{"id":20297,"date":"2026-03-26T09:00:00","date_gmt":"2026-03-26T16:00:00","guid":{"rendered":"https:\/\/www.microsoft.com\/insidetrack\/blog\/?p=20297"},"modified":"2026-04-16T14:47:34","modified_gmt":"2026-04-16T21:47:34","slug":"accelerating-transformation-how-were-reshaping-microsoft-with-continuous-improvement-and-ai","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/insidetrack\/blog\/accelerating-transformation-how-were-reshaping-microsoft-with-continuous-improvement-and-ai\/","title":{"rendered":"Accelerating transformation: How we\u2019re reshaping Microsoft with continuous improvement and AI"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Technology companies are really people companies. In an age of rapidly advancing AI, losing sight of this reality leads to an overemphasis on new tools while neglecting opportunities for the transformational change that AI offers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moving forward, the winners will be the companies that prioritize technological and operational excellence. Microsoft Digital, our company\u2019s IT organization, is seizing this moment by reinventing processes for agentic workflows powered by continuous improvement (CI).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We believe that AI-powered agents, Microsoft 365 Copilot, and human ambition are the key ingredients for unlocking opportunity across every industry.<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/David-Laves.png\" alt=\"A photo of Laves.\" class=\"wp-image-20299\" style=\"width:150px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/David-Laves.png 500w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/David-Laves-300x300.png 300w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/David-Laves-150x150.png 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-columns is-not-stacked-on-mobile is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex has-2-columns\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cContinuous improvement is a natural, formal extension of our culture that applies rigor, structure, and methodology to enacting a growth mindset through understanding waste and opportunities for optimization.\u201d<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:0px\"><\/div>\n<\/div>\n<cite>David Laves, director of business programs, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">By combining our AI capabilities with continuous improvement, we\u2019re executing initiatives that increase our productivity and improve our performance. We\u2019re forging a new path for how companies operate in the era of AI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Welcome to the age of AI-empowered continuous improvement.<\/p>\n\n\n\n<div class=\"wp-block-group has-white-200-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-48e64321 wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--spacing-12);padding-right:var(--wp--preset--spacing--spacing-12);padding-bottom:var(--wp--preset--spacing--spacing-12);padding-left:var(--wp--preset--spacing--spacing-12)\">\n<p class=\"has-body-lg-font-size wp-block-paragraph\" style=\"margin-top:0;margin-bottom:0\"><strong>AI councils at Microsoft<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"margin-top:var(--wp--preset--spacing--spacing-8)\">Check out our series on how employee councils are guiding how we use AI here at Microsoft. &nbsp;<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/harnessing-ai-how-a-data-council-is-powering-our-unified-data-strategy-at-microsoft\/\">Harnessing AI: How a data council is powering our unified data strategy at Microsoft<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/powering-the-technical-veracity-of-ai-at-microsoft-with-a-center-of-excellence\/\">Powering the technical veracity of AI at Microsoft with a Center of Excellence<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/accelerating-transformation-how-were-reshaping-microsoft-with-continuous-improvement-and-ai\/\">Accelerating transformation: How we\u2019re reshaping Microsoft with continuous improvement and AI<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/responsible-ai-why-it-matters-and-how-were-infusing-it-into-our-internal-ai-projects-at-microsoft\/\">Responsible AI: Why it matters and how we\u2019re infusing it into our internal AI projects at Microsoft<\/a><\/li>\n<\/ol>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Our vision for continuous improvement, turbo-charged by AI<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">At Microsoft Digital, we\u2019re embracing continuous improvement to unlock greater operational excellence and better employee experiences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;One of the main tenets of our culture at Microsoft is a growth mindset, and that involves experimentation and curiosity,\u201d says David Laves, director of business programs within Microsoft Digital. \u201cContinuous improvement is a natural, formal extension of our culture that applies rigor, structure, and methodology to enacting a growth mindset through understanding waste and opportunities for optimization.\u201d<\/p>\n\n\n\n<aside class=\"wp-block-group aside-for-guide has-white-200-background-color has-background has-global-padding is-content-justification-right is-layout-constrained wp-container-core-group-is-layout-3f1abf08 wp-block-group-is-layout-constrained\" style=\"border-radius:10px;padding-top:var(--wp--preset--spacing--spacing-12);padding-right:var(--wp--preset--spacing--spacing-12);padding-bottom:var(--wp--preset--spacing--spacing-12);padding-left:var(--wp--preset--spacing--spacing-12)\">\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-298f84b7 wp-block-group-is-layout-flex\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-bottom:0\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"132\" height=\"132\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/10\/Engage-with-our-experts_blogs.png\" alt=\"\" class=\"wp-image-20636\" style=\"width:48px\"\/><\/figure>\n\n\n\n<p class=\"has-body-lg-font-size wp-block-paragraph\"><strong>Engage with our experts!<\/strong><\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"margin-top:var(--wp--preset--spacing--spacing-4)\">Customers or Microsoft account team representatives from Fortune 500 companies are welcome to <a href=\"mailto:msitstaff@microsoft.com\">request a virtual engagement<\/a> on this topic with experts from our Microsoft Digital team.<\/p>\n<\/aside>\n\n\n\n<p class=\"wp-block-paragraph\">Our capacity to drive process improvements has been crucial to our AI transformation as a company. We\u2019ve adopted a \u201cCI before AI\u201d approach to ensure that we don\u2019t end up automating inefficient processes. By engaging in activities that focus on continuous improvement, our teams can better identify which problems to address with AI and prioritize meeting customer needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cContinuous improvement is really about understanding your business, its needs, and where you can find value,\u201d says Matt Hansen, a director of continuous improvement at Microsoft. \u201cIt gives us the language to scale our efforts out across everything we do.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This process isn\u2019t just another way to enable AI. In fact, AI is essential to enabling continuous improvement itself.<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"320\" height=\"320\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Don-Campbell.png\" alt=\"A photo of Campbell.\" class=\"wp-image-22821\" style=\"width:150px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Don-Campbell.png 320w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Don-Campbell-300x300.png 300w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Don-Campbell-150x150.png 150w\" sizes=\"auto, (max-width: 320px) 100vw, 320px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cWhen leaders stay actively engaged and partner through these Centers of Excellence, we can create alignment, accelerate decisions, and ensure both CI and AI help to deliver measurable business outcomes.\u201d<\/p>\n<cite>Don Campbell, senior director, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Operationalizing <strong>continuous improvement<\/strong> and AI<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Operationalizing continuous improvement and AI enablement is a leadership imperative at Microsoft, and one that doesn\u2019t just happen organically. As an organization, we are deliberate about turning business strategy into measurable outcomes through clear sponsorship, disciplined prioritization, the right resourcing, and sustained investment in change management and employee skilling.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe difference between strategy and real business impact is execution,\u201d says Don Campbell, a senior director in Microsoft Digital. \u201cThat execution requires strong leadership sponsorship and clearly designed continuous improvement efforts and AI Centers of Excellence (CoEs), which translate business strategy into operational reality. When leaders stay actively engaged and partner through these CoEs, we can create alignment, accelerate decisions, and ensure both CI and AI help to deliver measurable business outcomes.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To support leadership\u2019s vision, we\u2019ve put organizational resources in place to manage our continuous improvement investments, guide practices, and support teams. There\u2019s an overarching continuous improvement CoE within Microsoft Digital, which works in close partnership with the AI CoEs, forming an integrated model which connects enterprise priorities with frontline execution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Together, these CoEs establish shared standards, provide clarity on where to invest, and help us move faster with confidence, turning ambition into sustained business impact.<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\" style=\"margin-top:var(--wp--preset--spacing--spacing-16);margin-bottom:var(--wp--preset--spacing--spacing-16)\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Becky-West.png\" alt=\"A photo of West.\" class=\"wp-image-20300\" style=\"width:150px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Becky-West.png 500w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Becky-West-300x300.png 300w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Becky-West-150x150.png 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-columns is-not-stacked-on-mobile is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex has-2-columns\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cContinuous improvement is about process, but it\u2019s also about people.\u201d<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:0px\"><\/div>\n<\/div>\n<cite>Becky West, lead, Continuous Improvement Center of Excellence, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Continuous improvement and people<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As we build out the organizational structures that underpin our investment in continuous improvement, we\u2019re approaching the people side of change with intention. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Currently, we\u2019re undertaking skilling efforts and communicating with every employee about how their role fits into core continuous improvement tools, including bowler cards, Gemba walks, Kaizen events, and monthly business reviews. We\u2019re also demonstrating how &#8220;CI + AI&#8221; is a powerful combination.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The roadmap is there, the structure is in place, and we\u2019re already seeing progress.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cContinuous improvement is about process, but it\u2019s also about people,\u201d says Becky West, lead for the Continuous Improvement CoE within Microsoft Digital. \u201cA guiding hand like the Continuous Improvement CoE is how you make sure those two components align.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Three Microsoft Digital continuous improvement initiatives<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As we negotiate the early days of the company\u2019s continuous improvement journey, Microsoft Digital is becoming a proving ground for the larger CI framework we want to deploy across the company. Our teams are spearheading projects to bring this framework to diverse functions like asset management, incident response (with a&nbsp;designated responsible individual), and&nbsp;third-party&nbsp;software licensing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Enterprise IT asset management<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Microsoft Digital\u2019s Enterprise IT Asset Management team oversees the 1.6 million devices that power the company, from servers and IoT devices to labs, networks, and 800,000 employee endpoints. Safeguarding this vast landscape is critical to enterprise cybersecurity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Three security pillars form the foundation of our security efforts: protect, detect, and respond. All of these depend on a complete, accurate device inventory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unified visibility enables proactive protection through enforced security controls, improves detection by spotting anomalies and misconfigurations, and accelerates responses by reducing investigation and remediation time. Without this foundation, security teams lack the precision to execute effectively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To reach the goal of a unified inventory, the team initiated a continuous improvement initiative to build a consolidated source of truth for Microsoft Digital IT assets. Grounded in the principle of \u201cprogress over perfection,\u201d the team initially narrowed its focus to Microsoft Lab Services (MLS) and IoT devices, with a vision to eventually expand to networks, employee devices, conference rooms, and printers. The ultimate goal is to move toward a truly comprehensive inventory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This foundation will not only enhance security but also deliver enterprise-wide value through consistent policy enforcement, more resilient infrastructure, and comprehensive lifecycle management. By applying continuous improvement processes to help prioritize high-impact opportunities and using AI to accelerate outcomes, the program is enhancing Microsoft\u2019s operational excellence and security posture.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt&#8217;s better to do step A than wait until you\u2019re ready to do steps A, B, C, and D,\u201d says Aniruddha Das, a principal PM in Microsoft Digital.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the team progressed from Gemba walks to Kaizen events under the guidance of the Continuous Improvement CoE, they dug deeper into areas of waste. Then they identified potential actions, breaking them down into \u201cvalue-add,\u201d \u201cnon-value-add-but-essential,\u201d and \u201cnon-value-add.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ashwin-Kaul.png\" alt=\"A photo of Ashwin Kaul\" class=\"wp-image-20301\" style=\"width:150px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ashwin-Kaul.png 500w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ashwin-Kaul-300x300.png 300w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ashwin-Kaul-150x150.png 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-columns is-not-stacked-on-mobile is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex has-2-columns\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cFor every action item, we were always asking ourselves how we could make these things better through AI. We\u2019re looking for ways to expedite our core outcomes with minimal human involvement.\u201d<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:0px\"><\/div>\n<\/div>\n<cite>Ashwin Kaul, senior product manager, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">This exercise helped them prioritize their activities and land on a starting point: A device security index that would provide an overview of our hardware environment\u2019s security posture. Essentially, it would represent a list of device security statuses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The team identified distinct improvement areas for IoT and Microsoft Lab Services (MLS) devices. For IoT devices, they needed to build the inventory from the ground up. MLS already had a fairly complete inventory of devices, so the team set a goal to improve data quality. Although each of these challenges is different, they\u2019re excellent opportunities for AI-empowered continuous improvement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now that the project is underway, the team plans to use an AI agent to automate device registration for IoT devices, which currently relies on manually uploaded spreadsheets. It\u2019s a prime example how streamlining a process with continuous improvement enables AI to automate and accelerate our work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the MLS side, the team is creating an AI-driven normalization tool to automate the de-duplication and correction of inaccuracies in device data. The goal is to get from less than 50% data quality to 100%, dramatically improving our security posture through greater accuracy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor every action item, we\u2019re always asking ourselves how we can make these things better through AI,\u201d says Ashwin Kaul, a senior product manager within Microsoft Digital. \u201cWe\u2019re looking for ways to expedite our core outcomes with minimal human involvement.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Continuously improving the designated responsible individual experience<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">On the Digital Workspace team, designated responsible individuals (DRIs) are in charge of maintaining the health of our production systems. When technical emergencies arise, they\u2019re the rapid-response point people who take the lead.<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\" style=\"margin-top:var(--wp--preset--spacing--spacing-16);margin-bottom:var(--wp--preset--spacing--spacing-16)\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ajeya-Kumar.png\" alt=\"A photo of Ajeya Kumar\" class=\"wp-image-20302\" style=\"width:150px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ajeya-Kumar.png 500w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ajeya-Kumar-300x300.png 300w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Ajeya-Kumar-150x150.png 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-columns is-not-stacked-on-mobile is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex has-2-columns\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cWe asked ourselves, \u2018How can AI elevate the designated responsible individual (DRI) experience to the next level?\u2019\u201d<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:0px\"><\/div>\n<\/div>\n<cite>Ajeya Kumar, principal software engineer, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">That process itself can be incredibly stressful, and time is of the essence. When every moment counts, efficiency is key. Meanwhile, a big part of a DRI\u2019s work is just finding out what\u2019s gone wrong so they can fix the incident.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But their job isn\u2019t just about crisis management. When there are no active incidents, they work on engineering enhancements to improve the efficiency of production systems and clear backlog projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s also a handover process that takes place when one DRI finishes their rotation and another goes on-call. That involves a report about any incidents that have occurred, active issues, actions taken, key metrics, and other important information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With these two priorities in mind, our Digital Workspace team initiated a continuous improvement process review. Their Gemba walk provided a crucial starting point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe planning stage is all about figuring out what the process is, what it should be, and what we can do to improve it,\u201d says Ajeya Kumar, a principal software engineer on the Digital Workspace team within Microsoft Digital. \u201cWe asked ourselves, \u2018How can AI elevate the designated responsible individual (DRI) experience to the next level?\u2019\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Collectively, the team decided to tackle these challenges with a multifunctional AI agent they call the Smart DRI Agent. This agent\u2019s primary role would be synthesizing and presenting information to its human counterparts to help them save time in context-heavy situations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The AI elements that the team has planned can be broken out into the following capabilities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><strong>Text summarization:<\/strong> Going through logs and identifying key insights.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Data correlation:<\/strong> Tracking and collating error logs.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Automation:<\/strong> Updating the status of issues, keeping abreast of communications, and providing point-in-time, daily, and weekly summaries of system health.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Identifying patterns:<\/strong> Building troubleshooting guides based on frequency patterns.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Smart DRI Agent is already in its pilot phase and producing results. It conducts four main activities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">AI-generated summaries of DRI actions.<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Proactive notifications with AI-generated insights.<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Chat support to assist with all kinds of DRI queries.<\/li>\n\n\n\n<li class=\"wp-block-list-item\">AI-generated handover reports.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe continuous improvement framework that enables these pieces is the key to unlocking value,\u201d says Aizaz Mohammad, principal software engineering manager on the Digital Workspace team. \u201cIt may seem process-heavy, but once you work through it, you\u2019ll see the value.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That value is apparent in their results.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the first 30 days of the Smart DRI Agent\u2019s pilot, there were 301 incidents, and the agent provided insights on 101 of them. That led to an approximate 100 hours of time savings for DRIs and a 40% improvement in our key network performance metric.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Third-party software license audits<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Within Microsoft Digital, the Tenant Integration and Management team is responsible for a range of services, including third-party software licensing. This space is all about managing liability from both a security operations and an auditing perspective.<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Anahit-Hovhannisyan.png\" alt=\"A photo of Hovhannisyan.\" class=\"wp-image-20303\" style=\"width:150px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Anahit-Hovhannisyan.png 500w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Anahit-Hovhannisyan-300x300.png 300w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Anahit-Hovhannisyan-150x150.png 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex has-2-columns\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cIt takes a tremendous amount of data and traversals through multiple sources to get us to the actionable data we need. The goal for this project is to reduce that time to increase operational efficiencies.\u201d<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:0px\"><\/div>\n<\/div>\n<cite>Anahit Hovhannisyan, principal group product manager, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Without the proper security insights, the company could find itself with risks associated with third-party software vulnerabilities. And without thorough auditing, we might experience license overuse and contractual issues that can lead to waste or expensive license reconciliations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt takes a tremendous amount of data and traversals through multiple sources to get us to the actionable data we need,\u201d says Anahit Hovhannisyan, a principal group product manager within Microsoft Digital. \u201cThe goal for this project is to reduce that time to increase operational efficiencies.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Kathren-Korsky.png\" alt=\"A photo of Kathren Korsky\" class=\"wp-image-20304\" style=\"width:150px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Kathren-Korsky.png 500w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Kathren-Korsky-300x300.png 300w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/09\/Kathren-Korsky-150x150.png 150w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-columns is-not-stacked-on-mobile is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex has-2-columns\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s tough to be honest about what isn&#8217;t working, because it ties into people\u2019s personal value and worth, but it\u2019s essential to the process.\u201d<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:0px\"><\/div>\n<\/div>\n<cite>Kathren Korsky, team lead, Software Licensing, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The team decided to target the auditing process first. Currently, the software licensing team performs audits manually by looking at entitlements, contracts, purchase orders, and more while liaising with suppliers and our Compliance and Legal teams. That\u2019s incredibly time-consuming.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the software licensing team\u2019s planning phase, they developed an ambitious goal of reducing the time to insights on third-party software license data from 154 days down to 15 minutes. During their continuous improvement Kaizen event, the team uncovered opportunities for AI-powered process improvements that eliminate waste.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;It required a lot of courage as we were identifying waste,\u201d says Kathren Korsky, Software Licensing team lead within Microsoft Digital. \u201cPeople are very invested. It\u2019s tough to be honest about what isn&#8217;t working, because it ties into people\u2019s personal value and worth, but it\u2019s essential to the process.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, they\u2019re building and implementing solutions, including an AI and data platform that provides business intelligence with custom reporting abilities, an AI agent that provides audit support and ticket creation, and another that automatically generates audit reports. The team has been using Azure Foundry and Azure AI services to create their agents because these tools have the flexibility to switch between different models and fine-tune their parameters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As these agents emerge, they\u2019ll take the most tedious and error-prone aspects of the process out of human auditors&#8217; hands, freeing them up to focus on solving problems, not endlessly searching for them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Realizing continuous improvement at scale<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">These are just a small selection of the many continuous improvement initiatives underway within Microsoft Digital and the company as a whole.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cWhat continuous improvement gives us is the macro vision and the micro actions we can do to accomplish our goals.\u201d<\/p>\n<cite>Kirkland Barret, senior principal PM manager, Microsoft Digital<\/cite><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">At Microsoft, most of our continuous improvement initiatives are in their initial stages. As they progress through the measurement and adjustment phases, two benefits will emerge.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, we\u2019ll iterate and improve the value that each individual initiative provides. Second, we\u2019ll continue to build our discipline and cultural maturity around a growth mindset we\u2019re operationalizing through continuous improvement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhat continuous improvement gives us is the macro vision and the micro actions we can do to accomplish our goals,\u201d says Kirkland Barrett, senior principal PM manager for Employee Experience in Microsoft Digital. \u201cIt\u2019s about knowing our objectives, identifying upstream root causes, and rippling them throughout a mechanism of progress.\u201d<\/p>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-c0392459 wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-7db9d80f wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<figure class=\"wp-block-image alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"190\" height=\"190\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Key-takeaways-badge.png\" alt=\"\" class=\"wp-image-19493\" style=\"object-fit:cover;width:75px;height:75px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Key-takeaways-badge.png 190w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Key-takeaways-badge-150x150.png 150w\" sizes=\"auto, (max-width: 190px) 100vw, 190px\" \/><\/figure>\n\n\n\n<p class=\"has-body-xl-font-size wp-block-paragraph\" style=\"margin-top:var(--wp--preset--spacing--spacing-24);margin-bottom:0;padding-top:var(--wp--preset--spacing--spacing-24)\">Key takeaways<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">These tips for implementing a continuous improvement framework come from our own experiences at Microsoft Digital: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><strong>Be inclusive: <\/strong>Have the right subject matter experts at the table from the start. Sponsors need to be present as well.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Cultivate maturity and transparency: <\/strong>Objective analysis about how things are going requires honesty.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Sponsorship matters: <\/strong>Make sure you have sponsorship at the highest levels. This is a cultural change, and leadership is the core of culture.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>No half-measures: <\/strong>If you&#8217;re going to identify opportunities for continuous improvement, commit to having budget and resources in place.<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>Process, then technology:<\/strong> Focus on what you need to simplify processes first, then apply AI. This will keep you from automating waste and inefficiency into your operations.<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-c0392459 wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-7db9d80f wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<figure class=\"wp-block-image alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"190\" height=\"190\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Try-it-out-badge.png\" alt=\"\" class=\"wp-image-19492\" style=\"object-fit:cover;width:75px;height:75px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Try-it-out-badge.png 190w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Try-it-out-badge-150x150.png 150w\" sizes=\"auto, (max-width: 190px) 100vw, 190px\" \/><\/figure>\n\n\n\n<p class=\"has-body-xl-font-size wp-block-paragraph\" style=\"margin-top:var(--wp--preset--spacing--spacing-24);margin-bottom:0;padding-top:var(--wp--preset--spacing--spacing-24)\">Try it out<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/learn.microsoft.com\/en-us\/microsoft-copilot-studio\/fundamentals-get-started?OCID=InsideTrack_Product_10855\" target=\"_blank\" rel=\"noreferrer noopener\">Create and deploy an agent.<\/a><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-c0392459 wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-7db9d80f wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<figure class=\"wp-block-image alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"190\" height=\"190\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Related-links-badge.png\" alt=\"\" class=\"wp-image-19491\" style=\"object-fit:cover;width:75px;height:75px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Related-links-badge.png 190w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Related-links-badge-150x150.png 150w\" sizes=\"auto, (max-width: 190px) 100vw, 190px\" \/><\/figure>\n\n\n\n<p class=\"has-body-xl-font-size wp-block-paragraph\" style=\"margin-top:var(--wp--preset--spacing--spacing-24);margin-bottom:0;padding-top:var(--wp--preset--spacing--spacing-24)\">Related links<\/p>\n<\/div>\n\n\n\n<ul style=\"margin-top:var(--wp--preset--spacing--spacing-20)\" class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/defining-the-future-how-were-building-an-ai-powered-continuous-improvement-culture-at-microsoft\/\">Discover how we\u2019re building an AI-powered continuous improvement culture at Microsoft.<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/inside-microsoft-being-customer-zero-in-an-ai-powered-world\/\">How being Customer Zero in an AI-powered world works internally at Microsoft.<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/unleashing-api-powered-agents-at-microsoft-our-internal-learnings-and-a-step-by-step-guide\/\">Read about how we unleashed API-powered agents at Microsoft in this step-by-step guide.<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/measuring-the-impact-of-microsoft-365-copilot-and-ai-at-microsoft\/\">Learn more about how we measure the impact of Microsoft 365 Copilot and AI at Microsoft.<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/supercharge-your-business-transformation-with-microsoft-viva\/\">Supercharge your business transformation with Microsoft Viva.<\/a><\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-c0392459 wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-container-core-group-is-layout-7db9d80f wp-block-group-is-layout-constrained\" style=\"padding-right:0;padding-left:0\">\n<figure class=\"wp-block-image alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"190\" height=\"190\" src=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Wed-like-to-hear-from-you-badge.png\" alt=\"\" class=\"wp-image-19490\" style=\"object-fit:cover;width:75px;height:75px\" srcset=\"https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Wed-like-to-hear-from-you-badge.png 190w, https:\/\/www.microsoft.com\/insidetrack\/blog\/uploads\/prod\/2025\/07\/Wed-like-to-hear-from-you-badge-150x150.png 150w\" sizes=\"auto, (max-width: 190px) 100vw, 190px\" \/><\/figure>\n\n\n\n<p class=\"has-body-xl-font-size wp-block-paragraph\" style=\"margin-top:var(--wp--preset--spacing--spacing-24);margin-bottom:0;padding-top:var(--wp--preset--spacing--spacing-24)\">We&#8217;d like to hear from you!<\/p>\n<\/div>\n\n\n\n<ul style=\"margin-top:var(--wp--preset--spacing--spacing-20)\" class=\"wp-block-list is-style-list-no-bullets\">\n<li class=\"wp-block-list-item\"><a href=\"mailto:msitstaff@microsoft.com\">Want more information? Email us and include a link to this story and we\u2019ll get back to you.<\/a><\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Technology companies are really people companies. In an age of rapidly advancing AI, losing sight of this reality leads to an overemphasis on new tools while neglecting opportunities for the transformational change that AI offers. Moving forward, the winners will be the companies that prioritize technological and operational excellence. Microsoft Digital, our company\u2019s IT organization, [&hellip;]<\/p>\n","protected":false},"author":115,"featured_media":20305,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_hide_featured_on_single":false,"_show_featured_caption_on_single":true,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[71],"tags":[199,868,597,850,852,263,827,851],"coauthors":[622],"class_list":["post-20297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","tag-ai","tag-ai-deployment-and-adoption","tag-employee-experience","tag-end-user-services-and-support","tag-it-and-business-operations","tag-microsoft-365","tag-microsoft-365-copilot","tag-tenant-management","m-blog-post"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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