Question

A multinational insurance company is deploying a Microsoft Foundry Agent service solution that grounds on customer policy documents. Regulatory requirements mandate that all personal data belonging to EU customers must be stored and processed within EU boundaries, and must never transit to other regions during inference or model tuning. The architect must design the solution to guarantee compliance. Which approach best satisfies the data residency requirement while allowing the agent to function?

Accepted Answer

Deploy the Foundry resources and grounding data stores in an EU-based Azure region, configure data residency boundaries, and restrict cross-region model and inference traffic through region-scoped deployments and network controls.

Answer

Deploy the agent in the region closest to the company headquarters and rely on Azure's global load balancing to automatically keep EU data in EU datacenters.

Answer

Encrypt all EU customer data with customer-managed keys so that even if data moves to other regions during inference, it remains compliant with residency rules.

Answer

Store EU grounding data in an EU region but allow the model endpoint to run in a US region, since the model only reads data temporarily and does not persist it.