What is Azure AI Agent Service?
Azure AI Agent Service is a platform for developing autonomous AI agents based on Large Language Models. Unlike simple chatbots, these agents can independently decide which tools to use to solve complex tasks. The service combines LLM reasoning with function calling, code execution, and data access.
The core of Agent Service is the ability for multi-step reasoning: An agent receives a task, breaks it into subtasks, executes each step with appropriate tools, and combines results into a final answer. It can call APIs, query databases, perform calculations, and analyze documents.
Core Features
- Function Calling for integration of any APIs and backend services
- Code Interpreter for mathematical calculations and data analysis
- Integration with Azure AI Search for RAG-based knowledge queries
- Persistent conversations with thread management
- Transparent reasoning for debugging and auditing
Typical Use Cases
Customer service agents can check orders, initiate returns, and create invoices without human intervention. The agent accesses CRM, ERP, and ticketing systems to complete entire transactions.
Internal assistants for employees answer questions about company policies, book vacation days, create reports, and coordinate appointments. They understand context and can execute multi-step workflows.
Data analysis agents accept natural language questions, write SQL queries, perform calculations, and visualize results. Business departments get insights without technical knowledge.
Benefits
- Autonomous task processing without manual intervention
- Flexible tool integration for any backend systems
- Scalable architecture for enterprise workloads
- Complete control over agent behavior and security
Integration with innFactory
As a Microsoft Solutions Partner, innFactory supports you with Azure AI Agent Service: agent design, tool integration, security architecture, and production deployment.
Typical Use Cases
Frequently Asked Questions
What is the difference between AI Agent Service and Azure Bot Service?
AI Agent Service focuses on autonomous AI agents with LLM reasoning and tool usage. Azure Bot Service is designed for conversational chatbots with defined dialog flows. Agents can independently decide which tools to use, while bots follow predefined paths.
Which tools can agents use?
Agents can use Function Calling for APIs, Azure AI Search for RAG, Code Interpreter for calculations, and Custom Tools. Tool definitions are passed as JSON schemas, and the agent independently decides on their usage.
How does multi-step reasoning work?
The agent breaks complex tasks into subtasks, executes them sequentially, and uses intermediate results for subsequent steps. The reasoning is transparent and can be viewed for debugging.
Is AI Agent Service GDPR compliant?
Yes, when using European Azure regions. Microsoft offers Data Processing Agreements and does not store prompts for training.
