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Reported directly by M365 Dev Blog — the official primary source for this announcement.

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Home/Tech/Microsoft announces Work IQ Retrieve tool for agent grounding
VERIFIEDBy Xavier Rivera·Tuesday, October 20, 2026 at 4:08 AM EDT·1.5 min read

Microsoft announces Work IQ Retrieve tool for agent grounding

Microsoft has announced the Work IQ Retrieve tool that gives agents a single retrieval layer over authorized workplace data. The tool supplies both structured hits and citation-ready markdown so agents can ground responses without custom search systems.

Source:M365 Dev Blog
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Microsoft announces Work IQ Retrieve tool for agent grounding
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TL;DRAI · 60 sec read

Microsoft announced the Work IQ Retrieve tool, an MCP tool that grounds agents in workplace context. It searches authorized email, files, meetings, Teams messages, people records and enterprise sources, returning both raw hits and model-ready markdown with inline citations. Two retrieval strategies are supported, and developers can filter sources via an allow-list.

Microsoft has announced the Work IQ Retrieve tool, a new MCP tool that grounds agents in workplace context to produce more relevant and trustworthy responses.

The tool searches across authorized work sources. Retrieve pulls from email, files, meetings, Teams messages, people records and connected enterprise sources. Each user receives results only from data they are already authorized to access, with security and access controls enforced at every step.
The tool returns structured retrieval hits carrying metadata such as URL and sensitivity label, plus a grounding markdown field that contains inline citations.

Responses include both raw hits and model-ready markdown. The tool returns structured retrieval hits carrying metadata such as URL and sensitivity label, plus a grounding markdown field that contains inline citations. Developers are instructed to base agent answers on the markdown while preserving the citation IDs that link back to the individual hits.
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Two retrieval strategies are supported. The default copilot strategy searches indexed Microsoft 365 content along with federated connectors and external sources. The grounding strategy limits results to indexed SharePoint, OneDrive, Teams and Outlook content only.

Capabilities parameter allows source filtering. Developers can supply an optional allow-list that restricts retrieval to specific families such as Email, TeamsMessages or OneDriveAndSharePoint, or to individual sites, mailboxes or connectors. The parameter accepts the Declarative Agent capability shape.
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Retrieval remains separate from delegation. The retrieve operation collects context for the current agent, while ask or do_action calls are used when work should be handed to another agent. This separation keeps retrieval queries focused on evidence gathering.

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Admins should review capability allow-lists before enabling custom agents to ensure retrieval stays within intended data scopes.

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