Build work-ready agents with Foundry + Work IQ, govern with Agent 365 | DEM340
Srikumar Nair demonstrates how to build context-aware Azure AI Foundry agents by connecting them to Work IQ via MCP, then governing them with Agent 365. The session shows tool invocation at runtime, agent identity, end-to-end observability, and side-by-side evaluations comparing grounded vs. context-blind agents.
Overview
This Build 2026 demo focuses on making AI agents “work-ready” by grounding them in real organizational context and then applying governance and evaluation practices.
Connecting a Foundry agent to Work IQ via MCP
- The demo connects a Foundry agent to Work IQ using MCP (Model Context Protocol) so the agent can access tools and context from the user’s work ecosystem.
- The session highlights runtime tool invocation (Work IQ tools being called while the agent runs) and using an agent identity.
Using Azure AI Search for vector indexing
- The session shows Azure AI Search converting blobs into vector indexes.
- This is presented as part of the grounding approach so the agent can retrieve relevant context rather than operating “context-blind.”
Storage containers and knowledge bases
- The demo includes setting up storage containers and knowledge bases to hold and organize the content the agent will use.
- An example includes uploading handwritten configuration and confirming the agent setup.
Example queries and grounding outcomes
- The presenter runs example queries using Work IQ and Foundry IQ (including a pricing guidance scenario) to show how context changes the quality of responses.
Governance with Agent 365
- The session introduces the Agent 365 Admin Center from an IT admin perspective.
- It also covers Agent 365 capabilities and how it integrates multiple core Microsoft products (as described in the session).
Observability and evaluation (context-aware vs. context-blind)
- The demo emphasizes full observability on every call.
- It runs side-by-side evaluations comparing context-aware and context-blind agents, using scores to show the impact of grounding.