reviewing content, updating it, and defining how it should be structured. I would highly encourage that our customers think about governance first when they are launching their own AI tools, because everything flows from it.”

Content governance was also a huge challenge for other support areas, such as human resources. A coordinated approach was needed.

“HR content is vast, distributed across multiple SharePoint sites, and not everything has a clear owner,” says Shipra Gupta, an engineering PM lead in Human Resources who worked on the Employee Self-Service Agent project. “So, we collaborated with our content and People Operations teams to create a true content strategy: one source of truth, no duplication, with clear ownership and lifecycle management.”

Cherel observes that this process forces teams to think about their support content in a totally different way.

“People realize they need a new function on their team: content management,” he says. “You can’t simply rely on the knowledge found in the technicians’ heads anymore.”

Adding structure to the unstructured data

The simple truth is that part of what makes unstructured data so difficult for agentic AI tools to deal with is that it’s disorganized.

“Our HR Web content already had tagging for many policy documents, which helped us get started. But it wasn’t consistent across all content, so improved tagging became a big part of our governance effort.”

Shipra Gupta, engineering PM lead, Human Resources

AI works best with content that has as many of the following characteristics as possible:

• Document structure, including:
  • Clear headers and sections
  • Page-level summaries
  • Ordered steps and lists
  • Explicit labels for processes
  • HTML tags (which AI can see, but humans can’t)
• Structured metadata, including:
  • Region codes (e.g., US-only policies)
  • Device-specific tags
  • Secure device classification
  • Country-based hardware procurement policies and HR rules

This kind of formatting and metadata allows the AI tool to more clearly parse and sort the information, meaning its answers are going to have a much higher accuracy level (even if it might be a little slower to return them).

“A good example here is tagging,” Gupta says. “Our HR Web content already had tagging for many policy documents, which helped us get started. But it wasn’t consistent across all content, so improved tagging became a big part of our governance effort.”

Be sure that as part of your content review, you’re setting aside the time and resources to add this kind of structure to your unstructured data. The investment will pay off in the long run.

Using AI to help condition data for use

As AI tools grow more sophisticated, we’re using them to directly work on AI-related challenges. This includes using AI on the challenge of unstructured data itself.

“Right now, these efforts are primarily human-led, but we are applying AI to, for example, help write knowledge base articles,” Cherel says. “Also, we’re starting to use AI to determine where we have content gaps, and to analyze the feedback we’re getting on the tool itself. If we just rely on humans, it’s not going to scale. We need to leverage AI to stay on top of things and keep improving the tools.”

Essentially, the future of such technology is all about using AI to improve itself.

“We’re looking at building an agent to help validate content,” Finney says. “We can use it to check for outdated references, old processes, or abandoned terms that are no longer used. Essentially, we’ll have AI do a readiness check on the content that it is consuming.”

Ultimately, the better the data is conditioned, the more accurate and relevant the agent’s responses will be. And that will make the end user—the truly important human in the loop—much happier with the final outcome.

Key takeaways

We’ve highlighted some insights to keep in mind as you consider how to condition your own organization’s data for ingestion by AI tools:

• Unstructured data becomes a business risk when AI is in the loop. AI agents consume everything they can access, including outdated, hidden, or conflicting content, making data conditioning a critical prerequisite for agentic solutions.
• AI highlights content issues that were previously invisible. Decommissioned SharePoint sites, outdated policies, and region-specific content without proper labels all became visible after AI agents began scanning across systems.
• Governance is a vital part of the conditioning process. Assigning clear content ownership and establishing lifecycle management are essential steps in ensuring the content being fed to AI tools is of high quality and is well managed.
• Adding structure to data dramatically improves AI accuracy. Clear document formatting, consistent tagging, and rich metadata help AI agents return more relevant, reliable answers.
• AI will increasingly be used to condition and validate the data it consumes. Microsoft is already exploring using AI to identify content gaps, analyze feedback, and flag outdated information, creating a continuous improvement loop that can scale faster than human review alone.

Try it out

Learn how your organization can take advantage of the power of the Employee Self-Service Agent.

Related links

• Read how we’re accelerating employee services at Microsoft with the Employee Self-Service Agent.
• Learn how we keep our content fresh and well-governed with AI-powered SharePoint.
• Check out how we’re using good governance to ride the wave of agents washing over Microsoft.
• Discover how we’re becoming an AI-first Frontier Firm at Microsoft.
• See how we’re tackling Microsoft 365 Copilot governance internally at Microsoft.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Conditioning our unstructured data for AI at Microsoft appeared first on Inside Track Blog.

In light of this priority, we have established a Microsoft Digital Data Council to help accelerate our companywide AI-powered transformation.

Our data council is a cross-functional team with representation from multiple domains within Microsoft, including Microsoft Digital, the company’s IT organization; Corporate, External, and Legal Affairs (CELA); and Finance.

“By championing robust data governance, literacy, and responsible data practices, our data council is a crucial part of our AI-powered transformation. It turns enterprise data into a strategic capability that fuels predictive insights and intelligent outcomes across the organization.”

Naval Tripathi, principal engineering manager, Microsoft Digital

Our data council’s mission is to drive transformative business impact by establishing a cohesive data strategy across Microsoft Digital, empowering interconnected analytics and AI at scale. Our vision is to guide our organization toward Frontier Firm maturity through a clear blueprint for high-quality, reliable, AI-ready data delivered on trusted, scalable platforms.

“By championing robust data governance, literacy, and responsible data practices, our data council is a crucial part of our AI-powered transformation,” says Naval Tripathi, principal engineering manager in Microsoft Digital. “It turns enterprise data into a strategic capability that fuels predictive insights and intelligent outcomes across the organization.”

Our evolving data strategy

Over the past two decades, we at Microsoft—along with other large enterprises—have continuously evolved our data strategies in search of the right balance between control and agility. Early approaches were highly decentralized, with different teams owning and managing their own data assets. While this enabled local optimization, it also resulted in inconsistent quality and limited enterprise-wide insight.

Our subsequent shift toward centralized data platforms brought much-needed standardization, security, and scalability. However, as data platforms grew more sophisticated, ownership often drifted away from the business domains closest to the data, slowing responsiveness and diluting accountability.

Today, we and other leading companies are embracing a more balanced, federated approach, often described as a data mesh. Rather than forcing all our data into a single centralized system or allowing unchecked decentralization, the data mesh formalizes domain ownership while embedding governance, quality, and interoperability directly into shared platforms.

With this approach, our domain teams publish data as well-defined, discoverable products, while common standards for security, metadata, and compliance are enforced through automation rather than manual processes. This model preserves enterprise trust and consistency without sacrificing speed or autonomy.

By adopting a data mesh mindset, we can scale analytics and AI more effectively across the organization while still keeping ownership closely connected to the business focus. The result is a system that supports innovation at the edges, strong governance at the core, and seamless collaboration across domains, enabling the transformation of data from a technical asset to a strategic, enterprise-wide capability.

Quality, accessibility, and governance

To scale enterprise data and AI, organizations must first ensure their data is trusted, discoverable, and responsibly governed. At Microsoft Digital, our data strategy is designed to create data foundations that power intelligent applications and effective decision making across the company.

“High-quality, well-governed data is essential to accelerate implementation and adoption of AI tools. Data quality, accessibility, and governance are imperatives for AI systems to function effectively, and recognizing that is propelling our data strategy.”

Miguel Uribe, principal PM manager, Microsoft Digital

By implementing a data mesh strategy at scale, we aim to unlock valuable data insights and analytics, enabling advanced AI scenarios. Our data council focuses on three core dimensions that make AI-ready data possible:

• Quality: Making sure enterprise data is reliable and complete
• Accessibility: Enabling secure and discoverable access to data
• Governance: Protecting and managing our data responsibly

Together, these dimensions form the foundation for scalable innovation and AI-powered data use. They connect data silos and ensure consistent, high‑quality access across the enterprise—enabling both humans and AI systems to work from the same trusted data foundation. As AI use cases mature, this foundation allows AI agents to retrieve and reason over data through enterprise endpoints, while supporting advanced analytics, data science, and broader technology.

“High-quality, well-governed data is essential to accelerate implementation and adoption of AI tools,” says Miguel Uribe, a principal PM manager in Microsoft Digital. “Data quality, accessibility, and governance are imperatives for AI systems to function effectively, and recognizing that is propelling our data strategy.”

Quality

AI-ready data is available, complete, accurate, and high-quality. By adopting this standard, our data scientists, engineers, and even our AI agents are better able to locate, process, and govern the information needed to drive our organization and maximize AI efficiencies.

By utilizing Microsoft Purview, our data council can oversee the monitoring of data attributes to ensure fidelity. It also monitors parameters to enforce standards for accuracy and completeness.

Accessibility

Ensuring that our employees get access to the information they need while prioritizing security is a foundational element of our enterprise data strategy. Microsoft Fabric allows us to unify our organization’s siloed data in a single “mesh” that enables advanced analytics, data science, data visualization and other connected scenarios.

Microsoft Purview then gives us the ability to democratize that data responsibly. By implementing a data mesh architecture, our employees can work confidently, unencumbered by siloed or inaccessible data, and with the assurance that the data they’re working with is secure.

The data mesh connects and distributes data products across domains, enabling shared data access and compute while scaling beyond centralized architectures.

Platform services are standardized blueprints that embed security, interoperability, policies, standards, and core capabilities—providing guardrails that enable speed without fragmentation.

Data management zones provide centralized governance capabilities for policy enforcement, lineage, observability, compliance, and enterprise-wide trust.  

Governance

As organizations scale AI capabilities, strong governance becomes essential to ensure security, compliance, and ethical data use. Data governance—which includes establishing data policies, ensuring data privacy and security, and promoting ethical AI usage—is critical, as is compliance with General Data Protection Regulation (GDPR) and Consumer Data Protection Act (CDPA) regulations, among others.

However, governance is not only a technical capability; it’s also a cultural commitment.

Responsible data use must be embedded into the way teams manage data and build AI solutions. Through Microsoft Purview, we implemented an end-to-end governance framework that automates the discovery, classification, and protection of sensitive data across the enterprise data landscape.

This unified approach allows teams to innovate confidently, knowing that the data powering their insights and AI systems is trusted and protected, as well as responsibly managed.

“AI systems are only as reliable as the data that powers them,” Uribe says. “By investing in trusted and well-managed data, we accelerate not only the adoption of AI tools but our ability to generate meaningful insights and intelligent outcomes.”

The data catalog as the discovery layer

By serving as a common discovery layer for humans and AI, the data catalog ensures that governance translates directly into speed, accuracy, and trust at scale.

A unified data strategy only succeeds if both people and AI systems can consistently find the right data. At Microsoft, this is enabled by our enterprise data catalog, which operationalizes the standards set by our data council. 

For business users, the catalog provides intuitive search, ownership transparency, and trust signals—enabling confident self‑service analytics. For AI agents, the same catalog exposes machine‑readable metadata, allowing agents to programmatically discover canonical datasets, validate schema and freshness, and respect governance constraints.

Our role as Customer Zero

In Microsoft Digital, we operate as Customer Zero for the company’s enterprise solutions, so that our customers don’t have to.

That means we do more than adopt new products early. We deploy them at enterprise-scale, operate them under real‑world constraints, and hold them to the same standards our customers expect. The result is more resilient, ready‑to‑use solutions and a higher quality bar for every enterprise customer we serve.

“When we engage product teams with real telemetry from how data is created, governed, and consumed at scale, we move the conversation from theory to execution. That’s how enterprise readiness becomes real.”

Diego Baccino, principal software engineering manager, Microsoft Digital

Our data council embodies this Customer Zero mindset through its Enterprise Readiness initiative. By engaging product engineering as a unified enterprise voice, the council drives strategic conversations that surface operational blockers, influence roadmap prioritization, and ensure new and existing data solutions are truly ready for enterprise use.

These learnings are then shared broadly across Microsoft Digital to accelerate adoption, reduce duplication, and scale proven patterns across teams.

“When we engage product teams with real telemetry from how data is created, governed, and consumed at scale, we move the conversation from theory to execution,” says Diego Baccino, a principal software engineering manager in Microsoft Digital and a member of the council. “That’s how enterprise readiness becomes real.”

This work is deeply integrated with our AI Center of Excellence (CoE), where Customer Zero principles are applied to accelerate AI outcomes responsibly. Together, the AI CoE and the data council focus on improving data documentation and quality—foundational capabilities that are required to make AI feasible, trustworthy, and scalable across the enterprise.

By grounding AI innovation in measurable data quality and governance standards, Microsoft Digital ensures that experimentation can safely mature into production‑ready solutions. The partnership between our data council, our AI CoE, and our Responsible AI (RAI) Council is essential to our broader data and AI strategy.

“AI readiness isn’t aspirational—it’s operational,” Baccino says. “By measuring the health of our data, setting clear quality baselines, and using those signals to guide product and platform decisions, we turn data into a strategic asset and AI into a repeatable capability.”

Together, these teams exemplify what it means to be Customer Zero: Transforming enterprise experience into action, governance into acceleration, and data into durable competitive advantage.

Learn more

Read about our AI Center of Excellence.

Advancing our data culture

Our data council plays a pivotal role in advancing the organization transition from data literacy to enterprise data and AI capability. In conjunction with our AI CoE, it creates curricula and sponsors learning pathways, operational practices, and community programs to equip our employees with the skills and mindset required to thrive in a data- and AI-centric world.

While early efforts focused on improving data literacy, our data council ’s mission has evolved to enable data and AI capability at scale together with our AI CoE—where employees not only understand data but can effectively apply it to build, operate, and govern intelligent solutions.

“Our focus is not just teaching our teams about data. It is enabling employees to apply data to create AI-driven outcomes. When teams understand how data powers AI systems, they can make better decisions, design better products, and build more responsible AI experiences.”

Miguel Uribe, principal product manager, Microsoft Digital

Our curriculum includes high-level courses on data concepts, applications, and extensibility of AI tools like Microsoft 365 Copilot, as well as data products like Microsoft Purview and Microsoft Fabric.

By facilitating AI and data training, offering internally focused data and AI certifications, and internal community engagement, our council ensures that employees develop the capabilities required to responsibly build and operate AI-powered solutions. Achieving data and AI certifications not only promotes career development through improved data literacy, it also enhances the broader data-driven culture within our organization.

“We recognize that AI capability is built when data skills are applied directly to real AI scenarios and business outcomes—not when learning exists in isolation,” Uribe says. “Our focus is not just teaching our teams about data; it is enabling employees to apply data to create AI‑driven outcomes. When teams understand how data powers AI systems, they can make better decisions, design better products, and build more responsible AI experiences.”

Find out more

Learn how a Copilot Expo helped us build interest in Microsoft 365 Copilot.

Lessons learned

Our data council was created to develop and execute a cohesive data strategy across Microsoft Digital and to foster a strong data culture within our organization. Over time, several critical lessons have emerged.

Executive sponsorship enables transformation

Executive sponsorship is a key element to ensure implementation and adoption of a data strategy. Our leaders are committed to delivering and sustaining a robust data strategy and culture and have been effective champions of the council’s work.

“Leadership provides support and reinforcement of the council’s mission, as well as guidance and clarity related to diverse organizational priorities,” Baccino says.

Cross-functional collaboration accelerates impact

Our council’s work has also benefited from the diverse representation offered by different disciplines across our organization. Embracing diverse perspectives and understanding various organizational priorities is critical to implementing a successful data strategy and culture in a large and complex organization like Microsoft Digital.

Modern platforms allow for scalable AI productivity

Technology and architecture also play a critical role in enabling enterprise data and AI capability. Platforms like Microsoft Purview and Microsoft Fabric provide the governance, discovery, and analytics infrastructure required to create trusted, AI-ready data ecosystems.

Combined with strong leadership support and community engagement, these platforms allow our organization to move beyond isolated data projects toward connected, enterprise-wide intelligence.

As our organization continues to evolve, our data council’s strategic work and valuable insights will be crucial in shaping the future of data-driven decision making and AI transformation at Microsoft.

Key takeaways

Here are some things to keep in mind as you contemplate forming a data council to help you manage and scale AI impacts responsibly at your own organization:

• A data mesh strikes the balance enterprises have been chasing. By formalizing domain ownership while enforcing standards through shared platforms, you avoid both chaotic decentralization and slow, over-centralized control.
• Governance is an accelerator when it’s automated and embedded. Using platforms like Microsoft Purview and Microsoft Fabric, governance shifts from a manual gatekeeping function to a built‑in capability that enables faster, trusted analytics and AI.
• AI systems are only as strong as their discovery layer. A unified enterprise data catalog allows both people and AI agents to find, trust, and use data consistently—turning standards into operational speed.
• Customer Zero turns theory into enterprise‑ready execution. By operating its own data and AI platforms at scale, Microsoft Digital provides real telemetry and practical feedback that directly shapes product readiness.
• Building AI capability is a cultural effort, not just a technical one. Our data council’s focus on applied learning, certification, and real-world AI scenarios ensures data skills translate into durable business outcomes.
• AI scale exposes the cost of fragmented data ownership. A data council cuts through silos by aligning priorities, resolving tradeoffs, and concentrating investment on the data assets that matter most for AI impact.
• Shared metrics create shared ownership. Publishing data quality and AI‑readiness scores at the leadership level reinforces accountability and positions data as a core enterprise asset.

Try it out

New to Microsoft 365 Copilot? Check it out!

Related links

• Learn more about the councils that are steering AI projects at Microsoft.
• See how we’re tackling Microsoft 365 Copilot governance internally at Microsoft.
• Explore how we’re unlocking enterprise AI extensibility at Microsoft with Microsoft Copilot Studio.
• See AI-powered agents in action: How we’re embracing this new ‘agentic’ moment at Microsoft.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Harnessing AI: How a data council is powering our unified data strategy at Microsoft appeared first on Inside Track Blog.

To accomplish these huge tasks, it’s essential to cultivate a range of perspectives, expertise, and lived experiences.

Olutunde Makinde is an example of this.

“A friend once laughed at me back in college when I said I wanted to work at Microsoft, like it was impossible. But I knew I could achieve the impossible if I could just be focused. I never gave up.”

Olutunde Makinde, senior service engineer, Microsoft Digital

Makinde, a senior service engineer in Microsoft Digital, came to the company the long way around—roughly 7,000 miles away from the Redmond, Washington, headquarters, in fact. He’s originally from Lagos, Nigeria.

As a global organization, Microsoft builds teams where people with different experiences and life journeys actively influence how products, services, and internal platforms are designed. Makinde, commonly known around the office as “Tunde” (“rhymes with Sunday,” he notes), embodies that diverse approach, bringing his unique insights and experiences to critical work at the company.

“A friend once laughed at me back in college when I said I wanted to work at Microsoft, like it was impossible,” Makinde says. “But I knew I could achieve the impossible if I could just be focused. I never gave up.”

Launching an IT career in Nigeria

Makinde’s journey to Microsoft began with earning a degree in computer engineering in Lagos, after which he found work as a network engineer. He spent the next several years developing his skills through certifications and other learning opportunities.

“I did a lot of self-paced training, learning how to configure Cisco routers. Eventually I became a Cisco-certified network professional (CCNP),” Makinde says. “Around that time, I had a friend who was preparing for Windows Server 2008 certifications, and through his study materials I started learning more about Microsoft and its products.”

Makinde’s first direct encounter with Microsoft came in 2014, when the company he worked for received a contract to deploy the first Microsoft Azure cloud installation in Nigeria.  

“I spent the last day of 2014 and the first day of 2015 at the customer site, figuring out how to connect their on-premises network to Azure,” Makinde says. “It had never been done before in Nigeria, and taking up that challenge really propelled me into the world of Microsoft-specific technology.”

From there, Makinde set his sights on a career at Microsoft. He parlayed his initial exposure to cloud architecture into a focus on Azure, as well as Amazon Web Services. After spending some time in the United Kingdom, he achieved his goal when he was hired by the Microsoft Digital team in 2022. He moved to the United States in 2025.

He credits support from his family, especially his wife, with helping him achieve his dreams.

“My wife was a pillar of support through every career transition, from Nigeria to the UK to the United States,” Makinde says. “She believed in me when I faced rejections, celebrated with me when I finally got the offer, and now keeps me grounded whenever work gets intense. I couldn’t have made this journey without her.”

Making an impact from day one

Kathren Korsky, a principal technical program manager in Microsoft Digital and Makinde’s hiring manager, remembers the impression he made right away. It was clear that Makinde’s experience and technical background were major assets.

“What caught my attention was how well-prepared he was for the conversation and how well he communicated,” Korsky says. “The stories he shared about his work with Azure deployment in Nigeria really drew my interest. But I was also intrigued by how he was able to bridge technology with the business world, working with different banks across the continent to gather requirements, understand them, and build solutions.”

Upon being hired at Microsoft, he initially worked remotely from the UK on a Redmond-based device and application management team. The team was looking to deploy Cloud PC internally and needed a system in which employees could request access and get approvals to use Cloud PCs.

“He was able to stand up a full Power Automate workflow within a short period, and with a very high degree of quality,” Korsky says. “Rarely did anyone find any defects or bugs in his system.”

Makinde’s designs drove value moving forward as well, as the team made updates to his initial workflows.

“His design was so strong that we were basically able to follow exactly what he had created in Power Platform and build that exact same design in ServiceNow. It really expedited that whole process.”

Kathren Korsky, principal technical program manager, Microsoft Digital

ServiceNow was more commonly used for systems that involved access requests and approvals, but when a platform update from Power Automate was initiated the team found Makinde’s original design was durable enough to weather the shift.

“His design was so strong that we were basically able to follow exactly what he had created in Power Platform and build that exact same design in ServiceNow,” Korsky says. “It really expedited that whole process.”

Driving efficiency and managing change

Since moving to the United States to work at company headquarters, Makinde has continued to push important projects forward—working with different stakeholders to deploy policy changes across Microsoft, managing the Change Advisory Board (CAB) intake process, and driving configuration updates for security and first-party product deployments.

“There’s a lot of diligence required to see the edge cases happening, to pay attention to them, and to watch out for potential problems. Tunde stops rollouts regularly to flag potential defects or risks, which prevents issues from interrupting our work and reducing productivity.”

Jeff Duncan, principal service engineering manager, Microsoft Digital

Makinde learned how to assess change requests and understand risk profiles, as well as enforce best practices for managing change within the security environment. Within about a year, he was able to take the lead in the space and own the deployment process.

A single misconfigured policy can cause major disruption. Makinde’s role puts him in position to be the checkpoint that prevents incidents before they happen.

“There’s a lot of diligence required to see the edge cases happening, to pay attention to them, and to watch out for potential problems,” says Jeff Duncan, principal service engineering manager in Microsoft Digital and Makinde’s manager. “Tunde stops rollouts regularly to flag potential defects or risks, which prevents issues from interrupting our work and reducing productivity.”

Softer skills like transparency, collaboration, and clear communication across levels and teams are key aspects of Makinde’s work as well.

“Tunde is thoughtful and detail-oriented, and he’s very good at explaining the decision-making process when he provides overviews for leadership,” Duncan says. “There’s rational, logical reasoning behind the decisions he makes.”

Makinde has implemented new efficiencies in how he manages the CAB and deployment service using AI. This includes CABBIE—an AI-powered agent that automates CAB communications. For Intune deployments, he uses AI to streamline deployment coordination and package reviews. These innovations reflect our Customer Zero approach to AI adoption here in Microsoft Digital.

“We run weekly CAB meetings to review change requests. That comes with a lot of communication work — status updates, follow-ups, coordination with stakeholders. It was all manual,” Makinde says. “CABBIE pulls the data from Azure DevOps, generates the emails, updates requests, and logs approvals automatically. It saves time and reduces errors.”

Success at Microsoft Digital: Aptitude and curiosity

As the organization at the center of the company’s own digital transformation, we in Microsoft Digital function as a living showcase of what’s possible with Microsoft technology. Our team tests new capabilities at enterprise scale as Customer Zero for Microsoft, identifying gaps and providing insights to ensure our customers benefit from what we’ve learned.

Because the impact of Microsoft Digital extends far beyond internal systems, team members have to set the standard for digital excellence. They must demonstrate what enterprise transformation looks like in practice and empower customers with the confidence to pursue their own modernization journeys.

 Hiring talented people like Makinde is essential to this mission.

“There are three core traits I look for when hiring—aptitude, attitude, and curiosity,” Korsky says. “Aptitude is not only what you currently know, but your propensity and desire to learn and grow those skills. Attitude goes hand in hand with that—are you willing to demonstrate grit and perseverance? And then curiosity, because so much of what we do from an innovation perspective requires a willingness to challenge assumptions and think of completely new ways of doing things.”

Makinde’s journey here at Microsoft Digital embodies and illustrates the company’s larger story: how technical expertise, innovative thinking, and a commitment to continuous learning combine to deliver world-class results.

“I’m now up to 25 certifications, and I continue to learn how to do more at Microsoft to positively impact the organization and protect our employees’ experience across applications and devices.”

Olutunde Makinde, senior service engineer, Microsoft Digital

That attitude of persistent curiosity and the willingness to keep learning continue to fuel Makinde’s experience at Microsoft. 

“Self-improvement is a way of life for me that has driven my career forward,” Makinde says. “At an early stage in my career, I did a lot of self-training—from learning how to configure Cisco routers and switches, to migrating on-premises workloads to Azure and managing cloud resources. I’m now up to 25 certifications, and I continue to learn how to do more at Microsoft to positively impact the organization and protect our employees’ experience across applications and devices.”

Key takeaways

Olutunde Makinde’s career experience here in Microsoft Digital offers some important insights that you can apply to your own organizational development:

• AI adoption starts with practical problems. Makinde’s use of AI to streamline CAB communications and deployment coordination shows how Customer Zero teams find real-world applications for emerging technology.
• Different experiences and perspectives contribute to business success. Achieving ambitious goals as an organization is dependent upon attracting talented people like Makinde from a range of backgrounds, disciplines, and lived experiences.
• Strong technical skills paired with innovative thinking drives value. Makinde’s contributions to flexible cloud deployment workflows are an example of how this combination pays dividends.
• Proactive risk management and attention to detail can prevent large-scale disruptions. By being willing to stop rollouts and flag risks before they become problems, Makinde’s approach to his work exemplifies how thoughtful decision-making safeguards productivity and security.
• Persistence, curiosity, and continuous learning are critical career accelerators. Having a long and successful career at a company like Microsoft goes beyond just technical aptitude; it also requires perseverance and a passion for learning. Makinde’s self-driven training efforts and his refusal to give up have enabled him to achieve what once seemed impossible.

Try it out

Learn more about working in IT at Microsoft by reading our Inside Track blog,

Related links

• Considering a career at Microsoft? See current openings at the Microsoft Careers portal.
• Read about a day in the life of a Microsoft employee using Copilot.
• Discover how Microsoft employees use the Total Rewards Portal to understand their value.
• Learn how Microsoft HR is using Viva and Microsoft 365 Copilot to empower our employees.
• Find out how the Microsoft Power Platform at Microsoft empowers employees.
• Connect with regional employees more effectively at Microsoft with Viva Amplify.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Olutunde Makinde: From Lagos to Redmond, a Microsoft IT engineer’s journey appeared first on Inside Track Blog.

Moving forward, the winners will be the companies that prioritize technological and operational excellence. Microsoft Digital, our company’s IT organization, is seizing this moment by reinventing processes for agentic workflows powered by continuous improvement (CI).

We believe that AI-powered agents, Microsoft 365 Copilot, and human ambition are the key ingredients for unlocking opportunity across every industry.

“Continuous improvement is a natural, formal extension of our culture that applies rigor, structure, and methodology to enacting a growth mindset through understanding waste and opportunities for optimization.”

David Laves, director of business programs, Microsoft Digital

By combining our AI capabilities with continuous improvement, we’re executing initiatives that increase our productivity and improve our performance. We’re forging a new path for how companies operate in the era of AI.

Welcome to the age of AI-empowered continuous improvement.

Our vision for continuous improvement, turbo-charged by AI

At Microsoft Digital, we’re embracing continuous improvement to unlock greater operational excellence and better employee experiences.

“One of the main tenets of our culture at Microsoft is a growth mindset, and that involves experimentation and curiosity,” says David Laves, director of business programs within Microsoft Digital. “Continuous improvement is a natural, formal extension of our culture that applies rigor, structure, and methodology to enacting a growth mindset through understanding waste and opportunities for optimization.”

Our capacity to drive process improvements has been crucial to our AI transformation as a company. We’ve adopted a “CI before AI” approach to ensure that we don’t end up automating inefficient processes. By engaging in activities that focus on continuous improvement, our teams can better identify which problems to address with AI and prioritize meeting customer needs.

“Continuous improvement is really about understanding your business, its needs, and where you can find value,” says Matt Hansen, a director of continuous improvement at Microsoft. “It gives us the language to scale our efforts out across everything we do.”

This process isn’t just another way to enable AI. In fact, AI is essential to enabling continuous improvement itself.

“When leaders stay actively engaged and partner through these Centers of Excellence, we can create alignment, accelerate decisions, and ensure both CI and AI help to deliver measurable business outcomes.”

Don Campbell, senior director, Microsoft Digital

Operationalizing continuous improvement and AI

Operationalizing continuous improvement and AI enablement is a leadership imperative at Microsoft, and one that doesn’t just happen organically. As an organization, we are deliberate about turning business strategy into measurable outcomes through clear sponsorship, disciplined prioritization, the right resourcing, and sustained investment in change management and employee skilling.

“The difference between strategy and real business impact is execution,” says Don Campbell, a senior director in Microsoft Digital. “That execution requires strong leadership sponsorship and clearly designed continuous improvement efforts and AI Centers of Excellence (CoEs), which translate business strategy into operational reality. When leaders stay actively engaged and partner through these CoEs, we can create alignment, accelerate decisions, and ensure both CI and AI help to deliver measurable business outcomes.”

To support leadership’s vision, we’ve put organizational resources in place to manage our continuous improvement investments, guide practices, and support teams. There’s an overarching continuous improvement CoE within Microsoft Digital, which works in close partnership with the AI CoEs, forming an integrated model which connects enterprise priorities with frontline execution.

Together, these CoEs establish shared standards, provide clarity on where to invest, and help us move faster with confidence, turning ambition into sustained business impact.

“Continuous improvement is about process, but it’s also about people.”

Becky West, lead, Continuous Improvement Center of Excellence, Microsoft Digital

Continuous improvement and people

As we build out the organizational structures that underpin our investment in continuous improvement, we’re approaching the people side of change with intention.

Currently, we’re undertaking skilling efforts and communicating with every employee about how their role fits into core continuous improvement tools, including bowler cards, Gemba walks, Kaizen events, and monthly business reviews. We’re also demonstrating how “CI + AI” is a powerful combination.

The roadmap is there, the structure is in place, and we’re already seeing progress.

“Continuous improvement is about process, but it’s also about people,” says Becky West, lead for the Continuous Improvement CoE within Microsoft Digital. “A guiding hand like the Continuous Improvement CoE is how you make sure those two components align.”

Three Microsoft Digital continuous improvement initiatives

As we negotiate the early days of the company’s continuous improvement journey, Microsoft Digital is becoming a proving ground for the larger CI framework we want to deploy across the company. Our teams are spearheading projects to bring this framework to diverse functions like asset management, incident response (with a designated responsible individual), and third-party software licensing.

Enterprise IT asset management

Microsoft Digital’s Enterprise IT Asset Management team oversees the 1.6 million devices that power the company, from servers and IoT devices to labs, networks, and 800,000 employee endpoints. Safeguarding this vast landscape is critical to enterprise cybersecurity.

Three security pillars form the foundation of our security efforts: protect, detect, and respond. All of these depend on a complete, accurate device inventory.

Unified visibility enables proactive protection through enforced security controls, improves detection by spotting anomalies and misconfigurations, and accelerates responses by reducing investigation and remediation time. Without this foundation, security teams lack the precision to execute effectively.

To reach the goal of a unified inventory, the team initiated a continuous improvement initiative to build a consolidated source of truth for Microsoft Digital IT assets. Grounded in the principle of “progress over perfection,” the team initially narrowed its focus to Microsoft Lab Services (MLS) and IoT devices, with a vision to eventually expand to networks, employee devices, conference rooms, and printers. The ultimate goal is to move toward a truly comprehensive inventory.

This foundation will not only enhance security but also deliver enterprise-wide value through consistent policy enforcement, more resilient infrastructure, and comprehensive lifecycle management. By applying continuous improvement processes to help prioritize high-impact opportunities and using AI to accelerate outcomes, the program is enhancing Microsoft’s operational excellence and security posture.

“It’s better to do step A than wait until you’re ready to do steps A, B, C, and D,” says Aniruddha Das, a principal PM in Microsoft Digital.

As the team progressed from Gemba walks to Kaizen events under the guidance of the Continuous Improvement CoE, they dug deeper into areas of waste. Then they identified potential actions, breaking them down into “value-add,” “non-value-add-but-essential,” and “non-value-add.”

“For every action item, we were always asking ourselves how we could make these things better through AI. We’re looking for ways to expedite our core outcomes with minimal human involvement.”

Ashwin Kaul, senior product manager, Microsoft Digital

This exercise helped them prioritize their activities and land on a starting point: A device security index that would provide an overview of our hardware environment’s security posture. Essentially, it would represent a list of device security statuses.

The team identified distinct improvement areas for IoT and Microsoft Lab Services (MLS) devices. For IoT devices, they needed to build the inventory from the ground up. MLS already had a fairly complete inventory of devices, so the team set a goal to improve data quality. Although each of these challenges is different, they’re excellent opportunities for AI-empowered continuous improvement.

Now that the project is underway, the team plans to use an AI agent to automate device registration for IoT devices, which currently relies on manually uploaded spreadsheets. It’s a prime example how streamlining a process with continuous improvement enables AI to automate and accelerate our work.

On the MLS side, the team is creating an AI-driven normalization tool to automate the de-duplication and correction of inaccuracies in device data. The goal is to get from less than 50% data quality to 100%, dramatically improving our security posture through greater accuracy.

“For every action item, we’re always asking ourselves how we can make these things better through AI,” says Ashwin Kaul, a senior product manager within Microsoft Digital. “We’re looking for ways to expedite our core outcomes with minimal human involvement.”

Continuously improving the designated responsible individual experience

On the Digital Workspace team, designated responsible individuals (DRIs) are in charge of maintaining the health of our production systems. When technical emergencies arise, they’re the rapid-response point people who take the lead.

“We asked ourselves, ‘How can AI elevate the designated responsible individual (DRI) experience to the next level?’”

Ajeya Kumar, principal software engineer, Microsoft Digital

That process itself can be incredibly stressful, and time is of the essence. When every moment counts, efficiency is key. Meanwhile, a big part of a DRI’s work is just finding out what’s gone wrong so they can fix the incident.

But their job isn’t just about crisis management. When there are no active incidents, they work on engineering enhancements to improve the efficiency of production systems and clear backlog projects.

There’s also a handover process that takes place when one DRI finishes their rotation and another goes on-call. That involves a report about any incidents that have occurred, active issues, actions taken, key metrics, and other important information.

With these two priorities in mind, our Digital Workspace team initiated a continuous improvement process review. Their Gemba walk provided a crucial starting point.

“The planning stage is all about figuring out what the process is, what it should be, and what we can do to improve it,” says Ajeya Kumar, a principal software engineer on the Digital Workspace team within Microsoft Digital. “We asked ourselves, ‘How can AI elevate the designated responsible individual (DRI) experience to the next level?’”

Collectively, the team decided to tackle these challenges with a multifunctional AI agent they call the Smart DRI Agent. This agent’s primary role would be synthesizing and presenting information to its human counterparts to help them save time in context-heavy situations.

The AI elements that the team has planned can be broken out into the following capabilities:

• Text summarization: Going through logs and identifying key insights.
• Data correlation: Tracking and collating error logs.
• Automation: Updating the status of issues, keeping abreast of communications, and providing point-in-time, daily, and weekly summaries of system health.
• Identifying patterns: Building troubleshooting guides based on frequency patterns.

The Smart DRI Agent is already in its pilot phase and producing results. It conducts four main activities:

• AI-generated summaries of DRI actions.
• Proactive notifications with AI-generated insights.
• Chat support to assist with all kinds of DRI queries.
• AI-generated handover reports.

“The continuous improvement framework that enables these pieces is the key to unlocking value,” says Aizaz Mohammad, principal software engineering manager on the Digital Workspace team. “It may seem process-heavy, but once you work through it, you’ll see the value.”

That value is apparent in their results.

In the first 30 days of the Smart DRI Agent’s pilot, there were 301 incidents, and the agent provided insights on 101 of them. That led to an approximate 100 hours of time savings for DRIs and a 40% improvement in our key network performance metric.

Third-party software license audits

Within Microsoft Digital, the Tenant Integration and Management team is responsible for a range of services, including third-party software licensing. This space is all about managing liability from both a security operations and an auditing perspective.

“It takes a tremendous amount of data and traversals through multiple sources to get us to the actionable data we need. The goal for this project is to reduce that time to increase operational efficiencies.”

Anahit Hovhannisyan, principal group product manager, Microsoft Digital

Without the proper security insights, the company could find itself with risks associated with third-party software vulnerabilities. And without thorough auditing, we might experience license overuse and contractual issues that can lead to waste or expensive license reconciliations.

“It takes a tremendous amount of data and traversals through multiple sources to get us to the actionable data we need,” says Anahit Hovhannisyan, a principal group product manager within Microsoft Digital. “The goal for this project is to reduce that time to increase operational efficiencies.”

“It’s tough to be honest about what isn’t working, because it ties into people’s personal value and worth, but it’s essential to the process.”

Kathren Korsky, team lead, Software Licensing, Microsoft Digital

The team decided to target the auditing process first. Currently, the software licensing team performs audits manually by looking at entitlements, contracts, purchase orders, and more while liaising with suppliers and our Compliance and Legal teams. That’s incredibly time-consuming.

During the software licensing team’s planning phase, they developed an ambitious goal of reducing the time to insights on third-party software license data from 154 days down to 15 minutes. During their continuous improvement Kaizen event, the team uncovered opportunities for AI-powered process improvements that eliminate waste.

“It required a lot of courage as we were identifying waste,” says Kathren Korsky, Software Licensing team lead within Microsoft Digital. “People are very invested. It’s tough to be honest about what isn’t working, because it ties into people’s personal value and worth, but it’s essential to the process.”

Now, they’re building and implementing solutions, including an AI and data platform that provides business intelligence with custom reporting abilities, an AI agent that provides audit support and ticket creation, and another that automatically generates audit reports. The team has been using Azure Foundry and Azure AI services to create their agents because these tools have the flexibility to switch between different models and fine-tune their parameters.

As these agents emerge, they’ll take the most tedious and error-prone aspects of the process out of human auditors’ hands, freeing them up to focus on solving problems, not endlessly searching for them.

Realizing continuous improvement at scale

These are just a small selection of the many continuous improvement initiatives underway within Microsoft Digital and the company as a whole.

“What continuous improvement gives us is the macro vision and the micro actions we can do to accomplish our goals.”

Kirkland Barret, senior principal PM manager, Microsoft Digital

At Microsoft, most of our continuous improvement initiatives are in their initial stages. As they progress through the measurement and adjustment phases, two benefits will emerge.

First, we’ll iterate and improve the value that each individual initiative provides. Second, we’ll continue to build our discipline and cultural maturity around a growth mindset we’re operationalizing through continuous improvement.

“What continuous improvement gives us is the macro vision and the micro actions we can do to accomplish our goals,” says Kirkland Barrett, senior principal PM manager for Employee Experience in Microsoft Digital. “It’s about knowing our objectives, identifying upstream root causes, and rippling them throughout a mechanism of progress.”

Key takeaways

These tips for implementing a continuous improvement framework come from our own experiences at Microsoft Digital:

• Be inclusive: Have the right subject matter experts at the table from the start. Sponsors need to be present as well.
• Cultivate maturity and transparency: Objective analysis about how things are going requires honesty.
• Sponsorship matters: Make sure you have sponsorship at the highest levels. This is a cultural change, and leadership is the core of culture.
• No half-measures: If you’re going to identify opportunities for continuous improvement, commit to having budget and resources in place.
• Process, then technology: Focus on what you need to simplify processes first, then apply AI. This will keep you from automating waste and inefficiency into your operations.

Try it out

Create and deploy an agent.

Related links

• Discover how we’re building an AI-powered continuous improvement culture at Microsoft.
• How being Customer Zero in an AI-powered world works internally at Microsoft.
• Read about how we unleashed API-powered agents at Microsoft in this step-by-step guide.
• Learn more about how we measure the impact of Microsoft 365 Copilot and AI at Microsoft.
• Supercharge your business transformation with Microsoft Viva.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Accelerating transformation: How we’re reshaping Microsoft with continuous improvement and AI appeared first on Inside Track Blog.

• The case for AI in employee assistance
• Chapter 1: Governance means getting your data right
• Chapter 2: Implementation with intention
• Chapter 3: Driving adoption by breaking old habits
• Begin your journey with the Employee Self-Service Agent

The case for AI in employee assistance

The advent of generative AI tools and agents has been a game changer for the modern workplace at Microsoft. And one of the foremost examples of how we’re reaping the benefits of this agentic revolution is our deployment of our new Employee Self-Service Agent across the company.

Thanks to the power of AI, agents, and Microsoft 365 Copilot, our employees—and workers everywhere—are discovering new ways to be more productive at their jobs every day. Recent research shows that knowledge workers are increasingly seeing big gains from using AI tools for work tasks. According to our Microsoft Work Trend Index:

As an AI-first Frontier Firm, Microsoft is at the leading edge of a transformation that’s bringing this technology into all aspects of our workplace operations. With tools like Microsoft 365 Copilot providing “intelligence on tap,” we’re forging a human-led, AI-operated work culture that enables our employees to accomplish more than ever before.

Bringing AI to employee assistance

As part of this move to embed AI across our enterprise, it was a natural step for us to apply this burgeoning technology to a common pain point for us and many workplaces today—employee assistance.

Workers in organizations large and small face many common issues in their day-to-day jobs. Whether it’s a problem with their device, a question about their benefits, or a facilities request, our typical employee was often forced to navigate a bewildering array of tools, apps, and systems in order to get help with each specific task.

This confusion is reflected in research showing that most workers are dissatisfied with existing employee-service solutions.

Our studies show that most employees have trouble finding the appropriate tools and resources they need to address their workplace-related questions.

Realizing that this was an ideal opportunity for AI, we set out to develop a state-of-the-art agentic solution. At Microsoft Digital, the company’s IT organization, we partnered with our product groups to develop and deploy the Employee Self-Service Agent, a “single pane of glass” that employees can turn to any time they need help. The product is now broadly available in general release.

“With this employee self-service solution, we’re shaping a new era in worker support. With AI, every interaction is intuitive, every resource is within reach, and help feels seamless—creating an experience that empowers our people and accelerates business outcomes.”

Nathalie D’Hers, corporate vice president, Microsoft Employee Experience

Because Copilot is our “UI for AI,” the Employee Self-Service Agent is delivered as an agent in Microsoft 365 Copilot. If your employees have access to Copilot, you can deploy the agent at your company at no extra cost. If your employees don’t have a Copilot license, they can access it via Copilot Chat if it’s enabled by your IT administrator.

For the initial development and launch of our Employee Self-Service Agent, we decided to provide agentic help in three categories: Human resources, IT support, and campus services (real estate and facilities). Every organization will have to make its own determination for which functions to include in their implementation. Note that the agent is inherently flexible and expandable; we plan to add additional capabilities, such as finance and legal, in the future.

We learned many lessons in the almost year-long process of developing and implementing the Employee Self-Service Agent across our organization worldwide. The goal of this guide is to pass on what we learned—including how we used it to provide value to our employees and vendors—to help you prepare for, implement, and drive adoption of your own version of the agent.  

“With this employee self-service solution, we’re shaping a new era in worker support,” says Nathalie D’Hers, corporate vice president of Microsoft Employee Experience. “With AI, every interaction is intuitive, every resource is within reach, and help feels seamless—creating an experience that empowers our people and accelerates business outcomes.”

Before you start: Developing your plan

As you embark on your Employee Self-Service Agent journey, make sure to establish a clear and structured plan. This was a critical step for us in our deployment, and we can say with confidence that it will help you avoid surprises and increase your chances of a successful outcome.

Based on our experience here at Microsoft, the below is a high-level outline of the steps you should consider as you prepare for deploying your agent.

1. Define prerequisites
Start by making sure that all foundational elements for the agent are in place.

• Assign licenses to your employees who will interact with the agent. They will need Microsoft 365 Copilot or Copilot Chat.
• Verify readiness by configuring your Power Platform environments, applying Data Loss Prevention (DLP) policies, and setting up isolation (limited and controlled deployment with guardrails in place) where needed.
• Ensure connectivity with critical systems by confirming that you have appropriate APIs and connectors available and functioning for the essential workplace systems that your organization uses (e.g., Workday, SAP SuccessFactors, and ServiceNow).

2. Identify your core team and responsibilities
Successful implementation of the Employee Self-Service Agent requires collaboration across multiple roles and departments in your organization.

• Business owners from the areas your agent will cover—such as human resources and IT support—can help you define requirements, priorities, success criteria, and telemetry needs.
• Platform administrators, particularly for Power Platform and tenant/identity teams, can manage your technical configuration.
• Content owners and editors are needed to identify the knowledge sources to surface in the agent, curate new knowledge sources, and maintain the data underpinning these sources on an ongoing basis.
• Subject matter experts can provide important “golden” prompt and user scenarios that the agent should prioritize and answer accurately.
• Compliance, privacy, and security leaders and their teams are needed to address risk considerations.
• Support professionals can help build a structure for live agent escalation and ticketing operations (in situations where the agent is unable to provide a solution).
• Focus groups of end users assist with validating requirements and scenarios, as well as help with testing the agent.

3. Establish a clear timeline
We found that creating a schedule for the creation, implementation, and adoption of the agent is crucial. This phased approach will help you maintain momentum and accountability over the duration of the project.

For example, here’s a rough implementation timeline that you might use to gauge your progress:

4. Articulate your vision

Communicate your rollout plan to your team, including timelines and phases, and adjust it based on feedback. Establish clear goals and meaningful success metrics to guide you and make sure your efforts are in alignment with your company objectives. (Note: You may want to consider key upcoming projects or events in your organization and link the agent roadmap to them. This will help you meet your project’s success criteria faster and encourage quicker agent adoption.)

5. Define your governance

This phase will allow you to define policies and standards and conduct a thorough content audit to ensure accuracy, relevance, security, and sustainability.

6. Implement your agent

This phase involves configuration and integration, followed by testing.

7. Roll out the agent while driving adoption and measurement

We advise deploying the Employee Self-Service Agent using a phased, or ringed, approach. We started with a small group of employees, then gradually rolled it out to larger and larger groups  before finally releasing it to our entire organization.

We encouraged adoption with internal targeted communications and promotional efforts. Careful measurement enabled us to track impact and optimize agent performance. This type of concerted change management allowed us to share the latest product developments with our employees and to keep them excited and engaged with the tool.

By investing sufficient time and effort in the planning phase of your deployment, you’ll create a strong foundation for a secure, scalable, and successful self-service agent experience.

Chapter 1: Governance means getting your data right

When a Microsoft employee enters a query into an AI chat tool like Microsoft 365 Copilot, they know that they may not receive an individualized response that is directly specific to their situation. They are aware that they might need to verify the answer they receive with further research and additional sources.

But when it comes to our company-endorsed self-service agent, the stakes are different. Our employees expect to receive accurate and personally relevant responses when they ask for help. This is particularly true for queries related to important personal details, like HR-related questions about leave policies or benefits.

“People expect personally tailored and highly accurate answers, especially for HR moments that really matter. We designed the Employee Self‑Service Agent with that expectation in mind, pairing trusted data and deep personalization with strong governance controls so that privacy, security, and trust are built into every interaction.”

Prerna Ajmera, general manager, HR digital strategy and innovation

Although the Employee Self-Service Agent comes pretrained with basic HR and IT support data, we found that the quality of the responses that our employees receive is directly connected to the accuracy, currency, and depth of the information we provide to the tool. You’ll want to spend the necessary time and effort to make sure that your data governance process is well thought-out and thorough, so that your employees experience the best possible results.

“Employee self‑service has a higher bar than generic AI tools,” says Prerna Ajmera, general manager of HR strategy and innovation. “People expect personally tailored and highly accurate answers, especially for HR moments that really matter. We designed the Employee Self‑Service Agent with that expectation in mind, pairing trusted data and deep personalization with strong governance controls so that privacy, security, and trust are built into every interaction.”

Major considerations for governance

We learned that before you configure your agent, you need to establish guardrails that protect your data’s integrity and that build your employees’ trust. These considerations will form the backbone of your governance framework:

• Managing requirements: Define what the agent must deliver and align your stakeholders on clear, prioritized goals and objectives.
• Determining and managing resources: Ensure you have the right people, systems, and funding in place to support your full product lifecycle.
• Data security: Protect your sensitive employee information with strong controls, compliant storage, and least‑privilege access.
• User access: Establish who can use, administer, and update your agent, with appropriate permissions and guardrails.
• Change tracking: Monitor your updates to content, configurations, and workflows so your agent always reflects your current policies.
• Reviewing: Regularly evaluate your content’s accuracy, the agent’s performance, and your organizational fitness to help you keep your employees’ experience with the agent trustworthy.
• Auditing: Maintain traceability for compliance, incident investigation, and quality assurance across all of your data flows.
• Deployment control: Manage where, when, and how you roll out new versions of the agent to reduce disruption and ensure consistency.
• Rollback: Prepare a fast, safe path to reverting your changes if something breaks.

We found that addressing these considerations early in the process creates a governance structure that is proactive rather than reactive, increasing the quality of responses and setting your organization up for success.

Architecture essentials

Understanding the architecture of our agent helped our governance teams make informed decisions about our configuration and integration. To do that, they needed to review and understand its key architectural components. You’ll need to do the same.

Here’s a list of the different architecture components that our team assessed, to help you get started on your own process:   

• Topics: Structured intents (e.g., “view paystub”) that align to employee questions and drive consistent answers.
• Domain packages: Pre-curated bundles for different agent segments (like HR and IT support) that provide reusable patterns, prompts, and integrations.
• Knowledge sources: Documents, intranet pages, FAQs, and databases that ground responses in authoritative content.
• Connectors: Secure integrations to systems of record (like Workday or SAP SuccessFactors) can help enable read/write operations. (Because the Employee Self-Service Agent was built with Copilot Studio, it has access to more than 1,400 different connectors.)
• Instructions: Governance-approved rules and prompts that shape tone, guardrails, and escalation behavior.

Assessing and preparing your content

A key early governance step is to audit all relevant content in your knowledge bases. This process should include assessing, updating, and, if necessary, restructuring this information before it is ingested by the agent.

An important caveat here is that the agent’s ability to understand which policies and procedures apply to which employee relies on your content having consistent metadata, permissions, and content structure. We found that before feeding your data into the agent, you need to:

• Inventory existing content: Your content will incorporate many different types, such as SharePoint pages, Microsoft Teams posts, PDFs, intranet articles, and knowledge-base documents. The goal of the inventory process is to identify content that is complete rather than outdated, duplicative, or siloed; if there are issues with the content, they should be addressed before loading into the agent.
• Assign knowledge owners: The owners should be SMEs who can help validate, tag, and maintain the content going forward. Part of this process is training up knowledge owners to be able to prepare and maintain content in ways that make it easily consumable by both agents and people.
• Structure content for discoverability: All your content needs to have accurate metadata, well-defined topic pages, and consistent naming so that the agent can surface the right information at the right time.

We found that completing a thorough content audit helps us ensure that the Employee Self-Service Agent isn’t just chatting—it’s delivering trusted, up-to-date answers that save your workers time and effort as they go about their day.

Be aware of tone and conversational flow

Providing vetted and well-structured data to the agent is important, but it’s not the entire battle. You’ll also need to make sure your agent is given clear guidance on conversational tone and instructions on what to do in specific scenarios.

Make sure you incorporate:

• Global instructions: Define the agent’s voice, behavior, and escalation rules to ensure consistency and trust. 
• Topic-level triggers: Map natural language phrases to specific workflows (such as “reset password” or “check PTO”) so the agent routes these common queries correctly.
• Advanced knowledge rules: Prioritize which data sources to use in ambiguous scenarios, and define when the agent should ask clarifying questions.

Taking these steps gave our agent a better chance of being accurate, helpful, and aligned with our organization’s specific preferences.

Addressing common scenarios with “golden” content

Another vital aspect of your content audit is identifying the most frequently accessed information in each topic area.

A good example comes from the preparation of our IT support content for ingestion by the Employee Self-Service Agent. One of the focuses of this effort was on so-called “golden prompts:” the 20 or so topics that generate up to 80 percent of our employee queries (a version of the famous “80/20 rule”).

Our golden prompts are a curated set of scenarios that:

• Represent our critical user workflows and edge cases
• Possess clear, expected responses (golden responses)
• Cover core functionality that must never break

We made sure that the agent was providing high-quality responses for these common scenarios—we recommend you do the same.

Including “zero prompt” content

Another important aspect of your content process should be to develop “zero prompts.” These are preconfigured prompts in the agent that the user can simply click on to get an answer for a common issue or request.

For example, if one of your employees wants to understand how to set up a VPN, they simply click on the zero prompt provided for that topic. The tool then gives them complete instructions on how to set one up.

During our deployment of the agent, one case where we prepopulated the tool with content for a specific, high-demand scenario came when Microsoft made a major announcement regarding employees returning to the office. We knew this policy change would generate a lot of questions from our employees.

In preparation for this, we asked Microsoft 365 Copilot to create a single document that pulled in all the “return to office” material found in its verified HR content database. We then made this document available to the agent. Just by taking that simple step, we saw our user satisfaction ratings in the tool jump from 85 percent to 98 percent for that issue!

In your own deployment, think about what issues and topics generate the most questions from your employees. You can then prepare specific content to address these scenarios, which will increase your chances of success with the agent.

Data security and compliance

Data security was a high priority when we developed our agent, especially because it must necessarily access sensitive HR information on a regular basis. During product development, we made sure that the agent adhered to enterprise-grade security standards, including identity federation, least-privilege access, and encrypted storage.

Because the agent is built on Copilot Studio, it supports robust data-loss prevention features. The agent also complies with regulatory frameworks like General Data Protection Regulation through built-in auditing and data-retention policies.

One of the big advantages that an AI agent has over a static website or similar data source is the ability to personalize responses for each user. At the same time, we had to make sure that the agent had guardrails in place to avoid overexposing sensitive information. This included detailed disclaimers to help call out these kinds of responses and flag them for more careful handling.

Our agent complies fully with our accessibility standards as well. Like all Microsoft products and services, the tool underwent a rigorous review to ensure it was fully accessible for all users.

Responsible AI

Whenever a new AI application is launched, there may be concerns raised about potential challenges regarding bias, safety, and transparency. That’s why the Employee Self-Service Agent follows the Microsoft Responsible AI principles by default.

When you enable the sensitivity topic in your agent, it screens all responses for harassment, abuse, discrimination, unethical behavior, and other sensitive areas. We tested the agent thoroughly for objectionable responses before it was launched to a broad internal audience at Microsoft.

In addition, the agent includes an emotional intelligence (EQ) option. This feature is designed to make responses more empathetic, context-aware, and relevant for diverse user audiences. It analyzes the conversation’s context and tailors the agent’s replies to ensure that users feel understood and valued throughout their session (which could be particularly relevant for any conversations related to sensitive HR topics, such as family leave). The EQ option is customizable and can be turned off by your product admins.

Key takeaways

The following are important considerations for data governance when you deploy your Employee Self-Service Agent:

• Employee expectations regarding accuracy and relevance are high for employee self-service tools, which makes data governance a key aspect of your deployment.
• Consider which data repositories are best to incorporate into your agent, and make sure they are up-to-date and well-structured. This process requires a thorough content audit.
• Pay special attention to the so-called “golden prompts” that make up a large percentage of expected queries. The agent’s answers to these questions should be top-notch.
• Restructuring content can improve response quality. When we anticipated huge interest in a particular topic, such as workplace policy changes, we restructured our content on that subject and saw a significant jump in user satisfaction.
• Build your agent to meet or exceed high standards for data security, privacy, and Responsible AI. These are vital concerns for any product that has access to sensitive personal information.

Learn more

How we did it at Microsoft

• Learn how we’re getting the most out of agents internally here at Microsoft with good governance. This story shares what our Microsoft Digital governance team learned while deploying AI-driven tools here at Microsoft.   
• Find out how we’re unlocking enterprise AI extensibility internally with Microsoft Copilot Studio. This post explains how we’re empowering our employees to create and extend Copilot-based agents using Copilot Studio.
• Read about how we’re infusing responsible AI principles into all our AI tools and projects at Microsoft. An article that explores the Microsoft Responsible AI Standard and how it informs our work with AI technologies at Microsoft Digital.

Further guidance for you

• Explore Microsoft Learn documentation for Microsoft Copilot Studio to read about key concepts in governance and security.
• Examine Microsoft Learn content related to security and data protection in Power Platform.
• Conduct the Microsoft 365 Copilot Optimization Assessment to understand your level of AI adoption and chart your course.
• Access Microsoft Learn documentation for Microsoft 365 Copilot to learn about data, privacy, security, and Zero Trust principles.

Chapter 2: Implementation with intention

Deploying a powerful and versatile tool like the Employee Self-Service Agent is no simple task. It requires guidance and buy-in from top leaders at the company, as well as detailed planning and execution across disparate parts of your organization. Here, we identify some of the key steps that we took here at Microsoft that can help guide you when launching your own self-service agent.

Determine category parameters

One of the first major decisions around implementing the agent is deciding which business function—we call them agent starters—to choose for your initial implementation.

We recommend starting with HR support or IT help (we started with HR). Both agent starters can be deployed into a single Employee Self-Service Agent experience, but they must be deployed one at a time. 

So you know, we’ve built the Employee Self-Service Agent to be connectable with other first- or third-party Copilot agents, enabling a seamless handoff to these agents without having to navigate to other tools or interfaces.

Understanding your deployment steps

There were four essential stages involved in the deployment of our agent, each with multiple steps. Here’s a quick rundown that you can use at your company:

1. Preparation for deployment
   • Establish roles: Define who will manage, configure, and support the tool, assigning responsibilities to ensure accountability during deployment.
   • Set up your environment: Prepare the necessary hardware, operating system, and network configurations so the agent can run smoothly.
   • Set up third-party system integration: Ensure your infrastructure can securely connect and exchange data with external systems that the agent will need to integrate with.
2. Installation
   • Install the agent: Deploy the core Employee Self-Service Agent software on the designated servers or endpoints.
   • Install accelerator packages: Add any desired connectors that enable the agent to communicate with commonly used systems for HR, payroll, IT support, etc.
3. Customization
   • Configure the core agent: Adjust default settings to align with your organization’s policies and workflows.
   • Identify knowledge sources: Specify where the agent will pull information from, such as internal knowledge bases or FAQs.
   • Provide common questions and responses: Add employee FAQs to improve the agent’s ability to respond quickly and accurately.
   • Identify sensitive queries: Flag questions and responses that involve confidential or regulated information to ensure they’ll be handled securely.
4. Publication
   • Approve the agent: Complete internal reviews and compliance checks to confirm the agent meets your organizational standards before full rollout.
   • Publish the agent: Make the configured agent available to your employees in your production environment.

Customization

The Employee Self-Service Agent operates as a custom agent within Copilot Studio, using our AI infrastructure via the Power Platform. The agent is constructed on a modular architecture that allows you to integrate it with your own enterprise data sources using APIs, prebuilt and custom connectors, and secure authentication mechanisms.

To streamline this integration process, we provide a library of prebuilt and custom connectors through both Copilot Studio and Power Platform. Preconfigured scenarios include connecting to major enterprise service providers such as Workday, SAP SuccessFactors, and ServiceNow. (View the full list of connectors offered by Copilot Studio.)

These connectors facilitate data exchange with the following systems and other agents in this ecosystem:

• HR information systems
• IT systems management
• Identity management
• Knowledge base platforms

We found that third-party integrations require setup effort and technical expertise across stakeholders in your tenant. Be sure to get buy-in and involve all relevant departments that will be impacted.

Rollout: A phased approach

As previously noted, we started our agent with HR content and then added IT support (we later expanded to include campus services help as well). We rolled the agent out to different groups of employees and geographic regions around the world over the course of months, adding new knowledge sources to the different categories at each step along the way. This gave us an opportunity to gather user data and refine performance of the tool as we went.

Adding campus support services required us to handle queries and tasks related to dining, transportation, facilities, and similar subjects. This was a challenging addition, because the facilities and real estate space—unlike the HR and IT support areas—doesn’t have many large service providers, which are easier to provide prebuilt connectors for.

One area that did lend itself to prebuilt connectors, however, was facilities ticketing.

Because many of our campus facilities vendors use Microsoft Dynamics 365, we were able to create an out-of-the-box connector in the agent for their ticketing process. You can take advantage of these kinds of preconfigured tools in your deployment.  

Key takeaways

Here are some things to remember when implementing the Employee Self-Service Agent at your organization:

• Decide which starter agent you will deploy first. We recommend starting with a single agent covering one area (vertical), such as HR or IT support, and then expanding from there.
• Consider a phased rollout to allow time to refine responses and ramp up the number of topic areas and knowledge sources installed in your agent.
• Use the prebuilt connectors to make it easier to integrate the agent with your existing systems.We developed customized connectors for major HR and IT service providers and a Microsoft 365 Dynamics connector to integrate with our many facilities vendors around the world.

Learn more

How we did it at Microsoft

• Learn how we’re embracing this “agentic” moment at Microsoft. This post describes how we’re integrating agents into many of our workflows and processes at the company.
• Get our step-by-step guide to how we’re unleashing API-powered agents at Microsoft. This article describes what we’ve learned from deploying agents internally at the company.

Further guidance for you

• Learn how to prepare for a successful Microsoft Employee Self-Service Agent implementation. This Microsoft 365 Copilot Blog story includes a webinar video on the same topic.
• Discover a step-by-step guide to getting your organization prepared for the Employee Self-Service Agent.
• Check out our Microsoft Learn content about deploying the Employee Self-Service Agent.
• Learn more about the customizable accelerator packs that come with the Employee Self-Service Agent.
• Read our Microsoft Learn content about installing the agent.
• Explore Microsoft Learn content about customizing your agent.
• Dive into detailed information about integrating the agent with Workday, ServiceNow, and SAP SuccessFactors.
• Work through this learning path to discover how you can create agents with Copilot Studio.

Chapter 3: Driving adoption by breaking old habits

Once upon a time, when our employees needed help with a technical issue or an HR question, they literally picked up the phone and called the relevant internal phone number. That quickly evolved into an email-centered system, where employee questions were sent to a centralized inbox that would then generate a service request. Still later, chat-based help was introduced.

Using AI to handle employee questions and service requests is a natural step in this evolution, as large-language models were built to parse vast data repositories and return the right information (often with the help of multi-turn queries and responses). And by encouraging self-service, an AI agent can help meet employee needs faster while saving the organization’s staffing resources for other needs.

But getting employees to change their habits and use a tool like the Employee Self-Service Agent wasn’t going to be as easy as just flipping a switch. Here’s how we handled this important change management task at Microsoft.

Adoption across verticals

A key principle that we learned during the adoption process was that 80% of our change management activities for the agent are applicable to all our verticals (whether it be HR, IT support, campus facilities, or another category). We didn’t need to reinvent the wheel each time we added to the topics that the agent covered.

This allowed us to create a change management “playbook” that we could use each time we expanded to a new category. So, while roughly 20% of the strategies we used were specific to that vertical, the vast majority were the same, which saved time as we moved through onboarding the different categories.

Leadership is key

To get our employees to change the way they ask for help, we found it essential to get the support of our key leaders, something we refer to as “sponsorship.”

We found that good sponsorship doesn’t just come from your central product, communications, or marketing groups. It is equally vital to invest in relationships with local leadership in different regions as you roll out the agent (especially in multinational companies like ours).

Local leaders understand the various regional intricacies—including language, functionality, and the rhythm of the business—that can help inspire their segments of the workforce to adopt a new tool, and then evangelize it to others in turn. Working closely with these kinds of sponsors will help you pull off a successful adoption campaign.

If you have works councils, be sure to seek out your representatives and solicit their feedback on your agent experience early on. You can help them understand how the agent was developed and trained, then address any concerns they raise.

We’ve found that once our works councils are made aware of the careful processes we go through to protect user privacy, and to ensure compliance with our Responsible AI standards, they become enthusiastic supporters and can help promote agent adoption. (Read more about our experience with our works councils and the Microsoft 365 Copilot rollout.)

Defining your messaging

Work with your internal communications team to come up with a well-planned messaging framework for your agent rollout. Based on our experience, it’s likely you’ll need to communicate across a wide variety of teams and organizations like HR, IT, facilities, finance, and so on.

It’s important to be clear about how you’re positioning the product for your employees. This will allow you to develop both overall messaging for general use, but also content tailored to specific teams or employee roles. The more sophisticated your messaging, the more likely it is to be effective in encouraging user adoption of the agent in their regular workflow.

Listening to feedback

As Customer Zero for the company, our employees are our best testers and sources of feedback during our product development process. The Employee Self-Service Agent was no different, and we continue to gather crucial feedback and user data throughout the internal adoption process.

Because the agent is a tool centered on helping your workers resolve challenges and get quick answers to questions, you’ll want to set up your own systems for capturing their feedback and make sure the agent is meeting a high-quality bar.

We found that setting yourself up for success when it comes to listening to your employees involves two major aspects: Developing and deploying a system for gathering employee sentiment about the product, and then creating a system for analyzing that feedback and funneling the findings back to your IT team.

Some of the types of feedback and methods we used to gather it during the development process included:

• User-testing data
• User satisfaction ratings
• User surveys, interviews and other research
• Voice of the customer (in-product feedback)
• Pilot projects and focus groups (smaller segments of users)
• IT support incidents
• Usage data and telemetry
• Community-based early adopter feedback (similar to our Copilot Champs community)
• Social media feedback and comments

You can choose from among these options to set up your own feedback mechanisms, or come up with something customized to your implementation.

Calibrating your usage goals

Remember that the Employee Self-Service Agent is not an all-purpose AI tool like Microsoft 365 Copilot, which your employees might use a dozen times a day. Instead, they may only need assistance from HR or IT support, tools, and information sources a few times a week (or even less). Your usage targets should be calibrated accordingly.

At the same time, the more categories of assistance you add to the agent, the more your usage levels can grow—along with user expectations.

When we decided to add campus support (dining, transportation, and facilities-related needs and queries), one of the motivators was to provide information that users might need on a more regular basis. This addition helped us increase adoption and build daily usage habits for the agent among our employees.

Making the agent your front door for employee assistance

Your employees may have longstanding habits around the ways that they seek assistance, such as moving quickly to email a service request, or immediately engaging a live support technician. There might even be someone helpful in the office next to them that they lean on for IT support. We’re aware that breaking such habits can be a challenge.

That’s why we decided to change our own employee-assistance workflows. In the case of HR, we are planning to remove the option to email a centralized alias for help, which was the default in the past. This forcing function will instead prompt our employees to turn to the agent first for assistance, creating a “front door” for all our HR service requests.

For our IT support function, we are switching from a Virtual Agent chatbot to the Employee Self-Service Agent, which should provide users with a richer experience and a higher rate of resolution.

Of course, our main goal is for the agent to handle an employee’s issue without having to seek further assistance. But what happens when the agent cannot resolve their problem or handle their request? That’s why we’ve also implemented a “smooth handoff”—either to create a service request or connect the user to a live agent for specialized assistance.

There are three key steps in this process:

1. The Employee Self-Service Agent can identify when the user has reached a point where they need to move to a higher level of assistance via a live agent or a service request. (Note that we also allow the employee to make that determination for themselves.)
2. We then give them different options for how they want to connect to live support.
3. When the employee is transferred to a live technician, the Employee Self-Service Agent is able to pass on the chat history from its session with the user. That way, the technician or staff support can quickly get up to speed on the situation, see what the employee has already asked about and tried, and start helping them immediately.

Enabling the employee to quickly and smoothly transition to a higher level of support without leaving the chat increases user satisfaction and makes them more likely to return to the agent the next time they need assistance.

Strategic outreach to employees

Of course your workers, like ours, are busy with their day-to-day job functions. They may be resistant to trying a new tool or going through special training on how to access employee assistance. Or they may just not know about it.

Because of our regionally phased rollout of the agent, email was one of the most effective tools we used to connect with specific audiences and make them aware of the tool. With specific email lists, we could make sure that only employees in that phase of the rollout were seeing the message.

A key aspect of getting our employees to adopt any new tool is reinforcement—the process of sustaining behavior change by providing ongoing incentives, recognition, and support. Some of the reinforcement strategies we used for the agent included:

• Targeted communications: Emails and organizational messages invited employees to try the agent as they received access
• Multi-channel campaigns: Promotion of the agent via portals, newsletters, digital signage, and more to keep it at the forefront of employee minds
• Training: Workshops and micro-learning sessions about the agent
• Social campaigns: Posts highlighting the tool to increase awareness and gather employee feedback (see details below)
• Leadership support: Managers modeled usage of the agent and promoted it regularly
• Processes: The tool was part of regular employee workflows

One very important communications channel that we used in our adoption efforts was Microsoft Viva Engage. We set up a private Engage community for the Employee Self-Service Agent, then populated it with each new wave of users as they were given access to the tool (eventually all were given access when the tool went companywide).

We used this channel for various kinds of messaging:

• General product awareness
• Updates on new or changing functionality
• Answering questions or addressing frustrations (two-way dialogue between users and the product team)
• Fun and helpful “tips and tricks” that users could try (these could come from the product team, leadership, or individual product “champions”)

We also inserted messages about the new agent into our regular communications with different audiences, including HR professionals, IT support personnel, and internal comms staff at the company. And we regularly messaged company leaders about it, so they could encourage their teams and direct reports to support the effort and evangelize for the tool.

One thing we did was make clear to our employees that even though the agent was not able to handle an issue today, it might be able to in a month or two. That’s why ongoing communications to users was important.”

Prerna Ajmera, general manager, HR digital strategy and innovation

Of course, as a natural language chat tool, the Employee Self-Service Agent doesn’t require formalized training. The product itself is designed to guide users and allow them to experiment, simply by stating their needs in plain language. Most employees will already be familiar with AI tools like Microsoft 365 Copilot, so effectively using an AI-powered employee-assistance agent should be a low bar to clear.

Managing expectations

Your Employee Self-Service Agent rollout will be an ongoing journey as you add topic areas, functionalities, and other product features. Your product roadmap will evolve as you learn more about what your employees need with this kind of AI solution.

One factor to consider is how to set realistic user expectations about what the agent can do while the product matures and improves. As we gradually rolled out the tool, we messaged that the agent was in “early preview,” which helped avoid employee disappointment when it couldn’t handle a specific request.

“One thing we did was make clear to our employees that even though the agent was not able to handle an issue today, it might be able to in a month or two,” Ajmera says. “That’s why ongoing communications to users was important, as new capabilities were added and speed and accuracy improved.”

We also created messaging for early users indicating that their testing was an integral part of making the tool more effective. This created a positive feedback loop while also keeping employee expectations reasonable.

How we measured success

Carefully tracking and analyzing your success metrics throughout your development and release of the product is a high priority. Without this step, you are working in the dark.

At Microsoft, we identify the key performance indicators (KPIs) for a particular product and then use them as our North Star for any internal release. But the specifics of those KPIs can vary from product to product.

For example, measuring the monthly average user (MAU) statistics might be extremely important for an all-purpose productivity tool like Microsoft 365 Copilot. But for an employee-assistance tool, the goal is not necessarily regular use, because employees aren’t constantly facing challenges that require help (we hope). Usage statistics may also be affected by certain events or cyclical needs, such as annual employee reviews or a major technology change (like a significant Windows update).

With this in mind, we identified certain key metrics for the Employee Self-Service Agent. In this case, the top KPIs included:

• Percentage of support tickets deflected
• Net satisfaction score
• Latency period
• Reliability
• Total time savings
• Total cost savings
• Identified and prioritized issues (reported back to product group)

Overall, we focused on the rate at which employees were able to resolve issues without opening a support ticket, as this would likely generate the greatest return on time and cost savings. We came up with an overall target across the different verticals of 40% ticket deflection, and we’re making solid progress toward this goal as we continue to refine and improve the agent.

Part of our measurement process is a monthly progress meeting of key project stakeholders, where all KPIs are evaluated to see if our targets are being met. If the results do not meet expectations, we identify the potential causes and discuss what adjustments need to be made to address these shortfalls.

Key takeaways

Here are some key things to remember when it comes to adoption efforts for your Employee Self-Service Agent:

• Don’t reinvent the wheel. Most of your change management and adoption strategies for the agent will be the same across different regions and help categories.
• Line up product sponsors. Finding leaders and others across the organization to help you promote the Employee Self-Service Agent within their own groups, functions, and regions can make a big difference in gaining employee trust and encouraging adoption.
• Set up proper listening channels. You’ll want to gather as much feedback as possible from your employees as you roll out the agent so you can understand what is working well and what needs improvement. This kind of feedback loop can also make your employees feel heard and help them shape the tool.
• Make the shift to agent-first help. Employee habits for seeking assistance can be resistant to change. We decided that turning off the “email to create a service ticket” workflow was a great way to nudge our workers to recognize the agent as the first option for their assistance needs.
• Be strategic in your communications. Use tools like email, Viva Engage, and other appropriate communications channels to target your communications and encourage a two-way conversation with employees about the agent. Sharing fun tips and encouraging peer support are other ways to increase awareness and engagement with product.
• Identify your key metrics. We determined our benchmarks for success for this particular type of agent, then tracked them and made the results available to key stakeholders. This allowed us to measure the impact and effectiveness of the product.

Learn more

How we did it at Microsoft

Although some of the blog posts below are about adoption efforts related to Microsoft 365 Copilot, they can give you ideas on how we promote internal adoption of agentic AI products at Microsoft.

• Find out how we’re reimagining campus support with the Employee Self-Service Agent. This post describes how we targeted popular employee queries—such as “What’s for lunch?”—to drive adoption of our new agentic tool in the facilities and real estate space.
• Read about how we drove Copilot adoption using Microsoft Viva. This article explains how Viva provides a powerful suite of tools that can assist with your adoption efforts.
• Learn how we created an internal Microsoft 365 Copilot Champs community to help drive adoption of the tool. This article covers how we created a special community of Copilot enthusiasts at Microsoft, who provided peer training and support for their coworkers’ Copilot journeys.  
• Discover how we built an AI-powered continuous improvement culture at Microsoft. This article provides a detailed examination of how we use data to track adoption and continuously improve our products and processes within Microsoft.
• See how we’re supercharging our internal communications with Microsoft Viva. This post explains how we use tools like Viva engage to build trust and encourage two-way dialogue with our employees about important topics, company initiatives, and key product rollouts.

Further guidance for you

• Explore the formal Adoption Guide for the Employee Self-Service Agent.
• Read the product group’s guide for deploying an Employee Self-Service Agent.
• Check out our Microsoft Learn content about collecting usage data and feedback on the Employee Self-Service Agent.

Begin your journey with the Employee Self-Service Agent

Agentic AI offers incredible promise to transform employee productivity, giving individuals access to powerful tools that enable them to accomplish more. We believe the Employee Self-Service Agent is another step along that path, allowing workers to get instant help with tasks that used to be cumbersome and time-consuming.

“We’re excited to get the Employee Self-Service Agent out and into the hands of our customers, so that they can reap the same benefits that we’re already seeing from it. As we continue to refine the product and expand the number of verticals it can cover, we expect to realize exponential efficiency gains and capture even more cost savings across our entire organization.”

Brian Fielder, vice president, Microsoft Digital

Now that you’ve read about our experience deploying the tool, it’s time to start your own journey. Successful implementation means your people will spend less time on the phone with support staff or hunting through web pages and other resources for help with routine employment tasks and more time devoted to their productive work, reducing job-related pain points and frustrations.

You can benefit from the lessons we’ve learned and the many helpful features and capabilities that we’ve built into this product, all of which are designed to make your implementation as fast, easy, and effective as possible.

“We’re excited to get the Employee Self-Service Agent out and into the hands of our customers, so that they can reap the same benefits that we’re already seeing from it,” says Brian Fielder, vice president of Microsoft Digital. “As we continue to refine the product and expand the number of verticals it can cover, we expect to realize exponential efficiency gains and capture even more cost savings across our entire organization.”

Key takeaways

Here are some of the essential top-level learnings we gleaned from our deployment of the Employee Self-Service Agent, which you should keep in mind as you start out on your own deployment path:

• Identify and engage the right people. You’ll need buy-in and advocacy from leaders across the organization; the involvement of key stakeholders from HR, IT, legal, and compliance; and technical guidance from admins, license administrators, environment makers, and knowledge-base subject matter experts.
• Develop your plan. Understand the major phases of governance, implementation, and adoption of the tool, and make sure that you have adequate resources and support for each phase.
• Verify the quality of your content. Your chances of success will be better if you undertake a thorough content assessment to address the currency, accuracy, and structure of all relevant knowledge bases. Pay particular attention to the topics and tasks that are in greatest demand by employees when they access help services.
• Consider a phased rollout. Releasing your Employee Self-Service Agent to progressively larger groups of workers across your organization allows you to gather data and feedback and improve the performance and relevance of the agent over time. You can also expand the number of categories that your agent covers as you go, increasing the impact and appeal of the tool.
• Communicate strategically to promote adoption. Convincing employees to break longstanding habits when seeking help is a challenge. Email is helpful for targeting specific groups of employees, but be sure to use tools like Viva Engage to create community, answer questions, provide fun tips and tricks, and announce new capabilities and options.
• Set clear goals and measure against them. Come up with a targeted set of KPIs that reflect your organization’s needs and aspirations, then develop a plan to capture data for each of these indicators and a regular reporting cadence to keep stakeholders informed of progress toward your goals.

Learn more

How we did it at Microsoft

• Read the official Employee Self-Service Agent product release announcement.
• Learn how we’re accelerating employee services at Microsoft with the Employee Self-Service Agent.
• View a series of Microsoft Learning Community videos about deploying the Employee Self-Service Agent.
• Explore the Microsoft Learn content related to the Employee Self-Service Agent.
• Discover how we’re tackling Microsoft 365 Copilot governance internally at Microsoft.
• Explore our leaders’ guide to enterprise AI maturity in five steps.
• Watch a video from the Understanding Microsoft Agents series devoted to the Employee Self-Service Agent.

Try it out

• Learn more about how you can begin your own journey with the Employee Self-Service Agent.

We’d like to hear from you!

• Want more information? Email us and include a link to this story, and we’ll get back to you.

The post Deploying the Employee Self‑Service Agent: Our blueprint for enterprise‑scale success appeared first on Inside Track Blog.

As our ecosystem of AI tools expands, so does our responsibility and opportunity. We have to guide the process with the right structure, clarity, and confidence.

“With Agent 365, IT leaders can confidently embrace this innovation through a unified control plane that provides the capabilities that enterprises need to ensure agents are governed, observable, and secure—regardless of which tools, frameworks, or models were used to create them.”

Brian Fielder, vice president, Microsoft Digital

We approach the governance of AI as a task we’re shaping in real time while observing the different ways our people are using AI in their daily work.

That’s the advantage of being Customer Zero here in Microsoft Digital, the company’s IT organization. We’re living this transformation across Microsoft 365 every day, evolving our governance model alongside the evolution of AI and agents.

“With Agent 365, IT leaders can confidently embrace this innovation through a unified control plane that provides the capabilities that enterprises need to ensure agents are governed, observable, and secure—regardless of which tools, frameworks, or models were used to create them,” says Brian Fielder, vice president of Microsoft Digital.

Our governance approach is built around two complementary control planes: Microsoft Agent 365 for agents and Copilot controls for Microsoft 365 Copilot.

“We’ve seen the rapid pace of innovation firsthand. As Copilot evolves and agents expand, the control planes we use must evolve also. New AI and agent capabilities raise the bar for governance and management, so at Microsoft Digital, we’re working with our product teams to evolve the management to keep the company secure, informed, and ready for whatever comes next.”

David Johnson, principal architect, Microsoft Digital

These control planes are supported by the four fundamental concepts that we apply to every enterprise system we operate: security, governance, management, and observability.

“We’ve seen the rapid pace of innovation firsthand,” says David Johnson, principal architect in Microsoft Digital. “As Copilot evolves and agents expand, the control planes we use must evolve also. New AI and agent capabilities raise the bar for governance and management, so at Microsoft Digital, we’re working with our product teams to evolve the management to keep the company secure, informed, and ready for whatever comes next.”

This model gives us a consistent way to support new capabilities, encourage responsible experimentation, and help our employees adopt AI and agents with fewer hurdles.

Expanding our AI governance practices

As AI use evolves within our organization, we’re seeing clear patterns emerging. Copilot goes well beyond chat. It can execute tasks, create and modify content directly inside apps, connect systems, and coordinate multi‑step work through agents. The AI ecosystem is becoming more effective at boosting productivity with model choices, agent-to-agent orchestration, and agent mode within applications that leverage natural language to complete tasks.

These patterns are exciting, move fast, and expand how we think about governance.

The shift became clear as teams across Microsoft began experimenting with new AI capabilities in the last few years. Accelerating Copilot usage showed us how quickly people adopt tools to help them work better and faster. Rapid agent growth showed us how much value workers get when AI takes on more complex, multi‑step tasks. These expansions pushed us to evolve our security, governance, and management approaches alongside the technology.

That’s what led us to define two complementary control planes for Copilot and agents—not because one replaces the other, but because they serve complementary roles in the ecosystem. Copilot goes beyond chat, surfacing intelligence directly inside apps, workflows, and context to help people work smarter in the flow of their apps. Agents take on broader responsibilities across services, teams, and data boundaries.

By recognizing the different types of work that Copilot and agents do, we’re better equipped to manage and govern them. We can apply consistent principles, tailor the controls to each type of tool, and give employees a clearer understanding of how each AI capability behaves. It’s an approach that grows with technology, instead of forcing everything into a single frame.

Building governance on foundational pillars

As Copilot and agents expand across Microsoft 365 and the rest of our product offerings, we’ve anchored our approach on the fundamentals of security, governance, management, and observability. These principles have shaped our enterprise systems for years. What’s changing is how we apply them to a fast‑moving AI ecosystem.

Security and governance

Security and governance are the baseline for us at Microsoft. Every new capability—whether it’s Copilot helping you draft, find, or create content, or an agent running an automated workflow—must adhere to security and governance principles.

“The Microsoft 365 admin center is becoming the place where controls come together. Policies, observability, and configuration are in a single experience, so admins don’t have to hunt across multiple portals. That consolidation makes it easier for us to understand how AI is behaving in our tenant and what controls we have available to guide it.”

Mike Powers, senior systems engineer and AI admin, Microsoft Digital

Products like Microsoft Purview and Defender allow us to better understand what data our AI tools are accessing, for how long, and where additional guardrails might be needed as features and usage evolve.

Management

Management completes the foundation, and measurement is how we track our progress.

As AI tools take on more responsibility, we needed a unified way to manage access, lifecycle, and configuration. Agent 365 is evolving the Microsoft Admin Center to serve as a central focal point for agent management and observability. Agent 365 brings together agent information and controls that were previously scattered across different admin experiences and puts them in one coherent place.

“The Microsoft 365 admin center is becoming the place where controls come together,” says Mike Powers, a senior systems engineer and AI admin in Microsoft Digital. “Policies, observability, and configuration are in a single experience, so admins don’t have to hunt across multiple portals. That consolidation makes it easier for us to understand how AI is behaving in our tenant and what controls we have available to guide it.”

It’s how we track adoption, quality, and business value like time saved and reduction in operational costs. It’s how we identify what’s working, where to invest next, and how we can guide product teams with real‑world insights. We look carefully at active agents, usage patterns, assisted hours, sentiment, and the outcomes our people achieve with AI. Different audiences share the same goal: using telemetry to make AI better.

Together, these principles allow us to evolve our governance model without slowing innovation. They give us a steady foundation in a rapidly expanding environment—one where Copilot and agents will continue to grow, intersect, and unlock new ways of working.

Observability with Microsoft Agent 365

The widespread use of agents is an accelerating trend here at Microsoft. We use them to automate multi‑step tasks, build applications in plain language, connect systems, and streamline work that previously depended on manual coordination.

As the number of agents grows and becomes more autonomous, we need a management approach that matches their scale and autonomy. That’s what Microsoft Agent 365 gives us—a control plane designed for AI and agentic workloads that operate across platforms and traditional admin boundaries.

Agent 365 provides a registry for agents that lets us discover and understand how agents behave across Microsoft 365. It shows us who built them, who can use them, and what data they can access. From a single admin console, we can observe and manage agents created across different platforms. Day to day, Agent 365 gives AI admins agent observability we didn’t have before, and a way to connect insight to action.

“Agents represent a significant and growing workload that tenant administrators manage as part of day‑to‑day operations,” Powers says. “Agent 365 helps bring clarity to a diverse and rapidly scaling agent population by providing a centralized place to observe and manage how agents operate. This centralized approach is bringing together admin teams like never before so we can apply broad expertise to agent management.”

That clarity matters.

Agents behave differently than Copilot experiences. They can run continuously, trigger processes automatically, and touch systems across organizational boundaries. By treating them as advanced workloads, we can apply governance that supports experimentation without losing control over the ecosystem.

Agent 365 gives teams the confidence to build agents, knowing there’s a clear, consistent framework behind them. It helps ensure agents scale responsibly, are discoverable, and align to the enterprise patterns that keep Microsoft secure and productive.

Keeping track of Copilot controls

We rely on Copilot controls to give us a unified way to govern how different Copilot experiences show up for employees.

Copilot controls aren’t a single product. It’s a fabric of controls, insights, and guardrails that help us guide Copilot usage as it grows. It brings together settings, reports, and policies that once lived across separate admin surfaces and connects them into one coherent system.

“Copilot controls bring everything into one place, so admins don’t have to jump across different reports. It gives them a holistic view of Copilot health. That includes licenses, sentiment, usage, and recommendations. It’s everything they need to understand how Copilot is working in our tenant.”

Amy Ceurvorst, direct of business programs, Microsoft Digital

At its core, Copilot controls help us manage three things:

• Who has access
• How the experience is configured
• How we measure adoption and value

It’s how we track whether licenses are assigned as expected, whether teams are using Copilot regularly or occasionally, and where configuration gaps may exist. It also recommends changes that can make Copilot more effective and secure.

As Copilot evolves, our Copilot controls will evolve with it. New features, security patterns, and use cases all plug into the same foundation. That gives admins a rhythm they can rely on, even as the technology continues to move rapidly.

It also gives business leaders clearer visibility into how Microsoft 365 Copilot helps people work—how often it’s used, what tasks it supports, and where impact shows up.

“Copilot controls bring everything into one place, so admins don’t have to jump across different reports,” says Amy Ceurvorst, a director of business programs in Microsoft Digital. “It gives them a holistic view of Copilot health. That includes licenses, sentiment, usage, and recommendations. It’s everything they need to understand how Copilot is working in our tenant.”

That clarity is critical. It helps us guide Copilot responsibly without slowing its momentum. It gives our admins confidence in how the experience behaves. It gives our engineering teams the feedback they need to keep improving the platform. And it gives our employees a secure, well‑governed environment where they can adopt Copilot at their own pace.

Applying Agent 365 and Copilot controls as Customer Zero

We use Agent 365 and Copilot controls every day. They help us understand what AI is doing inside Microsoft, how these tools are evolving, and where we need to focus our efforts next.

These systems give us visibility we didn’t have a year ago, as well as a way to move faster without losing alignment across security, IT, and business teams.

“Measurement tells us what’s really happening. It shows us where people are finding value and where they need help. We can see the friction points, the successful patterns, and the opportunities that aren’t obvious from the surface. Having that level of insight lets us give the product team clear, actionable feedback.”

Tanya Roberts, senior business program manager, Microsoft Digital

Understanding how agents perform in the real world is essential. With Agent 365, we look at what’s being created, what’s actively being used, and which workflows people rely on most. We review how agents are scoped and published, and we check whether they’re operating as expected. These signals help us see emerging patterns—what’s gaining traction, what’s causing confusion, and where we need clearer controls.

The same applies to Copilot.

Copilot controls give us a consolidated view of how Copilot appears across the tenant—licenses, usage, sentiment, and recommended configuration changes. We use that data to advise product groups, flag issues early, and help business teams to adopt Copilot in ways that make sense for their work. Internally, these insights reduce friction. Externally, they help shape the product.

Cross‑team collaboration is essential. Security teams watch for data exposure risks. IT teams manage configuration and rollout. Business units surface scenarios they want to enable. We coordinate across all these groups so Copilot and agents can scale smoothly.

Measurement ties it all together.

“Measurement tells us what’s really happening,” says Tanya Roberts, a senior business program manager in Microsoft Digital. “It shows us where people are finding value and where they need help. We can see the friction points, the successful patterns, and the opportunities that aren’t obvious from the surface. Having that level of insight lets us give the product team clear, actionable feedback. We can connect the dots between what people are trying to do and what the technology needs to support next.”

This is how we make AI real and practical. We learn from what happens in production, evolve the controls, and feed those lessons back into the product. It’s an ongoing cycle that grows stronger as adoption increases.

Looking forward

The AI landscape isn’t slowing down. Copilot will keep getting smarter and more broadly used across other apps and services. Agents will take on more complex work. And the boundaries between them will continue to blur as new capabilities emerge across Microsoft 365. That’s why our governance model has to evolve alongside the technology.

We’re designing for a future where AI spans more systems, touches more data, and supports more business processes. That means deeper integration between Agent 365 and our Copilot controls; more connected signals across security, management, and measurement; and governance patterns that hold up no matter how AI capabilities shift.

We expect the control planes we use will continue expanding in ways that give admins even more clarity. We’re looking forward to seeing richer telemetry across Copilot and agents. We plan to develop simpler ways to scope, publish, and update AI workloads. And we anticipate more advanced governance features, which will help organizations understand not just what AI is doing, but why it’s doing it.

Our work with Microsoft product teams as Customer Zero will continue to shape this evolution. As part of this process, we can provide real‑world insights about how AI behaves at enterprise scale. That feedback is already influencing how controls show up in the Microsoft 365 admin center and how Agent 365 is expanding to support new workloads. These feedback loops will only get stronger over time.

We’re building our AI management approach into a living system that adapts to new capabilities, new risks, and new opportunities. A system that supports innovation instead of slowing it down. And one that keeps Microsoft—and our customers—confident as the AI stack keeps changing.

Key takeaways

If you’re establishing governance for Copilot and AI agents in your organization, consider these actions to drive responsible, scalable adoption:

• Start with governance fundamentals. Use security and governance, management, and observability as your pillars before layering in other tools or processes. Many of the same fundamentals that unblock Copilot provide the reason why a tenant can be comfortable with knowledge-only agents. 
• Understand the unique and intersecting governance paths for Copilot and agents. Both have some of the same fundamentals but Copilot and agents have distinct AI controls, with different responsibilities, risks, and oversight needs.
• Use measurement to guide decisions. Track usage, value, sentiment, and friction to understand how AI is performing and where you need to refine the experience.
• Make governance a shared responsibility. Bring together security, IT, business leaders, and product teams to ensure clarity, alignment, and end‑to‑end control.
• Design governance that evolves. Adopt controls that can adapt as Copilot grows, agents mature, and new AI capabilities enter the stack.
• Prioritize clarity for builders and admins. Keep patterns simple, make guidance visible, and ensure that controls are easy to understand so your teams can adopt AI confidently.
• Invest in the AI admin role. Create space for a dedicated AI admin role and skill up AI Admins with deep, cross‑platform expertise, including SharePoint, Power Platform, Azure AI Foundry, Entra identity, and Exchange. Yes, agents will soon have their own mailboxes. In the evolving world of agents, effective administration depends on knowing how agent lifecycle is tied to the platforms where they are created and operate. 

Try it out

• Get started with Microsoft Agent 365 at your company.
• Learn more about Copilot controls.

Related links

• Learn more about our Microsoft Agent 365 product launch. 
• Check out our story announcing our internal rollout of Microsoft Agent 365 here at Microsoft.
• Find out more about how we’re tackling Copilot governance internally at Microsoft.
• Learn more Control controls security and governance.
• Find out how we’re riding the wave of agents washing over Microsoft with good governance.
• Use Agent 365 in the Microsoft 365 admin center.
• Manage Microsoft 365 Copilot scenarios in the Microsoft 365 admin center.
• Explore the tools, practices, and policies regarding Responsible AI at Microsoft.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Shaping AI management at Microsoft with Agent 365 and Copilot controls appeared first on Inside Track Blog.

At an organization the size of ours—with a global workforce, massive cloud footprint, and millions of identities to protect—relying on passwords wasn’t a sustainable security posture. We needed something stronger, simpler, and more secure.

This led to the introduction of Windows Hello for Business, which was first built into Windows 10 and then Windows 11. Windows Hello for Business replaces traditional passwords with hardware‑backed keys tied to a user’s device.

So, instead of typing a “secret phrase” that can be phished or leaked, our employees authenticate with biometrics or a PIN that never leaves the device. It’s fast, intuitive, and—most importantly—resistant to the kinds of attacks that plague password‑based systems.

“This wasn’t just a technology shift—it was a structural change in how we establish trust across the organization. The lessons we learned offer a practical blueprint for any organization looking to strengthen their security while also reducing friction for their workforce.”

Abu Kabir, director of IT service management, Microsoft Digital

Rolling out passwordless authentication at a large company like ours took more than just introducing new technology. It also required that we come up with a new way to onboard our employees securely, no matter where they work.  

The first step we took toward passwordless credentials was to create Identity Pass, which included an emphasis on Day 1 authentication (on a new employee’s first day at Microsoft). By combining strong identity proofing, a Temporary Access Pass (TAP), and automated onboarding workflows, we forged an identification system where employees could unbox their device, sign in securely, and register their credentials without ever needing a password.

The result wasn’t just a smoother user experience.

“This wasn’t just a technology shift—it was a structural change in how we establish trust across the organization,” says Abu Kabir, a director of IT service management in Microsoft Digital, the company’s IT organization. “The lessons we learned offer a practical blueprint for any organization looking to strengthen their security while also reducing friction for their workforce.”

How we launched passwordless authentication

To understand how we worked through the details of passwordless authentication, it’s helpful to explain how it was implemented in the first place.

Our passwordless security system includes several components, including face or fingerprint, a PIN tied to their device, and a physical security key (like a YubiKey), but this story focuses these on two:

• Identity Pass: the internal system for secure, passwordless onboarding and recovery
• Windows Hello for Business: the phishing‑resistant credential that Identity Pass helps users register

Identity Pass

Identity Pass, which is only used internally here at Microsoft, uses several tools to “bootstrap” the user, which is the first step in establishing trust among a user, a device, and an identity system. It’s the moment when you go from “nothing trusted” to “something trusted.” Everything that happens afterward depends on getting that moment right.

Identity Pass relies on three core elements:

• Verified ID is what we use internally to establish proof of identity. It’s an initial step and is valid for 30 days.
• Temporary Access Pass (TAP) establishes authentication.
• Conditional access enforces policy.

Identity Pass is where risk signals matter most, because onboarding and recovery are the moments when identity assurance is weakest. Those risk signals include:

• Authentication behavior detection: If a user tries to redeem a TAP or Verified ID from an unusual location, device, or pattern, Authentication Behavior Detection can flag a sign in as risky. Identity Pass can then require stronger identity proofing or block the flow.
• Global high‑risk detection: If our threat intelligence determines the user is likely compromised, Identity Pass will not allow TAP issuance or passwordless registration until the risk is remediated.
• Strong fraud indicators: If the user’s session or token shows signs of fraud (token replay, hijacking, malicious infrastructure), Identity Pass will force remediation and block bootstrap flows.
• Risk‑based identity assurance: This is the decision engine that takes security signals and determines what level of assurance is required. For example:
  • Low risk = allow TAP issuance
  • Medium risk = require Verified ID reproofing
  • High risk = block and escalate

Identity Pass is essentially the front door where these signals decide whether a user can even begin the passwordless journey.

Windows Hello for Business

Windows Hello for Business is the strong, phishing‑resistant credential that Identity Pass helps users register. Once this is in place, the risk signals listed above continue to influence authentication.

• Authentication behavior detection: Windows Hello for Business sign‑ins are evaluated like any other. If the user suddenly authenticates from an impossible location or unusual device, this system flags it as a sign‑in risk.
• Global high‑risk detection: If our detects a high‑confidence compromise, Windows Hello for Business sessions can be revoked via Continuous Access Evaluation. The user then reregisters through Identity Pass.
• Strong fraud indicators: If a Windows Hello for Business token is replayed or misused, this system triggers immediate revocation and forces secure recovery.
• Risk‑based identity assurance: This determines whether Windows Hello for Business alone is sufficient, or whether the user must step up to a stronger method based on risk.

Windows Hello for Business is the credential, but the risk signals determine whether that credential is trusted at any given moment.

What we learned: Rollout and implementation

While our toolsets and protocols offer a clear path for any organization moving toward passwordless authentication, transferring users from a typical user/password security setup can have a variety of challenges—especially at the outset.

Devices, environments, and remote work all matter

When an organization adopts identity‑based, passwordless authentication, one of the first realities it confronts is that the onboarding experience isn’t uniform. Employees don’t all show up with the same hardware, the same operating system version, or the same security capabilities. That diversity has a direct impact on how smoothly a user can complete the initial Day 1 setup and register a strong, phishing‑resistant credential.

“It’s not one-size-fits-all. The onboarding experience can be different by platform, version, and device. The further away you get from a homogenized environment, the more complexity you introduce.”

Matt Scott, senior IT service manager, Microsoft Digital

Device and platform diversity is one of the defining factors in designing a successful passwordless onboarding experience. Any organization adopting identity‑based authentication needs an onboarding system that can adapt to a wide range of hardware, OS versions, and security capabilities while still enforcing a consistent, high‑assurance security model.

Identity proofing and credential registration don’t look the same across platforms. A laptop might support credential setup directly at the login screen, while a mobile device might require an app‑based flow, and a non‑traditional platform might rely entirely on browser‑based enrollment. The underlying model stays consistent, but the user experience varies depending on where the user begins.

“It’s not one-size-fits-all,” says Matt Scott, a senior IT service manager in Microsoft Digital. “The onboarding experience can be different by platform, version, and device. The further away you get from a homogenized environment, the more complexity you introduce.”

Support volume

With Identity Pass in place, we have seen dramatic reductions in password reset volume (80%), onboarding delays, and help desk tickets related to account access. At the initial rollout stage, however, most organizations should anticipate a temporary spike in support needs.

“We expected an increase in volume, because we had recently gotten to 99% in terms of users being identified through Phish-Resistant Multi-Factor Authentication,” Scott says. “In reality, what’s happening is you have a lot of users who are unhappy with the experience as part of the move to a passwordless environment.”

No matter how solid the argument is for a passwordless approach or how cleanly an organization implements it, our experience shows that organizations should expect initial confusion from employees and increased pressure on support teams.

“Moving into a passwordless environment is obviously good for everyone, but we needed to make it easier for users to get the information they needed,” Scott says. “It’s not just one fell swoop of moving from password to passwordless. It’s truly a journey. And it’s very important that change management is part of that journey.”

Helping employees help themselves

Another key learning during our implementation of passwordless authentication was the importance of accessible documentation. This gives users who have yet to establish their identity credentials a way to get unblocked without having to immediately call IT support.

That documentation must stay accurate over time, so it’s crucial to build a governance strategy that ensures updates are made quickly as new devices, platforms, and scenarios emerge.

“During onboarding, if there’s a problem and a user is locked out, they may not have access to the corporate network,” Kabir says. “Having a site that they could access, with actual instruction based on which device they’re using and that shows them how to get past key blockers, was very helpful.”

Maintaining a direct line to leadership in order to help unblock lingering change requests also proved to be essential. In one case, bugs lingered in the engineering queue for days, even weeks, because the escalation path was limited (by design).

“Approval requests were blocked, and so approvals needed to be accelerated to the skip-level approver,” Kabir says. “We were able to move fast to fix that, because we had a clear understanding of the pain that folks were feeling on our side and could effectively communicate that to leadership.”

Short-term pain, long-term gain

The impact has been significant. Instead of spending long cycles troubleshooting forgotten passwords or manually verifying user identities, IT teams can focus on higher‑value work: strengthening identity protection, refining automation, and improving the user experience. This shift not only reduces operational overhead, it also aligns with our Zero Trust principles by removing weak authentication steps from the identity lifecycle.

For employees, the experience is equally transformative. New hires can unbox a device, authenticate using a TAP delivered through a secure Verified ID workflow, and immediately register passwordless methods like Windows Hello for Business. Although the onboarding journey may vary across platforms and devices, the process is fast and intuitive.

For existing users who lose access—whether due to a forgotten PIN, a lost device, or a credential reset—Identity Pass provides a self‑service recovery path that avoids the delays and security risks of traditional reset processes.

Our experience demonstrates that when these processes are redesigned around strong, hardware‑backed, phishing‑resistant credentials, organizations gain both security and efficiency. The result is a more resilient identity foundation that supports the realities of modern work.

Key takeaways

Here are some suggestions for getting started with Windows Hello for Business and Day 1 onboarding:

• Passwordless authentication start with strong identity proofing. Establishing user identity up front is essential to creating a secure foundation for all future authentication.
• Day 1 onboarding is the riskiest moment. The initial bootstrap step is where trust is first established, and risk signals matter most.
• Temporary Access Pass replaces temporary passwords. TAP provides a secure, time‑bound way for users to authenticate and register passwordless credentials without exposing the network to attack.
• Device and platform diversity shapes the user experience. Different hardware, operating systems, and compute environments require flexible onboarding paths that still enforce consistent security.
• Support demand spikes before it drops. Organizations should expect short‑term confusion and increased help‑desk volume before passwordless security benefits fully materialize.
• Long‑term gains are significant. Once deployed, passwordless authentication reduces operational overhead, strengthens security, and improves the user experience across the identity lifecycle.

Try it out

• Explore Windows Hello for Business.
• Check out Microsoft identity and access management services.

Related links

• Learn more about implementing strong user authentication with Windows Hello for Business.
• Read about phishing-resistant authentication with Microsoft Entra ID.
• See how Microsoft is using AI to reinvent network security.
• Discover how we developed a Zero Trust security model at Microsoft.
• Find out how Windows Hotpatch transformed security and compliance at Microsoft.
• Learn how Microsoft hardened our defenses with Microsoft Baseline Security Mode.

We’d like to hear from you!

• Want more information? Email us and include a link to this story and we’ll get back to you.

The post Getting started with Windows Hello for Business and Day 1 authentication at Microsoft appeared first on Inside Track Blog.