Microsoft Ignite 2025 – “The Agentic Shift”

Microsoft used Ignite 2025 to tell the world that “agents are now the primary interface for enterprise work“. The focus throughout Ignite was about evolution from chat-bots to multi-discipline teams of agents across organisations and the unlaying architectural envelopments being done to make this work.

Agents are already changing how people work, and IDC predicts there will be 1.3 billion agents by 2028. Agent 365 is the control plane for agents, extending the infrastructure you trust to manage your people to agents.

This was about spelling out the developments across platform and the unifying of intelligence layers so agents can be treated as identity‑bound workers and allow security and governance to be baked in in the same way we manage human workers today. Below is a summary of the key aspects and ingredients of this approach.

For more on the latest developments and Microsoft Research on AI Frontier Firms, check out the WorkLabs


Fabric IQ

What it is: Fabric IQ layers semantic meaning and business ontologies on top of data stores so agents reason in terms of customers, orders, assets, and events rather than raw tables.

Why it matters: Agents that lack consistent business context make brittle or risky decisions. Fabric IQ gives agents a shared vocabulary and entity model, reducing ambiguity across analytics, automation, and agent workflows.

Example: A retail replenishment agent uses Fabric IQ to translate “low stock” signals into SKU hierarchies, supplier lead times, and regional demand forecasts. The agent then creates the correct purchase order, selects the right vendor SLA, and schedules delivery windows – cutting stockouts and manual reconciliation time.

Foundry Control Plane

What it is: Foundry will become the unified platform for building, routing, and operating agents with model selection, versioning, and governance hooks built in. It includes a built‑in control plane that brings security, observability, and cost signals directly into the developer experience. It surfaces alerts, policy violations, performance issues, and budget warnings where teams already build – and exposes Microsoft Entra, Defender, and Purview controls as simple toggles so identity, data protection, and threat detection can be enabled without re‑architecting toolchains.

Why it matters: Foundry reduces model selection risk, standardises deployment patterns, and makes governance a first‑class concern rather than an afterthought. It’s the place teams certify agents, attach policies, and monitor behaviour. It means developers can ship agents that are secure from day one, remain protected through updates, and automatically flow into Agent 365 governance at deployment. By meeting teams in their existing workflows, Microsoft removes much of the friction between building agents and securing them — a much needed “fix” for an area that has tripped up many enterprises and halted mass adoption.

Example: A financial services team certifies an underwriting agent in Foundry. The control plane enforces data access policies, routes sensitive scoring to on‑prem models, and produces audit trails for regulators – enabling faster production rollouts without compromising compliance.

Agent 365

What it is: Agent 365 treats agents like employees: Entra identities, scoped permissions, lifecycle management, and telemetry. It produces a security framework for how agents should be deployed and managed within an organisation. It gives IT and SecOps teams a single, consistent way to discover, manage, and secure agents wherever they’re built.

Agents are already changing how people work, and IDC predicts there will be 1.3 billion agents by 2028. Agent 365 is the control plane for agents, extending the infrastructure you trust to manage your people to agents.

Microsoft Ignite 2025

Agent 365 extends Entra ID with the same controls organisations already use to manage their people into the agent world with a – Entra Agent ID for identity and access, Defender for threat detection and posture, and Purview for data protection and compliance. Rather than new tools, this provides the familiar surface control plane where agents can collaborate and interact with users, keeping behaviour visible inside the tools people already use.


Why it matters: When agents have identity and governance, organisations can scale fleets safely. You can onboard, revoke, and audit agents the same way you manage human users.

IT gets a central registry of every agent across the estate; developers can register third‑party or custom agents via SDKs; and security teams gain continuous monitoring, anomaly detection, and enforcement capabilities such as conditional access.

For organisations wrestling with shadow AI and governance gaps, Agent 365 is a practical answer – it treats agents as first‑class entities that must be onboarded, scoped, audited, and revoked just like human accounts.

Example: An HR department deploys multiple document‑generation agents. Agent 365 ensures each agent only accesses approved templates and employee records, preventing accidental PII exposure and making incident investigations straightforward.

Azure Copilot for Cloud Ops

What it is: Azure Copilot orchestrates specialised cloud agents for migrations, observability, remediation, and optimisation – this can turn runbooks into agent workflows.

Why it matters: Cloud operations shift from manual dashboards to intent‑driven orchestration. Agents can triage, remediate, and coordinate across services faster than human‑only teams.

Example: During a cross‑region outage, Azure Copilot coordinates agents to triage logs, roll back a faulty deployment, and provision temporary capacity – reducing mean time to recovery from hours to minutes.

Conclusion

Ignite 2025 reframeed “AI” from an add‑on to an operational fabric for every organisation as we start to transition into the next phase of AI maturity and adoption.

Microsoft’s combination of Fabric IQ, Foundry and Agent 365 creates a practical path to agentic operations for business, but success still very much depends on the fuel for AI – disciplined data modeling, governance by design, and small, measurable pilots.

Organisations that treat agents as governed, identity‑bound teammates will be the ones that gain speed and resilience fastest – those that don’t face sprawl and risk and stalled or failed initiatives.

Sora-2 now in Microsoft 365 Copilot

Sora 2 - Copilot

At Ignite 2025 this month, amongst a long list of AI and Security updates, Microsoft announced that OpenAI’s Sora 2 text-to-video model is now integrated into Microsoft 365 Copilot in their Create Agent bringing AI video into enterprise productivity.

Sora 2 can make content much more realistic than the previous version of Sora and has earned both praise and criticism, since AI-generated videos are quite a debated and controversial topic. Sora 2 also supports a “cameos” feature that creates the likeness of a person that can then be placed in content – again met with mixed opinions.

Sora 2 is available today (in the US) and rolling out to other regions, for Microsoft 365 Commercial users who are part of Microsoft’s Frontier program

What’s New with Sora 2

For those not familiar with Sora 2 the integration into Microsoft 365 Copilot (at no additonal cost) beings:

  • Improved realism and physics: Videos now follow motion dynamics more closely, from gymnastics routines to buoyancy on water.
  • Longer, coherent clips: Open AI’s Sora 2 can generate richer, more sustained video sequences than its predecessor.
  • Cameos feature: Users can insert likenesses (with consent) into videos, opening up new possibilities for training and storytelling.
  • Enterprise integration: Within Copilot’s Create experience, commercial users in the Frontier program can generate short clips, add voiceovers, music, and brand kit elements for consistency.

Whilst this may still feel like novality, it shows how far this is coming on and unleases new levels of quality allowing creators and marketiers to embedding video creation into the same environment where organisations already manage documents, presentations, and collaboration.

How to Access Sora-2 in Copilot

Users with a Microsoft 365 Copilot license can create video project with Copilot (powered by the Sora-2). It can be used for video and voiceovers, leverage your organisation brand kit and then be editied to add music, and include other visual elements using ClipChamp.

Note: Today, your oganisation must be enrolled in the Copilot Frontier (early adopter programme)

Why It Matters for Microsoft 365 Customers

Microsoft positions Copilot as a multimodal hub, combining text, images, documents, audio, and now realistic video. For enterprises, this means:

  • Marketing teams can rapidly prototype campaign assets.
  • HR and L&D can produce onboarding explainers without outsourcing.
  • Anyone can create and enrich presentations with dynamic video narratives.

Since all this happens inside Microsoft 365, identity, compliance, and governance frameworks apply. That’s a major differentiator compared to consumer-first AI video tools and helps business further enable this level of creativity within risking corporate data leakage.

Video also coming to Copilot Notebooks

Along side this new feature, Microsoft are also bringing video into Copilot Notebooks. ALong with the already available audio podcast feature, Copilot Notebooks can now create enhances overview pages, proactive topic suggestions, and …wait for it, audio and video summaries and podcasts.

What’s Next?

Sora 2 in Copilot is more than a feature—it’s a signal of where enterprise communication is heading. Video will sit alongside slides, spreadsheets, and documents as a default medium. The organisations that thrive will be those that treat AI video not as a gimmick, but as a strategic lever for clarity, engagement, and impact.

Read Microsoft’s Official Post here:
Available today: OpenAI’s Sora 2 in Microsoft 365 Copilot | Microsoft Community Hub