VS Code: Build AI Agents with Foundry

Key insights

• Microsoft Foundry Toolkit for VS Code and Microsoft Foundry Agent Service let developers build, test, and deploy AI agents directly from Visual Studio Code.
  The series focuses on an end-to-end editor experience so you can move from prototype to deployment without switching tools.
• Recent updates include the rename from the old AI toolkit and tighter integration with Foundry, plus unified support for prompt agents and hosted agents.
  These changes simplify agent types and streamline the path to production.
• The typical workflow: install and sign in to the toolkit, scaffold or create an agent, set the model and instructions, test in the playground, debug locally with Agent Inspector, then deploy to the Foundry Agent Service.
  The toolkit supports both no-code and code-first workflows.
• Key tools include Agent Builder for prompt-driven or no-code agents and Agent Inspector for trace-based local debugging and validation.
  Scaffolding and Copilot-assisted templates speed up project setup.
• The main benefit is workflow consolidation: design, test, and deploy agents inside VS Code to reduce friction and shorten time from idea to production.
  This makes it easier to iterate and scale agent-based apps.
• Practical next steps: try a small prompt agent, validate behavior locally, plan for observability and memory workflows, and choose models from the Foundry model catalog before deploying.
  Focus on incremental testing and evaluation to avoid surprises in production.

Keywords

Building AI agents VS Code, AI agents in VS Code, Microsoft Foundry AI, VS Code AI development, AI agent tutorial VS Code, Microsoft Foundry series, VS Code AI extensions, Agent-based AI development