Microsoft Unveils New AI Tools and Protocols at Build 2025 for a More Interoperable AI Ecosystem

At the 2025 Build Developer Conference, Microsoft unveiled a suite of new tools and open protocols aimed at advancing the development and interoperability of AI agents. This initiative underscores Microsoft's commitment to fostering an "agentic web," where AI agents can autonomously perform tasks and collaborate across diverse platforms.

Introduction of Azure AI Foundry Enhancements​

Central to Microsoft's announcements is the enhancement of Azure AI Foundry, a unified platform designed to streamline the creation, customization, and management of AI applications and agents. The platform now boasts an agent framework that simplifies the orchestration of multi-agent systems, reducing the complexity traditionally associated with such developments. This framework is built upon Microsoft's open-source kit, Semantic Kernel, which facilitates the coordination of multiple AI agents. Organizations like KPMG have already leveraged Semantic Kernel to orchestrate workflows among specialized agents, significantly reducing development complexity. (azure.microsoft.com)

Adoption of Open Protocols for AI Interoperability​

In a move to promote industry-wide collaboration, Microsoft has adopted the Model Context Protocol (MCP), an open-source standard introduced by Anthropic. MCP provides a universal interface for AI models to integrate and share data with external tools and systems, addressing the challenge of information silos that constrain AI models. By supporting MCP, Microsoft aims to create an "agentic web" where AI agents can perform tasks and make decisions on behalf of users or organizations. (en.wikipedia.org)

Collaboration with Elon Musk's xAI​

A notable highlight of the conference was the announcement of a partnership between Microsoft and Elon Musk's AI company, xAI. Despite Musk's ongoing legal disputes with Microsoft and OpenAI, xAI's Grok chatbot will now be hosted on Microsoft's Azure cloud platform. This collaboration places Grok alongside AI models from OpenAI, Meta, and others, expanding the portfolio of third-party AI models available through Microsoft's cloud services. Musk emphasized the importance of honesty in AI safety during his virtual appearance at the conference. (apnews.com)

Introduction of GitHub Copilot Enhancements​

Microsoft also introduced enhancements to GitHub Copilot, its AI-powered coding assistant. The new GitHub coding agent is capable of autonomously performing multiple background tasks, such as debugging software and suggesting terminal commands. This evolution signifies a shift towards more autonomous AI agents that can handle routine programming tasks, allowing developers to focus on more complex aspects of software development. (axios.com)

Focus on AI Agent Memory and Collaboration​

Addressing the challenge of improving AI memory without incurring high computational costs, Microsoft is exploring a method called structured retrieval augmentation. This approach allows AI agents to retain concise information from user interactions to enhance recall, moving beyond the current transactional nature of AI. Additionally, Microsoft is supporting the Model Context Protocol (MCP), an open-source standard introduced by Anthropic, to enable AI agents from different companies to work together more effectively. (reuters.com)

Conclusion​

Microsoft's announcements at the 2025 Build Developer Conference reflect a strategic push towards creating a more interconnected and autonomous AI ecosystem. By enhancing Azure AI Foundry, adopting open protocols like MCP, collaborating with other AI entities, and advancing tools like GitHub Copilot, Microsoft is positioning itself at the forefront of the evolving landscape of AI agents. These developments promise to empower developers and organizations to build more sophisticated, interoperable, and efficient AI solutions.

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Source: digitimes Microsoft unveils new tools for AI agents, open protocols at 2025 Build developer conference