Your Agent Is Only as Smart as Its Context

Microsoft Developer explains why an AI agent’s output quality depends on the context you can retrieve at runtime, and shows how Foundry IQ-style capabilities connect agents to enterprise data, ground responses, and enable actions across business workflows.

Overview

The video focuses on grounding AI agents with enterprise context so they can answer correctly and take useful actions. It highlights a set of “IQ” capabilities that connect an agent to business data sources, retrieve relevant context at runtime, and use that context to ground each response.

Connect agents to enterprise context

Explore Web IQ

Ground responses with Foundry IQ

Connect data with Fabric IQ

Query semantic models and ontologies

Take actions with Work IQ

Give the agent its own identity

Example workflow: automate supply escalations

Manage agents with Agent 365

Add Teams messaging support