Fabric IQ brings Power BI definitions into Copilot
A sales forecast is only useful if everyone agrees what “sales” and “forecast” mean. Microsoft says Fabric IQ can ground answers in the Power BI semantic models that define an organization’s metrics and relationships. It describes Fabric IQ in Microsoft Copilot Chat and Cowork as generally available and on by default for Fabric and Power BI customers. Integration with Copilot’s new Code experience is planned through the Frontier program. Those availability claims apply to the named Copilot experiences, not every Fabric IQ capability.
Microsoft Learn adds a useful boundary: the Fabric IQ plugin in Cowork is labeled generally available, but its current grounding starts with Power BI reports and their underlying semantic models. It does not directly ground answers on dashboards, paginated reports or Fabric items such as lakehouses and eventhouses. Users need at least Read permission on both the report and its semantic model; queries run as the signed-in user, so existing item permissions and row-level security still apply.
“On by default” also does not mean “available to everybody.” Microsoft Learn says Cowork requires the relevant Microsoft 365 Copilot access and usage-based billing, while a tenant setting can prevent Fabric data from appearing in Microsoft 365 Copilot experiences. Nor is a grounded answer automatically an auditable one: Microsoft says Cowork currently provides no citations back to the source Power BI report or model in its data answers, and that data loss prevention is not currently supported in Cowork. Before forwarding a consequential figure, open the source report and confirm it.
The practical distinction: familiar business definitions can improve a Copilot answer, but permissions, licensing and verification still determine whether that answer is safe to use.
Sharing, monitoring and apps move closer to the data
IQ Sharing is in preview. Microsoft says it is intended to let organizations share selected Fabric IQ artifacts and business context across organizational boundaries while retaining governance over underlying assets. The announcement does not establish that every kind of context is shareable or supply a complete permissions and rollout specification. Microsoft positions the preview alongside OneLake mirroring and shortcuts; administrators should evaluate the particular assets and access boundaries involved rather than treating “share context” as a blanket permission.
For day-to-day operations, Microsoft describes cross-workspace monitoring and an enhanced Monitor Hub that bring jobs, capacities, workspaces and workloads into a broader view. It also points to Operations Agents and Activator for investigation and response, without giving a release status for every monitoring improvement in the announcement. Microsoft Learn supplies a particularly important control detail about Operations Agents: their generated rules are backed by queries administrators can inspect, and an agent operates with its creator’s delegated permissions when carrying out an approved recommendation. Review the rules, data source and creator’s access before allowing an agent to act.
Fabric Apps remains in preview, according to Microsoft Learn. It uses a TypeScript-based Rayfin development workflow to generate APIs and provide hosting and authentication for applications built near Fabric data. A workspace needs Fabric capacity, and a tenant administrator must enable the workload. Deployed applications use Microsoft Entra ID single sign-on; Microsoft cautions that Fabric Apps may not suit software requiring complex multistep transactions or stored procedures. That makes it worth evaluating for an internal data tool, but not assuming it can replace every established line-of-business application.
Microsoft also describes new agentic data-engineering features: engineers set an outcome and boundaries, then an agent plans work, executes it, validates results and adjusts its approach. The corporate announcement does not identify the supported tasks or give these features a release status. That is a direction to watch, not a reason to remove review and testing from a production pipeline.
The common thread is control: sharing and automation become more useful when an organization can see precisely what data they touch and whose authority they use.
SQL Server gets a local option; Database Hub enters preview
Microsoft says SQL Server on Azure Local is generally available, giving organizations another option for running critical workloads close to local applications and operations. SQL Server on Azure Local with disconnected operations is a separate preview for environments where a public-cloud connection is restricted or unavailable. Microsoft Learn says Azure Local disconnected operations use a local control plane and require Azure Local 2602 or later. That version requirement concerns the broader Azure Local disconnected-operations platform; it is not a complete SQL Server hardware, licensing or migration specification.
Meanwhile, Database Hub in Fabric is in public preview. Microsoft describes it as a central management plane for SQL Server, Azure SQL, PostgreSQL, Cosmos DB and SQL databases in Fabric. Specialist SQL and PostgreSQL agents for Database Hub and Visual Studio Code are coming soon to public preview—they should not be counted as features already delivered with the hub. The announcement does not spell out every supported management operation or database configuration.
For an enterprise pilot, the sensible first questions are concrete: Is the capability available and enabled in this tenant? Which reports or databases can it reach? Whose permissions govern its answers and actions? What capacity or usage billing applies? Those checks matter more than the promise of a “continuous learning loop,” which Microsoft presents as its strategy rather than a measured result of these announcements. The strongest immediate opportunity may be using existing, governed Power BI definitions in everyday Copilot work—provided the humans in that loop still check the numbers.
Update: Additional details (September 29, 2026)
Microsoft’s Fabric Apps documentation adds deployment prerequisites absent from the initial announcement. For apps using a Power BI semantic model, Microsoft requires Fabric capacity, the Fabric Apps (preview) tenant setting, the Semantic Model Execute Queries REST API tenant setting, and Build plus Read permissions on the target model. The Rayfin CLI is currently the supported creation path, and Fabric Apps is not yet available in every region.
Microsoft also documents a separate Fabric IQ MCP server for custom developer-built agents. It is read-only for Power BI reports and semantic models, uses Entra ID delegated permissions, and can inspect metadata and run DAX queries without granting access beyond the signed-in user’s existing rights.
Update: Additional details (September 29, 2026)
According to Redmond Channel Partner, Cowork conversations inherit the most restrictive sensitivity label from the data used to answer them; content generated from that conversation, including emails, meeting invites and files, inherits that label. The report also distinguishes two controls: disabling “Fabric data available in M365 Copilot” removes Fabric context from Cowork, while disabling Fabric’s “Share Fabric data with your Microsoft 365 services” only prevents advance metadata sharing for search and attachments. Users can still provide report links or name reports in prompts.
The outlet also reports that Fabric workspace monitoring is preview-only, begins collecting no historical data, retains telemetry for 30 days by default, and permits only one monitoring item per workspace. Centralized collection can target one Eventhouse only when all participating workspaces are in the same Azure region, and that destination cannot later be changed.
Update: Additional details (October 1, 2026)
TechGig reports that Fabric IQ MCP is generally available for external AI agents. The read-only service can discover Power BI reports and semantic models, inspect metadata, and run DAX queries while continuing to enforce the signed-in user’s existing Fabric permissions.
The report also says Google BigQuery mirroring is generally available, while a bidirectional Salesforce Data Cloud 360 connection and mirrored source-security roles are being added to OneLake. Mirrored roles are expected to enter public preview, with the aim of carrying source-system memberships and table permissions into Fabric.
References
- Microsoft Fabric to power enterprise AI agents with business context - TechGig TechGig · Thu, 01 Oct 2026 04:52:30 GMT
- Microsoft Fabric IQ at Barcelona 2026: Copilot GA, Fabric Apps Preview and Governance Gaps techtarget.com
- Fabric IQ Brings Governed Power BI Data to Copilot: Admin Setup and Limits rcpmag.com

