Azure OpenAI Service gives businesses secure, enterprise-grade access to OpenAI's large language models, such as the models behind ChatGPT, within Microsoft Azure. It allows developers to build custom AI applications and integrations using these models while keeping data within the organisation's own Azure environment, subject to Microsoft's enterprise security and compliance controls.
How Azure OpenAI Service works
Developers access Azure OpenAI models through APIs, sending prompts and receiving generated text, summaries or other AI outputs in response. Because it runs within Azure, data sent to the models is governed by the organisation's own Azure security boundary rather than a shared public service. Microsoft Copilot products are themselves built using Azure OpenAI combined with business-specific data through Microsoft Graph, but developers can also use Azure OpenAI directly to build entirely custom AI agents or applications.
How UK businesses use Azure OpenAI
- A software development team builds a custom internal tool using Azure OpenAI to summarise lengthy customer support tickets, helping agents understand context faster.
- A professional services firm builds a document analysis tool on Azure OpenAI to extract key clauses and risks from contracts, speeding up initial review.
- A business in a regulated sector uses Azure OpenAI rather than a public AI tool specifically because of the data residency and compliance controls it provides.
- A technology team builds a custom retrieval-augmented generation solution on Azure OpenAI, allowing staff to query internal documentation in natural language with accurate, grounded answers.
How Advantage helps businesses with Azure OpenAI
Advantage advises on where Azure OpenAI is the right fit compared to using built-in Copilot capabilities, and works with development partners to scope custom AI solutions where a bespoke application is genuinely needed, always with security and compliance considered from the outset.
Frequently asked questions
Is Azure OpenAI the same as using ChatGPT directly?
The underlying AI models are similar or the same, but Azure OpenAI runs them within Microsoft Azure's enterprise security, compliance and data residency controls. This means business data sent to the models stays within the organisation's own Azure environment rather than a shared public consumer service.
Do I need to be a developer to use Azure OpenAI?
Generally, yes. Azure OpenAI is primarily accessed through APIs intended for developers building custom applications, copilots or automated workflows. Business users typically interact with the results indirectly, through tools like Microsoft Copilot or custom applications built on top of Azure OpenAI.
How does Azure OpenAI relate to Microsoft Copilot?
Microsoft Copilot is built using Azure OpenAI's models combined with Microsoft Graph data and application context. Azure OpenAI is the underlying AI service that developers can also use directly to build their own custom AI-powered applications beyond the built-in Copilot experiences.
