Build local-first AI agents that run entirely on a developer workstation with Microsoft Foundry Local and Qwen function-calling models. Covers Small Language Models (SLMs), the OpenAI-compatible local endpoint, sandboxed local tools, local RAG with Chroma, local MCP servers, hybrid cloud/local routing, and the privacy/cost/offline trade-offs. Based on Lesson 17 of AI Agents for Beginners.
Install
npx skills add microsoft/ai-agents-for-beginners --skill local-ai-agentsnpx skills add microsoft/ai-agents-for-beginners --skill local-ai-agents -a claude-code -gnpx skills add microsoft/ai-agents-for-beginners --skill local-ai-agents -a codex -ggemini skills install https://github.com/microsoft/ai-agents-for-beginners.git --path .agents/skills/local-ai-agentsgh skill install microsoft/ai-agents-for-beginners local-ai-agentsgit clone --depth 1 https://github.com/microsoft/ai-agents-for-beginners /tmp/microsoft__ai-agents-for-beginners
mkdir -p ~/.claude/skills ~/.agents/skills
cp -R /tmp/microsoft__ai-agents-for-beginners/.agents/skills/local-ai-agents ~/.claude/skills/local-ai-agents # Claude Code
cp -R /tmp/microsoft__ai-agents-for-beginners/.agents/skills/local-ai-agents ~/.agents/skills/local-ai-agents # Codex, Cursor, Gemini CLI, Copilot, OpenCode