Artificial intelligence is evolving beyond simple tasks and becoming integral to daily work, as highlighted by Microsoft CEO Satya Nadella. In a recent episode of the Possible Podcast, he discussed the necessity of governance for AI agents, suggesting they require identities, permissions, and policies akin to those for human employees. Nadella revealed he actively manages around 100 AI coding agents, which, while enhancing productivity, also increases cognitive load. To mitigate this challenge, Microsoft has introduced Agent 365, a suite of tools designed for effective AI management. Key components include Entra, which oversees digital identities and access permissions, and Purview, which classifies data that AI interacts with. Nadella stressed the importance of security and observability to build confidence in AI systems. This discussion follows Microsoft's Build 2026 conference, where the focus was on creating AI that prioritizes human well-being and works collaboratively with people, rather than replacing them. Mustafa Suleyman, CEO of Microsoft AI, reiterated this vision of