Microsoft Work IQ
by Microsoft
The intelligence and context layer that grounds enterprise AI agents in how work actually gets done
Microsoft Work IQ is an intelligence layer for Microsoft 365 that builds a real-time semantic model of how an organization operates and exposes it to AI agents through the new Work IQ APIs. It is aimed at enterprises building custom Copilot agents that need grounded context, tools, scale, and governance across M365.
At a Glance
- Category
- AI Agents & Orchestration
- Pricing
- Usage-based
- Target Market
- CIOs, CTOs, Enterprise Developers, IT Administrators
- Founded
- 2026
- Headquarters
- Redmond, WA, United States
Key Features
- ✓Semantic organizational model
Builds a real-time model of how an organization operates from M365 signals — email, calendar, meetings, chats, files, people, and line-of-business systems.
- ✓Work IQ APIs (four domains)
Chat, Context, Tools, and Workspaces give agents a standardized way to read context and act across Microsoft 365.
- ✓Model Context Protocol tools
Agentic access to M365 entities through simple verbs exposed over MCP for interoperable agent tooling.
- ✓Permission-aware governance
Enforces each user's existing Microsoft 365 permissions when surfacing context to agents.
- ✓Copilot Credit cost controls
Consumption billing in Copilot Credits with an admin-center dashboard to set spending limits and monitor usage.
Capabilities
Use Cases
- •Context-grounded custom agents
Developers ground agents in real organizational context instead of raw data to reduce hallucinations.
- •Proactive multi-agent workflows
Agents act across M365 apps and entities using standardized tools and shared workspace state.
- •Governed enterprise AI rollout
IT admins meter Copilot Credit usage and enforce permissions across agents and services.
Ideal For
Best For
- ✓Grounding custom Copilot agents in organizational context
- ✓Building governed multi-agent workflows over Microsoft 365
- ✓Enforcing permissions and reducing hallucinations for enterprise agents
Integrations
Market Analysis
Pros
- ✓Deep native context across the Microsoft 365 estate
- ✓Enforces existing permissions to cut hallucinations
- ✓Standardized MCP tooling and admin-level cost controls
Cons
- ✗Locked to the Microsoft 365 / Copilot ecosystem
- ✗Consumption billing in Copilot Credits can be hard to forecast
Pricing
Consumption (Copilot Credits)
Usage-based (Copilot Credits)
- ✓Fixed component for Tools
- ✓Variable components for Chat and Context
- ✓Admin-center cost management dashboard
- ✓Requires Microsoft 365 Copilot
Consumption-based pricing denominated in Copilot Credits — fixed for Tools, variable for Chat and Context; managed via the Microsoft 365 admin center. Typically layered onto Microsoft 365 Copilot licensing.
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