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Azure SRE Agent: Everything You Need to Know

Have you ever been woken up at some ungodly hour because a critical workload went down? Those 3:00 a.m. incidents are the worst. You’re half awake, laptop balanced on your knees, jumping between dashboards trying to work out what actually broke.

Imagine having a 24/7 AI teammate who never sleeps or gets tired, jumping on late-night incidents before you’ve even opened your laptop. That’s the idea behind Azure SRE Agent, Microsoft’s AI-powered site reliability engineering assistant for Azure.

In this Azure SRE Agent guide, we’ll break down what it is, how it works, what it costs and where it can take work off your engineering team’s plate.

Niels Kroeze

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Niels Kroeze Cloud Content Specialist

Reading time 14 minutes Published: 05 November 2026

What is Azure SRE Agent?

Azure SRE Agent is an AI-powered assistant that investigates and helps resolve incidents across your Azure environment. It analyses logs, metrics and operational data to identify issues and their likely causes.

 

What is Site Reliability Engineering (SRE)?

Site Reliability Engineering (SRE) applies software engineering principles to IT operations and infrastructure. Its goal is to keep applications reliable and scalable by automating incident response and routine maintenance, reducing downtime and improving service availability.

Azure SRE Agent became generally available on 10 March 2026. You can ask it questions in natural language, such as “Why is my database running slowly?” or “What went wrong after the last deployment?”

The agent investigates available telemetry, identifies potential causes and recommends appropriate actions. With the right permissions, it can also restart services, scale resources or change configurations, either with your approval or autonomously.

 

Azure SRE Agent Core Capabilities

  • Incident investigation and response: Analyse alerts, logs, metrics and recent changes to identify likely causes and recommend or execute remediation.
  • Proactive monitoring and checks: Schedule health, compliance and policy checks to identify potential problems before they cause incidents.
  • Automated resource management: Run commands, execute runbooks, restart services and scale Azure resources with the appropriate permissions.
  • Integrations with your existing tools: Connect Azure Monitor Alerts, PagerDuty and ServiceNow for incident response, plus observability platforms such as Datadog, Dynatrace, Splunk and New Relic through MCP. Kusto connectors support additional telemetry queries.
  • Custom knowledge and extensions: Add repositories, runbooks, documentation and custom skills to give the agent context about your environment and operational procedures.
  • Operational workflows and memory: Trigger notifications and updates through tools such as Teams, Outlook, GitHub and Azure DevOps, while using previous investigations to provide context for recurring issues.

The result? Less time spent investigating routine incidents and switching between tools, giving your engineers more time to focus on complex problems and software development.

 

Why use Azure SRE Agent?

SRE teams deal with unpredictable workloads, complex architectures and tight operational windows. When something goes wrong, traditional monitoring can tell you what is happening, but a human still has to work out why.

Someone still needs to check the logs, compare metrics, review recent deployments and piece together the evidence. That takes time, increases the on-call burden and can push up mean time to resolution (MTTR).

Azure SRE Agent helps close that gap by analysing large amounts of operational data, gathering context and investigating incidents. Think of it as an extra team member focused on reliability 24/7.

 

Business reasons

For senior leaders, the value comes down to more reliable systems and more productive engineering teams.

  • Reduce mean time to acknowledge (MTTA): Give engineers a faster understanding of what’s happening when an incident starts.
  • Reduce MTTR: Accelerate first-pass diagnostics, root cause analysis and remediation so services can recover faster.
  • Reduce costly downtime: Fewer outages and faster recovery can protect revenue and customer experience.
  • Lower the on-call burden: Let the agent handle more of the initial investigation so engineers only need to step in when their expertise is required.
  • Free up engineering time: Spend less time checking metrics, restarting services and chasing routine issues, and more time on new features, modernisation and innovation.
  • Reduce unnecessary cloud spend: Operational automation can help identify or act on resources that are no longer needed or can be scaled down.

 

Technical reasons

Azure SRE Agent can bring together the Azure data engineers normally have to investigate manually.

  • Access Azure-native telemetry: Work with Activity Log data, Azure Monitor alerts, metrics and logs, plus Resource Graph and ARM metadata where configured.
  • Analyse large amounts of data quickly: Review logs and metrics to identify patterns and likely root causes faster.
  • Create structured incident briefs: Turn operational noise into a clearer summary of what happened and what needs attention.
  • Suggest the next checks: Give engineers a starting point instead of leaving them to work through every signal manually.
  • Standardise status updates: Use the information gathered during an investigation to create consistent incident updates.
  • Take operational action: With the appropriate permissions, the agent can run commands, restart services, scale resources or perform other defined remediation actions.

Instead of jumping between dashboards, repositories and logs, your engineers get more of the operational context in one place.

 

Operational reasons

A large part of SRE work is repetitive. Azure SRE Agent can take some of that ops grunt work off your engineers’ plates.

  • Create repeatable incident briefings: Follow a more consistent investigation process across teams and incidents.
  • Standardise handovers: Give follow-the-sun teams consistent summaries of what happened, what has already been checked and what still needs attention.
  • Create a single ops context entry point: Give on-call engineers one place to start investigating instead of searching across multiple systems.
  • Automate repetitive tasks: Handle tasks such as checking metrics, running health checks, restarting services and applying routine fixes.
  • Support proactive operations: Schedule checks and identify potential problems before they develop into full outages.

In some cases, much of the initial triage can already be complete by the time an engineer becomes involved.

 

Security and compliance reasons

Giving an AI agent access to production systems needs appropriate controls. Azure SRE Agent is designed to work within the access you give it.

  • Limit access with Managed Identity and RBAC: Restrict the agent to the resources and actions it actually needs.
  • Keep humans involved: Require approval for actions where you don’t want the agent operating autonomously.
  • Reduce data exposure: Use data minimisation and supported private networking options where appropriate.
  • Support auditability: Use Azure Monitor and Application Insights logging to retain visibility into operational activity.

You remain in control of where the agent can investigate and where it is allowed to act.

 

Permissions and run modes

Azure SRE Agent separates resource permissions from approval workflows. These are two different controls: permission levels determine what the agent can access, while run modes determine whether it needs approval before acting.

Permission levels are configured for each managed resource group:

  • Reader (default): Gives the agent read-only access to investigate resources, review telemetry and diagnose problems without making infrastructure changes directly.
  • Privileged: Gives the agent additional permissions to perform supported operational actions, such as restarting services or scaling resources.

Run modes are configured separately for each incident response plan and scheduled task:

  • Review: The agent investigates and proposes an action, but waits for your approval before carrying it out.
  • Autonomous: The agent executes permitted actions immediately, without waiting for approval.

Both controls work together. Giving an agent Privileged access does not automatically mean it can make changes without approval. And Autonomous mode does not give it permissions it doesn't already have.

 

On-behalf-of authorisation

One useful feature is on-behalf-of (OBO) authorisation. If the agent's managed identity doesn't have permission to perform an action, it can ask an authorised user for temporary approval to execute that action using the user's permissions.

For example, give the agent Reader access and ask it to fix a failing service. It can investigate the issue, identify a likely solution and explain what needs changing. If the fix requires permissions it doesn't have, the agent asks an authorised administrator to approve the action on their behalf.

Once approved, the agent performs the action using the user's permissions. Those permissions aren't retained afterwards, and the agent returns to operating through its managed identity.

This allows teams to start with read-only access while still supporting controlled remediation when intervention is necessary. On-behalf-of approval requires an SRE Agent Administrator using a supported Microsoft Entra work or school account.

 

Scalability and performance reasons

Azure SRE Agent can also fit into environments where workloads and operational demand change over time.

  • Scale supporting workloads: Azure Functions and Container Apps can scale out as demand increases.
  • Handle changing incident volumes: Automation can absorb repetitive operational work without requiring a person to perform every task manually.
  • Plan for AI consumption: Select a model provider, such as Anthropic or OpenAI, at agent level. Active processing is billed in Azure Agent Units (AAUs), with consumption depending on the selected model and the work performed.

The overall value is straightforward: faster incident response, fewer repetitive tasks and more time for your engineers to work on the things that move the business forwards.

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How Does Azure SRE Agent Work?

Azure SRE Agent combines Azure-specific knowledge with the context, tools and permissions you give it. It can monitor resources, investigate incidents and, where permitted, take action.

At a high level, it works through a continuous loop: observe, investigate, act and build context for future incidents.

 

From monitoring to active investigation

Azure SRE Agent can continuously monitor your environment and run proactive checks. When something happens, it moves from observation to investigation and, where permitted, action.

  • Monitor: The agent monitors the health of your environment and can run scheduled checks to identify potential issues.
  • Detect: When an alert fires, or you ask the agent a question, it starts gathering the information it needs to investigate.
  • Investigate: It analyses telemetry from services such as Azure Monitor, Log Analytics and Application Insights to identify likely causes. This can include resources across Azure Kubernetes Service (AKS), App Service, Container Apps, Functions, Azure SQL and Cosmos DB, alongside the networking and storage they depend on.
  • Act: Once it identifies a potential solution, the agent can recommend an action for human review or, with the appropriate permissions and run mode, perform defined actions autonomously.

Azure SRE Agent can also connect with incident management and observability tools such as ServiceNow, PagerDuty and Dynatrace, bringing more of your existing operational context into the investigation.

 

Your agent builds context over time

Azure SRE Agent becomes more useful as it builds context about your environment. Your repositories, runbooks, internal knowledge and previous investigations give it information about how your applications work and how your team handles incidents.

You can give the agent context through:

  • Repositories: Relevant application and infrastructure code.
  • Knowledge bases: Internal documentation, PDFs and information about your environment.
  • Runbooks: Existing operational procedures and remediation steps.
  • Team knowledge: Information about how your team operates and what matters during an investigation.
  • Previous investigations: Memory and context from previous incidents that can inform future investigations.

Together, these create a context engineering loop. Your team can review what the agent knows, identify missing information and add context through repositories, runbooks or knowledge documents.

The agent can also use memory from previous investigations. This gives it more context when similar problems occur again, including previous root cause analyses and the steps taken to investigate or resolve an issue.

The longer you use Azure SRE Agent and the more relevant context you give it, the more useful it can become for your specific environment.

 

How can you extend Azure SRE Agent?

Azure SRE Agent also provides five main extension points:

  • Skills: Add capabilities such as runbooks and Azure CLI scripts.
  • Custom agents: Build specialist agents for specific operational domains, such as databases.
  • Python tools: Add custom logic, data transformations and API integrations.
  • MCP servers: Connect external platforms through the Model Context Protocol, including Datadog, Splunk, New Relic, Dynatrace and Elasticsearch.
  • Agent hooks: Trigger automations at defined points in the agent lifecycle, such as after a tool runs or when an investigation finishes.

The result is an agent that can build knowledge of your environment and fit around your existing operations, rather than forcing your team to start from scratch.

 

Works across your existing stack

Azure SRE Agent doesn’t have to work in isolation. You can connect it to Azure resources and the tools your team already uses, giving the agent more context during an investigation.

That can include:

  • Azure resources: Work with resources accessible through Azure Resource Manager, Azure CLI or REST APIs.
  • Built-in capabilities: Use services such as Azure Monitor and Log Analytics, alongside Microsoft Teams and Outlook for operational workflows.
  • Native incident integrations (GA): Connect Azure Monitor Alerts, PagerDuty and ServiceNow for incident detection, investigation and response.
  • MCP partner connectors (GA): Connect Datadog, Splunk, New Relic and Dynatrace through the Model Context Protocol to bring external observability data into investigations.
  • Managed connectors (Preview): Connect external knowledge and collaboration platforms such as Google Drive, SharePoint and Notion. These connectors are in preview, so consider their support status before using them in production workflows.
  • Kusto connectors: Query Azure Data Explorer (Kusto) and supported telemetry sources to include custom logs, business metrics and operational data.
  • Additional MCP integrations: Connect other supported incident management, source control and observability tools, as well as internal APIs and on-premises systems.
  • Plugin Marketplace: Add community-built skills or use a private marketplace containing plugins approved by your organisation.

These integration types serve different purposes and have different availability statuses. Native incident integrations and supported partner MCP connectors are generally available, while managed connectors remain in preview. Check each connector's requirements before planning a production rollout.

This means you don’t need to replace your existing operational stack. The agent can sit across it, bringing Azure resources, telemetry, incident management and automation into the same operational workflow.

 

What are the Use Cases for Azure SRE Agents?

Azure SRE Agent can support different parts of day-to-day SRE work, from investigating an alert to running proactive checks and taking action when something goes wrong. Common use cases include:

  • Incident triage: When an alert fires, the agent can gather context from logs, metrics, recent deployments and other telemetry. Instead of starting with nothing more than an alert, your on-call engineer can step into an investigation that’s already underway.
  • Root cause analysis: The agent can correlate logs, metrics, traces and deployment history to identify likely causes. If a payment API slows down, for example, it could trace increased database latency back to a query introduced during a recent deployment.
  • Autonomous remediation: With the appropriate permissions, Azure SRE Agent can move from investigation to action. It can restart a failed service, scale resources, run a predefined remediation or roll back a change, either autonomously or after human approval.
  • Scheduled compliance and health checks: Run health, compliance and policy checks on a schedule rather than waiting for something to break. A daily check could review your services, summarise its findings, send an update to Teams and create tickets for issues that need attention.
  • Infrastructure drift detection: Identify configuration changes and investigate how they relate to the current state of your environment. This can help your team spot potential problems before they contribute to an outage.
  • End-to-end incident response: Connect the different stages of incident response into one workflow. An alert from Azure Monitor or PagerDuty can trigger an investigation, after which the agent gathers telemetry, identifies a likely cause and recommends or performs remediation. Alert → Investigation → Root cause → Remediation → Incident summary.
  • Self-optimising resource management: Use scheduled checks and operational data to identify capacity issues and resources that need attention, and support actions such as scaling resources when required.

 

How much does Azure SRE Agent cost?

Azure SRE Agent is priced in Azure Agent Units (AAUs), billed at a base rate of $0.10 per AAU.

Its total cost consists of two parts:

  • Baseline, fixed cost (Always-on flow): Incurs ongoing charges for continuously monitoring and learning in the background. This comes out to $0.40 per hour ($9.60/day), or roughly $292 per month to keep a single agent provisioned and available 24/7 for background production monitoring.
  • Usage-based, variable cost (Active flow): Measures the LLM tokens your agent consumes during active tasks such as troubleshooting and incident response. Each token type is metered at a fixed AAU rate based on your agent's configured model.

In practice, you have a relatively predictable baseline cost, followed by additional consumption when the agent is actively working.

Important:

Stopping an agent does not stop its always-on billing. A stopped agent no longer processes tasks or consumes active flow AAUs, but the fixed baseline charge continues. To stop billing entirely, you must delete the agent.

Keep in mind that the investment can help prevent major outages and shorten the time to resolution, allowing it to pay for itself much faster. A few pounds or dollars spent on Azure SRE Agent can quickly become insignificant compared with the thousands you could lose during an outage.

 

Closing thoughts

Azure SRE Agent is a leap towards more resilient, self-healing IT operations, where AI handles more of the repetitive work behind keeping services running.

And this isn’t some far-off idea. Microsoft already has 5,400+ agents running in production across 2,500+ engineering teams, demonstrating that this shift is underway at scale.

We think it can make a real difference to how teams manage IT operations: less time firefighting and more time improving the product. And more importantly, getting through the night without opening the laptop.

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