Microsoft Windows Embraces AI Agents

Microsoft is transforming Windows into an agentic AI platform, which the company considers one of the most significant shifts in the operating system’s history. This move involves establishing the foundation for the open, agentic web.

At Microsoft Build 2025, CEO Satya Nadella stated that the internet’s systems need to be reconfigured for AI agents. He compared this to the “middle innings” of past tech transformations, such as cloud and mobile, where software engineers turn visions into reality. Nadella said that generative AI is currently in this phase and that Microsoft aims to scale the open agentic web.

Microsoft is embedding Model Context Protocol (MCP) into Windows, enabling AI agents to interact with computers. According to PYMNTS Intelligence, MCP is a groundbreaking technology that facilitates communication between AI models and produces enhanced outcomes.

Foundry Local, a new Microsoft tool, enables PCs to run AI features without an internet connection, speeding up responses and improving privacy. Foundry Local is integrated into Windows and compatible with AI-powered PCs.

Copilot Tuning, another feature, allows businesses to customize AI agents with their own data, tone, and workflows, ensuring the agents are experts in specific organizational knowledge.

Microsoft also introduced NLWeb, an open standard that transforms websites into agentic platforms, enabling AI agents to comprehend and act on web content. Microsoft is collaborating with companies like Tripadvisor to implement NLWeb so that AI agents can directly search and book travel.