Microsoft Launches Agent 365 to Combat Shadow AI

Microsoft has moved its AI agent management platform, Agent 365, from preview to general availability, signaling that governing autonomous AI is now an urgent operational priority. The platform serves as a unified control plane for enterprise IT and security teams to monitor AI agents across Microsoft, AWS, Google Cloud, and third-party SaaS environments. The most notable aspect of the launch is Microsoft's focus on discovering and managing local AI agents — the coding assistants, productivity tools, and autonomous workflows employees install independently, raising concerns about uncontrolled shadow AI within enterprises.