Microsoft Fabric IQ

Opinion
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Ontology
Microsoft Fabric IQ adds an ontology, a native graph engine and an MCP server to Power BI’s semantic model. What it means that the semantic layer is a graph.
Published

August 24, 2026

Illustration: Microsoft Fabric IQ

The new Microsoft Fabric IQ semantic layer ships with an ontology of business entities, relationships, rules and actions, a native graph engine for multi-hop reasoning, and an MCP server so AI agents can discover and act on that semantic context. It’s Power BI’s semantic model, grown up and turned into a graph.

The pattern across the industry is now identical: Microsoft (Fabric IQ + GraphRAG), Google (Spanner Graph + Agentspace’s per-customer enterprise knowledge graph), Cosmos DB’s OmniRAG routing between vector, SQL and graph. I mentioned SAP, Palantir and more some days ago. Everyone has converged to the same thesis, AI without a semantic layer hallucinates. The semantic layer is a graph.

This is good news for those of us building in the knowledge-graph space. The category just got validated by the largest software companies in the world.

Whether jumping on an it-makes-it-easy platform or take time to develop your own ontology, well that’s where it’s good to have a little chat with someone 😊

Microsoft Fabric IQ