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Domain 2: Design AI-Powered Business Solutions Free ⏱ ~14 min read

Foundry Tools & Code-First Solutions

Microsoft Foundry provides a suite of AI tools for building custom solutions. Learn how to propose the right Foundry tool for each requirement, design code-first generative pages, and use agent feeds to surface AI intelligence in business apps.

Beyond no-code: when you need Foundry

Simple explanation

Copilot Studio is like a kitchen where anyone can cook a meal using pre-made ingredients. Foundry is like a professional chef’s kitchen where you can make anything from scratch β€” but you need to know how to cook.

Foundry Tools are the specialised equipment in that chef’s kitchen: a vector search engine for finding similar documents, prompt flows for orchestrating complex AI pipelines, model catalogues for choosing the right AI model, and evaluation tools for measuring whether your AI actually works.

Code-first generative pages and agent feeds let developers embed AI-generated content directly into Power Apps and other business applications β€” so the AI intelligence surfaces where users already work.

Foundry Tools: matching requirements to capabilities

Foundry Tools and when to propose each one
FeatureWhat It DoesWhen to Propose ItComplexity
Model catalogueBrowse and deploy foundation models (GPT, Phi, Llama, Claude, etc.)When the solution needs a specific model capability not available in Copilot StudioLow β€” deploy from catalogue
Model routerIntelligently routes prompts to the best model for each requestWhen cost optimisation across multiple AI tasks is importantLow β€” deploy and configure routing mode
Prompt flows (classic)Orchestrate multi-step AI pipelines with branching and tool calling. Note: prompt flow content in Microsoft docs is increasingly marked as Foundry (classic)When the AI process has multiple stages (retrieve, reason, validate, respond) β€” consider whether newer Foundry experiences better fit your needsMedium β€” visual or code-based flow design
Retrieval with AI SearchSemantic and vector search over large document collections using Azure AI SearchWhen RAG needs to search across thousands of documents with meaning-based matchingMedium β€” requires indexing pipeline and AI Search configuration
EvaluationMeasure AI quality (groundedness, relevance, coherence, safety)When you need to prove that AI responses meet quality standards before deploymentMedium β€” requires test datasets and metrics definition
Content SafetyDetect and filter harmful content in AI inputs and outputsAlways β€” every production AI solution needs content safety filtersLow β€” configure filters on model deployments
Tracing and monitoringObserve model calls, latency, token usage, and errors in productionWhen you need visibility into how deployed models perform and where failures occurLow β€” enable on model deployments
Fine-tuningCustomise a foundation model with your domain-specific dataWhen RAG alone doesn't achieve the required accuracy for domain-specific reasoningHigh β€” requires labelled training data and compute
Scenario: Dev builds an AI pipeline in Foundry for Vanguard

Dev Patel (AI Platform Engineer at Vanguard Financial Group) designs a credit risk assessment pipeline:

Step 1 β€” Model catalogue: Deploys GPT-4 for complex reasoning and Phi-3 for simple classifications

Step 2 β€” AI Search with vector search: Creates a semantic index over 10 years of credit decision documents and regulatory guidelines using Azure AI Search

Step 3 β€” Prompt flow (classic): Orchestrates the pipeline:

  • Receive loan application data
  • Search AI Search index for similar historical cases
  • Call GPT-4 with application + historical context + regulatory rules
  • Validate output against compliance rules (deterministic check)
  • Return risk score with reasoning

Step 4 β€” Evaluation: Tests the pipeline against 500 historical loan decisions. Measures groundedness (are citations from real documents?), accuracy (does the risk score match expert assessment?), and safety (no biased language?).

Step 5 β€” Content Safety: Configures prompt shields and jailbreak detection to prevent manipulation of the risk assessment.

Code-first generative pages

Generative pages are AI-powered pages in Power Apps that display dynamically generated content β€” summaries, recommendations, analyses β€” instead of static data views.

Code-first means developers write the logic that generates the content, typically using:

  • Power Apps component framework (PCF) controls with AI backend calls
  • Custom connectors that call Foundry APIs
  • Dataverse plugins that trigger AI processing on data changes
Use CaseWhat the Page ShowsHow It’s Built
Customer summaryAI-generated overview of a customer’s history, open cases, and recommended next actionsPCF control calls Foundry model via custom connector
Deal risk analysisAI assessment of deal probability, risks, and recommended actionsPrompt flow returns structured analysis to a canvas app
Inventory forecastAI-predicted demand for the next 30 days with confidence intervalsFoundry model output rendered in a model-driven app page
Exam tip: generative pages vs static reports

The exam may ask when to recommend generative pages over traditional reporting:

  • Static data, standard visuals β€” use Power BI or standard app views
  • Dynamic AI-generated insights, personalised to the user β€” use generative pages
  • Real-time recommendations based on current context β€” use generative pages
  • Historical trend analysis β€” use Power BI

Generative pages add value when the content needs AI reasoning, not just data visualisation.

Agent feeds in apps

An agent feed surfaces agent-generated intelligence as a feed within a business application β€” similar to a social media feed, but with AI-generated cards showing insights, alerts, and recommendations.

Design patterns:

  • Proactive insights: β€œ3 customers are at risk of churn based on recent support interactions”
  • Action suggestions: β€œReorder brake pads β€” current stock covers only 5 days at current demand”
  • Status updates: β€œThe supplier communication agent resolved 12 PO discrepancies today”
  • Learning moments: β€œBased on similar deals, adding a product demo increases win rate by 25%”
Scenario: Ravi builds an agent feed for a retail client

Ravi Krishnan (Natalie’s senior developer at Cloudbridge Partners) implements an agent feed in a D365 Sales app:

Feed items:

  • AI-generated deal summaries each morning (from Sales in M365 Copilot)
  • Competitor mention alerts when a customer emails about a competitor product
  • Recommended next actions based on deal stage and historical win patterns
  • Weekly pipeline health summary with AI-identified risks

Technical implementation:

  • Foundry prompt flow generates insights on a schedule
  • Results stored in Dataverse as feed items
  • Power Apps model-driven page displays the feed with card-based UI
  • Users can dismiss, act on, or share each feed item

Flashcards

Question

What is the difference between vector search (AI Search) and a traditional database index?

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Answer

Vector search stores semantic embeddings of documents, enabling meaning-based retrieval (find documents with similar concepts). A traditional index stores exact values, enabling keyword-based search (find documents with exact matching terms). Use vector search via Azure AI Search for RAG over large document collections.

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Question

What is a generative page in Power Apps?

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Answer

An AI-powered page that displays dynamically generated content (summaries, recommendations, analyses) instead of static data views. Built code-first using PCF controls, custom connectors, or Dataverse plugins that call Foundry AI models.

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Question

When should you propose Foundry evaluation tools?

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Answer

When you need to prove AI response quality meets standards before deployment. Evaluation measures groundedness, relevance, coherence, and safety against test datasets. Essential for any production AI solution, especially in regulated industries.

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Question

What is an agent feed in a business application?

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Answer

A stream of AI-generated insights, alerts, and recommendations surfaced as cards within a business app. Similar to a social media feed but powered by AI agents β€” showing proactive insights, action suggestions, and status updates.

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Knowledge check

Knowledge Check

Kai's manufacturing client needs to search across 50,000 technical specifications to find products similar to a customer's description β€” even when the customer uses different terminology than the specifications. Which Foundry capability should Kai propose?

Knowledge Check

A D365 Sales user opens a customer record and sees an AI-generated summary showing recent interactions, open deals, and recommended next actions β€” updated in real time based on the latest data. What is this an example of?

Next up: Copilot Studio: Topics, Flows & Prompt Actions β€” designing conversation flows, choosing between NLP and generative AI orchestration, and creating prompt actions in Copilot Studio.