The race to bring safe, compliant AI into banks just got a major jolt. Kasisto—the AI company best known for its banking-focused conversational and agentic automation—announced that its KAIgentic platform is now one of the first agentic systems integrated with Microsoft Agent 365, Microsoft’s emerging control layer for enterprise AI agents.

If you’re not deep in Microsoft’s latest AI stack, Agent 365 is essentially the company’s bid to bring order to the agentic chaos: a governance and identity environment where enterprises can build, deploy, monitor, and secure AI agents with the same rigor they apply to human employees. For banks, where compliance is nonnegotiable and regulators are growing more inquisitive by the day, this isn’t a “nice to have”—it’s the only path forward.

Kasisto’s move means financial institutions using Microsoft 365 will be able to spin up KAIgentic-powered agents across Outlook, Teams, Word, Excel, and other Microsoft applications, all while relying on bank-grade governance, domain expertise, and Microsoft’s enterprise safety rails. For an industry that has historically moved at a glacial pace with new tech—this is a tectonic shift.

As Kasisto CEO Lance Berks frames it:

“Banks want AI that meets the highest standards of security, compliance, and governance. By integrating with Microsoft Agent 365, KAIgentic can deliver innovation rapidly without compromising trust.”

That bold claim is exactly what banks want to hear—and what most general-purpose AI agents can’t promise.

Why This Integration Matters

Banks have spent the last 18 months in a paradox: everyone wants to deploy AI, and no one wants to explain an AI-driven compliance breach to a regulator.

The industry’s challenge is two-fold:

1. General-purpose AI models are powerful, but not bank-ready.
   They hallucinate. They lack domain guardrails. They can’t automatically enforce standard operating procedures (SOPs). For banks, that’s a non-starter.
2. AI governance has been fragmented.
   Companies want control—over data, identities, permissions, auditability, and behavior across their entire fleet of agents. Until Agent 365, Microsoft didn’t offer a central AI control tower.

Kasisto is positioning KAIgentic as the missing puzzle piece: AI built explicitly for regulated financial workflows, paired with Microsoft’s enterprise identity, security, and monitoring stack.

Joshua Schechter, Kasisto’s Chief Product & Innovation Officer, puts it bluntly:

“KAIgentic was built for the realities of modern banking… Integrating with Microsoft Agent 365 extends that capability across the enterprise.”

Translation: Agentic AI isn’t just chatbots anymore—it’s governed, auditable, bank-compliant systems that can perform tasks, trigger processes, and follow rules at scale.

What KAIgentic Actually Brings to the Table

To understand why this partnership is getting attention, look at what KAIgentic is designed to do:

1. Domain-Specific Banking Intelligence

Kasisto spent years building AI for banks, not generic enterprise workflows. That means:

• Knowledge of financial regulations
• Understanding of banking terminology
• Familiarity with transaction flows
• Built-in constraints that reduce hallucinations

This domain expertise is one of the biggest differentiators between “AI that sounds smart” and “AI that a bank can legally deploy.”

2. Agentic Automation That Follows Procedures

KAIgentic agents don’t just respond—they act.

But crucially, they act within bank-approved standard operating procedures, which is the difference between innovation and regulatory disaster.

3. Built-In Compliance and Oversight

Kasisto has leaned heavily into governance features that map directly to what banks require:

• Audit trails
• Policy-based controls
• Guardrails against unauthorized actions
• Human-in-the-loop controls

When paired with Microsoft Agent 365, this becomes even more powerful. Banks can apply the same identity and access frameworks used for human employees directly to AI agents.

4. Enterprise-Grade Deployment Through Microsoft 365

This is the big unlock.

Banks can now manage AI agents in the same environment where they manage humans:

• Azure Active Directory identity
• Microsoft 365 permissions
• Compliance and DLP controls
• Monitoring dashboards
• Data residency protections

Instead of stitching together third-party tools, KAIgentic essentially “slots into” the ecosystem banks already trust.

Microsoft’s Big Bet on Agentic AI

Microsoft wasn’t subtle at Ignite: Agent 365 is the company’s next strategic pillar. If Copilot is the productivity engine, Agent 365 is the governance layer—the tool that ensures enterprises don’t accidentally unleash AI agents that behave like unsupervised interns.

As Nirav Shah, Corporate Vice President for Microsoft Agent 365, said:

“Agent 365 gives organizations a simple, secure way to bring agents under control… Kasisto’s integration shows how domain-focused AI can deliver outcomes in regulated industries.”

Microsoft wants to ensure that AI agents across the enterprise behave predictably, securely, and within policy boundaries. Banks want the same thing. Kasisto provides the domain depth; Microsoft provides the guardrails.

This integration signals a shift in how financial institutions will deploy AI—not as isolated chatbots but as enterprise participants governed like digital employees.

What Banks Can Now Do Inside the Microsoft Ecosystem

Kasisto outlines several core value-adds for banks leveraging the combined platform:

1. Unified Analytics & Monitoring for AI Agents

Banks can track every action, interaction, and outcome across their entire AI fleet—centralized, auditable, and governed.

2. Policy-Based Governance Aligned With Global Regulations

Think: Basel III, PSD2, GDPR, APRA CPS 234, FFIEC guidelines—configurable directly inside Agent 365.

3. Seamless Integration With Outlook, Word, Excel, Teams

Real workflows might include:

• A customer support agent drafting responses in Outlook
• A risk-review agent checking documents against SOPs in Word
• An operations agent extracting insights from Excel
• A service agent pulling real-time customer data into Teams

This is where frictionless AI actually starts to feel real—not in demos, but in day-to-day banking operations.

Why This Is a Strategic Win for Kasisto

Kasisto has spent years competing in a crowded space of “AI for banking,” but most competitors are stuck at the chatbot layer.

KAIgentic moves Kasisto into the next generation:

• Not a bot
• Not a tool
• A bank-compliant agentic platform

And by becoming an early integrated partner with Microsoft Agent 365, Kasisto gains three strategic advantages:

1. Distribution Through Microsoft’s Enterprise Base

Banks already using Microsoft 365 (which is nearly all banks) can adopt KAIgentic faster.

2. Alignment With a Major Enterprise Governance Standard

Agent 365 could become the de facto AI control layer for global enterprises. Kasisto is already sitting inside the ecosystem.

3. First-Mover Credibility

Being “one of the first” gives Kasisto a story competitors can’t easily replicate.

Industry Context: Agentic AI Is Moving Beyond the Hype

Last year was all about chatbots. This year is all about agentic workflows, where AI doesn’t just respond but performs tasks:

• Intake a customer request
• Verify identity
• Pull internal data
• Take an action
• Document the outcome

Banks love this—as long as it’s governed.

The combination of KAIgentic + Agent 365 checks the boxes that have stalled AI adoption for years:

• Identity control
• Permissions and access
• Auditability
• Regulatory alignment
• Enterprise security
• Domain intelligence

In other words, the AI industry is finally matching the operational realities of banking.

What Kasisto Will Show at Microsoft Ignite 2025

At Ignite 2025, Kasisto plans to showcase a full end-to-end banking workflow demonstrating how KAIgentic agents operate across the Microsoft enterprise environment.

Expect something along the lines of:

• A customer inquiry arriving through Outlook
• KAIgentic agents verifying customer information
• Analyzing account data
• Drafting a resolution
• Escalating policy-sensitive topics
• Logging everything in compliance systems

If Kasisto delivers a seamless cross-app experience, it could set a new bar for what AI in banking looks like.

Competitive Landscape: Who Else Is Playing in Agentic Banking AI?

Everyone, in theory. Very few at this depth.

Major players include:

• IBM with Watsonx
• Google Cloud with Vertex AI and model garden integrations
• AWS with Amazon Q and Bedrock-based agents
• Cohere and Anthropic with domain-tunable LLMs
• A growing pool of fintech AI startups

But Kasisto has one advantage the others don’t: a decade focused exclusively on banking AI.

While competitors are still building generalist platforms, Kasisto has already assembled banking-grade workflows, SOP-aligned actions, and domain knowledge—now wrapped in Microsoft’s enterprise governance layer.

What This Means for the Future of AI in Banks

If you talk to CTOs, CIOs, and CROs at major banks, their wish lists for AI sound remarkably similar:

• Scalable
• Governed
• Auditable
• Domain-educated
• Integrated with existing systems
• Controlled through enterprise identity
• Designed for real-world regulations

The Kasisto–Microsoft alignment checks every box.

It also signals something bigger:

AI agents will soon become digital employees inside banks.

They’ll have:

• Assigned roles
• Permissions
• Access levels
• Monitoring
• HR-like governance

And platforms like Agent 365 will be the new HR system—only for AI.

Kasisto is positioning itself as the “training program” for those digital employees.

What to Watch Next

1. Bank Adoption Velocity

How many banks adopt KAIgentic now that it’s Agent 365-ready?

2. Regulatory Reception

Expect regulators to scrutinize agentic AI heavily. Kasisto’s compliance-first model may give it an edge.

3. Competitive Countermoves

How quickly will rivals try to integrate with Agent 365—or build their own control layers?

4. Expansion of Cross-App AI Workflows

The more apps agents can operate across, the more transformational the workflows become.

5. Evolution From “Agentic Helpers” to “Autonomous Operators”

Banks aren’t ready for fully autonomous AI employees—but the path is getting clearer.

The Bottom Line

Kasisto’s integration with Microsoft Agent 365 marks a critical moment in the evolution of AI for banking. It brings together the two things banks need most:

1. Banking-specific intelligence and compliance from KAIgentic
2. Enterprise-grade identity, security, and governance from Microsoft

For an industry defined by regulation and trust, this is the type of combination that moves AI from experimental to operational.

Banks don’t just need smarter AI—they need safer AI.
With KAIgentic plugged into Agent 365, they may finally get both.