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Microsoft Fabric Data Agents - Conversational AI for Data Analytics

Matthias Falland
Author
Matthias Falland
Expertise in Microsoft Fabric, Azure architectures, and Governance. Speaker at international conferences and community leader.

Microsoft Fabric Data Agents - Conversational AI for Data Analytics
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Microsoft Fabric Data Agents represent a revolutionary new feature that enables the creation of conversational Q&A systems using generative AI. These agents make data insights accessible and actionable for everyone in the organization - even for users without deep technical AI knowledge or understanding of data structures.

What are Fabric Data Agents?
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Data Agents in Microsoft Fabric enable teams to interact with their data in natural language. Users can ask questions in plain English/German and receive precise, context-rich answers from data stored in Fabric OneLake.

Core Capabilities:
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  • 🗣️ Natural Language Processing: Ask questions in natural language
  • 🔍 Intelligent Data Source Selection: Automatic identification of the most relevant data source
  • 🛡️ Secure Access Control: Uses user credentials for permissions
  • 📊 Multi-Query Support: SQL, DAX, and KQL depending on the data source
  • 🎯 Organization-Specific Customization: Custom instructions and example queries

How do Data Agents Work?
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The Fabric Data Agent uses Azure OpenAI Assistant APIs and operates in a structured process:

1. Question Parsing & Validation
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  • Processing user questions through Azure OpenAI
  • Compliance with security protocols and Responsible AI policies
  • Read-only access to all data sources

2. Data Source Identification
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  • Using user credentials for schema access
  • Evaluation of all available data sources:
    • Lakehouse & Warehouse (relational databases)
    • Power BI Datasets (Semantic Models)
    • KQL Databases

3. Tool Invocation & Query Generation
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  • Natural Language to SQL (NL2SQL) for Lakehouse/Warehouse
  • Natural Language to DAX (NL2DAX) for Power BI Datasets
  • Natural Language to KQL (NL2KQL) for KQL Databases

4. Query Validation & Execution
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  • Validation of generated queries
  • Secure execution against the selected data source
  • Formatting into human-readable answers

Data Agent Configuration
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Supported Data Sources
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  • Up to 5 data sources in any combination
  • Lakehouses, Warehouses, KQL Databases, Power BI Semantic Models
  • Extended support for large data sources (>1,000 tables, >100 columns)

Customization Options
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Data Agent Instructions:

  • Guidance for selecting the best data source
  • Organization-specific rules and definitions
  • Example: “Financial metrics → Power BI Semantic Model”

Example Queries:

  • Example question/query pairs
  • Improved accuracy through context
  • Currently not available for Power BI Semantic Models

Integration & Usage
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Consumption Options:
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  • Microsoft Copilot Studio (Connected Agents)
  • Azure AI Foundry (Python SDK, REST API)
  • External Applications (Python Client SDK)
  • Microsoft Teams and other channels

Prerequisites:
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  • Fabric Capacity F2+ or Power BI Premium P1+
  • Enabled Tenant Settings for Data Agents and Copilot
  • Cross-geo Processing/Storing for AI enabled
  • At least one data source (Warehouse, Lakehouse, Power BI, KQL DB)

Current Developments (2025)
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New Features:
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  • July 2025: Extended support for large data sources
  • June 2025: Data Source Instructions for more precise answers
  • September 2025: Python Client SDK for external applications

Limitations (Preview):
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  • Only “Read” queries (no Create/Update/Delete)
  • No unstructured data (.pdf, .docx, .txt)
  • Currently only English language optimally supported
  • No switching of underlying LLM possible

Further Resources
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Concepts & Fundamentals:
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Implementation:
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Integration:
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Scenarios & Use Cases:
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Conclusion: Microsoft Fabric Data Agents democratize access to data insights through conversational AI and create the foundation for a data-driven corporate culture. With integration into various Microsoft platforms and continuous development, they offer enormous potential for the future of data analytics.