Microsoft reimagines its Fabric analytics platform as core infrastructure for AI agents

Microsoft is positioning its Fabric analytics platform as a unified decision infrastructure for enterprises developing AI agents. Announced at Microsoft Build, the integration of Cosmos DB databases, digital twin capabilities, and enhanced Copilot features creates a foundation that moves beyond traditional data analytics toward enabling real-time, intelligent automation. These updates represent Microsoft’s vision of merging data and intelligence layers to address the fundamental challenge that scattered data poses to enterprises looking to build accurate agentic applications.

The big picture: Microsoft is transforming Fabric from a data platform into a comprehensive decision infrastructure layer that supports AI agent development by bringing operational databases, real-time processing, and semantic governance together.

• “With the addition of operational databases like Cosmos DB and SQL Server, real-time agents, and semantic governance, Fabric is no longer just a data platform, it is a decision infrastructure layer for any enterprise,” said Michael Ni, principal analyst at Constellation Research.
• The integration of Cosmos DB into Fabric follows SQL Server’s addition six months ago, creating a more complete foundation for handling both structured and semi-structured data.
• Microsoft initially released Fabric in May 2023 to help organizations reduce IT integration complexity and costs by combining enterprise data workloads.

Why this matters: Scattered data represents a significant barrier to developing effective AI agents, and Microsoft’s unified approach addresses this challenge directly.

• The platform now enables enterprises to create a more comprehensive data foundation by bringing semi-structured data from Cosmos DB together with structured data from other sources.
• “In the age of agentic AI, scattered data is a roadblock for enterprises and with the addition of databases, Fabric is being positioned as the essential, intelligent foundation needed to power AI-based agents that deliver real-time, actionable insights,” explained Ni.

Key features: The updates include digital twin builder capabilities that enable organizations to create virtual replicas of both physical assets and logical entities.

• The digital twin builder, accessed through a low-code interface in Real-Time Intelligence, allows enterprises to create virtual replicas of machinery and conceptual entities like customers.
• Unlike traditional digital twins that simply model physical assets, Fabric’s implementation serves as a foundation layer of data intelligence that can turn sensor data, business rules, and historical context into a graph for streamlined machine learning.
• Enterprises can leverage this capability to develop decision models for entire processes that agents can use for automation and update in real-time.

What’s available now: While some capabilities are already accessible, others remain in preview with no specific timeline for general availability.

• Cosmos DB capabilities in Fabric are currently in preview, though Microsoft will continue offering Cosmos DB as a standalone database service.
• The digital twin builder capability is also in preview, with no announced general availability date.
• Microsoft has also added new OneLake features to simplify file storage and conversion as part of the platform update.

The bottom line: Microsoft’s Fabric updates reflect a strategic shift toward unifying data and intelligence layers to support the development of more accurate AI agents and automated processes.

• By connecting telemetry, real-time data analysis, and workflows, enterprises can build more sophisticated AI-driven applications.
• These enhancements position Microsoft to better serve organizations looking to implement comprehensive automation solutions across their operations.