Over 80% of developers now incorporate AI tools into their workflows. PostgreSQL is preferred by 78.6% of developers engaged in AI and real-time applications. Microsoft has enhanced its PostgreSQL managed services to meet contemporary developer needs, contributing over 500 commits to the open-source project. The Azure Database for PostgreSQL supports both lift-and-shift and new open-source workloads, while the newly introduced Azure HorizonDB is designed for AI-native workloads. Developers can provision PostgreSQL instances directly from Visual Studio Code, and GitHub Copilot assists in writing and optimizing SQL queries. Azure Database for PostgreSQL facilitates integration with Microsoft Foundry for AI applications and supports high-performance similarity search with DiskANN vector indexing. PostgreSQL 18 is now available on Azure, offering enhanced performance and scalability. Nasdaq has modernized its Boardvantage platform using Azure Database for PostgreSQL and Microsoft Foundry to integrate AI for governance tasks. Azure HorizonDB is a fully managed PostgreSQL-compatible service designed for AI-native workloads, currently in private preview.