Microsoft used its Build 2026 conference this week to push a clear message: agents are rapidly moving into production throughout enterprise systems, and the winning platform will be the one that gives them reliable context, governance, identity, memory - and secure access to enterprise data.
The company announced Microsoft IQ as a context layer across GitHub Copilot, Microsoft Foundry and Copilot Studio; Work IQ APIs coming June 16; Fabric IQ for structured business data; Foundry IQ for retrieval across enterprise knowledge and the live web; and Web IQ as a new agent-facing web search stack.
Microsoft also introduced Scout, a personal work agent, and seven new in-house AI models in its growing MAI family across modalities and use cases, including MAI-Thinking-1.
Those announcements sit directly in Marco Casalaina’s lane. Casalaina is Microsoft’s VP Products, Core AI and AI Futurist. He leads Microsoft’s AI Futures team and previously led teams across Azure AI, including Azure OpenAI, Vision, Speech, Decision, Language, Responsible AI and AI Studio.
Before Microsoft, he led Salesforce’s Einstein AI team and earned a computer science degree from Cornell University. CRN reported that he joined Microsoft in early 2022 as vice president of products for Azure Cognitive Services, meaning he has now been at the company for more than four years.
VentureBeat spoke with Casalaina ahead of Build about Microsoft’s agent strategy, the company’s model-choice philosophy, how Microsoft IQ fits with MCP, and why he believes enterprises need far more than just access to powerful models. The interview below has been edited for clarity and condensed from the transcript.
What “AI Futurist” Means in Practice
VentureBeat (VB): To start, can you explain your role at Microsoft and what “AI Futurist” means in practice?
Marco Casalaina (MC): I am VP Products of what we call Core AI. Core AI is our set of tools for AI developers, and that includes Foundry, Visual Studio, VS Code, GitHub and GitHub Copilot. That’s our overall group.
My Silicon Valley title is AI Futurist, and that has a very concrete meaning here. I’ve worked with other folks who are considered futurists, like Peter Schwartz, and that can be a little bit more fuzzy. For me, what it means concretely is that I am the first person to try anything new here.
I am constantly getting things from all over Microsoft, not even just Foundry, because I work with really everybody across the company. Pretty much everybody sends me the new things at all times. Even today, I got something brand new just before this call. I’m usually the first person to try anything new here, which is pretty cool. I get to see a lot of really cool stuff.
A friend of mine, who is head of AI at Intuit, calls me an “adjacent possiblist.” I consider my futurist concept to be about a year out from now - the immediate future of what’s about to happen next. That’s what I focus on.
The Agentic Stack and Microsoft’s Position
VB: Where are you looking at the agentic state of things, and in particular Microsoft’s position as enterprises and individuals rush to adopt agentic AI?
MC: We can look at it from bottom to top. At the very base of the stack is our commitment to model choice. All along, we’ve had the OpenAI GPT frontier models. Now we have a really solid partnership with Anthropic, where we’re offering the Claude models. We just launched Claude Opus 4.8 on Azure - on Foundry, I should say - and at Build, we are introducing our new MAI model.
The MAI models are a set of frontier models that we’re building in-house. They are made for token efficiency, optimization and customization. We are specifically making them for our customers to customize on their own data sets.
One level above that, we are announcing hosted agents in Foundry. That is our managed agent capability in Foundry. It automatically handles scaling, containerization and those kinds of things. It is an environment where you can manage agents.
One level above that is the Foundry control plane. At least for the agents you build, you want to have control over them. This gives you observability into their cost, tokens and correctness. You can do continuous evaluations and sample interactions with those agents, run evals and make sure they are continuing to work and not drifting.
The big news is going to be the GA of what we call the IQs here at Microsoft. There are currently three, and there will be four. There is Foundry IQ, which is basically for knowledge - largely unstructured knowledge. There is Fabric IQ. We have a ton of customers who have entrusted a lot of data to the Microsoft Cloud in Fabric, Power BI and related technologies. Fabric IQ is about making an agent-facing interface for this data, so agents can get to it without literally going through a Power BI report.
Work IQ is about the Microsoft ecosystem. You can look at Work IQ as the agentic face of all the Microsoft apps: Outlook, Teams, Word, SharePoint and all those kinds of things. How does an agent interact with those things? That is Work IQ.
And finally, the fourth IQ is Web IQ. We are releasing our new agent-facing web search capability. It can search the web, search through videos and even do some kinds of browsing tasks automatically. It is super fast, and it has no face - it’s headless. The interface is intended for agents.
We will also be announcing Agent Optimizer. That includes a new type of evaluation that allows you to evaluate much more granularly whether an agent is actually working and working correctly. The optimization step can go back in and make modifications to the prompt - obviously with your consent - and modify your agent so it works more correctly going forward. Effectively, it creates a feedback loop to make agents work better.
Who the IQ Products Are For
VB: Microsoft has sometimes been criticized for murky and clunky product naming. Where do these IQ products sit? Are enterprise users supposed to go to IQ first, or is IQ more for developers to connect to?
MC: All of the IQs are headless. The concept of IQ is that each one provides a different type of context to an agent specifically. Largely, it will be developers interacting with the various IQs - developers and the agents they build.
The IQ brand is really about agent context. End users largely won’t interact with the IQs. It is true that if you use Microsoft 365 Copilot today, you’ll notice a little thing that says it is using Work IQ. So it is a little bit visible, but the customer or end user doesn’t have to go find the IQ. Their system or developers hook that up.
IQ, MCP, and Agent Identity
VB: Is the IQ family essentially Microsoft’s version of MCP? Is it using MCP, or is it something different?
MC: All of the IQs are indeed exposed as MCP servers. You have correctly characterized MCP as basically an agent-facing or self-describing API. It’s not that fancy. That’s really what it is, with some authentication layers and capabilities built in, which is super useful.
Something like Work IQ - really all the IQs - have to be authenticated. In order for Work IQ to see my email, Teams messages, documents and stuff like that, I have to be able to authenticate it on behalf of me.
That gets us to another core differentiator that we will be announcing at Build, which is agent identity. We have this Entra system, and Entra is, I believe, the world’s largest used identity system for human users. For some time now, you have been able to declare an agent to have an identity in there. Now, agents will be able to have their own identity, their own Teams inbox, their own email inbox and things like that.
These agents will use Work IQ to check their own email, check their own documents and that sort of thing.
Model Company, Infrastructure Company, or Connector?
VB: Enterprises are not one-size-fits-all on models. Microsoft supports many leading models through Foundry and Azure, while also building its own. Is Microsoft a model company, an infrastructure company or a connector between models and work products?
MC: The answer is yes. We are obviously the hyperscaler. We are absolutely committed to model choice, and we will continue to offer the frontier models from all of the major players: OpenAI, Anthropic, Mistral, Black Forest, xAI - you name it. They are all going to be represented in there.
At the same time, we have what is now called our Microsoft AI Superintelligence Team, formed by Mustafa Suleyman, and we are building our own frontier models as well. We are really gearing these models toward optimization - token efficiency, bang for the buck and customization.
These are things our customers have been asking for: the ability to more finely customize models, whether that is fine-tuning or continued pre-training. Continued pre-training is literally changing the weights of the model, whereas fine-tuning is adding a little layer on top.
We have these capabilities in Foundry: fine-tuning, distillation and those kinds of things. I would note that our MAI models are not distilled. Some model providers, especially some of the less scrupulous ones, will distill other models into theirs, and that can have unusual effects. We don’t do that. The data provenance of our models is of primary importance to us.
When we come out with these models, we want our customers to know that the data provenance is clean in terms of the rights to the data, where it came from and all that kind of stuff.
The choice thing also goes above the model layer. When we talk about Foundry hosted agents, we have the Microsoft Agent Framework. You talk about agent orchestration - how you make agents work together when you have multiple agents - and Microsoft Agent Framework is an excellent framework for that.
However, I can make a LangGraph or LangChain Foundry hosted agent. I can make a CrewAI Foundry hosted agent. I can use any number of orchestration frameworks and put that up as a Foundry hosted agent, and it becomes a first-class Foundry agent.
That means I get the observability. It shows up in the Foundry control plane. I can do evaluations on it. I can do traces on it. I can get all those things from the Foundry control plane with an agent built in really any framework I choose.
Chinese and Open-Source Models
VB: Some companies are interested in Chinese and open-source models. How much of Microsoft offering its own models is about giving customers an American version of that?
MC: I can’t speak to that exactly. Of course, we offer DeepSeek models and Qwen models in Foundry, so we offer all of these choices today, and our customers can make that choice.
The MAI models are really focused on token efficiency and customizability. That is what our customers are demanding, and that is the gap we are filling.
Will Enterprises Use More Models or Fewer?
VB: As agents take on longer tasks and more specialized work, will enterprises keep expanding the number of models they use, or will there be a winnowing?
MC: I do see it expanding. We are not just focused on tokens per se. A token is not a token is not a token - different tasks and modalities demand different models, and specialization is only increasing across the enterprise AI landscape.