Microsoft and Workday partner to manage AI workforce integration

Microsoft and Workday Collaborate on AI Workforce Management

September 16, 2025 — Microsoft and Workday have announced a partnership aimed at simplifying the integration and management of AI agents in the workplace. This collaboration will allow developers to register AI agents built using Microsoft Azure AI Foundry and Copilot Studio in Workday’s Agent System of Record (ASOR), ensuring seamless interoperability between AI and human workers.

Key Features of the Partnership

• Microsoft Entra Agent IDs: AI agents created with Microsoft tools will receive unique Entra IDs, providing verified identities and enabling administrators to define access permissions. This ensures secure and controlled interactions within the enterprise environment.

• Workday’s ASOR: Workday’s system will provide the necessary business context for AI agents, allowing them to perform tasks efficiently. For example, an employee could ask a Microsoft Copilot agent to update their career goals, and the request would be seamlessly handed off to a Workday agent for completion.

• Agent Analytics: Workday ASOR will log agent usage, providing detailed reports on productivity and ensuring that agents operate as intended without unnecessary access or unusual behavior.

Industry Perspectives

Mickey North Rizza, IDC Group Vice President, highlighted the significance of this partnership: "Workday is extending its platform to manage both digital and human workers, becoming a system of record for all workforce elements."

Charles Lamanna, President of Business and Industry Copilot at Microsoft, noted the growing demand for AI agents: "Every company we speak to wants to bring in AI agents as coworkers, and this partnership addresses the need for secure and manageable integration."

Open Ecosystem Approach

Gerrit Kazmaier, President of Product and Technology at Workday, emphasized the importance of an open ecosystem: "AI is not a single-vendor solution; it’s about shared data, governance, and intelligence across systems." The partnership reflects this vision, with Microsoft’s Entra Agent ID being an open protocol that other vendors can adopt.

Early Adopter Phase

The program is currently in its early adopter phase, allowing customers to test and provide feedback before general availability. This phased approach ensures that the integration meets enterprise needs for security and efficiency.

Competitive Landscape

Melody Brue, VP at Moor Insights & Strategy, noted the strategic advantages for both companies: "Microsoft gains access to Workday’s enterprise customer base, while Workday strengthens its position in AI governance. This partnership could pressure standalone identity management providers and enhance Microsoft’s competitiveness against Google Cloud and AWS."