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Create Your First Agent Using Microsoft Foundry

This article explains how to create your first agent using Microsoft Foundry.

What Is Microsoft Foundry?

Microsoft Foundry is Microsoft’s unified platform for building, deploying, managing, and monitoring AI applications and AI agents using Azure AI services and models.

Agent Creation

To begin with, go to the following URL.

https://ai.azure.com/

The following screen will appear.

Picture showing the home page of https://ai.azure.com/

Click the Create project button. The following screen will appear.

Picture showing the screen to create a new project

Click the Create button. The following screen will appear.

Picture showing the start building button for creating an agent

Click the Start building button to create an agent. A window will appear to enter the agent name.

Picture showing a screen for creating an agent

Click the Create button to create an agent. The following screen will appear.

Picture showing the playground once an agent is created

This screen is called playground.

Different Components Of An Agent

Component	Description
Instructions	In Microsoft Foundry (Azure AI Foundry) Agent Service, instructions are the system-level prompt you give an agent that defines its role, behaviour, and constraints — essentially the personality and rulebook the agent follows on every turn.
Knowledge	Knowledge is mainly used to give an AI agent access to your own/private data, so the agent can answer questions using that data instead of relying only on the model's built-in training.
Guardrails	Guardrails in Microsoft Foundry are safety controls that help ensure an AI agent behaves appropriately, follows defined rules, and avoids generating harmful or inappropriate content.

Posted By -	Karan Gupta

Posted On -	Thursday, October 1, 2026

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