Lifestyle
Microsoft brings Fabric IQ to Copilot and announces new Fabric and Azure Databases updates
Microsoft says Fabric IQ, which lets Copilot answer business questions using a company's existing Power BI data, is now generally available in Copilot Chat and Cowork. It also announced that SQL Server on Azure Local is generally available, plus several preview features. The updates were announced at the Fabric + SQL Community Conference in Barcelona. Here is what each update is and what it means for people who use these tools at work.
About 6 min read
What Microsoft announced
On September 28, 2026, the Official Microsoft Blog published a post by Jessica Hawk, Corporate Vice President of Product Marketing for Data, AI, and Digital Applications. Microsoft said it was introducing updates at the European Microsoft Fabric + SQL Community Conference in Barcelona. The updates span Microsoft Fabric, its data and analytics platform, and Azure Databases. Microsoft said the goal is to help organizations put their own data at the heart of their AI strategy.
In the post, Microsoft said its approach is designed to let AI keep improving results by drawing on an organization's own data and expertise, without making the organization dependent on any single model provider. This is how Microsoft describes its own strategy.
Read the full description
Sources are collected, independently checked, then reviewed by Jev.
The main change: Copilot can answer from your company's Power BI data
According to Microsoft, Fabric IQ in Microsoft Copilot Chat and Cowork is now generally available. Cowork is the part of Copilot that Microsoft says can use these insights as part of larger, multistep work. Fabric IQ bases Copilot's answers on the Power BI semantic models that organizations already use. A semantic model is the shared set of metrics, relationships and business definitions behind a company's reports. The data is 'governed', meaning existing access controls and rules still apply. Microsoft gave an example: when an employee asks Copilot for the latest sales forecast, the answer can come from the same semantic model that powers the company's reports. That helps avoid confusion about 'which number is correct.'
Microsoft said the feature is on by default in Copilot Chat and Cowork for Fabric and Power BI customers. It said integration with Copilot's new Code experience is coming through the Frontier program.
Other updates and their current status
'Preview' means a feature is still being tested and may change before its full release. 'Agentic' refers to AI agents: software that can plan and carry out tasks on its own within limits people set.
| Feature | Status per Microsoft | Purpose as described by Microsoft |
|---|---|---|
| Fabric IQ in Copilot Chat/Cowork | Generally available | Answer business questions with governed Power BI data |
| Fabric IQ integration with the Code experience | Coming via the Frontier program | Extends to the new Code experience |
| IQ Sharing | Preview | Share data and business context across organizations while maintaining governance |
| Fabric observability | Not stated in the post | Cross-workspace monitoring, enhanced Monitor Hub, AI-driven root cause analysis |
| Fabric Apps | Not stated in the post | Build applications directly on governed data |
| Agentic data engineering | Not stated in the post | Engineers set boundaries; agents plan, execute and validate work |
| SQL Server on Azure Local | Generally available | Brings SQL Server and Azure services into local environments |
| SQL Server on Azure Local with disconnected operations | Preview | For environments where cloud connectivity is interrupted, restricted or unavailable |
| Database Hub in Fabric | Public preview | Centrally manage SQL Server, Azure SQL, PostgreSQL, Cosmos DB and SQL databases in Fabric |
Microsoft said Database Hub was first introduced at FabCon Atlanta and is now in public preview. It serves as a central control plane, a single place for administrators to monitor and govern many databases. For agentic data engineering, Microsoft says engineers define the outcome and set the boundaries. Within those limits, the agent plans and executes the work, validates the results and refines its approach.
What this means for everyday readers
- People at companies that use Power BI and Microsoft Copilot may find that when they ask Copilot about business figures, the answers come from the same data definitions used in company reports.
- Organizations that operate in regulated, local, edge or disconnected environments get more choice over where their data and workloads run through SQL Server on Azure Local, according to Microsoft.
- Preview features are still in testing, and what they do and who can use them may change.
- All of the descriptions above are Microsoft's own claims; how well they work in practice remains to be seen by users and third parties.
Frequently asked questions
What is Fabric IQ?
According to Microsoft, Fabric IQ brings the semantic models, metrics and business definitions organizations have already built in Power BI into Microsoft Copilot. Copilot then bases its answers to business questions on this governed data.
Is this feature available now?
Microsoft says Fabric IQ in Copilot Chat and Cowork is generally available and on by default for Fabric and Power BI customers. Integration with the Code experience is coming through the Frontier program.
Will Copilot let me see data I wasn't previously allowed to view?
Microsoft says Fabric IQ preserves existing access controls and governance. Each organization manages its own permissions. If in doubt, ask your organization's IT department.
Which features are still in preview?
According to Microsoft, IQ Sharing and SQL Server on Azure Local with disconnected operations are in preview. Database Hub in Fabric is in public preview.
Has this information been independently verified?
No. Everything in this article comes from a single source, the Official Microsoft Blog, and is information published by Microsoft itself.
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