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Building the Agentic Future

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Mike_Hulme
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May 19, 2025

As a business built by developers, for developers, Microsoft has spent decades making it faster, easier and more exciting to create great software. And developers everywhere have turned everything from BASIC and the .NET Framework, to Azure, VS Code, GitHub and more into the digital world we all live in today. But nothing compares to what’s on the horizon as agentic AI redefines both how we build and the apps we’re building. In fact, the promise of agentic AI is so strong that market forecasts predict we’re on track to reach 1.3 billion AI Agents by 2028.

Our own data, from 1,500 organizations around the world, shows agent capabilities have jumped as a driver for AI applications from near last to a top three priority when comparing deployments earlier this year to applications being defined today. Of those organizations building AI agents, 41% chose Microsoft to build and run their solutions, significantly more than any other vendor.

But within software development the opportunity is even greater, with approximately 50% of businesses intending to incorporate agentic AI into software engineering this year alone.

Developers face a fascinating yet challenging world of complex agent workflows, a constant pipeline of new models, new security and governance requirements, and the continued pressure to deliver value from AI, fast, all while contending with decades of legacy applications and technical debt.

This week at Microsoft Build, you can see how we’re making this future a reality with new AI-native developer practices and experiences, by extending the value of AI across the entire software lifecycle, and by bringing critical AI, data, and toolchain services directly to the hands of developers, in the most popular developer tools in the world.

Agentic DevOps

AI has already transformed the way we code, with 15 million developers using GitHub Copilot today to build faster. But coding is only a fraction of the developer’s time. Extending agents across the entire software lifecycle, means developers can move faster from idea to production, boost code quality, and strengthen security, while removing the burden of low value, routine, time consuming tasks. We can even address decades of technical debt and keep apps running smoothly in production. 

This is the foundation of agentic DevOps—the next evolution of DevOps, reimagined for a world where intelligent agents collaborate with developer teams and with each other. Agents introduced today across GitHub Copilot and Azure operate like a member of your development team, automating and optimizing every stage of the software lifecycle, from performing code reviews, and writing tests to fixing defects and building entire specs. Copilot can even collaborate with other agents to complete complex tasks like resolving production issues. Developers stay at the center of innovation, orchestrating agents for the mundane while focusing their energy on the work that matters most. 

Customers like EY are already seeing the impact:

“The coding agent in GitHub Copilot is opening up doors for each developer to have their own team, all working in parallel to amplify their work. Now we're able to assign tasks that would typically detract from deeper, more complex work, freeing up several hours for focus time." - James Zabinski, DevEx Lead at EY

You can learn more about agentic DevOps and the new capabilities announced today from Amanda Silver, Corporate Vice President of Product, Microsoft Developer Division, and Mario Rodriguez, Chief Product Office at GitHub. And be sure to read more from GitHub CEO Thomas Dohmke about the latest with GitHub Copilot.

At Microsoft Build, see agentic DevOps in action in the following sessions, available both in-person May 19 - 22 in Seattle and on-demand:

  • BRK100: Reimagining Software Development and DevOps with Agentic AI
  • BRK 113: The Agent Awakens: Collaborative Development with GitHub Copilot
  • BRK118: Accelerate Azure Development with GitHub Copilot, VS Code & AI
  • BRK131: Java App Modernization Simplified with AI
  • BRK102: Agent Mode in Action: AI Coding with Vibe and Spec-Driven Flows
  • BRK101: The Future of .NET App Modernization Streamlined with AI

New AI Toolchain Integrations

Beyond these new agentic capabilities, we’re also releasing new integrations that bring key services directly to the tools developers are already using. From the 150 million GitHub users to the 50 million monthly users of the VS Code family, we’re making it easier for developers everywhere to build AI apps.

If GitHub Copilot changed how we write code, Azure AI Foundry is changing what we can build. And the combination of the two is incredibly powerful. Now we’re bringing leading models from Azure AI Foundry directly into your GitHub experience and workflow, with a new native integration. GitHub models lets you experiment with leading models from OpenAI, Meta, Cohere, Microsoft, Mistral and more. Test and compare performance while building models directly into your codebase all within in GitHub. You can easily select the best model performance and price side by side and swap models with a simple, unified API. And keeping with our enterprise commitment, teams can set guardrails so model selection is secure, responsible, and in line with your team’s policies.

Meanwhile, new Azure Native Integrations gives developers seamless access to a curated set of 20 software services from DataDog, New Relic, Pinecone, Pure Storage Cloud and more, directly through Azure portal, SDK, and CLI. With Azure Native Integrations, developers get the flexibility to work with their preferred vendors across the AI toolchain with simplified single sign-on and management, while staying in Azure. Today, we are pleased to announce the addition of even more developer services:

  • Arize AI: Arize’s platform provides essential tooling for AI and agent evaluation, experimentation, and observability at scale. With Arize, developers can easily optimize AI applications through tools for tracing, prompt engineering, dataset curation, and automated evaluations. Learn more.
  • LambdaTest HyperExecute: LambdaTest HyperExecute is an AI-native test execution platform designed to accelerate software testing. It enables developers and testers to run tests up to 70% faster than traditional cloud grids by optimizing test orchestration, observability and streamlining TestOps to expedite release cycles. Learn more.
  • Mistral: Mistral and Microsoft announced a partnership today, which includes integrating Mistral La Plateforme as part of Azure Native Integrations. Mistral La Plateforme provides pay-as-you-go API access to Mistral AI's latest large language models for text generation, embeddings, and function calling. Developers can use this AI platform to build AI-powered applications with retrieval-augmented generation (RAG), fine-tune models for domain-specific tasks, and integrate AI agents into enterprise workflows.
  • MongoDB (Public Preview): MongoDB Atlas is a fully managed cloud database that provides scalability, security, and multi-cloud support for modern applications. Developers can use it to store and search vector embeddings, implement retrieval-augmented generation (RAG), and build AI-powered search and recommendation systems. Learn more.
  • Neon: Neon Serverless Postgres is a fully managed, autoscaling PostgreSQL database designed for instant provisioning, cost efficiency, and AI-native workloads. Developers can use it to rapidly spin up databases for AI agents, store vector embeddings with pgvector, and scale AI applications seamlessly. Learn more.

Java and .Net App Modernization

Shipping to production isn’t the finish line—and maintaining legacy code shouldn’t slow you down. Today we’re announcing comprehensive resources to help you successfully plan and execute app modernization initiatives, along with new agents in GitHub Copilot to help you modernize at scale, in a fraction of the time.

In fact, customers like Ford China are seeing breakthrough results, reducing up to 70% of their Java migration efforts by using GitHub Copilot to automate middleware code migration tasks.

Microsoft’s App Modernization Guidance applies decades of enterprise apps experience to help you analyze production apps and prioritize modernization efforts, while applying best practices and technical patterns to ensure success. And now GitHub Copilot transforms the modernization process, handling code assessments, dependency updates, and remediation across your production Java and .NET apps (support for mainframe environments is coming soon!). It generates and executes update plans automatically, while giving you full visibility, control, and a clear summary of changes. You can even raise modernization tasks in GitHub Issues from our proven service Azure Migrate to assign to developer teams. Your apps are more secure, maintainable, and cost-efficient, faster than ever.

Learn how we’re reimagining app modernization for the era of AI with the new App Modernization Guidance and the modernization agent in GitHub Copilot to help you modernize your complete app estate.

Scaling AI Apps and Agents

Sophisticated apps and agents need an equally powerful runtime. And today we’re advancing our complete portfolio, from serverless with Azure Functions and Azure Container Apps, to the control and scale of Azure Kubernetes Service. At Build we’re simplifying how you deploy, test, and operate open-source and custom models on Kubernetes through Kubernetes AI Toolchain Operator (KAITO), making it easy to inference AI models with the flexibility, auto-scaling, pay-per-second pricing, and governance of Azure Container Apps serverless GPU, helping you create real-time, event-driven workflows for AI agents by integrating Azure Functions with Azure AI Foundry Agent Service, and much, much more. The platform you choose to scale your apps has never been more important. With new integrations with Azure AI Foundry, advanced automation that reduces developer overhead, and simplified operations, security and governance, Azure’s app platform can help you deliver the sophisticated, secure AI apps your business demands.

To see the full slate of innovations across the app platform, check out: Powering the Next Generation of AI Apps and Agents on the Azure Application Platform

Tools that keep pace with how you need to build

This week we’re also introducing new enhancements to our tooling to help you build as fast as possible and explore what’s next with AI, all directly from your editor. GitHub Copilot for Azure brings Azure-specific tools into agent mode in VS Code, keeping you in the flow as you create, manage, and troubleshoot cloud apps. Meanwhile the Azure Tools for VS Code extension pack brings everything you need to build apps on Azure using GitHub Copilot to VS Code, making it easy to discover and interact with cloud services that power your applications.

Microsoft’s gallery of AI App Templates continues to expand, helping you rapidly move from concept to production app, deployed on Azure. Each template includes fully working applications, complete with app code, AI features, infrastructure as code (IaC), configurable CI/CD pipelines with GitHub Actions, along with an application architecture, ready to deploy to Azure. These templates reflect the most common patterns and use cases we see across our AI customers, from getting started with AI agents to building GenAI chat experiences with your enterprise data and helping you learn how to use best practices such as keyless authentication.

Learn more by reading the latest on Build Apps and Agents with Visual Studio Code and Azure

Building the agentic future

The emergence of agentic DevOps, the new wave of development powered by GitHub Copilot and new services launching across Microsoft Build will be transformative. But just as we’ve seen over the first 50 years of Microsoft’s history, the real impact will come from the global community of developers. You all have the power to turn these tools and platforms into advanced AI apps and agents that make every business move faster, operate more intelligently and innovate in ways that were previously impossible. 

Learn more and get started with GitHub Copilot

 

 

Updated May 20, 2025
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