Microsoft debuts breakthrough AI tools to revolutionize app development

Microsoft ramps up its AI tools offerings at Build 2025, aiming to lead the AI development race as competitors like Amazon develop AI assistants and OpenAI pursues a $3 billion acquisition to boost their AI portfolios

Microsoft has rolled out a comprehensive suite of AI-driven tools aimed at transforming the software development lifecycle, unveiled at its annual Build 2025 developers conference. These innovations are designed to help developers build intelligent applications more efficiently, integrate AI into every stage of development, and advance open protocols for a collaborative digital future.

In his keynote address, Microsoft CEO Satya Nadella emphasized the company’s commitment to empowering developers through trust, security, and cutting-edge tools. “Software engineering is about enabling ideas with the right tools. We’re pushing the boundaries further, especially with GitHub, to support developers creating secure and intelligent applications across industries,” Nadella stated.

AI agents power GitHub Copilot

Among the most anticipated announcements is a major update to GitHub Copilot. A new built-in coding agent now enables developers to assign tasks directly through Visual Studio Code. This agent can set up secure development environments via GitHub Actions, generate initial code drafts, and document the process in real time using detailed session logs. Importantly, human oversight remains mandatory before any automated deployment, ensuring safety and compliance.

Microsoft also introduced enhancements to its Azure AI Foundry platform, which now supports xAI’s Grok 3 and Grok 3 Mini models. Developers will benefit from new tools such as the Model Leaderboard for benchmarking and the Model Router for efficient deployment, making it easier to select and operationalize the best AI models for specific use cases.

Microsoft champions open AI protocols

Taking a bold step toward building an “agentic web,” Microsoft revealed NLWeb, an open protocol designed to transform traditional websites into natural language-compatible interfaces. With minimal code, developers can make websites semantically interactive, allowing AI models to interpret and respond to user queries naturally.

The company also announced extensive support for the Model Context Protocol (MCP), an emerging standard for sharing context between AI models. MCP will now be integrated into multiple Microsoft offerings, including GitHub, Copilot Studio, Azure AI, Dynamics 365, Semantic Kernel, and Windows 11. Microsoft, along with GitHub, will help steer MCP’s development through its new role on the protocol’s governing committee.

Microsoft’s unveiling comes as the AI tools race intensifies. Amazon is testing its own AI coding assistant, Kiro, while OpenAI is reportedly eyeing the acquisition of AI startup Windsurf in a deal valued at $3 billion.

With these strategic updates, Microsoft aims to reinforce its leadership in AI-enhanced development and promote a more open, agent-first web ecosystem.