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AI-103 · Choosing Foundry Models and Services

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Matching Foundry Services to Tasks

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  1. A map from goal to starting point

    Microsoft Foundry covers a wide range of features, and the hardest part is often knowing where to start. The fastest way through is to name the task first: generate text, ground answers, search vectors, run an agent workflow, or process speech and images. Each of those has a natural starting service.

    Each capability in Foundry is a family, and some are marked (preview). Preview capabilities aren't recommended for production workloads, and preview status can vary by feature, region, and API version. Keep that in mind on every row of this lesson: the right service for a pilot can differ from the right service for production.

    One more habit helps. Each option comes with a boundary, the point where another option is a better match. Learning the boundaries is what lets you choose, not only recognize names.

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  2. Quick check

    A capability you plan to use is marked preview. What does that tell you for a production design?

    1. AIt isn't recommended for production workloads

      Right. Preview capabilities aren't recommended for production workloads, so check the status before you depend on them.

    2. BIt's ready for production use in every Azure region

      Preview status can vary by feature and by region, so it never means ready everywhere.

    3. CIt has the same status on every API version

      Preview status can vary by API version too, so you check the version you actually call.

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  3. Generative tasks: start with a model

    When the task is to send a prompt to a model, with no agent or tools, start with the quickstart for building with models and agents. It's the shortest path to a working call. Add an agent later only if you need tools or orchestration.

    The services around that path:

    • Foundry Models is the catalog you use to choose and deploy the model behind your app or agent.
    • Playgrounds let you try models, prompts, and agents interactively before you write code.
    • The model router routes requests automatically to the best model for cost and quality.
    • Instant access models (preview) let you use selected models without provisioning a deployment first.
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  4. Generative tasks: start with a model

    Two API surfaces carry generative calls from code:

    • The Responses API is a stateful API for model and agent interactions.
    • The Foundry v1 REST API is the OpenAI-compatible surface for chat, responses, embeddings, files, and fine-tuning.

    So a team that only needs completions from a model doesn't start with an agent, a workflow, or a toolbox. It deploys a model and calls it, and it adds the agent layer when tools or orchestration become necessary.

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  5. Quick check

    An app only needs to send a prompt to a model and show the reply. No tools, no orchestration. Where do you start?

    1. AA workflow that coordinates the steps

      Workflows coordinate several agents and steps. A single prompt and reply has nothing to orchestrate.

    2. BA model call, adding an agent only if needed

      Right. Sending a prompt to a model is the shortest path to a working call; an agent comes later, only for tools or orchestration.

    3. CA hosted agent running your own code

      A hosted agent runs your own agent code or framework. That's more than a single model call needs.

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  6. Fine-tuning or retrieval

    When quality isn't good enough, two levers look similar but fix different problems.

    Fine-tuning customizes a model on your own data. Use it when prompting and retrieval can't reach the quality you need. Foundry Models points you to fine-tuning when a model needs your domain data.

    But the boundary is sharp: if the gap is missing context, use retrieval instead. A model that answers badly because it has never seen your current product catalog doesn't need new training; it needs the right content supplied at query time.

    The model's problem Lever
    Lacks the context needed for this answer Retrieval
    Prompting and retrieval still can't reach the quality bar Fine-tuning
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  7. Quick check

    Answers are weak because the model has never seen the company's current policy documents. Which lever comes first?

    1. AFine-tune the model on the documents

      Fine-tuning is for when prompting and retrieval can't reach the quality you need. Missing context is retrieval's job.

    2. BTurn on the model router for quality

      The model router picks a model for cost and quality, but no model has seen these documents.

    3. CAdd retrieval so the model gets that context

      Right. When the gap is missing context, retrieval supplies it, and fine-tuning is kept for quality problems retrieval can't fix.

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  8. Keep your progress in the app

    That’s 3 of 8 quick checks. In the app they stay answered, and every lesson remembers where you left off.

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  9. Grounding answers in your content

    Grounding means the agent answers from real content instead of guessing. Foundry offers several grounding services, and they differ by where the content lives.

    • Foundry IQ provides agentic retrieval over a knowledge base, including private networking. Use it to ground answers in your content.
    • File search grounds answers in uploaded files through managed vector stores. If you only need a few uploaded files, file search is lighter weight than Foundry IQ.
    • Web search and Grounding with Bing ground answers in current web results.
    • Azure AI Search integration uses Azure AI Search indexes as agent knowledge.
    • Fabric IQ (preview) reasons over Microsoft Fabric data and semantic models, and Work IQ (preview) reasons over Microsoft 365 work data.

    Retrieval-augmented generation (RAG) is the umbrella for these patterns: grounding model responses in your own content.

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  10. Quick check

    An agent must answer questions about events from this week, which aren't in any internal document. Which grounding service fits?

    1. AFile search over uploaded files

      File search grounds answers in files that someone uploaded. This week's events aren't in those files.

    2. BWeb search and Grounding with Bing

      Right. Web search and Grounding with Bing ground answers in current web results.

    3. CFabric IQ over semantic models

      Fabric IQ reasons over Microsoft Fabric data and semantic models, which is internal analytics data, not current events.

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  11. Vector search for agents

    Vector search is how an agent finds passages by meaning, and in Foundry it hides behind familiar names.

    Vector stores provide managed storage and indexing for file search. When you attach file search to an agent, the uploaded files are grounded through those managed vector stores, so you don't build or run the vector index yourself.

    When your organization already runs Azure AI Search, the Azure AI Search integration lets an agent use those existing indexes as knowledge instead of copying content into new stores.

    And when your code needs the vectors themselves, the Foundry v1 REST API includes embeddings in its OpenAI-compatible surface.

    Need Service
    Vectors for files an agent receives File search with managed vector stores
    Existing search indexes as knowledge Azure AI Search integration
    Embeddings from your own code Foundry v1 REST API
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  12. Quick check

    Which Foundry capability provides managed storage and indexing for file search?

    1. AMemory, the store of agent recall

      Memory gives agents persistent recall across sessions. It doesn't index the files that file search uses.

    2. BVector stores

      Right. Vector stores are the managed storage and indexing behind file search.

    3. CToolbox, the endpoint for agent tools

      Toolbox packages the tools an agent can call behind one endpoint. It doesn't store or index files.

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  13. Agent workflows: choosing the build

    Agents come in levels, and each level has a boundary.

    • Prompt agents are declarative agents defined by instructions, a model, and tools. Use one when you want an agent with no runtime to manage.
    • Hosted agents run your own agent code or framework in a Foundry-managed runtime. Use one when you need full control of agent logic and dependencies. If instructions and tools are enough, prompt agents are simpler.
    • Workflows coordinate multiple agents and steps into a single orchestrated process. Use one when one task spans several agents or stages. If a single agent with tools can finish the job, stay simpler.

    All of them run on Foundry Agent Service, which builds, runs, and operates agents as a managed service. For existing code, LangGraph, Microsoft Agent Framework, and Semantic Kernel map onto Foundry hosting.

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  14. Agent workflows: choosing the build

    The build path grows only when the task demands it: a model call, then a prompt agent, then a hosted agent, and a workflow when work spans several agents.noyesyesnoyesnoNeeds tools ororchestration?Model callFoundry ModelsSpans severalagents?Workfloworchestrated stepsInstructionsand toolsenough?Prompt agentno runtime to manageHosted agentyour own code
    Stay at the simplest level that finishes the job. Add an agent only for tools or orchestration, move to a hosted agent only for your own code, and reach for a workflow only when one task spans several agents or stages.

    A few neighbors sit around the agent itself. Agent-to-agent (A2A) lets agents call other agents across services and vendors. Routines package repeatable agent procedures for reuse. The Toolbox is a managed endpoint that packages the tools an agent can call, and Memory (preview) gives persistent recall across sessions.

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  15. Quick check

    A team has a working LangGraph agent with its own dependencies and wants Foundry to run it. Which build fits?

    1. AA hosted agent running that LangGraph code

      Right. Hosted agents run your own agent code or framework, with full control of logic and dependencies.

    2. BA prompt agent defined by instructions

      Prompt agents are declarative: instructions, a model, and tools, with no runtime of your own. Existing framework code doesn't fit that shape.

    3. CA workflow that chains several prompt agents

      A workflow coordinates several agents and stages. The need here is to run one existing agent, not to orchestrate many.

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  16. Multimodal processing

    When the task involves speech or images, Foundry has dedicated entry points.

    • Voice-based prompt agents are prompt agents that speak and listen in real time, with managed voice orchestration. Use them when you want a spoken experience without hosting a speech pipeline. If you only need text responses, use prompt agents.
    • Voice agents add speech input and output to agents.
    • Foundry Tools for Speech, Language, and Translator add speech, language understanding, PII detection, and translation to an agent.
    • The image generation tool (preview) lets an agent generate images.
    • Healthcare AI models are domain-specific models for medical imaging and reporting scenarios.

    Two more preview tools let an agent act on visual interfaces: browser automation navigates and acts on websites, and computer use operates a virtual computer interface.

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  17. Quick check

    Which statement about the image generation capability for agents is accurate?

    1. AIt's a guardrail that filters images in replies

      Filtering content is the job of guardrails and controls. Image generation creates images; it doesn't filter them.

    2. BIt's a generally available Foundry Tool for speech

      Speech, Language, and Translator are the Foundry Tools for speech and translation. Image generation is a separate agent tool.

    3. CIt's an agent tool that's currently in preview

      Right. Image generation is an agent tool marked preview, so it isn't recommended for production workloads yet.

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  18. Key takeaways

    • Start a pure prompt-and-reply task with a model call; add an agent only for tools or orchestration.
    • Use retrieval when the model lacks context, and fine-tuning when prompting and retrieval can't reach the quality you need.
    • Foundry IQ grounds answers over a knowledge base; file search is lighter for a few uploaded files; Grounding with Bing covers current web results.
    • Vector stores provide managed storage and indexing for file search.
    • Prompt agents need no runtime, hosted agents run your own code, and workflows coordinate several agents or stages.
    • Voice-based prompt agents give a spoken experience without hosting a speech pipeline; image generation is a preview agent tool.
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  19. Quick check

    Which pairing of task and starting service is correct?

    1. AA few uploaded PDFs to ground: file search

      Right. For only a few uploaded files, file search is lighter weight than a full knowledge base.

    2. BLive spoken conversation: a hosted agent only

      Voice-based prompt agents give a spoken experience without hosting a speech pipeline, so a hosted agent isn't required.

    3. CA prompt with no tools: a multi-agent workflow

      A prompt with no tools needs a model call. Workflows are for tasks that span several agents or stages.

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  20. 8 quick checks · then the test

    In the app, finishing the quick checks opens this lesson’s 10-question test, and the ones you miss come back exactly when you’re about to forget them.

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