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Microsoft Foundry Prompt Optimizer

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What Microsoft Foundry Prompt Optimizer is

Microsoft Foundry Prompt Optimizer revises an agent’s text-based system instructions using prompt-engineering practices. An LLM restructures and clarifies the supplied text, taking optional suggestions into account. For each changed paragraph, the tool provides an explanation alongside the revised wording, so users can review the edits. Users can supply more suggestions and optimize again, with the latest optimized text becoming the next baseline. The optimizer appears in the Foundry portal’s agent configuration and in the model playground wherever a system-instructions field is available. Use requires a Foundry project with a prompt or workflow agent, a model deployment in a supported region, and access to the agent configuration panel. The feature does not change non-text settings such as tool definitions or knowledge sources. Results are not stored permanently, and earlier instruction versions are not automatically saved. It is in public preview, has no service-level agreement, and Microsoft does not recommend it for production workloads. Microsoft’s separate Agent Optimizer can generate candidates for instructions, tool descriptions, or model selection.

Who it suits

It suits people refining text instructions for prompt or workflow agents in Foundry. Users who need saved versions or changes to tools and knowledge sources will need to account for its limits.

What it does well

  • Explains each modified paragraph for review.
  • Accepts suggestions for another optimization pass.
  • Available in the Foundry portal and model playground.
  • Microsoft says Azure model prompts and completions are not shared with other customers or used to improve provider models.

What to know first

  • Optimizes text instructions, not tool definitions or knowledge sources.
  • Results and earlier versions are not saved permanently.
  • Public preview has no service-level agreement.
  • Microsoft does not recommend it for production workloads.

Verdict

Prompt Optimizer provides an iterative way to revise agent instructions and review why paragraphs changed. Its preview status, lack of version persistence, and text-only scope are important constraints.

Facts from Microsoft Foundry Prompt Optimizer's own pages

Access
The optimizer is available in the Foundry portal’s agent configuration and in the model playground wherever a system-instructions field is present. · learn.microsoft.com, 4 Oct 2026
Founded
1975 · learn.microsoft.com, 4 Oct 2026
Headquarters
Redmond, Washington, United States · learn.microsoft.com, 4 Oct 2026
How it works
An LLM uses the supplied instructions and optional suggestions to restructure and clarify the prompt. · learn.microsoft.com, 4 Oct 2026
Iteration
Users can add suggestions and reoptimize, using the latest optimized text as the next baseline. · learn.microsoft.com, 4 Oct 2026
Limits
It optimizes text-based agent instructions and does not optimize non-text configuration such as tool definitions or knowledge sources. · learn.microsoft.com, 4 Oct 2026
Maker
Microsoft’s corporate headquarters are in Redmond, Washington. · news.microsoft.com, 4 Oct 2026
Persistence
Optimization results are not stored permanently, and the optimizer does not automatically save previous instruction versions. · learn.microsoft.com, 4 Oct 2026
Prerequisites
Use requires a Foundry project with a prompt or workflow agent, a model deployment in a supported region, and access to the agent configuration panel. · learn.microsoft.com, 4 Oct 2026
Preview status
The feature is in public preview, without a service-level agreement, and Microsoft does not recommend it for production workloads. · learn.microsoft.com, 4 Oct 2026
Purpose
Prompt Optimizer automatically improves an agent’s system instructions using prompt-engineering best practices. · learn.microsoft.com, 4 Oct 2026
Reasoning
It provides an explanation for each modified paragraph that users can review alongside the revised text. · learn.microsoft.com, 4 Oct 2026
Regions
Supported project regions listed include Central US, East US 2, France Central, Germany West Central, Italy North, Japan West, North Central US, Poland Central, Spain Central, Sweden Central, Switzerland West, UAE North, West US, West US 2, and West US 3. · learn.microsoft.com, 4 Oct 2026
Related optimization
The separate Agent Optimizer can generate candidates for prompt-agent instructions, function-calling tool descriptions, or model selection. · learn.microsoft.com, 4 Oct 2026
Security and privacy
Microsoft states that prompts and completions for Models sold by Azure are not shared with other customers or used by model providers to improve their models or services. · learn.microsoft.com, 4 Oct 2026

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