Build AI Agent with .NET – Environment Setup Guide (Day 1)

Mark Adesina
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Welcome to Day 1 of our 30-Day Microsoft Agent Framework series. In this tutorial, you’ll learn how to properly set up your development environment to build an AI agent using .NET 10 and Azure OpenAI.


Why Environment Setup Matters for AI Agent Development

Building an AI agent is not just about calling an API. You need:

  • A stable backend framework (.NET 10)
  • Cloud AI infrastructure (Azure OpenAI)
  • Secure authentication and deployment tools
  • Command-line tools for DevOps efficiency

If your foundation is weak, scaling becomes difficult later.


Step 1: Install .NET 10 SDK

Download .NET 10 SDK from Microsoft’s official website.

Verify installation:

dotnet --version

If installed correctly, you should see version 10.x.x.


Step 2: Install Visual Studio or VS Code

For serious development, install:

  • Visual Studio 2026 (recommended for enterprise)
  • VS Code (lightweight alternative)

Ensure you install the ASP.NET and web development workload.


Step 3: Install Azure CLI

Azure CLI allows you to deploy and manage resources directly from your terminal.

az login

This connects your local machine to your Azure account.


Step 4: Create an Azure Account

You’ll need Azure to:

  • Create Azure OpenAI resource
  • Deploy your AI agent
  • Monitor performance and cost


Development Architecture Overview

Our AI Agent architecture will look like this:

User → ASP.NET API → Azure OpenAI → Response → User

Over the next 29 days, we’ll expand this into:

  • Multi-agent orchestration
  • RAG (Retrieval Augmented Generation)
  • Microsoft Graph integration
  • Authentication with Entra ID
  • Deployment and scaling


Best Practices for AI Development Setup

  • Use environment variables for API keys
  • Never hardcode secrets
  • Use Git for version control
  • Create separate dev and production configurations


What You’ve Accomplished Today

By completing Day 1, you have:

  • Installed .NET 10
  • Connected Azure CLI
  • Prepared your AI development environment


What’s Next?

Tomorrow, we create our first AI Agent Web API project using ASP.NET Core.

Follow this series daily as we build a production-ready Microsoft AI Agent from scratch.


[Read Day 2 – Creating Your First AI Agent API]

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