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Microsoft adds governed business context to Copilot via Fabric IQ

Microsoft says Fabric IQ is generally available in Copilot Chat and Cowork, grounding answers in governed Power BI semantic models, metrics and definitions.

THE ESSENTIALS

The story in focus

Microsoft announced that Fabric IQ, which grounds Microsoft Copilot answers in an organization's governed Power BI semantic models, metrics and business definitions, is generally available in Copilot Chat and Cowork. The company also detailed Fabric previews for cross-company IQ Sharing and a Database Hub public preview, plus generally available SQL Server on Azure Local.

  • Fabric IQ is generally available in Microsoft Copilot Chat and Cowork, with access on by default for Fabric and Power BI customers.
  • IQ Sharing in Microsoft Fabric is in preview, letting organizations share data and business context while retaining governance over underlying assets.
  • SQL Server on Azure Local is now generally available, with disconnected operations in preview for environments with limited cloud connectivity.
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Grounded answers in Copilot

Microsoft said Fabric IQ brings governed business context into Copilot, grounding answers in the Power BI semantic models, metrics, relationships and definitions organizations already use. In Copilot Chat and Cowork, the company reports the capability is generally available and on by default for Fabric and Power BI customers, preserving existing access controls and governance. Integration with the Code experience is described as coming through the Frontier program.

The company argues this helps users get answers to business questions, including forecasts, from the same semantic model behind their reports, reducing debate over which figure is correct.

Sharing, operations and databases

IQ Sharing in Fabric is in preview, intended to let organizations share data and the business context around it across company boundaries while keeping control of underlying assets. Observability in Fabric adds cross-workspace monitoring, an enhanced Monitor Hub and agents intended to help teams investigate and automate responses.

Database Hub in Fabric is in public preview as a central control plane for SQL Server, Azure SQL, PostgreSQL, Cosmos DB and SQL databases in Fabric. Microsoft said specialist database agents for SQL and PostgreSQL are coming soon to public preview. Fabric Apps is also described as bringing application development to governed data, and agentic data engineering features let engineers set outcomes and boundaries while an agent plans, executes and validates work.

Where workloads run

Microsoft said SQL Server on Azure Local is generally available, bringing SQL Server and Azure services into local environments. Disconnected operations for that offering are in preview, aimed at settings where cloud connectivity is interrupted, restricted or unavailable. The company said these options are for regulated, local, edge and disconnected environments.

Does Fabric IQ give Copilot Chat access to business data automatically?

For Fabric and Power BI customers, Microsoft says the capability is generally available and on by default in Copilot Chat and Cowork, grounding answers in governed Power BI semantic models while preserving existing access controls and governance.

Sources & further reading

Source report: 28 Sept 2026. Event and publication dates may differ.

  1. New Microsoft data innovations unlock what only your business knows - The Official Microsoft Blog ↗blogs.microsoft.com

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