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1️⃣ Prerequisites

Before you start building AI agents, you'll need to set up your development environment.

🔧 Required Tools

Azure Account

You need an Azure subscription with access to Azure OpenAI Service.

# Login to Azure
az login

# Verify your subscription
az account show

💡 No Azure account? Create a free account with $200 credit.

Azure CLI

Install the Azure CLI for managing Azure resources.

Platform Command
macOS brew install azure-cli
Windows winget install Microsoft.AzureCLI
Linux curl -sL https://aka.ms/InstallAzureCLIDeb | sudo bash

Verify installation:

az --version  # Should be 2.61.0 or later

Azure Developer CLI (azd)

Install azd for streamlined deployments.

Platform Command
macOS brew install azd
Windows winget install Microsoft.Azd
Linux curl -fsSL https://aka.ms/install-azd.sh | bash

Verify installation:

azd version  # Should be 1.15.0 or later

Python 3.10+

Install Python for running agent code.

Platform Command
macOS brew install python@3.12
Windows winget install Python.Python.3.12
Linux sudo apt install python3.12

Verify installation:

python3 --version  # Should be 3.10 or later

.NET 8+ (Optional)

Install .NET if you prefer C# development.

Platform Command
macOS brew install dotnet
Windows winget install Microsoft.DotNet.SDK.8
Linux See .NET docs

Verify installation:

dotnet --version  # Should be 8.0 or later

📦 Install SDKs

Create a virtual environment and install the core SDKs:

# Create project directory
mkdir my-agent-project && cd my-agent-project

# Create virtual environment
python3 -m venv .venv
source .venv/bin/activate  # On Windows: .venv\Scripts\activate

# Install SDKs
pip install agent-framework --pre
pip install azure-ai-projects azure-identity openai

For .NET:

dotnet new console -n MyAgentProject
cd MyAgentProject
dotnet add package Microsoft.Agents.AI --prerelease

✅ Verify Your Setup

Run this quick check to make sure everything is ready:

# Check all tools
echo "=== Environment Check ==="
az --version | head -1
azd version
python3 --version
echo "=== All Good! ==="

Expected output:

=== Environment Check ===
azure-cli                         2.67.0
azd version 1.15.0
Python 3.12.x
=== All Good! ===

🔑 Azure OpenAI Access

You'll need an Azure OpenAI resource. If you don't have one:

  1. Go to Azure Portal
  2. Create a new Azure OpenAI resource
  3. Deploy a model (e.g., gpt-4o)
  4. Note your endpoint URL

Or use the CLI:

# Create resource group
az group create --name rg-my-agents --location eastus

# Create Azure OpenAI resource
az cognitiveservices account create \
  --name my-openai-resource \
  --resource-group rg-my-agents \
  --kind OpenAI \
  --sku S0 \
  --location eastus

➡️ Next Step

Your environment is ready! Let's build your first agent.

Continue to: Your First Agent →