Azure Functions introduces serverless agents runtime with markdown-first AI agents

Short summary

Microsoft launched a public preview of Azure Functions serverless agents runtime at Build 2026, enabling AI agents to run natively on any Functions trigger. Developers define agents using .agent.md files—single markdown documents that declare the agent's logic, tools, connectors, and triggering events (HTTP, timers, databases, Teams messages, Outlook mail, SharePoint items). Zero new infrastructure required; agents leverage existing serverless scaling, auth, billing, and observability with 1,400+ connectors and MCP tool servers.

• •Azure Functions now supports AI agents via markdown-first .agent.md programming model in public preview
• •Agents integrate natively with Microsoft 365 (Teams, Outlook, SharePoint) and traditional serverless triggers
• •No additional infrastructure, billing, or setup—agents access existing Functions scale, MCP tools, and 1,400+ connectors

Generated with AI, which can make mistakes.