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Agentic Retrieval & Foundry IQ
latest RAG
Agentic Retrieval (also called Agentic RAG) goes beyond simple search - the AI model intelligently decomposes complex queries into multiple sub-queries for more complete retrieval.
Standard RAG vs Agentic Retrieval
| Feature | Standard RAG | Agentic Retrieval |
|---|---|---|
| Query Processing | Single search query | AI decomposes into multiple sub-queries |
| Context Gathering | Top-K nearest results | Multi-source, cross-referenced results |
| Complex Questions | Often misses context | Handles multi-hop reasoning |
| Cost | Lower | Higher (multiple LLM calls) |
Foundry IQ
Foundry IQ is Microsoft's evolved search intelligence layer that enables grounded responses from multiple data sources. As of 2026, it expands into three distinct pillars:
- Work IQ: Grounds agents in Microsoft 365 Graph data (Teams, Outlook, SharePoint)
- Fabric IQ: Grounds agents directly in structured enterprise data (SQL, Data Lake)
- Web IQ: Provides real-time grounding from the Bing search index
Foundry IQ Reaches General Availability
At Microsoft Build 2026, Foundry IQ knowledge bases moved to General Availability as the SLA-backed knowledge layer behind every Foundry agent, alongside two major additions:
- Foundry IQ MCP Server (GA): Exposes a knowledge base as a remote MCP server so it can be queried from any MCP-compatible host - including Claude, ChatGPT, LangChain, and the Microsoft Agent Framework - with network isolation and document-level security enforced.
- Foundry IQ Serverless (Public Preview): A no-infrastructure tier billed only on Compute Units consumed, scaling to zero when idle - built for bursty, event-driven agent workloads.
🆕 Build 2026: Microsoft reports the latest agentic retrieval updates improved answer-quality benchmarks by up to 20%, and that knowledge bases improve recall by up to 54% versus single-shot RAG.
💡 Key Insight: Use standard RAG for simple factual Q&A. Switch to Agentic Retrieval when users ask complex, multi-faceted questions that require synthesizing information from multiple sources.
FOUNDRY VERIFICATION
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How does Agentic Retrieval differ from standard RAG?
It uses a different database
The AI decomposes complex queries into multiple sub-queries for complete retrieval
It doesn't use embeddings
It's cheaper