AI-103: Developing AI Apps and Agents on Azure

For grounding, Microsoft Foundry agents should be configured to retrieve knowledge only from approved, curated data sources (such as a knowledge base or index built from vetted repositories) rather than uploading files directly to the agent or embedding content into instructions, both of which bypass repository-level governance and curation controls. For memory, the Microsoft Foundry Agent Service supports agent memory backed by persistent storage (e.g., Cosmos DB-backed memory stores), which allows customer preferences and context to be retained across separate chat sessions. Orchestration-managed session context only persists for the life of a single session/thread, and storing preferences in client application state ties retention to that client rather than the agent, so neither meets the cross-session retention requirement.