Microsoft Transforms Windows Into AI Agent Platform

Microsoft is making a historic shift by turning Windows into an agentic AI platform, marking one of the most significant changes in the operating system’s history. At Microsoft Build 2025, CEO Satya Nadella emphasized the need to reconfigure legacy internet systems to accommodate the next wave of AI agents.

Key Announcements:

• Agentic Web Vision: Nadella described the current phase as the "middle innings" of AI adoption, where practical implementations take shape. Microsoft aims to build an open, agentic web by 2025.
• Model Context Protocol (MCP): Developed by Anthropic, MCP is being embedded into Windows, enabling AI agents like GitHub Copilot to perform tasks such as installing software, accessing files, and interacting with apps—with user consent.
• Foundry Local: A new tool allowing AI features to run offline, enhancing speed and privacy. It’s integrated into Windows and designed for AI-powered PCs.
• Copilot Tuning: Enterprises can now customize AI agents using their own data, ensuring industry-specific expertise.
• NLWeb: An open standard transforming websites into agentic platforms. For example, Tripadvisor is adopting NLWeb to enable AI agents to book trips autonomously.

Industry Impact:

According to PYMNTS Intelligence, MCP is a "game-changing technology" that outperforms manual processes, particularly in back-office operations. Nearly two-thirds of product leaders are leveraging GenAI for innovation, per PYMNTS data.

Quotes:

• Satya Nadella: "We’re building out this open agentic web at scale."
• Kevin Scott (Microsoft CTO): NLWeb is "HTML for the agentic web."

For more on AI’s role in payments, read Payments Execs on Agentic AI.

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