Definition: AI orchestration SDK developed by Microsoft that enables integrating language models with existing code, plugins, and memory to build enterprise AI applications.
— Source: NERVICO, Product Development Consultancy
What is Semantic Kernel
Semantic Kernel is an open-source AI orchestration SDK developed by Microsoft. It enables developers to integrate language models (OpenAI, Azure OpenAI, Hugging Face) with native code functions, plugins, and memory systems to build enterprise AI applications. It is the framework Microsoft uses internally to power products like Microsoft 365 Copilot, and it is available in C#, Python, and Java.
How It Works
Semantic Kernel organizes AI capabilities into three main concepts. Semantic functions are parameterized prompts that invoke an LLM. Native functions are conventional code (C#, Python) that executes business logic. Plugins group related functions and expose them to the model for invocation via function calling. The kernel orchestrates execution, deciding which functions to call based on the user’s request, managing context and memory between calls, and connecting to external AI services.
Why It Matters
For companies in the Microsoft ecosystem, Semantic Kernel offers native integration with Azure and Microsoft services. Unlike frameworks like LangChain that prioritize Python and rapid experimentation, Semantic Kernel is designed for enterprise production with first-class C# and .NET support. This makes it the natural choice for teams already working with Microsoft technologies that need to integrate AI into existing enterprise applications.
Practical Example
A company with a .NET order management application integrates Semantic Kernel to add an AI assistant. They create plugins that connect to their order database, inventory system, and shipping API. The assistant can answer questions like “what is the status of my order” by combining native function calls with natural language generation, without rewriting existing business logic.
Related Terms
- LangChain - Alternative AI orchestration framework
- Function Calling - Capability that Semantic Kernel leverages to invoke plugins
- LLM - Language models that Semantic Kernel orchestrates
Last updated: February 2026 Category: Artificial Intelligence Related to: LangChain, Azure OpenAI, Function Calling, Enterprise AI Keywords: semantic kernel, microsoft, ai orchestration, sdk, enterprise ai, plugins, c sharp, dotnet, azure