Microsoft's Amanda Silver and Marco Castalena present Microsoft IQ, a context layer for agentic AI systems built on four components: Work IQ (organizational context from M365), Fabric IQ (business data, semantic models, and ontologies), Foundry IQ (enterprise knowledge retrieval), and Web IQ (real-time web grounding). The core argument is that over 40% of agentic AI projects fail not due to model limitations but due to lack of context. Microsoft IQ addresses this by providing a unified, reusable context layer so developers don't have to rebuild retrieval pipelines, permissions, and governance for every agent. A live demo (plagued by network issues) shows a refund processing agent that reads email via Work IQ, queries business data through Fabric IQ ontologies, retrieves enterprise knowledge via Foundry IQ, and grounds responses in real-world data via Web IQ. Agents can be given their own M365 identity with scoped permissions. A new serverless developer tier for Foundry IQ was announced.