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Microsoft announces data innovations focused on business-specific AI context

Microsoft announced new data innovations in a September 28 post by Azure Product Marketing executive Jessica Hawk. The announcement emphasized combining widely available AI models with an organization's own data, expertise and business context. Microsoft framed unique business intelligence as an increasingly important differentiator as access to powerful models expands.
Key points
- Fabric IQ is generally available in Copilot Chat and Cowork, using governed Power BI business context.
- The capability is on by default for Fabric and Power BI customers, preserving existing access controls.
- IQ Sharing is in preview for sharing data and business context across organizations.
- New Fabric agentic data engineering features execute work within engineer-defined outcomes and boundaries.
- SQL Server on Azure Local is generally available; disconnected operations are in preview.
What happened: Microsoft announced advances across Microsoft Fabric and Azure Databases aimed at making an organization’s own knowledge more useful to AI. In a September 28 post, Azure Product Marketing executive Jessica Hawk described the announcements at the European Microsoft Fabric + SQL Community Conference in Barcelona. Microsoft’s argument is that, as powerful models become more widely available, businesses will differentiate themselves through how effectively they combine those models with their data, employee expertise and operating context. The announcements span business questions in Copilot, information sharing, application development, data engineering and local database workloads.
The details: Fabric IQ in Microsoft Copilot Chat and Cowork is now generally available, Microsoft said. It connects Copilot to governed Power BI semantic models, which contain the metrics, relationships and business definitions behind an organization’s reporting. That means a question about a sales forecast can draw on the same definitions and data used in existing reports, rather than leaving teams to reconcile different numbers. Microsoft said the capability is on by default for Fabric and Power BI customers in Copilot Chat and Cowork, while preserving existing access controls and governance. Cowork can also use those insights in broader multistep work. Integration with the new Code experience is coming through the Frontier program.
The details: Microsoft also introduced IQ Sharing in Fabric, now in preview as part of Fabric IQ. It is designed to let organizations share data and its business context across company boundaries while retaining governance over the underlying assets. For teams operating Fabric, cross-workspace monitoring and an enhanced Monitor Hub offer a unified view of jobs, capacities, workspaces and workloads. Microsoft said Operations Agents and Activator help investigate problems, identify root causes with AI and automate responses. These capabilities address the operational side of using a unified data platform as data and AI workloads expand.
Who it affects: Developers and data engineers are another focus. Fabric Apps brings application development directly to governed Fabric data, with capabilities covering connectivity, transactional workloads, backend logic, storage and policy-controlled access. New agentic data engineering features let engineers define an outcome and boundaries, within which an agent plans and executes work, validates results and refines its approach. For organizations that need workloads closer to local applications and operations, SQL Server on Azure Local is now generally available. A disconnected-operations option is in preview for environments where cloud connectivity is interrupted, restricted or unavailable.
What to watch: For business teams choosing AI tools, the announcement puts access to trusted internal information alongside model choice as an evaluation priority. Microsoft describes a continuous learning loop built around organizational data and expertise, without dependence on a single model provider. That remains the company’s stated approach, rather than a quantified outcome in this announcement. Pricing, measured performance gains and a general availability date for IQ Sharing were not reported.
Our take
Model selection is only one part of enterprise AI planning. Teams should also evaluate how effectively tools can use business-specific information.