Previously, Microsoft Ignite launched key Power Platform feature updates. So, we learned about new CoPilot agents in Microsoft CoPilot 365 and new agents in Microsoft 365.
This year’s Microsoft Build conference was held on May 19-21. The conference brought developers and software experts together to explore the latest AI, Cloud, and Copilot innovations that are soon to become part of the Microsoft ecosystem.
With thousands of attendees and hundreds of presentations, the event showcased Microsoft’s ongoing commitment to empowering developers with cutting-edge technology. Missed it? We are here to walk you through the keynotes of the conference and what you need to know about Microsoft AI and Copilot announcements.
What’s New in Microsoft Build 2025?
Mainly, the event had its focus on how Microsoft is incorporating Agentic AI into its tools to provide developers with better services. MS stated that system software and model upgrades are currently being developed, as well as their application in data centres, in order to optimise tokens per watt per dollar.
Microsoft states that there are over 70 sites available, with ten new data centres created in the last three months.
Microsoft is the first to sell the GB200 GPU in large quantities, with industry-leading performance of up to 865,000 tokens per second. An AI-developed device called Sidekick enabled this by supporting GB200 GPUs and eliminating the need for water, allowing for tremendous power density without traditional cooling systems.
What were the Major AI Announcements at Microsoft Build 2025?
AI is no longer just a copilot. It is going to be part of your Windows – streamlining operations of your daily tools.
Kevin Weil, Chief Product Officer at OpenAI, said,
“We’re excited to see Windows embracing AI agent experiences through its adoption of the Model Context Protocol. This paves the way for ChatGPT to seamlessly connect to Windows tools and services that users rely on every day. We look forward to empowering both developers and users to create powerful, context-rich experiences through this integration.”
As the event unfolded, multiple announcements were made about the AI.
The major highlights are:
1. AI Agents as the New Building Blocks:
It is clear that AI agents are evolving into the fundamental components of modern information systems. They are marketed by Microsoft as modular components that can be used to address challenging problems.
2. Human-AI Collaboration:
Microsoft emphasised the “human in the loop” approach throughout the conference. Microsoft positions AI as a useful collaborator that enhances human creativity and efficiency, rather than replacing developers.
3. Agent Orchestration Standards:
Model Context Protocol (MCP) and Agent-to-Agent (A2A) communication are two examples of standards that are gaining popularity for coordinating complex AI systems. As agent ecosystems grow, interoperability will depend on this standardisation.
4. AI-Powered Development:
The demonstrations of agents managing development tasks and work items were quite impressive. GitHub’s new ability to assign work items directly to AI agents has the potential to fundamentally alter how development teams operate.
For example, 15 million developers now use GitHub Copilot, and capabilities such as agent mode and code review make it easier to build, test, deploy, and troubleshoot projects.
5. Windows AI Foundry
It was introduced as an upgrade to Windows Copilot Runtime and provides a single, dependable platform that covers the AI developer lifecycle, including model selection, optimisation, tuning, and deployment to client and cloud.
PC Copilot+ provides out-of-the-box AI APIs based on Windows inbox models for core language and vision tasks. New functionalities include LoRA (low-rank-adaption) for optimising the inbox SLM, Phi Silica, and bespoke data. In addition, there are new APIs for semantic search and knowledge retrieval.
6. .NET Aspire Maturation:
The upcoming version of .NET is anticipated to include a number of new features that will streamline cross-platform development and enhance the functionality of applications developed using this framework.
Advancements in .NET Aspire are bringing about a significantly better and more efficient developer experience for complex distributed applications.
The way Aspire is making it easier to create, deploy (coming soon), and manage/monitor extremely complex apps is impressive. So, next in the phase of Dynamics 365 implementation, you will have more to explore.
How is Microsoft Evolving Copilot in 2025?
Copilot has been a great assistance to many developers in the past few years. Now, it’s even bringing more value to your work.
Microsoft announced the advancements as follows:
- Stronger Data Protection
Microsoft is implementing Microsoft Purview’s Data Loss Prevention (DLP) directly into the Word, Excel, and PowerPoint Copilot experiences. Copilot has enhanced compliance and data security by adhering to sensitivity labels and prohibiting AI-generated content when DLP standards prohibit it.
- Smarter Usage Insights
A unified Microsoft Copilot for ERP Dashboard, which integrates Copilot usage information with Viva Insights, now provides IT administrators and business executives with a centralised, analytics-rich picture of how Copilot is used throughout the organisation.
- Enhanced Copilot Chat
Users can automate repetitive queries by using recurrent prompts.
Improvements to chat history make it easier to find and remember prior conversations.
The integration of SharePoint and OneDrive folders makes it easier to reference and retrieve files directly from the chat.
- Copilot Notebooks in OneNote
Users can now access Copilot straight from within OneNote. This feature uses artificial intelligence to transform standard notes into an interactive space where users can expand, summarise, or originate ideas.
- Copilot Tuning
Customers can utilise this service to train models that perform domain-specific tasks more efficiently and accurately, leveraging their own business expertise.
Copilot Tuning ensures that access to an optimised model is limited to the permissions of the underlying training data in the organisation.
What Cloud Innovations were Revealed during the Event?
Beyond consumer AI, Microsoft will strengthen its enterprise cloud approach by introducing Zure SRE. It will monitor the issues, resolve them, and then create the incident management report. It will see increased support for AI workloads, resulting in improved performance and cost-effectiveness.
While discussing the latest updates on Microsoft cloud technology, Christiaan Brinkhoff, Product and Community Leader for Windows Cloud & AI, shared on Twitter:
This is just the beginning… The future of #AI is being built right now across the cloud, on the edge and on Windows. From working with Windows 11 on the client to #Windows365 in the cloud, we’re building to support a broad range of scenarios, from AI development to core IT workflows, all with a security-first mindset.
This aligns with Microsoft’s broader cloud strategy.
Conclusion
Microsoft Build 2025 showcased how the future of development, cloud, and AI will be driven by innovations like Agentic AI, Copilot enhancements, and a more secure cloud infrastructure.
With powerful tools like Windows AI Foundry and GitHub Copilot updates, developers now have increased support for building complex applications and automating tasks.
At DHRP, we help businesses stay ahead by offering expert PowerApps implementation and Microsoft solutions, including upgrade to D365 and Dynamics 365 HR and payroll implementation tailored to their needs. Whether you’re preparing for the next wave of intelligent tools or planning your enterprise app strategy, our team ensures your transformation journey aligns with the future of Microsoft Build 2025.
FAQs
Microsoft introduced Agentic AI as the next evolution in intelligent systems, updates to GitHub Copilot with new agent capabilities, and Windows AI Foundry for a complete AI development lifecycle. These upgrades enhance collaboration, automation, and productivity across the Microsoft ecosystem.
Copilot now includes smarter chat history, integration with OneDrive and SharePoint, Copilot Notebooks in OneNote, and built-in data loss prevention tools. Businesses also gain usage insights and can fine-tune models with Copilot Tuning to meet domain-specific needs.
Windows AI Foundry is a new platform that helps developers streamline AI model selection, optimisation, and deployment across client and cloud environments. It supports new APIs, inbox models, and tools like LoRA and Phi Silica for efficient, customised development.
