DivSwa announces the release of Agent Loop General Availability in Logic Apps Standard, alongside a suite of new AI capabilities in public preview, offering developers advanced options for secure, scalable agent-based workflows.

Agent Loop Ignite Update: AI Features Now in Public Preview

Author: DivSwa

Overview

At Microsoft Ignite, the General Availability (GA) of Agent Loop in Azure Logic Apps Standard was announced, along with a wave of new AI-driven capabilities in Public Preview. This set of enhancements expands the horizons for developers building secure, intelligent, agentic workflows at scale.

Key Announcements

1. Agent Loop General Availability & Public Preview Features

  • Production-ready agentic automation available to all Logic Apps Standard customers.
  • Public Preview adds powerful features: run agents in Consumption SKU, bring your own AI models (BYOM), call any tool via MCP, deploy agents in Teams, secure RAG with document-level permissions, Okta onboarding, and a redesigned workflow designer.

2. Agentic Workflows in Consumption SKU

  • Agent Loop is now on Azure Logic Apps Consumption (serverless, pay-as-you-go).
  • Developers can make any workflow intelligent using agent loop actions, with no infrastructure provisioning required.
  • Easy onboarding and simple authentication process.
  • Connects with 1,400+ Logic Apps connectors for broad tool integration.
  • Frictionless prototyping and easy scaling to Logic Apps Standard with more controls.

Preview limitations: Initial rollout has limited regions, no VS Code local development, and no nested agents or MCP tools yet.

3. Bring Your Own Model (BYOM) with AI Gateway

  • Use any AI model within Agent Loop—Foundry, on-prem, or private cloud supported.
  • Deep integration with Azure API Management (APIM) AI Gateway:
    • Central control plane for agent-model connections.
    • Unified, governed API endpoint for authentication, rate limits, monitoring, and observability.
    • Allows model upgrades or config updates without changing app workflows.
  • Direct external and local/VNET model integration supported, enabling high flexibility and data residency compliance.

4. Model Context Protocol (MCP) Tool Integration

  • New support for MCP in Logic Apps Standard lets agents discover and invoke external tools through standardized interfaces.
  • Three integration modes:
    • Bring Your Own MCP connector (custom external server)
    • Managed MCP connector (Azure-hosted, managed experience)
    • Custom MCP connector (OpenAPI-based, tenant/private use)
  • Managed and custom MCP connectors support on-behalf-of (OBO) authentication for user-context-aware tool use across workflows.

5. Deploy Conversational Agents to Teams and Microsoft 365

  • Logic Apps agentic workflows now deploy directly to Teams.
  • Agents act as native conversation participants in Teams (standups, approvals, queries, knowledge lookups, etc.).
  • Integrated identity and security via Azure Bot Service and Logic Apps.
  • Seamless experience across Microsoft 365 surfaces supporting Bots/web endpoints.

6. Secure Retrieval Augmented Generation (RAG) with Azure AI Search ACLs

  • Agent Loop now integrates with Azure AI Search ACLs for document-level security.
  • Only information the user is permitted to see will be shown by the AI agent.
  • Indices can be configured with user/group permissions; results filtered accordingly.
  • Eases development effort for compliance and personalized knowledge assistants.

7. Okta Identity Provider Support

  • Agent Loop agents now support Okta alongside Microsoft Entra ID.
  • Okta integration passes user and group context to agents for user-aware decisions and actions.
  • Simplifies agent adoption in non-Microsoft IdP environments while maintaining strong security and policy enforcement.

8. Redesigned Logic Apps Workflow Designer (Public Preview)

  • Major UI and UX update for the Logic Apps designer is now available.
  • Enhancements include:
    • Unified interface for visual canvas, code view, settings, and run history
    • Draft Mode with auto-save and safe testing
    • Sticky notes and markdown support for inline documentation
    • Improved search (backend indexed)
    • Monitoring and debugging features, including hierarchical timeline view

Resources

Feedback and Next Steps

DivSwa encourages user feedback on which capabilities to prioritize for maximum impact in the Agent Loop and Logic Apps roadmap.

Version: 5.0
Updated: Nov 18, 2025

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