The Future of AI: Customizing AI agents with the Semantic Kernel agent framework
The blog post Customizing AI agents with the Semantic Kernel agent framework discusses the capabilities of the Semantic Kernel SDK, an open-source tool developed by Microsoft for creating AI agents and multi-agent systems. It highlights the benefits of using single-purpose agents within a multi-agent system to achieve more complex workflows with improved efficiency. The Semantic Kernel SDK offers features like telemetry, hooks, and filters to ensure secure and responsible AI solutions, making it a versatile tool for both simple and complex AI projects.The Future of AI: Power Your Agents with Azure Logic Apps
Building intelligent applications no longer requires complex coding. With advancements in technology, you can now create agents using cloud-based tools to automate workflows, connect to various services, and integrate business processes across hybrid environments without writing any code.A Framework for Calculating ROI for Agentic AI Apps
Contributors and Reviewers: Anurag Karuparti (C), Aishwarya Umachandran(C), Tara Webb(R), Bart Czernicki (R), Simon Lacasse (R), Vishnu Pamula (R) ROI serves as a critical metric for assessing the financial benefits of any investment, including AI projects. It helps determine whether the investment generates more value than it costs. The fundamental formula for calculating ROI is: ROI = (Net Return from Investment - Cost of Investment) / Cost of Investment * 100 Studies indicate that companies investing in AI are realizing significant returns, with an average ROI of $3.7 for every $1 invested. Notably, 5% of organizations worldwide are achieving an even higher average ROI of $10 for every $1 invested. (IDC Study 2024) 1. Key Metrics for Measuring ROI in Agentic AI Apps Measuring the ROI of agentic AI apps necessitates a comprehensive approach that considers both tangible and intangible benefits. Intangible benefits may be difficult to quantify but significantly contribute to ROI. Here are some key metrics to consider: a. Tangible Benefits Cost Savings: Agentic Apps can automate tasks, leading to significant cost reductions in areas like customer service, data entry, and many business operations. By handling complex workflows autonomously, agentic AI minimizes the need for human intervention, resulting in lower labor costs and increased efficiency. Revenue Increase: Agentic Apps can help businesses identify new revenue streams, optimize pricing strategies, and improve sales and marketing effectiveness, ultimately driving revenue growth. Productivity Gains: By automating tasks and providing employees with enhanced tools and information, Agentic Apps can boost productivity and efficiency. Data Quality Improvements: Agentic Apps can minimize errors in tasks such as data entry and analysis, leading to improved accuracy and reduced costs associated with correcting mistakes. Improved Customer Satisfaction: Agentic Apps can enhance customer satisfaction by providing personalized experience, faster service, and proactive problem-solving. Faster Time-to-Market: Agentic AI can accelerate product development and deployment, enabling businesses to bring new products and services to market faster. b. Intangible Benefits Improved Decision-Making: Agentic AI can analyze vast amounts of data and provide valuable insights that can help businesses make more informed decisions. Enhanced Brand Reputation: By providing innovative and efficient services, agentic AI can enhance a company's brand reputation and foster customer loyalty. Increased Employee Satisfaction: By automating mundane tasks and empowering employees with better tools, agentic AI can improve employee satisfaction and retention. Improved Compliance: Agentic AI can help businesses comply with regulations and reduce the risk of penalties. Increased Innovation: By freeing up employees from routine tasks, agentic AI can foster a culture of innovation and creativity. 2. Cost Components of Developing and Deploying Agentic Apps Developing and deploying agentic AI apps involves various cost components, which can be categorized as follows: Cost Component Description Example Development Costs This includes the cost of software and development tools, salaries of developers, data scientists, and machine learning engineers, and cloud computing resources. Salaries for a team comprising a data scientist ($120,000 - $180,000 per year), a machine learning engineer ($130,000 - $200,000 per year), and an AI software developer ($110,000 - $170,000 per year) and development costs on cloud platforms like Azure (The above salaries are just estimates based on public info and can vary) Data Acquisition and Preparation Agentic AI apps may require large amounts of data for training and operation. This includes the cost of acquiring data, cleaning it, and preparing it for use in AI models. Purchasing datasets from third-party providers or investing in data annotation services. Testing and Deployment This includes the cost of testing the AI app, deploying it to the cloud or on-premises, and integrating it with existing systems. Cloud computing costs for deploying the app on platforms Azure, AWS and Google. Maintenance and Updates Agentic AI apps require ongoing maintenance and updates to ensure they remain effective and secure. This includes the cost of monitoring the app, fixing bugs, and adding new features. Costs associated with software updates, security patches, and ongoing monitoring of the app's performance. 3. New Revenue Streams from Agentic Apps Agentic AI apps can generate revenue through various business models by enhancing business operations in several ways. Revenue Stream/Value Proposition Description Example Subscription Fees Businesses can charge users a recurring fee for access to the agentic AI app. Offering different subscription tiers with varying levels of access and features. Usage-Based Pricing Businesses can charge users based on their usage of the app, such as the number of tasks performed, or the amount of data processed. Charging users per API call or per transaction processed by the agentic AI app. Licensing Fees Businesses can license their agentic AI technology to other companies. Granting other businesses, the right to use the agentic AI technology in their own products or services. It's important to note that agentic AI is poised to disrupt traditional SaaS business models, particularly the prevalent per-seat pricing model. As agentic AI becomes more sophisticated, businesses may shift towards alternative pricing models, such as usage-based pricing or outcome-based pricing, where the cost is directly tied to the AI's contribution to measurable business goals. 4. Framework for Calculating ROI for Agentic Apps Based on the analysis presented above, the following framework can be used to calculate the ROI of agentic AI apps: Define Objectives and KPIs: Clearly define the objectives of implementing the agentic AI app and the key performance indicators (KPIs) that will be used to measure its success. This could include metrics such as cost savings, revenue increase, productivity gains, customer satisfaction, and error reduction. Establish a Baseline: Establish a baseline for the KPIs before implementing the agentic AI app. This will help measure the impact of the app on the business. Estimate Revenue Gains and Cost Savings: Estimate the potential revenue gains and cost savings that can be achieved by implementing the AI Agentic. This may involve analyzing historical data, conducting surveys, and consulting with industry experts. Identify and Assess Costs: Identify all costs associated with developing, deploying, and maintaining the agentic AI app. This includes development costs, data acquisition costs, infrastructure costs, and ongoing maintenance costs. Determine Intangible Benefits: Identify and assess the intangible benefits of the agentic AI app, such as improved decision-making, enhanced brand reputation, and increased employee satisfaction. While these benefits may be difficult to quantify, they can significantly contribute to the overall ROI. Set a Realistic Timeframe: Establish a realistic timeframe for measuring the ROI of the agentic AI app. This should consider the time it takes to develop, deploy, and fully integrate the app into the business. Develop a Current State Scenario: Develop a scenario that represents the current state of the business without the agentic AI app. This will help compare the performance of the business with and without the app. Calculate the ROI: Using the data gathered in the previous steps, calculate the ROI of the agentic AI app using the ROI formula. Monitor and Adjust: Continuously monitor the performance of the agentic AI app and track the KPIs. Adjust the app and its implementation as needed to optimize its effectiveness and maximize ROI. When calculating the ROI of AI initiatives, it's crucial to avoid common pitfalls such as: Uncertainty of Benefits: Accurately estimating the benefits of AI can be challenging due to the evolving nature of technology and the potential for unforeseen outcomes. Computing ROI Based on a Single Point in Time: AI projects often have long-term benefits that may not be fully realized in the short term. As per a recent IDC Study in Nov 2024, organizations realize value in14 months. Treating Each AI Project Individually: AI projects can have synergistic effects and evaluating them in isolation may underestimate their overall impact on the business. 5. Example Scenarios: Option-1 A financial services call center handles 100,000 customer inquiries per year, each currently taking an average of 5 minutes. Of these calls, 10% (10,000 calls) are simple, routine requests (e.g., checking balances) and can be easily automated. Additionally, misrouting and inefficient handling cause each call to run 1 extra minute on average. Current Situation (Before Multi-Agent AI): Total calls: 100,000 Simple, routine calls: 10,000 Agent costs per minute: $0.50 Routine Calls Cost (Before AI): Routine calls each take 3 minutes. Total routine call time: 10,000 calls × 3 min = 30,000 min Cost: 30,000 min × $0.50 = $15,000 per year Misrouting Cost (Before AI): Extra 1 minute per call due to misrouting. Total extra time: 100,000 calls × 1 min = 100,000 min Cost: 100,000 min × $0.50 = $50,000 per year Total Extra Costs (Before AI): Routine tasks: $15,000 Misrouting: $50,000 Combined inefficiencies: $65,000 per year After Implementing Multi-Agent Collaboration AI: The AI system handles routine inquiries automatically and optimizes call routing: Routine Calls Automated: 10,000 routine calls no longer require agent time. Saves $15,000 per year on routine tasks. Correct Routing: Removes the extra 1 minute per call. Saves $50,000 per year from avoiding misrouting costs. Efficiency Gains: With misrouting fixed and agents freed from routine tasks, staff can handle a slight increase in call volume and also reduce overtime. Staff can handle an additional 4000 calls annually, each call at 5 minutes on average. (4000*5*0.50 = $10,000) Total Annual Savings After AI (Tangible Benefit): Routine tasks saved: $15,000 Misrouting eliminated: $50,000 Efficiency gains: $10,000 Total: $75,000 System Costs: Implementation and integration: $40,000 Annual maintenance: $5,000 Total Annual Cost: $45,000 ROI Calculation: Net Benefit: $75,000 (savings) – $45,000 (cost) = $30,000 ROI = (Net Benefit / Cost) × 100% = (30,000 / 45,000) × 100% ≈ 67% A 67% ROI means that for every dollar invested in the multi-agent collaboration AI system, the call center gains an additional 67 cents in profit each year. Option 2 Scenario: A company wants to semi-automate customer support for their e-commerce platform using an AI-powered chatbot on Azure. The AI-powered customer service chatbot provides support for very frequently asked questions. It automates responses, provides real-time order tracking, and offers personalized product recommendations while proactively engaging customers with tailored offers and anticipating their needs. It autonomously handles tasks like follow-ups and issue resolution, integrates seamlessly with existing systems, supports multiple languages, and operates 24/7 to enhance customer satisfaction and drive sales. Additionally, it escalates complex issues to human agents and continuously improves through self-feedback. Cost Estimation: Development and Deployment: $25,000 (including Azure App Service, Azure Agent Service, and other development costs) Maintenance and Support: $5,000 per year Benefit Estimation: Reduced Customer Service Costs: The chatbot handles 2,000 customer inquiries per month, which previously required 3 full-time employees with an average salary of $40,000 per year. Increased Sales: The chatbot's personalized recommendations and efficient support lead to a 5% increase in monthly sales, Calculating ROI: Annual Cost Savings 3 employees * $40,000 = $120,000 Chatbot cost = $25,000 (development) + $5,000 (maintenance) = $30,000 Cost savings = $120,000 - $30,000 = $90,000 Annual Revenue Increase Monthly sales: $500,000 Increase: 5% of $500,000 = $25,000 per month Yearly increase: $25,000 * 12 = $300,000 Total Annual Benefits $90,000 (cost savings) + $300,000 (revenue) = $390,000 ROI ROI = (Total Benefits − Annual Cost) / Annual Cost × 100% = (390,000 − 30,000 / 30,000) × 100% = 1200% This example demonstrates a significant ROI for the customer service chatbot. However, it's important to remember that this is a simplified calculation. Actual ROI may vary depending on various factors specific to the business and its implementation. Note: Calculating Azure Costs Azure costs vary by use case and are dependent on the architecture components. We'll discuss example scenarios for calculating these costs in a future blog. 6. Risks and Considerations Since the core of these agents relies on LLM, there is a potential for hallucination. Rigorous testing and evaluation are therefore critical before deploying them to production. Additionally, in the initial stages, agents may exhibit inefficiencies due to the complexity of orchestration, potentially introducing a 10–20% overhead. It is wise to set an ROI range that considers differences in response confidence. However, over time, these agents are expected to improve and optimize through iterative learning and feedback. 7. ROI will differ from use case to use case For example, in one call center, routine inquiries might be the primary source of inefficiency, while in another, the biggest gains might come from reducing customer wait times. Similarly, different industries may have different labor costs, different complexity levels for tasks, or varying levels of baseline performance. Cloud workload costs on Azure may also change based on usage patterns, the AI services you choose, data storage needs, and the extent of system integration required. In short, while the overall method for calculating ROI remains the same (measure gains, subtract costs, then divide by costs), the types of gains (e.g., labor reduction, error reduction, increased throughput, improved customer satisfaction) and the kinds of costs (e.g., Azure compute, integration services, licensing fees, training expenses) will be different for each scenario. As a result, you need to carefully identify the relevant metrics and expenses for every individual use case. Conclusion Agentic AI apps hold immense potential for businesses seeking to automate tasks, enhance efficiency, and improve decision-making. By implementing a comprehensive framework for calculating ROI, businesses can effectively justify their investment in agentic AI and ensure that these apps deliver both tangible and intangible benefits. This framework should encompass both quantitative and qualitative metrics, including cost savings, revenue increases, productivity gains, customer satisfaction, and intangible benefits such as improved decision-making and enhanced brand reputation. While the framework presented in this report provides a structured approach to evaluating the ROI of agentic AI apps, it's important to acknowledge the potential challenges and limitations. Quantifying some intangible benefits, such as enhanced brand reputation or increased employee satisfaction, can be subjective and may require alternative measurement approaches. Furthermore, the rapidly evolving nature of agentic AI technology may necessitate ongoing adjustments to the ROI framework to accurately capture its impact on businesses. Despite these challenges, a well-defined ROI framework remains crucial for making informed decisions about agentic AI investments and maximizing their potential. By carefully evaluating the ROI of agentic AI apps, businesses can strategically leverage this transformative technology to achieve their objectives and gain a competitive edge in the evolving digital landscape. References: IDC’s 2024 AI opportunity study: Top five AI trends to watch - The Official Microsoft BlogUse generative AI to extract structured data out of emails
One thing we regularly hear from clients is that they receive information that are key to their business such as order requests via email in an unstructured format and sometimes there are structured information within the body of those emails in a variety of table formats. In today’s fast-paced digital world, businesses need a way to automatically extract, structure, and integrate this information into their existing applications. Whether it’s leveraging AI-powered document processing, natural language processing (NLP), or intelligent automation, the right approach can transform email-based orders into structured, actionable data. In this blog, we’ll explore one such scenario where AI can be leveraged to extract information in tabular format that has been provided within an email. The emails contextually belong to a specific domain, but the tables are not with consistent headers or shapes. Sometimes in the body of one email there could be multiple tables. The problem Statement Extract tabular information with varying table formats from emails The typical approach to this problem involves rule-based processing, where individual tables are extracted and merged based on predefined logic. However, given the variety of email formats from hundreds or even thousands of different senders, maintaining such rule-based logic becomes increasingly complex and difficult to manage. A more optimal solution is leveraging the cognitive capabilities of generative AI, which can dynamically adapt to different table structures, column names, and formatting variations—eliminating the need for constant rule updates while improving accuracy and scalability. To create this sample code, I used below email with test data, with two tables with inconsistent column names. It is going to provide some upcoming trainings information. Please note the difference between the column headers: Hi there, Regarding the upcoming trainings, this is the list: Event Date Description of Event Length Grade 2025-01-21 Digital environments 20 hours 5 2025-03-01 AI for Industry A 10 hours 3 and some further events in below list Date Subject Duration Grade 2025-01-21 Digital environments 2 2 days 1 2025-03-01 AI for Industry B 2 weeks 4 These sessions are designed to be interactive and informative, so your timely participation is crucial. Please make sure to log in or arrive on time to avoid missing key insights. If you have any questions or need assistance, feel free to reach out. Looking forward to seeing you there! Thanks, Azadeh These are the two tables within the email, and we need to extract one consistent table format with all the rows from these two tables. Table 1 Event Date Description of Event Length Grade 2025-01-21 Digital environments 20 hours 5 2025-03-01 AI for Industry A 10 hours 3 Table 2 Date Subject Duration Grade 2025-01-21 Digital environments 2 2 days 1 2025-03-01 AI for Industry B 2 weeks 4 To extract the tabular data into one single table in json format, I am using python with below libraries installed in my environment: pandas beautifulsoup4 openai lxml The Code I use azure OpenAI service with a gpt 4o deployment. Below code is just one way of solving this type of problem and can be customized or improved to fit to other similar problems. I have provided some guidelines about merging the tables and column names similarity in the user prompt. This sample code is using an email message that is saved in 'eml' format in a local path, but the email library has other capabilities to help you connect to a mailbox and get the emails. import email import pandas as pd from bs4 import BeautifulSoup import os from openai import AzureOpenAI endpoint = os.getenv("ENDPOINT_URL", "https://....myendpointurl....openai.azure.com/") deployment = os.getenv("DEPLOYMENT_NAME", "gpt-4o") subscription_key = os.getenv("AZURE_OPENAI_API_KEY", "myapikey) # Initialize Azure OpenAI Service client with key-based authentication client = AzureOpenAI( azure_endpoint=endpoint, api_key=subscription_key, api_version="2024-05-01-preview", ) # Process email content with GPT-4 def extract_information(email_body, client): soup = BeautifulSoup(email_body, "html.parser") body = soup.get_text() print(body) #Prepare the chat prompt chat_prompt = [ { "role": "system", "content": [ { "type": "text", "text": "You are an AI assistant that is expert in extracting structured data from emails." } ] }, { "role": "user", "content": [ { "type": "text", "text": f"Extract the required information from the following email and format it as JSON and consolidate the tables using the common column names. For example the columns length and duration are the same and the columns Event and Subject are the same:\n\n{body}" } ] } ] messages = chat_prompt # Generate the completion completion = client.chat.completions.create( model=deployment, messages=messages, max_tokens=800, temperature=0.1, top_p=0.95, frequency_penalty=0, presence_penalty=0, stop=None, stream=False ) return completion.choices[0].message.content email_file_name = r'...path to your file....\Test Email with Tables.eml' with open(email_file_name, "r") as f: msg = email.message_from_file(f) email_body = "" for part in msg.walk(): if part.get_content_type() == "text/plain": email_body = part.get_payload(decode=True).decode() elif part.get_content_type() == "text/html": email_body = part.get_payload(decode=True).decode() extracted_info = extract_information(email_body, client) print(extracted_info) The output is: ``` [ { "Event": "Digital environments", "Date": "2025-01-21", "Length": "20 hours", "Grade": 5 }, { "Event": "AI for Industry A", "Date": "2025-03-01", "Length": "10 hours", "Grade": 3 }, { "Event": "Digital environments 2", "Date": "2025-01-21", "Length": "2 days", "Grade": 1 }, { "Event": "AI for Industry B", "Date": "2025-03-01", "Length": "2 weeks", "Grade": 4 } ] ``` Key points in the code: Read an email and extract the body Use a gen AI model with the right instructions prompt to complete the task Gen AI will follow the instructions and create a combined consistent table Get the output in the right format, e.g. 'json' I hope you find this blog post helpful, and you can apply it to your use case/domain. Or you can simply get the idea of how to use generative AI to solve a problem, instead of building layers of custom logic.NLP London Meetup - Microsoft Reactor
Hey everyone! Thanks for joining out session today at the NLP London meetup in the Microsoft Reactor. Here you can find the resources that we have shared during the session and our contact links. Resources Azure OpenAI Docs The Azure Developer CLI azd AI App Templates Azure AI Search Docs Azure OpenAI Assistants Responsible AI Contoso Creative Writer Example Application Our next event London Reactor meetup - 10th December Liam Hampton LinkedIn Chris Noring LinkedInStep-By-Step: How to Create a Windows 11 VM on Hyper-V via PowerShell
This step-by-step guide outlines how to create a Windows 11 virtual machine (VM) on Hyper-V using PowerShell commands. By following these instructions, IT professionals can save time and effort by automating the process and ensuring that each VM is configured correctly. This method is particularly useful for organizations that need to deploy multiple VMs quickly and efficiently.LLM Load Test on Azure (Serverless & Managed-Compute)
In the ever-evolving landscape of artificial intelligence, the ability to efficiently load test large language models (LLMs) is crucial for ensuring optimal performance and scalability. llm-load-test-azure is a powerful tool designed to facilitate load testing of LLMs running in various Azure endpoint deployment settings (Serverless and Managed).First Steps into Automation: Building Your First Playwright Test
Your journey into automated testing begins here! This is not just a blog; it's your gateway to mastering the art of reliable and consistent user experiences. With Playwright's rich features and tools, you're equipped to tackle modern web development challenges head-on. Don't wait, start learning Playwright today and take your web testing to the next level!
