Microsoft announced Foundry IQ, a platform that simplifies building AI agents by providing unified knowledge infrastructure with serverless retrieval, multi-source data integration, and enterprise security. The service now offers a serverless Developer tier in public preview with scale-to-zero pricing, supports new knowledge sources including Work IQ and Fabric IQ, and includes Web IQ for real-time external context. Key features achieving general availability include agentic retrieval improvements delivering up to 20% better answer quality, MCP server compatibility for any agent framework, and enhanced security controls for enterprise data governance.