Build 2026 just validated the local AI strategy and gave IT the compliance answer it needed. Here is the architecture, and why it matters.
The Short Version
▸Build 2026 was a platform architecture event, not a hardware launch
▸MAI (Microsoft AI) models run identically on-device and in Azure, dual-mode by design
▸Foundry Control Plane routes between MAI models on based on policy
▸Agent 365 governs both venues through Entra, Defender and Purview
▸Scout is the first end-to-end proof that the pieces compose
▸Tiered routing cuts blended token cost from $18.40 to $2.31 per million



