On AI and Knowledge — Pablo Castro, Distinguished Engineer & CVP for AI Knowledge, Microsoft
Jul 17, 2026 · 17:35
Pablo Castro, Distinguished Engineer and CVP for AI Knowledge at Microsoft, argues that AI agents require three knowledge types—intrinsic (model training), extrinsic (RAG and grounding), and learned (optimization loops)—and demonstrates how Microsoft's Foundry IQ, Azure AI Search, and Agent Optimizer deliver them. He shows that combining retrieval methods outperforms individual ones, citing Azure AI Search evaluations where combined methods improve evidence recall and answer completeness. He introduces Foundry IQ as a layered system with agentic retrieval that reflects on data to satisfy information needs before returning results. Castro demonstrates creating a knowledge base that connects unstructured data, structured Parquet tables, and the web, then linking it to an agent via MCP server. He also showcases the Agent Optimizer, which uses hill climbing on baseline evaluations to automatically refine agent instructions, tool definitions, and skills based on runtime traces, enabling continuous learning loops that capture organizational differentiation.
