Workday & Microsoft Partner to Simplify AI Workforce Management

Workday has entered into a new partnership with Microsoft, aiming to help organizations securely manage both human employees and AI agents from a single, unified platform.

Through this collaboration, companies that build AI agents with Microsoft Azure AI Foundry and Copilot Studio will now be able to register and manage those agents within Workday’s Agent System of Record (ASOR). This integration connects Workday ASOR with Microsoft Entra Agent ID, ensuring every AI agent created on Microsoft platforms receives a verified identity and the right business context for secure and effective performance.

Tackling Workforce Complexity

As AI agents take on more responsibilities in business operations, enterprises are facing growing challenges in tracking access, assigning roles, maintaining security, and measuring value. Without centralized oversight, organizations risk governance gaps, fragmented processes, and heightened security threats.

“As AI agents become a huge part of how we work, managing and securing them across different systems is a real challenge. Our commitment to an open ecosystem is about giving organizations the flexibility to build their fleet of AI agents on the platform of their choice,” said Gerrit Kazmaier, president of product and technology, Workday. “Through our strategic partnership with Microsoft, we're giving organizations one secure system to manage both their people and their AI agents – so they can focus on results, not complexity.”

With this new system, businesses gain the advantage of unified workforce management. By bringing both human and AI oversight together, organizations can simplify operations, strengthen compliance, and improve overall governance.

Driving Visibility with Analytics

A major feature of the integration is enhanced visibility into enterprise-wide AI activities. Leaders can now access dashboards that provide a clear view of how employees and AI agents are performing, how they interact, and the value they deliver. These analytics support data-driven decision-making and help organizations accurately track ROI.

“Our partnership with Workday is a breakthrough in delivering the trust organizations need to adopt AI,” said Charles Lamanna, president, business and industry Copilot, Microsoft. “By seamlessly registering agents built with Copilot Studio and Azure AI Foundry into Workday's Agent System of Record, we're giving customers full visibility into their AI ecosystem. This integration equips leaders with actionable analytics to measure ROI, enforce governance, and ensure their AI agents are secure and delivering real value.”

The reporting capabilities inside Workday ASOR allow leaders to identify which agents are in use, evaluate efficiency gains, and highlight where AI saves time or enhances productivity. The system also reveals how human employees and AI agents collaborate to drive better business outcomes.

Enhancing Human-AI Collaboration

Another goal of the partnership is to foster smooth collaboration between people and AI. Thanks to interoperability, tasks initiated in Microsoft platforms—such as updating employee information or submitting reviews—can now be completed seamlessly with support from Workday’s AI agents. This unified approach reduces the need to toggle between different systems, delivering a more connected and efficient user experience.

Developers using Copilot Studio can easily register newly created AI agents into Workday, making them accessible enterprise-wide and expanding AI-driven workflows across business processes.

Prioritizing Governance and Security

Security and governance remain central to the adoption of AI in enterprise environments. The integration with Microsoft Entra Agent ID guarantees every AI agent receives a unique, verifiable identity. Workday administrators can regularly audit agent permissions and monitor activity patterns to spot unauthorized access or unusual behavior.

This approach ensures strict compliance with company policies while offering the ability to quickly revoke permissions or deprovision agents. The system also maintains a clear audit trail, giving organizations confidence in both oversight and accountability.

Looking Ahead

By combining Workday’s expertise in workforce management with Microsoft’s AI capabilities, the partnership addresses some of the biggest challenges enterprises face today—governance, security, and operational efficiency. As businesses continue to scale their use of AI agents, this collaboration delivers a secure, compliant, and unified way to manage the modern workforce.