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Configure AI skill tenant setting

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To use an AI skill in Microsoft Fabric, you must configure the required tenant settings. Additionally, if your AI skill uses a Power BI semantic model as a data source, specific tenant settings must be enabled to allow connectivity. This guide walks you through the necessary configurations for a seamless setup.

Accessing tenant settings

To configure the required settings, you need administrative privileges to access the Admin Portal in Microsoft Fabric.

  1. Sign in to Microsoft Fabric with an admin account.
  2. Open the Admin Portal:
    • Select the gear icon in the top-right corner.
    • Select Admin Portal.
  3. Navigate to Tenant Settings:
    • In the Admin Portal, select Tenant settings from the left-hand navigation pane.

Once you are in Tenant Settings, you can proceed with enabling the necessary configurations.

Enable Copilot and Azure OpenAI tenant switch

For AI skill to function properly, the Copilot and Azure OpenAI Service tenant settings must be enabled. These settings control user access and data processing policies.

Note

AI skill creation is not supported when Copilot and Azure OpenAI Services tenant setting is restricted to security groups. To create an AI skill, this setting must be enabled for the entire organization. If your organization operates outside the EU and US data boundary, the Cross-Geo Processing and Cross-Geo Storage settings must also be enabled for the entire organization during AI skill creation. We are aware of this limitation and are actively working on a solution.
Workaround: As a temporary solution, enable the necessary required settings for the entire organization. If you do not wish to keep the setting on for the entire organization for a longer period, you have the option to turn it on, create AI skills, and then revert the settings back to a specific security group. This allows you to evaluate existing AI skills without the feature being enabled for the entire organization.

Required settings

  • Users can use Copilot and other features powered by Azure OpenAI:

    • This must be enabled to allow users to access Copilot-powered features, including AI skill. This setting can be managed at both the tenant and the capacity levels. For more information, see Overview of Copilot in Fabric.
    • To enable this setting, check the option in Tenant Settings as shown in the next screenshot:

Screenshot showing the tenant setting where Copilot can be enabled and disabled.

  • Data sent to Azure OpenAI can be processed outside your capacity's geographic region, compliance boundary, or national cloud instance

    • Required for customers using AI skill in Fabric whose capacity's geographic region is outside of the EU data boundary and the US.
    • To enable this setting, check the option in Tenant Settings as shown in the next screenshot:

Screenshot showing the tenant setting for data processing outside the capacity's region.

  • Data sent to Azure OpenAI can be stored outside your capacity's geographic region, compliance boundary, or national cloud instance

    • Required for customers using AI skill in Fabric whose capacity's geographic region is outside of the EU data boundary and the US.
    • To enable this setting, check the option in Tenant Settings as shown in the next screenshot:

Screenshot of Fabric Copilot Storage setting in the admin portal.

Enable AI skill tenant settings

By default, the AI skill feature in Microsoft Fabric is disabled at the tenant level. To allow users to create and share AI skill items, administrators must enable this setting. This activation allows users to craft natural language Q&A experiences using generative AI and then share AI skill within the organization.

Steps to enable AI skill

  1. In Tenant Settings, locate the AI skill section.
  2. To enable this setting, check the option in Tenant Settings as shown in the next screenshot:

Screenshot highlighting the AI skill creation and sharing option in the admin portal.

Enable integration of Power BI semantic models via XMLA endpoints

AI skills can query and manage Power BI semantic models programmatically via XMLA (XML for Analysis) endpoints. To enable this functionality, XMLA endpoints must be configured correctly.

Steps to enable XMLA endpoints

  1. In Tenant Settings, navigate to the Integration settings section.
  2. Locate Allow XMLA endpoints and Analyze in Excel with on-premises datasets and then enable it, as shown in the next screenshot:

Screenshot highlighting the XMLA setting in the admin portal.

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