Customer expectations have reset. Here’s how agentic AI across Microsoft 365 Copilot and Dynamics 365 helps sales and service teams meet the new standard—right in the flow of work.

Setting a new standard for customer experience

The standard for customer experience has been rewritten. Agentic AI is expanding what’s possible, moving beyond assistance to help surface context, suggest next steps, and support organizations in delivering customer experiences that once felt out of reach. Customers may no longer compare your service to industry peers; they often compare your service to the best experience they’ve ever had. They also may expect businesses to anticipate needs, understand context instantly, and resolve issues with speed and precision. Meeting that standard falls to the people closest to the customer—your sellers and service teams—yet too much of their day is still spent searching across systems, piecing together information, and managing administrative work instead of building relationships and delivering value.

Agentic AI resets the equation. Rather than adding another tool to manage, it brings intelligence directly into the flow of work—helping teams use trusted data, surface relevant context, and move work forward with greater confidence, while freeing your people to do what only people can: build trust. While some vendors leave the experience for you to assemble, Microsoft delivers first-class experiences out of the box—ready on day one, and extensible by design as your needs evolve. And the estimated value is already proven: Organizations realize an average of $3.70 in return for every $1 they invest in generative AI (IDC, 2024).

That’s why we’re announcing a wave of agentic capabilities across Microsoft 365 Copilot and Dynamics 365 built on a foundation of model context protocol (MCP) tools and MCP apps. Each one builds on the last—meeting teams in the flow of work, grounding them in trusted data, and scaling across how teams collaborate—so sales and service organizations can deliver the new standard of customer experience. Microsoft 365 Copilot is already powering this shift for Frontier Firms—organizations that put AI at the center of how they work—with adoption across much of the Fortune 500.

Handing your teams back the hours that build customer relationships

It starts in the flow of work. Sales Agent and Service Agent in Microsoft 365 Copilot are now generally available, bringing AI into the apps your people already use every day—Dynamics 365, Copilot, Outlook, and Microsoft Teams. Powered by Work IQ and grounded in Dynamics 365 data, these agents understand real work patterns and act on the same customer data your business runs on.

For sellers, every hour reclaimed from administrative work is an hour spent understanding the customer. Sales Agent gives sellers the right customer and deal context—wherever they work—so they spend less time hunting for information and more time advancing revenue. Built for the pace of modern selling, Sales Agent helps sellers get to the right customer and deal context faster—so they can walk into every conversation better prepared, capture what matters after the meeting, and keep momentum moving. By bringing together customer relationship management (CRM) insights and Work IQ in the flow of work, Sales Agent reduces the friction of switching between systems and piecing together information from scattered sources. Using natural language, sellers can pull up account summaries, review opportunity context, catch up on past meetings, and draft personalized emails grounded in sales data.

After conversations, they can capture key takeaways, objections, priorities, and follow-up commitments, then add those notes to CRM or update opportunity fields without breaking their flow. The potential payoff for organizations is tangible: stronger seller productivity, faster follow-through, and better CRM hygiene across the funnel. The result is a more connected sales experience that keeps sellers prepared, responsive, and focused on building relationships and driving customer outcomes. That focus translates into growth: sales organizations that put AI-enabled next best actions in front of sellers are 2.6x more likely to achieve commercial growth (Gartner, 2026).

“Sales Agent represents an important step in our broader agentic journey. It helps transform data into guidance at the moment of need, supporting better decisions and more meaningful customer engagement. For us, this is not just about efficiency—it’s about building a smarter, more connected sales organization.”

—Silvana Zafarana, Sandvik Coromant

For service teams, speed and context are the experience. Service Agent helps service professionals resolve issues faster—generating a concise case summary so they’re instantly up to speed, discovering next best actions, drafting a customer-ready email complete with resolution details, and updating records without ever leaving their flow. The result is faster, more personal resolutions that make customers feel known. And the trajectory is clear: Gartner predicts that by 2029, agentic AI will autonomously resolve 80% of common customer service issues without human intervention, cutting operational costs by 30% (Gartner, 2025).

“What excites us about Service Agent is the move from reactive search to proactive intelligence. When teams can begin the day with the right context, dependencies and handoffs already surfaced, and act on that trusted context from one place, it changes how service work gets done.”

—DP Indetkar, Northern Trust

Grounding every interaction in the data you already trust

An agent is only as valuable as the data it has access to. That’s why we’re also announcing the general availability of Microsoft 365 Copilot in Dynamics 365 Sales and Microsoft 365 Copilot in Dynamics 365 Customer Service—bringing Copilot directly into the CRM, so the same Sales and Service agents operate consistently across Dynamics 365 and Microsoft 365.

For sales teams, this surfaces deal intelligence, automates CRM updates, and guides sellers toward their highest-value next action—all grounded in trusted Dynamics 365 Sales data.

For service teams, it delivers AI-assisted case resolution, knowledge-grounded responses, and proactive insights that elevate every customer interaction. The intelligence of Copilot and the depth of your CRM now work like one: no silos, no compromise, and the full customer context behind every response—so interactions build on the last, wherever work happens.

Turning individual productivity into organizational momentum

Great customer experiences are rarely the work of one person. The Dynamics 365 Sales and Customer Service plugins for Copilot Cowork extend agentic capabilities into collaborative, team-based work.

The Dynamics 365 Sales plugin for Cowork helps revenue teams orchestrate complex, multi-stakeholder deals—coordinating account research, meeting prep, and follow-ups as one connected workstream rather than a series of isolated tasks. The Dynamics 365 Customer Service plugin helps service professionals coordinate complex work across teams by bringing together customer context, Microsoft 365 signals, business data, and specialized tools in a single experience. Whether managing case reviews, customer health programs, escalations, or operational processes, teams stay aligned on priorities, handoffs, and next steps—so work can move faster and customers can get a more consistent experience.

Take the next step toward the new standard

Put it together and the path is clear. The same agentic foundation meets your people in the flow of work, grounds them in the data they already trust, and scales across the teams that shape every customer journey—shortening sales cycles, resolving issues faster, and giving your people back the time to focus on customers.

Just as important, these capabilities meet your teams where they already are—Copilot, Outlook, Teams, and Dynamics 365—helping speed adoption and time to value. The organizations that move now won’t simply keep pace with rising expectations; they’ll define what great customer experience looks like.

To learn more about how you can deliver agentic CRM experiences, check out our blogs here:

• Learn more about Sales Agent 
• Learn more about Service Agent 

Sources: 

• IDC InfoBrief: sponsored by Microsoft, 2024 Business Opportunity of AI, IDC# US52699124, November 2024 
• Gartner Press Release, “Gartner Predicts Agentic AI Will Autonomously Resolve 80% of Common Customer Service Issues Without Human Intervention by 2029,” March 5, 2025. 
• Gartner Press Release, “Gartner Survey Finds Sales Organizations That Provide AI-Enabled Next Best Actions Are 2.6x More Likely to Achieve Commercial Growth,” May 20, 2026. 

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Your customer relationship management (CRM) knows a lot about what already happened—and an incomplete picture of what should happen next.

It’s a beautifully organized rear-view mirror. For 30 years, CRM has been the place sellers report to after the work is done—a system built to store customer truth, not act on it. In an agentic AI-defined market, that’s not an asset—it’s a liability. 

The cost shows up in the moments that matter most. Sellers spend too much time maintaining CRM records, hunting across emails and chats for context, and manually coordinating next steps—rather than engaging customers. At a time when “88% of buyers value seller engagement in the middle of the buying journey” ^[1], this operational drag slows response times, creates friction, and takes sellers away from the work that moves deals forward. 

Because CRM was designed to record reality rather than change it, companies hired armies of sellers and turned most of the week into data-entry labor—the “CRM tax.” The record is often stale, the forecast a guess, and the most expensive talent in the company spends its time feeding a database instead of building relationships. 

In the agentic era, trust becomes the advantage in the flow of work

The next generation of CRM doesn’t just record the work—it helps sellers act and build trust with every interaction. Agentic CRM inverts the model: AI agents capture, enrich, and update data automatically from the conversations and signals already flowing through the business. The system stops asking sellers to describe reality and starts changing it—drafting the follow-up, advancing the deal, and flagging the risk before it impacts the customer experience.

That’s why the future of selling isn’t just about agents and data quality. It’s about bringing intelligence directly into the flow of work. When sellers can access customer context, relationship insights, next best actions, and agentic recommendations inside the tools they already use every day, they can respond faster, engage more thoughtfully, and build trust more consistently at every stage of the buying journey. 

What defines agentic CRM

Agentic CRM is more than the next evolution of traditional CRM—it represents a fundamentally different way of thinking about how customer engagement systems should work. Instead of asking people to adapt to rigid and separated applications, agentic CRM adapts to the way people actually work across conversations, tools, decisions, and workflows, making the experience more intuitive, proactive, and embedded in the flow of work. For example, agentic CRM: 

• Is human‑centered UX, not system-centered: The experience is built around the user’s goals, not the system’s data structures. Interfaces are simplified, natural language–friendly, and task‑aligned so sales teams can focus on supporting the business and customers—not navigating forms, fields, or modules. 

• Works where sellers already work: Customer data and agentic capabilities show up across productivity tools and devices that are naturally part of the seller’s workflow (e.g., email, chat, mobile, PowerPoint), without the need to switch systems. 

• Turns signals into action: Agentic CRM anticipates what needs to happen next, predicts risks early, recommends paths to resolve issues, and drives toward outcomes—whether that’s moving a deal forward or following up with a customer. 

• Adapts across tools and processes: Headless architecture, supported by unified model context protocol (MCP) and skills, allows for core CRM value like customer data and business logic to be decoupled from the end user experience and agentic orchestrators, allowing insights capabilities to be accessed and acted on through any app or agent. 

• Gets continuously smarter with business context: Agentic CRM adapts based on patterns, past interactions, preferences, and real-time signals. It understands context—threads across emails, meetings, records, and conversations—and gets smarter with every use, providing increasingly relevant insights and recommendations. 

Common CRM challenges—and how agentic CRM solves them

Microsoft works with customers around the world to modernize their CRM. Every journey is unique, but many of the same challenges surface time and again. Here are the ones we see most often—and how an agentic CRM approach helps address them. 

Challenge: Forceful fragmentation

Legacy CRM was built to manage and deploy a system, not to support seller work. It was sold as a single source of truth and a customer 360. What sellers got was forced data entry and workflows scattered across more than 10 disconnected tools. 

Solution: CRM in the flow of work

Bring business, customer, and opportunity data to where sellers already work—grounded by Work IQ. A seller can start the day with a meeting brief in Outlook, get live insights during a Teams call that automatically update the record, and build a customer deck with Copilot Cowork using the same intelligence. 

Challenge: A passive CRM with an adoption problem

CRM has always relied on people to do the least valuable, most painful part of selling—manual data entry. Records can go stale, forecasts are built on whatever sellers happen to type, and trust erodes. 

Solution: A unified system that keeps itself current

Agentic CRM runs on a single platform where productivity data, customer data, and business logic live together, with governance, security, and observability built in from day one. Data Enrichment keeps records complete automatically, creating a compounding value loop: agents capture signals from email and meetings, update the CRM backbone, and that higher-quality data drives better next-best actions back into the flow of work for sellers and other agents alike. 

MIcrosoft dynamics 365

Bring sales into the flow of work with agentic CRM

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Agentic CRM in action: Real-world results

Organizations around the world making the switch are already seeing measurable impact on their go-to-market (GTM) and sales functions. 

Siemens Smart Infrastructure—a global technology leader—is redefining what data‑driven selling can mean in the agentic era by turning insights into action directly within the seller’s workflow. 

What makes Sales Agent powerful is its ability to turn data into action at the moment it matters. Our sellers can quickly understand account context, prepare for meetings, and respond with confidence—without leaving their workflow.

Todd Jones, Global CRM Manager, Siemens Smart Infrastructure

LandPro Equipment—an agricultural equipment dealer—is redefining what scalable customer engagement can mean in the agentic era by using AI agents to generate high‑quality leads and amplify existing marketing efforts. 

Bringing on Sales Development Agent has been a really positive move for us. We started by testing it across three divisions, and we’re already seeing strong, meaningful leads coming through—exactly the kind of engagement we’re looking for. What we appreciate most is that it doesn’t replace what we’re already doing—it builds on it. It’s given our team another smart, efficient way to connect with customers and support our overall marketing efforts. We’re excited about the early results and looking forward to continuing to grow with it as we expand across the business.

Molly Haungs, Marketing Manager, LandPro Equipment 

Adobe is on the same journey, reinventing how its sales organization engages customers with Microsoft 365 Copilot and agents. 

In just three weeks from a limited-scale launch, Sales Development Agent has already unlocked new opportunities, driving meetings with 10+ customers we wouldn’t have otherwise reached. We’re excited to broaden its application across products and customer segments as we continue to scale its potential.

Prabhath Yeluri, Sr. Sales Strategy Manager, Adobe 

And Microsoft’s own sales team has also demonstrated improvement. Sellers with high usage of Copilot and agents are seeing a 20% increase in deals closed, a 13% lift in lead-to-opportunity conversion, and 9.4% higher revenue per seller compared to low-usage peers.^[4]

Beyond CRM: How Microsoft supports business transformation

For Chief Revenue Officers (CROs) and Chief Sales Officers (CSOs), modernizing CRM is about more than a technology upgrade—it’s about helping sellers act with speed, context, and confidence through a more intelligent experience. As sales leaders weigh risk and decide who to trust, they need a strategic partner to help navigate change, scale intelligently, and use data to reduce friction— while improving engagement and driving stronger business outcomes along the way. 

With Microsoft’s solution to sales, AI shows up at critical points of work and decision—where sellers communicate with customers, track records, plan next steps, and collaborate—always anchored to the relevant data powered by Microsoft 365 and Microsoft Dynamics 365, in the formats and places where data is born. 

And the advantage compounds. The organizations that rebuild how they operate around AI today aren’t just moving faster this quarter—they’re setting up a durable lead that grows with every cycle, as their people and their systems get smarter together. 

See agentic CRM in action. Learn more about customer success, get migration resources, and explore the Microsoft ecosystem.

^[1] LinkedIn, The B2B Trust Advantage: Buyer Report. 

^[2] Gartner®, How to Focus Sellers on High-Impact Activities, 31 July 2025. GARTNER is a trademark of Gartner, Inc. and/or its affiliates. 

^[3] Microsoft Work Trend Index. 

^[4] Figures based on internal Microsoft telemetry, Sales – Customer Zero, comparing sellers with high usage of Copilot and agents to sellers with low usage. 

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Customer experience leadership in the age of AI is undergoing a massive transition. Leaders are expected to act in the moment, but the systems, incentives, and data around them are often not designed to support it. The Microsoft 2026 Work Trend Index is clear: the constraint on transformation is not people, but the gap between what employees can do and what organizations are built to support.

That shift is creating new pressure in customer experience. Leadership roles like supervisors face more critical choices than ever. When should AI handle an interaction versus a service rep? How should teams respond to shifting demand across channels? Where does a coaching moment belong in the flow of a live conversation? In disjointed environments, the data needed to answer these questions arrives late or incomplete, producing fragmentation tax. What was once a role defined by queue management and reporting is now defined by real-time judgment, prioritization, and accountability for the customer experience.

Microsoft Dynamics 365 is built around this new reality and the evolving role of customer experience leadership. 

Today, we are making three announcements that strengthen a leader’s ability to manage modern customer experience operations.

1. First, as AI expands across both contact center and customer service, leaders need a unified system to manage the workforce operating within it. That is why Dynamics 365 now includes a comprehensive set of workforce engagement management (WEM) capabilities—giving leaders a single system to plan, staff, monitor, and improve performance across both AI and service reps. WEM is no longer a separate layer. It is embedded directly into the flow of work, grounded in the same data that powers every customer interaction.
2. Second, Dynamics 365 Contact Center continues to expand AI agents announced in April by embedding new coaching skills into existing workflows that help supervisors provide real-time guidance, analytics, and operational intelligence. These are not standalone tools that add complexity. They are designed to support supervisors in managing a blended workforce, extending their ability to oversee performance, guide outcomes, and scale operations. 
3. Finally, Dynamics 365 Contact Center is introducing new real-time wallboards to help supervisors visualize the performance of the business.

Together, these innovations can elevate customer experience leadership in the era of AI.

Optimizing the new blended workforce with Workforce Engagement Management

Customer service and contact center organizations are no longer managing people alone—they’re orchestrating service reps and AI agents working side by side. As AI takes on more work, leaders need a new way to plan and manage both service reps and AI agents.

With workforce engagement management, Dynamics 365 now delivers a complete customer experience platform that brings together customer service, contact center, and workforce planning in one connected experience. Workforce engagement management is no longer a separate system sitting beside the customer experience. Instead, forecasting, scheduling, adherence, intraday shift swapping, bidding, and time recording are embedded directly into the flow of work, grounded in the same customer and case data that powers every interaction.

For customer experience leaders, this creates a different operating model. Real customer demand, including conversations, email, cases, and channel activity, becomes the direct input to workforce planning. Forecasts are built on actual service interactions, which is only possible when workforce management shares the same data model as the interactions it supports. As a result, organizations can create more balanced, manageable workloads for employees.

By embedding workforce engagement management directly into customer service and contact center, Dynamics 365 creates a closed loop across planning, execution, and improvement. Supervisors plan using real demand signals and operate with visibility into live service conditions, while employees benefit from clearer expectations, more responsive scheduling, and real-time coaching. As conditions shift, whether due to changes in channel mix, spikes in demand, or increased automation, the same operational context feeds back into planning so both customer and employee experiences continuously improve. 

In addition to the generally available purpose-built autonomous agents (Customer Intent, Knowledge Management, Case Management, Quality Evaluation), Dynamics 365 Customer Service is expanding on the same principle. Recent additions—Microsoft 365 Copilot embedded directly in the product, the Dynamics 365 Customer Service plugin for Copilot Cowork, and Service Agent in Microsoft 365 Copilot ensure service professionals have unified intelligence and the ability to act wherever they work. 

Turning every customer interaction into a high-quality moment

In many environments, supervisors are still working across disconnected systems for routing, quality, and AI. Each solution provides a partial view, requiring supervisors to stitch together insights manually. This fragmentation introduces delays, increases cognitive load, and limits the ability to act in real time. Dynamics 365 removes this fragmentation by bringing multiple signals into a single platform. Supervisors can operate from one system with a consistent view of demand, performance, and quality.

Quality Assurance Agent, aligned with the supervisor role in the contact center, now introduces real-time coaching (generally available) by shifting it into the flow of the interaction itself. Rather than relying on post-call reviews, supervisors operate in an environment of continuous, real-time coaching where every conversation, across voice, digital channels, human agents, and AI agents, is monitored, assessed, and improved in the moment.

At the core of this capability is a real-time evaluation engine powered by the Quality Assurance Agent, which continuously scores interactions against configurable quality criteria such as communication, empathy, compliance, and effectiveness. Supervisors gain immediate visibility into these scores at both the aggregate and individual conversation level, allowing them to identify quality gaps as they emerge, not after the interaction is complete. This transforms quality from a retrospective activity into a live operational signal that can directly influence outcomes while the customer is still engaged.

At the same time, AI-powered coaching nudges are delivered directly to customer service reps in context, providing specific, situational guidance such as prompting for clearer next steps, reinforcing empathy, or flagging compliance risks. These nudges are not generic suggestions but are triggered based on real-time signals from the conversation, helping agents stay on track and improve performance moment by moment.

This model introduces a human-in-the-loop approach where supervisors define the rules, thresholds, and playbooks that guide how AI coaching is delivered, while maintaining full visibility and control over how AI is applied. Supervisors are notified in real time when quality dips or compliance risks are detected, enabling immediate intervention and reducing the likelihood of negative customer outcomes. The result is a closed-loop system where detection, guidance, and action happen continuously, ensuring that quality is enforced and improved at scale without adding manual overhead.

In April, Microsoft introduced three coordinated AI agents for Dynamics 365 Contact Center as part of its shift to Agentic CX. In addition to Quality Assurance Agent, Customer Assist Agent handles frontline interactions across voice and digital channels with real-time voice and seamless escalation, while Service Operations Agent focuses on setup, configuration, and ongoing optimization. Together, they extend coverage from engagement through operations within a single connected system.

Turning data into decisions

As the number of operational choices increases, the need for clear, actionable data becomes critical. This reduces uncertainty, improves consistency, and enables supervisors to manage with confidence rather than intuition alone.

Dynamics 365 Contact Center is also introducing new real-time wallboard capabilities to enable organizations to track contact center metrics through a ticker-style experience, giving supervisors immediate insight into service levels, backlog, and performance as conditions change. This allows teams to respond faster, helping maintain consistent customer service levels while reducing the need for manual monitoring and status checks.

Choosing a holistic customer service platform leaders can rely on

As organizations evaluate AI investments, the number of options continues to grow. Many approaches add new tools without addressing underlying fragmentation, increasing the burden on leadership and supervisors.

The advantage comes from choosing a platform that supervisors can rely on. One that unifies data, embeds AI into operations, and reduces complexity rather than increasing it.

Microsoft Dynamics 365 provides that foundation. By bringing customer service, contact center, workforce engagement, and AI together on a single data model, it enables leaders to operate with clarity, consistency, and control.

Workforce engagement management, real-time coaching, and real-time wallboards in Dynamics 365 is generally available. It is included with Dynamics 365 Customer Service Enterprise and Premium SKUs, and available with Dynamics 365 Contact Center Voice + Digital SKU.

Next steps

• Read more about workforce engagement management capabilities in Dynamics 365 here on our Dynamics 365 IT Professional Blog.

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Continued supply chain disruptions, geopolitical uncertainty, and rising cost pressures are putting procurement organizations under increasing pressure to move faster and make better decisions. Every supplier delay, sourcing event, contract negotiation, invoice exception, or payment inquiry has the potential to impact costs, inventory availability, customer commitments, and ultimately business performance.

Enterprise resource planning (ERP) systems have long served as the operational foundation for managing suppliers, contracts, purchasing, invoicing, and spend. That foundation remains critical. But as business complexity increases, legacy ERP systems and traditional automation are beginning to show their limits. Procurement leaders are being asked to reduce costs, navigate ongoing supply chain disruption, and gain greater visibility into spend and risk. The challenge is no longer simply capturing transactions and tracking compliance—it is identifying what requires attention, evaluating options, and responding quickly enough to stay ahead of disruption.

This is where AI agents can introduce a new opportunity. Rather than focusing solely on automating tasks, agents can monitor business conditions, surface insights, coordinate workflows, and take action across source-to-pay business processes, while keeping people in the loop. When built on the agent-ready ERP foundation of Microsoft Dynamics 365, they have the potential to transform how procurement teams get work done.

How agentic ERP can transform source-to-pay

Agentic ERP can represent the next evolution. Rather than simply recording transactions and executing predefined workflows, as part of agentic ERP, AI agents can monitor business conditions, understand context, reason over data, coordinate actions, and help teams make more informed decisions.

As an example, a supplier communication can trigger an impact analysis. A sourcing event can trigger supplier evaluation and recommendations. A payment inquiry can trigger an invoice automation and communications. Or a supplier risk signal can trigger proactive intervention before operations are affected. These types of actions can help teams move from reacting after the impact is felt toward more proactively managing outcomes.

What makes this possible is the combination of Dynamics 365, Microsoft 365 Copilot Cowork, Microsoft Copilot Studio, Microsoft Fabric, and the entire Microsoft Cloud. Together, they provide a common foundation for building, deploying, and governing agents across the enterprise using Microsoft Agent 365 and ERP governance processes. Organizations can leverage Microsoft-built agents, specialized partner-built agents, and custom agents while maintaining a more consistent approach to identity, security, privacy, compliance, and governance.

The Dynamics 365 ERP Model Context Protocol (MCP) servers extend this foundation by providing a standardized way for AI and agents to securely access ERP and business performance analytics data. This enables agents to operate within the context of existing procurement, supply chain, and financial and business performance workflows rather than as disconnected AI tools. Organizations can start with Microsoft agents, extend capabilities through partner innovation, and build custom agents for unique business requirements—all while leveraging the same governance provided in the Microsoft Cloud.

The result is more than process automation. It can result in a more connected, intelligent, and adaptive approach to source-to-pay that can help organizations improve agility, strengthen supplier relationships, reduce risk, and respond faster to change.

Reimagining source-to-pay using Microsoft 365 Copilot Cowork

Microsoft 365 Copilot Cowork introduces a new way to engage with source-to-pay processes run in Dynamics 365. Using the Dynamics 365 ERP apps plugin for Copilot Cowork, users can interact within the flow of work using natural language prompts. 

For example, a procurement manager can evaluate supplier bids by combining ERP data accessed through the Dynamics 365 ERP MCP Server with supplier emails and supporting documents, compare vendors, identify tradeoffs, and execute the supplier bid evaluation and award process without switching between systems. By bringing ERP data, business processes, and operational context into Copilot Cowork, organizations can move more quickly from insight to action while remaining grounded in the systems, controls, and governance provided by Dynamics 365 ERP.  

Imagine a future where employees no longer need to be ERP experts to participate in business processes. Instead, they can engage through intent in Copilot Cowork while AI helps navigate the underlying complexity of ERP data, business processes, policies, and workflows. This is an important step toward a future where ERP increasingly adapts to people, rather than requiring people to adapt to ERP. 

Streamline operations further with the Procurement Agent in Dynamics 365

Procurement teams spend a significant amount of time managing supplier communications. Buyers routinely review purchase order confirmations, delivery updates, quantity changes, and supplier responses while evaluating the potential impact on inventory, production schedules, customer commitments, and financial performance.

Now in public preview, Procurement Agent in Dynamics 365 Supply Chain Management helps orchestrate this process by monitoring supplier communications, detecting changes, and providing impact analysis across inventory, production schedules, and customer orders. Rather than manually reviewing every supplier interaction, procurement teams can focus on the exceptions that matter most and make faster, more informed decisions.

This shift delivers value beyond procurement efficiency. Procurement leaders gain greater visibility into supplier activity, while operations leaders benefit from faster responses to issues that could impact production, fulfillment, or customer commitments.

Farmlands Cooperative brings agentic procurement to life 

This is already transforming how companies work. Farmlands Cooperative, New Zealand’s largest farmer-owned rural supplier, consolidated seven ERP systems onto Dynamics 365. As it shifted to centralized purchasing, it deployed Procurement Agent in Dynamics 365 Supply Chain Management to manage vendor communications at scale. The agent reads incoming supplier emails, summarizes requested changes for staff to approve, and drafts follow-ups on delayed orders to stay ahead of stockouts. Today it automates half of Farmlands’ purchase order email traffic and is expected to save the team about 20 hours a week.

By standardizing on Microsoft Dynamics 365 and thoughtfully applying agentic AI with humans firmly in the loop, we are creating a more efficient, resilient, and scalable operating model.

—Andre Scheepers, Chief Digital Officer, Farmlands Cooperative

Connect procurement decisions to business outcomes with Finance Agent and Business Performance Analytics

Every sourcing decision has downstream implications for costs, margins, cash flow, and business performance. Finance Agent in Microsoft 365 Copilot helps leaders explore business performance data using natural language, making it easier to understand the impact of supplier and purchasing decisions. 

Building on the reporting, analytics, and insights available through Business Performance Analytics in Dynamics 365, Finance Agent can help leaders investigate performance trends, answer business questions, and better understand the operational and financial outcomes of source-to-pay decisions. 

Explore partner agents to support the source-to-pay process

While Microsoft agents help address common procurement scenarios, many organizations require additional capabilities tailored to specific organizational processes. This is where the Microsoft partner ecosystem can extend the capabilities of agentic ERP by using the Dynamics 365 agent-ready foundation—including our MCP servers.

Vendor Onboarding Agent from Sonata

Supplier onboarding is often the first bottleneck in the source-to-pay lifecycle. Sonata’s Vendor Onboarding Agent can help organizations accelerate vendor activation by automating supplier data collection, validation, and workflow orchestration across procurement and accounts payable. By focusing on reducing onboarding cycle times and improving compliance, organizations can work to bring suppliers online faster, accelerate sourcing activities, and improve business responsiveness.

Smart Sourcing Agent from MCA Connect

When supply conditions change, procurement teams must quickly identify alternative suppliers and evaluate sourcing options. MCA Connect’s Smart Sourcing Agent can automate request for quote (RFQ) creation and supplier scoring within Dynamics 365 Supply Chain Management, helping organizations evaluate suppliers across cost, lead times, quality, and risk. This can enable faster sourcing decisions, improved supplier selection, and greater resilience when responding to disruptions.

KPMG Supplier Insight Agent

Supplier performance has become a strategic concern for procurement, supply chain, and finance leaders alike. The KPMG Supplier Insight Agent combines Dynamics 365 ERP apps data with external business signals to help organizations proactively monitor supplier performance and identify emerging risks. By surfacing insights and recommended actions, the solution can help organizations strengthen supplier resilience, improve continuity, and maximize value across their supplier ecosystem.

Together, these partner-built agents demonstrate how organizations can apply AI across the source-to-pay lifecycle—from supplier onboarding and sourcing to supplier performance management. More importantly, they show how agentic ERP can help procurement and operations leaders be more resilient, accelerate decision-making, and create more adaptable supplier ecosystems.

Extend source-to-pay with custom agents

No two organizations operate exactly alike. Industry regulations, supplier ecosystems, sourcing strategies, approval structures, and operational priorities often create requirements that extend beyond prebuilt capabilities.

Using Copilot Studio, leaders can build custom agents for those requirements, on the same security, governance, and business data that power Microsoft and partner agents. Procurement leaders can address specialized sourcing needs, supply chain leaders can automate disruption monitoring, and finance teams can streamline exception management and payment processes. Because every agent runs on a common foundation, organizations can work on business process innovation without creating new complexity or disconnected workflows.

Get started with agents for source-to-pay processes

The future of source-to-pay is not simply about processing transactions more efficiently. It’s about helping leaders make better decisions, respond faster to disruption, strengthen supplier relationships, reduce risk, and improve resilience across the business. This is a fundamentally different way to work, one where agents can reason alongside your team, act on their behalf, and give time back for the work that truly moves the business forward.

Are you ready to reinvent source-to-pay?

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See how agentic ERP in Dynamics 365 can transform your source-to-pay operations

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The post Reinventing source-to-pay with agentic ERP appeared first on Microsoft Dynamics 365 Blog.

Over the past few years, AI has transformed how we access information and get answers. The next step is helping people take actions. That’s the shift behind Copilot Cowork. 

We recently introduced Copilot Cowork through the Frontier program to move beyond chat and into execution—helping you delegate real tasks and have them completed for you. Since then, we’ve seen people use Cowork in ways that go far beyond simple prompts: orchestrating inbox workflows, conducting deep research, generating structured documents, and even building full web pages.  

What is becoming clear is that once AI understands your work, it can start contributing to it and working alongside you. Cowork is built on Work IQ, our intelligence layer that understands your data, your tools, and your organization. That foundation allows Cowork to plan, act, and produce outcomes that are grounded in how your business runs and not just what is available on the public internet.  

Today, we’re announcing additional capabilities in Cowork to expand on what it can make possible for you.

Join the Frontier program to get started

Work doesn’t just happen at your desk—bringing Cowork to iOS and Android mobile

A key part of our Copilot vision is bringing AI into the flow of work, wherever that work happens.  

Cowork already runs in the cloud, so you don’t have to worry about closing your laptop or if your PC is running. Now, we’re introducing Cowork on iOS and Android so you can delegate work the moment you think of it—on your commute, between meetings, or away from your desk—and come back to a finished outcome. Instead of completing those tasks, you can hand them off and keep going while the work progresses in the background.

Turning work into reusable intelligence with Cowork Skills

A lot of work follows repeatable structures and that’s where skills come in. A skill is a reusable set of instructions that guides Cowork on how to complete a task or workflow. Instead of starting from scratch each time, you can capture how you want something done—your structure, your tone, and your process—and ask Cowork to apply it consistently.

We’re introducing built-in skills across Microsoft 365 to help with common workflows like creating documents, coordinating meetings, and conducting research. You can also create your own custom skills, whether you’re standardizing a team process or automating recurring work.

Over time, these skills become a shared layer of intelligence that helps teams scale how work gets done.

Connecting work across your tools with Cowork plugins

We also know that work doesn’t live in a single place. It spans documents, data, and line-of-business systems. To meet that reality, Cowork is connecting more deeply to the tools your organization already relies on so it can operate across systems.

We’re introducing new native integrations across Microsoft products, including Fabric IQ with Power BI, so you can bring your data directly into Cowork workflows. We’re also expanding integrations with Dynamics 365 across sales, customer service, and enterprise resource planning (ERP) applications to support scenarios like pipeline reviews, case resolution, and order approvals.

Available now, we’ll be releasing connectors to popular third-party solutions such as LSEG (London Stock Exchange Group), Miro, monday.com, and S&P Global Energy, with more to come.

Organizations can also build custom plugins to extend Cowork to their unique systems and processes. Learn how to add, create, and manage plugins in Copilot Cowork and start building yours today.

Try Copilot Cowork

We’re still early and moving fast. Over the last few weeks, we’ve been continuously expanding what Cowork can do and you’ll continue to see rapid improvements as we build alongside how customers are using it.

Copilot Cowork is available through the Frontier program, with new capabilities rolling out continuously. Learn more about the latest updates on the Microsoft Technical Community and get started using Cowork in your own workflows today.

The post Copilot Cowork: From conversation to action across skills, integrations, and devices appeared first on Microsoft Dynamics 365 Blog.

Supply chain disruption is no longer the exception. It is the daily reality every business operates, driven by geopolitical instability, supplier failures, regulatory changes, and freight volatility. The challenge is not identifying disruption; it is synthesizing it fast enough to act. Businesses are flooded with signals across suppliers, logistics, operations, and compliance, but those signals remain fragmented across systems and teams, forcing reactive trade-offs instead of strategic action.

The leaders in this next era will be defined not by visibility alone, but by their ability to turn disruption into coordinated, cross-functional action before the cost of delay becomes too high. That’s where agentic AI comes in. 

Agentic AI redefines the supply chain workflow 

As supply chains become more dynamic, the way work gets done and operations are run is changing, and agentic AI is at the forefront. Agentic AI enables people and systems to work together more effectively, and Gartner predicts 60% of supply chain disruptions will be resolved without human intervention by 2031 (Gartner, March 18, 2026). Agents have the ability to reason over data, take action across workflows, reduce manual effort, and support faster, more consistent execution—while keeping humans in control of decisions and outcomes.  

Frontier firms are moving beyond isolated AI use cases and focusing on how decisions and actions connect and orchestrate across end-to-end processes. This shift it happening in three practical ways: 

• More proactive risk management: With access to real-time signals, teams can identify potential disruptions earlier and take action before they impact orders, production, or customer commitments.  

• Faster, more coordinated execution and orchestration: Insights are surfaced directly within the flow of work, so planners and operators can act immediately.  

• Coordinated human and agent workflows: Agents can take on high-volume tasks across the supply chain—from monitoring conditions to initiating actions—while people stay focused on oversight, exception handling, and strategic decisions. 

The result is a more responsive operating model. Let’s see how this approach comes to life in Dynamics 365 Supply Chain Management, and how organizations are using it to improve resilience, responsiveness, and end-to-end performance. Watch this video for a preview on how agentic AI with Dynamics 365 can transform your supply chain operations to a frontier firm.

Building an agentic supply chain 

Enabling this model requires connecting data, decisions, and actions across the supply chain. Dynamics 365 and Microsoft 365 Copilot support this by enabling agents to work across data and business processes in a governed way—linking signals, decisions, and execution within the flow of work. 

Several capabilities make this possible: 

• Connecting agents to data and execution systems: The Dynamics 365 enterprise resource planning (ERP) model context protocol (MCP) Server provides agents with secure, governed access to business processes and data. Using Dynamics 365 ERP MCP Server, agents can take action across the system—such as updating orders, adjusting supply plans, or initiating transfers—based on current conditions. See how Coca-Cola Beverages Africa uses Dynamics 365 and the Dynamics 365 ERP MCP server to autonomously run planning cycles, making the lives and the work easier for their end users.

• Grounding agent actions in business context: Work IQ gives agents real-time understanding of how work happens across the organization by connecting the productivity tools where decisions are made, including Outlook, Teams, and Word, to live operational data in Dynamics 365. Agents see the full context of a disruption, including its impact on orders, inventory, and customer commitments, and act on it directly in the system of record. 

• Agents operating within business policies and constraints: Agents act within defined rules—such as service levels, customer prioritization, and cost thresholds—so decisions remain aligned to business objectives and governance requirements. Additionally, Microsoft Agent 365 gives IT teams one place to observe, govern, and secure agents in your organization.  

“Our partnership with Microsoft has been instrumental in enabling Farmlands’ digital transformation. By standardizing on Microsoft Dynamics 365 and thoughtfully applying agentic AI with humans firmly in the loop, we are creating a more efficient, resilient, and scalable operating model.” 

Andre Scheepers, Chief Digital Officer, Farmlands Cooperative 

Dynamics 365 Supply Chain Management

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Driving impact with agents from planning to delivery 

The impact of an agentic approach is best understood through how work changes across core supply chain processes.  

Forecast to plan: Continuous alignment of demand and supply 

Demand planning is no longer limited to periodic forecast updates. With Demand planning in Dynamics 365 Supply Chain Management, planners can incorporate external signals—such as changes in demand patterns, promotions, or market conditions—alongside operational data to continuously adjust forecasts and supply plans. Copilot in Demand planning, helps planners understand why the numbers are moving, not just what they are. With Copilot cursor and generative insights, every forecast becomes traceable and explainable, so planners spend less time consolidating data and more time evaluating scenarios and making decisions that keep demand and supply in lockstep.

Source to pay: From supplier signal to business action

Supplier updates often require immediate analysis—what orders are affected, what production is at risk, and what actions need to be taken. When a supplier flags a component delay, the Procurement Agent in Dynamics 365 Supply Chain Management triages the supplier communication, matches it to the affected purchase order, and summarizes the downstream impact across inventory, sales orders, and production schedules. If inventory is available elsewhere in the network, the agent highlights the option. The procurement lead reviews the recommended response and moves forward spending time on decisions and mitigation, not tracing impacts across systems. 

Plan to produce and Inventory to deliver: Adjusting production execution, order fulfillment, and warehouse operations in real time 

Changes in material availability, labor capacity, or priorities require constant updates to production schedules and warehouse activities. Agents can help apply these changes directly within operational workflows—supporting updates to schedules, work orders, and task prioritization—so teams can keep operations running without delays often caused by manual coordination. Customer commitments depend on accurate, up-to-date information across inventory, production, and logistics. Dynamics 365 Supply Chain Management connects these data points so teams can ensure that order promising reflects current conditions—reducing the risk of overpromising and enabling earlier communication when changes occur. 

“With Dynamics 365, we gain real-time visibility into our inventory across all locations, empowering faster, data-driven decision making and enhancing our overall operational agility.” 

Erdal Arslan, Financial Affairs Group Manager, LC Waikiki 

Order to cash: Enabling a smooth end-to-end customer order experience

Whether it is B2B or B2B2B, agentic commerce can connect customers to the right distribution channel, automate and accelerate the purchase experience from quote-to-order and the availability of accurate data increases speed and agility across the supply chain processes.  

Service to deliver: Optimizing asset performance and seamless field operations 

AI and agents in field service can provide timely updates on asset and work order information and coordinate field technician schedules that in turn improves overall production uptime, efficiency of delivery and customer satisfaction. 

Connect with us at the Gartner Supply Chain Symposium 

We invite you to engage with our leaders and explore these innovations firsthand during the symposium. Whether you are looking to learn more about the technology or for a strategic conversation on business outcomes, there are several ways to connect: 

• Our Featured Session: From Intelligence to Impact: Agentic AI for Faster, Smarter Supply Chains. Join Sameer Verma, Raghav Jandhyala, and Jodi Larson for a deep dive into how organizations are moving from initial AI exploration to achieving impact with agentic supply chain transformation. 

• Executive Boardroom: Join Sameer Verma, Raghav Jandhyala, and your fellow supply chain leaders for a strategic conversation and best practice sharing session where we’ll discuss how agentic-based approaches can improve supply chain speed, resilience, and business impact. CSCO Boardroom: Win the Volatility Era: Build a Faster, Agentic Supply Chain. 

Also, be sure to visit our booth during expo hours to talk to our experts and experience Dynamics 365 Supply Chain Management in person.  

The post From intelligence to impact: How agentic AI is reshaping today’s supply chain appeared first on Microsoft Dynamics 365 Blog.

Announcing new agentic customer experience capabilities in Dynamics 365 and Microsoft Copilot Studio across the entire customer lifecycle.

For years, customer experience (CX) leaders have navigated hard tradeoffs between better service and lower costs or faster resolution and deeper personalization, all while customer expectations continue to rise and teams are asked to do more with aging systems and flat headcount. Scaling growth meant scaling people. But that model has its limits.

What’s changed is agentic CX. AI can now move beyond simply assisting work to helping automate routine, predictable tasks throughout the customer journey. That shift frees teams to focus on the moments that require uniquely human skills including judgment, empathy, and creativity. And it has the opportunity to completely transform customer experience into a critical growth engine for organizations that adopt it now.

Today, we’re introducing real-time voice agents in Microsoft Copilot Studio and new agents in Dynamics 365 Contact Center, Dynamics 365 Sales, and Dynamics 365 Customer Insights.

Dynamics 365 Contact Center

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New real-time voice agents in Microsoft Copilot Studio

Voice becomes even more critical in the era of AI to build trust and resolve complex high-stakes issues. According to research from Metrigy, “82% of all interactions use voice, either initially or as an escalation.“

We’re excited to announce the general availability of real-time voice agents in Copilot Studio, supporting the next generation of real-time voice models, extending traditional Interactive Voice Response (IVR) by using natural and flexible conversations with generative AI. Now, customers can simply talk like they normally would—without having to follow rigid pre-defined prompts. As customers move seamlessly between self-service and human support, the system carries context forward, so customers don’t need to repeat themselves.

Copilot Studio is Microsoft’s enterprise agent building platform allowing IT to build, manage, and deploy sophisticated custom agents. In addition to allowing customers to build custom agents, we’re bringing real-time voice capabilities to pre-built agents in Dynamics 365 Contact Center—available starting today.

Agentic contact center: Where customer intent drives action

Customers want a single, continuous conversation with the brands they love. Instead, they often experience fragmentation because AI in contact centers is often deployed as disconnected tools—self-service, agent assist, quality, and operations—leading to lost context and broken experiences.

Dynamics 365 Contact Center addresses this by treating the customer journey as a single, connected experience rather than a series of isolated moments. With the Customer Assist Agent, Quality Assurance Agent, and Service Operations Agent, AI spans the full contact center lifecycle, from self‑service and agent assistance to quality management and operational governance.

This isn’t about replacing our customer teams—it’s about allowing them to do what they do best: being there for customers when they really need them. By taking the drudgery out of back office work, agentic AI can recommend the next best action and do the heavy lifting behind the scenes, giving our teams more time to support customers and driving better outcomes for both customers and employees.

—Laura Mason, CEO, Legal & General Retail

Customer Assist Agent (generally available) manages high‑volume requests across voice and digital channels, carrying context through to resolution, including support for the real‑time voice agents discussed above and proactive communication. Real‑time voice agents, built and configured in Copilot Studio, support natural speech, interruptions, and multi‑language switching to help resolve common issues efficiently and in the way that customers prefer to communicate.

Quality Assurance Agent (generally available) continuously evaluates both AI and human interactions, tracking quality, sentiment, compliance, and resolution effectiveness in real-time, so supervisors can intervene earlier and coach their teams more effectively. Service Operations Agent (public preview) enables leaders to set up, configure, and optimize contact center operations through a guided, conversational experience without requiring deep technical expertise.

Together, these agents span the entire customer lifecycle, from self-service to operations, continuously learning from every interaction to deliver smarter, higher-quality customer experiences.

Agentic sales: Turning signals into momentum

Sales teams don’t lose deals because they lack data. They lose momentum managing it. Today, we’re introducing five new agentic features in Dynamics 365 Sales that automate routine work, keep data current, and proactively drive next best actions, keeping deals moving forward with greater speed and confidence.

Smarter signals give sales leaders a clearer, real-time view of the business so they can act sooner and drive opportunities forward. In complex deals, momentum often breaks when customer communications are scattered across emails, meetings, and documents, but Sales Opportunity Agent (generally available) acts as an AI deal brain synthesizing insights across Dynamics 365 and Microsoft 365 to surface risk early, flag shifts in engagement, and guide sellers to the next best actions without manual analysis or context switching.

Alongside it, new Operations Research (generally available for Premium customers) in Sales Research Agent (generally available) brings together pipeline, operational, and financial signals, so leaders walk into forecast calls with clarity on revenue health, risk, and confidence.

Two new agentic features that we’re announcing today are designed to increase seller productivity, help keep customer relationship management (CRM) data accurate, and move deals forward. Data Enrichment (generally available for Premium customers) and Recommended Actions (public preview for Premium customers) connect signal directly to action automatically keeping CRM fields like budget, contacts, and close dates up-to-date while surfacing the most impactful next step across leads, opportunities, and accounts right where sellers already work.

With Voice to CRM notes for Outlook and Microsoft 365 mobile applications (public preview), sellers can simply speak to capture updates, such as logging notes, updating opportunities, and surfacing what matters next—reducing manual effort while improving data quality and deal velocity wherever work happens.

AI‑driven data enrichment will improve the quality, consistency, and completeness of customer data in Dynamics, reducing administration for every person on the sales teams while improving our ability to action, analyze, and improve customer outcomes.

—Nick Segger, Head of Sales and Agency Transformation, NFU Mutual

Agentic customer insights: From campaigns to conversations

Conversational Journeys (generally available) in Dynamics 365 Customer Insights and Dynamics 365 Contact Center lets marketers, service reps, and sellers design multi-channel journeys that include AI-powered two-way conversations. Conversational Journeys is already available for phone interactions, and we are expanding this capability to SMS.

Now, the same continuity currently available in voice is extended to text for even more convenience to customers. Users can create AI agents that understand intent, adapt in real-time, and complete tasks end-to-end, stepping in with a human only when it truly matters. The result is simpler service resolution and more growth potential, with marketing teams able to drive action directly within a text whether it’s a reminder, a reorder, or a loyalty moment.

Get started with agentic CX: Real-time voice agents are available now

Ready to get started with these new agents? Connect with your Microsoft sales representative to explore upgrading to Premium or contact sales to learn more. For additional details, check out the Copilot Studio blog on real-time voice agents and our technical Dynamics 365 Contact Center blog, which dives deeper into the three new agents.

Note: Some of the capabilities described are in preview and subject to change. Customer examples are provided for illustrative purposes only. Results may vary. AI-generated insights should be reviewed by qualified personnel before action is taken.

The post Turning customer experience into a growth engine appeared first on Microsoft Dynamics 365 Blog.

Manufacturing leaders today are under constant pressure: volatile demand, fragile supply networks, inventory risk, and zero tolerance for missed customer commitments. Plants must protect margins and maintain uptime while responding to disruption with incomplete or delayed information. 

To lead in this environment, manufacturers need decision-making that surfaces risk earlier, absorb supply shocks faster, and replans quickly, so production stays aligned to demand and customer commitments. 

Microsoft Dynamics 365 is your agentic enterprise resource planning (ERP) foundation

Dynamics 365 gives manufacturers a connected foundation where signals from demand, supply, capacity, and cost can drive action. As part of the Microsoft platform, it brings together data, analytics, automation, and collaboration across the business. 

Imagine a manufacturing stack where every part of the business is connected, where data isn’t fragmented across systems but unified into a shared understanding of operations, and where insights don’t sit in dashboards but show up in context, in the flow of work. Where your teams can build AI agents and adapt processes in real time rather than reengineering them months later. Where every person operates with the full context of the business, demand, supply, capacity, and commitments, every decision drives aligned action across the company. This is what it means to close the gap between knowing and doing. 

At Hannover Messe 2026, Microsoft is showcasing how agentic ERP with Copilot, agents and Dynamics 365 supports these operational decisions amid constant change, helping manufacturers replan faster, make better production tradeoffs, and meet or exceed customer service SLAs.   

From sensing demand shifts to mitigating supplier delays, production constraints, and equipment downtime, these signals must translate into real-time fulfillment and order promise decisions. Agentic ERP can connect planning, sourcing, production, fulfillment and service commerce to execute these decisions across the manufacturing value chain. 

Agentic demand planning can sense shifts earlier  

Demand planning can help you forecast demand, applying a structured phase in/phase out with external signals to account for market dynamics. Copilot accelerates this data analysis, scenario modeling, and incorporates market intelligence. For structured planning, Demand Planning in Dynamics 365 Supply Chain Management provides an agentic collaborative demand planning solution, powered by best-in-class forecasting algorithms and models, an immersive user experience with AI, intelligent segmentation and signal analysis, and analytics.  

“Now, we can see the item-level details and the solution populates Dynamics 365 with that information for master planning. That’s a big step forward because now we essentially have a planned budget and we can easily produce the next production cycle’s budget without manually exporting the data.” 

Patrick Keller, Head of ERP, Poloplast | Read more about how Poloplast modernizes manufacturing and streamlines forecasting and planning with Dynamics 365

Agent evaluates supplier disruption impact enabling operational resilience 

A delayed component or supplier exception is not a paperwork problem. It is a production and operational risk. Today, Microsoft announced the Procurement Agent in Dynamics 365 Supply Chain Management is available in public preview. The Procurement Agent helps teams respond faster to supply disruption by decoding supplier communications and identifying which production orders, inventory positions, and customer commitments are at risk, while keeping humans in control. Beyond triaging supplier communications, the Procurement Agent performs impact analysis so teams can assess downstream effects and act before a supplier issue turns into an on time, in full (OTIF) failure.

“Across the team, Dynamics 365 will save us a total of 20 hours weekly. The big benefit in time savings is that the agent has read the email, found the order, found the lines affected, decoded what the vendor is trying to say, and recommended actions.”

Sean Barrett, Inventory and Analytics Manager, Farmlands Cooperative | Read more about Farmlands Cooperative: Sowing the seeds of innovation with autonomous agents in Dynamics 365

Agent mitigates production constraints 

For the shop floor, Copilot, connected to Dynamics 365 Supply Chain Management via Dynamics 365 MCP Server (Model Context Protocol), can provide AI-generated insights to schedules, inventory, and orders. Copilot can also surface quality-related alerts and can suggest targeted inspections to prevent recurring recalibration issues enabling supervisors to proactively mitigate resource constraints and shortages before they impact production schedules, triggering downstream inventory repositioning and order promise adjustments across fulfillment and customer commitments. 

Dynamics 365 Supply Chain Management provides near real-time visibility to the production floor; with agentic experiences, supervisors can spend less time gathering data and more time on proactive exception management. This translates to higher Overall Equipment Effectiveness (OEE), fewer unplanned stops, and better on-time delivery to customers. 

Agent protects production uptime 

Equipment uptime and asset health are critical inputs to manufacturing performance. Unplanned downtime, delayed service, or poorly coordinated technician schedules can quickly cascade into constrained capacity and missed production targets. The Scheduling Operations Agent in Dynamics 365 Field Service can help maintain equipment availability for constrained production schedules by dynamically coordinating technician assignments based on geography, skills, certification requirements, capacity, travel time, and SLA commitments.  

Today, Microsoft announced Researcher in Microsoft 365 Copilot is available in public preview within Dynamics 365 Field Service. With Microsoft 365 Copilot in Dynamics 365 Field Service, manufacturers can use Researcher to quickly view operational information across work orders, asset and service history, and parts availability. Researcher surfaces relevant context from Field Service data and Microsoft 365 signals to help teams understand situations as they arise.

“The field technicians understand that AI can be a benefit for them. It’s really about trying to improve their overall experience as well as the customer’s”

Matthew Hashenberger, Head of Service Excellence, Siemens Smart Infrastructure (U.S.) | Learn how Siemens elevates field service operations with Microsoft Dynamics 365

Agentic warehouse management can fulfill demand faster  

As finished goods hit the warehouse, intelligent inventory on-hand balancing in Dynamics 365 Supply Chain Management warehouse management updates slotting to align demand with pick zones. When inbound put-away happens, workers are directed to the best locations based on the intelligent inventory balancing, keeping the warehouse organized dynamically. On the outbound side, optimized pick routes shorten travel distance. The combined outcome is higher throughput with the same labor—faster fulfillment, lower picking cost.  

With Dynamics 365, we trust the system. It’s easy to retrieve information and know it’s correct; people can just drive the forklift over. All the considerations we have for our picking, packing, and customer details, the system is doing it for us. 

Niclas Strand, Warehouse Manager, KåKå, Orkla Food | Read more about why Orkla Food Ingredients’ Dynamics 365 transformation is a sweet upgrade

Agentic B2B Commerce aligns customer orders to production reality 

As manufacturers and industrial distributors modernize how they sell, serve, and scale, digital ordering is becoming a core capability of the ERP rather than a standalone channel. Dynamics 365 Commerce enables manufacturers to support complex buying and selling models including business-to-business (B2B), business-to-business-to-business (B2B2B), and multioutlet ordering across direct customers, distributors, and dealer networks. 

Agentic B2B commerce can help automate routine ordering, replenishment, and quote-to-order processes while remaining tightly connected to pricing, inventory, warehousing, and production planning. This can allow manufacturers and distributors to accelerate order cycles, strengthen partner collaboration, and scale indirect growth with accuracy and control. 

Partner agents to empower manufacturers and solve unmet needs 

Frontier Manufacturing Firms can extend ERP embedded‑operational decisioning using Copilot and agents built with the Dynamics 365 ERP MCP Server. Microsoft’s partners are building agents to solve high friction manufacturing workflows, including engineering change impact analysis, product recalls, and configure-price‑quote‑ processes, enabling manufacturers to execute operational decisions across sourcing, production, and fulfillment within the systems they use to run their business. 

“With the Experlogix CPQ MCP Server and Dynamics 365 ERP manufacturers can turn Copilot into a revenue agent that understands complex configurations, validates engineering rules and constraints, and generates accurate quotes instantly. This accelerates sales cycles, with many customers reducing time to quote by well over 90%.”

Louis-Philippe Perras, CTO, Experlogix 

“Cegeka’s Quality Impact Recall Agent turns disruptive recall events into a controlled, orchestrated process for manufacturers reliant on end-to-end traceability. Running inside Dynamics 365 Supply Chain Management, companies handling batch- or serial-controlled products can identify affected materials across plants and distribution channels in minutes, trigger automated communication flows, and accelerate quality-investigation cycles. This approach supports manufacturers in maintaining continuity, reducing risk, and protecting both customers and brand reputation.” 

Stijn Geeroms, VP Business Solutions, Cegeka

“The most expensive moment in manufacturing isn’t when something breaks. It’s when an engineering change gets approved without anyone understanding the impact. Manufacturers don’t need another disconnected AI tool to fix that. They need intelligence embedded where they already work. That’s why we built the Staedean ECM+ Impact Agent natively on Copilot inside Dynamics 365 – your rules, your data, your answer – without asking teams to leave the system they run their business in.”

Michiel Toppers, Chief Product Officer, Staedean

These agents extend ERP-embedded decision execution into engineering, quality, and configure-to-order workflows that directly impact production scheduling and customer commitments. 

Become a Frontier Manufacturing Firm 

The manufacturers that lead this next era will be the ones who can respond to demand shifts, supplier delays, and equipment constraints by coordinating planning, production, fulfillment, and customer commitments across the value chain in real time. 

Microsoft is committed to helping manufacturers make that transition, combining a connected Dynamics 365 foundation with Copilot and agents embedded in everyday workflows plus a partner ecosystem that brings manufacturing expertise to the front line. Join us and become Frontier.  

Join us in person at Hannover Messe 2026: 

• Return on Intelligence: The Next Frontier of Manufacturing, Dev Cupp, Yitshak Kesselman, Monday, April 20, 2026, 2:00 – 2:30, Hall 25, Center Stage
• From Insight to Action: The Rise of Agentic Supply Chains in Manufacturing, Sam Schotte, Monday, April 20, 2026, 3:30 – 3:50, Hall 17, Stand G06 

Register to watch a series of executive conversations recorded at Hannover Messe 2026: Executive Insights: Unlock the Future of Industrial Intelligence 

The post Becoming a Frontier Manufacturing Firm: Agentic decisions across the manufacturing value chain appeared first on Microsoft Dynamics 365 Blog.

Growth is exciting—but it introduces complexity. 

As small and midsize businesses scale, finance and operations become harder to manage. Transactions increase, reporting requirements expand, and disconnected systems start to strain visibility and margins. What once worked becomes a constraint. 

A newly published Forrester Total Economic Impact™ (TEI) study helps quantify what many organizations are already experiencing: modernizing on Microsoft Dynamics 365 Business Central delivers measurable financial impact.

Microsoft commissioned Forrester Consulting to evaluate the potential return on investment organizations may realize by deploying Business Central. Based on interviews with four business decision makers, which were aggregated to model a fictitious composite organization¹, the study projected that the composite organization could potentially realize: 

• More than 200% return on investment (ROI) over three years 

• An estimated $460K net present value (NPV) over three years 

• Potential payback in six months 

Across finance productivity, enterprise resource planning (ERP) consolidation, improved profitability, and reporting efficiency, the composite organization modeled by Forrester realized more than $680K in three‑year, risk‑adjusted present value benefits. 

These outcomes reflect the potential impact of modernizing finance and operations on a single, integrated cloud ERP platform—while also establishing the foundation for AI‑powered experiences like Microsoft 365 Copilot and intelligent agents. 

Where the value comes from

The Forrester TEI study highlights several areas where organizations can potentially realize tangible, risk‑adjusted benefits when using Business Central. 

Support faster, more efficient finance operations

Manual processes often slow growing organizations. Interviewed customers reported meaningful efficiency gains across accounts payable (AP), accounts receivable (AR), billing, and financial close. 

By year three, the composite organization was projected to potentially achieve: 

• Up to 30% reduction in monthly close time 

• Up to 50% time savings for AP, AR, and billing activities 

These improvements translated to more than $215K in present value over three years in finance productivity alone for the composite organization—allowing teams to shift focus from reconciliation to higher‑value analysis. 

Standardizing data and workflows in Business Central also creates the conditions necessary for AI‑enabled automation. While AI benefits were not independently quantified in this study, interviewees noted that unified processes accelerate the adoption of Copilot‑supported approvals, variance analysis, and exception handling. 

Lower total cost of ownership through ERP consolidation

Interviewees reported operating aging on‑premises ERP systems alongside spreadsheets and disconnected point solutions. Consolidating onto Business Central reduced infrastructure complexity and IT overhead. 

The study projected the following potential benefits for the composite organization over three years: 

• More than 10% reduction in total cost of ownership (TCO) 

• More than $170K in present value savings from retired systems and reduced maintenance 

Beyond direct savings, simplification can reduce operational risk and improved scalability—allowing organizations to grow without layering on new systems to compensate for gaps. 

Enable improved profitability through better visibility

Unified, real‑time visibility across finance and operations enables faster, more informed decisions. 

By year three, the composite organization was modeled to potentially experience: 

• Up to 3% improvement in net profit margins 

• More than $245K in present value from improved profitability 

Better insight into costs, projects, and performance enables earlier course correction. AI‑powered experiences such as Copilot can further assist by surfacing cost variances, project overruns, or unbilled work sooner. While AI alone does not drive margin improvement, modern ERP data and standardized processes strengthen an organization’s ability to act with precision. 

Fast reporting and audit readiness

Business Central’s integrated data model and native Microsoft Power BI capabilities streamlined reporting and audit preparation. 

Based on modeling by Forrester, by year three, the composite organization was projected to potentially reduce: 

• Audit preparation time by up to 30% 

• Time spent creating internal and executive reports 

These projected improvements were valued at nearly $50K in present value, while also enabling increased confidence in data accuracy and consistency. 

Beyond the numbers: Building an AI-ready foundation

In addition to quantified financial outcomes, interviewees highlighted broader operational improvements, including enhanced customer experience, reduced days sales outstanding (DSO), better warehouse management, and a more intuitive user experience. 

Just as importantly, Business Central provides an AI‑ready ERP foundation. 

By unifying finance and operations data and aligning processes to best practices, organizations are better positioned to leverage Copilot, Power BI, and intelligent agents to: 

• Help reduce time-to-insight—not just report creation
• Surface anomalies and trends quickly 
• Enable more proactive, data‑driven decision‑making 

While AI‑driven outcomes were not directly measured in this TEI, the study reinforces a critical principle: realizing AI value at scale depends on clean data, integrated systems, and standardized processes. Business Central delivers that foundation. 

Read the full study

For SMB‑focused organizations and partners evaluating ERP modernization, the full Forrester TEI study provides a detailed financial framework to help quantify potential projected value—grounded in customer interviews and risk‑adjusted modeling. 

Join us at Directions North America 2026

The Forrester TEI study highlights the potential value organizations may realize with Business Central—from faster financial processes to improved profitability and lower total cost of ownership. 

We’ll continue these conversations at Directions North America 2026, where partners, Microsoft engineering, and product leaders come together to discuss what’s next for the Business Central ecosystem and the future of AI-powered ERP. 

Join me for the keynote, where I’ll explore how Business Central is evolving into an AI-powered system of action with Copilot and intelligent agents. 

Attendees will: 

• Gain insight into the Business Central roadmap 
• Prepare for upcoming AI-powered capabilities 
• Connect directly with Microsoft engineering and product experts 
• Engage with partners across the Business Central community 

1. Composite organization assumption: Results are based on a Forrester modeled composite organization derived from customer interviews, with $50M in annual revenue, 300 employees, 15 core finance and accounting users, and 100 light users, using Dynamics 365 Business Central in a cloud deployment. All quantified benefits represent the three-year, risk-adjusted present value for the composite organization.

The post Enable accelerated growth with confidence: A Forrester TEI study projects more than 200% ROI over three years and six-month payback using Dynamics 365 Business Central appeared first on Microsoft Dynamics 365 Blog.

As organizations continue to seek ways to differentiate through exceptional customer service, many are turning to emerging agentic AI capabilities as a catalyst for transformation. However, the promise of agentic service—better experiences, greater efficiency, and continuous improvement—can only be realized when AI is deeply embedded and seamlessly orchestrated across every workflow and channel. This requires more than just automation; it demands a unified context and intelligence layer that travels with the work.

At Microsoft, we believe the future of customer service is one where Microsoft Dynamics 365 becomes the context and intelligence platform for Copilot and AI agents, grounding every interaction in rich customer data and business processes. With Dynamics 365 providing composable skills across the tools people already use every day, we enable intelligent, proactive self-service and augment human capabilities. This empowers service reps, supervisors, and leaders to amplify their impact, delivering more consistent, personalized, and effective service at scale.

The Forrester Wave™: Customer Service Solutions, Q1 2026

Microsoft has been recognized as a Leader

Read the report

With Microsoft Dynamics 365 Customer Service, we’re already delivering on this vision, helping our customers achieve tangible business outcomes with agentic service. Dynamics 365 Customer Service combines our latest AI advances with robust core capabilities, all deeply integrated with the entire Microsoft portfolio across Microsoft 365, Dynamics 365, Microsoft Power Platform, Microsoft Azure, and the Microsoft Fabric data platform.

​Today, we’re excited to announce that Microsoft has been named a Leader in The Forrester Wave™: Customer Service Solutions, Q1 2026.

Delivering measurable outcomes with agentic service

Our customers and the industry at large recognize we’re leading the way in agentic service innovation and enterprise adoption.

In Dynamics 365 Customer Service, AI agents orchestrate context and automate workflows in simple and complex inquiries across voice and digital channels. Agents can handle routine interactions and execute actions autonomously within robust governance and compliance guardrails. Customer Intent Agent continuously discovers new intents from conversations across channels, enabling evergreen self-service.

Agents like Case Management Agent automate repetitive tasks and integrate with Copilot to surface next-best actions during human-assisted interactions, helping reps offer rapid resolutions.

Importantly, these service agents create self-learning loops, helping improve resolution accuracy and speed. This continuous improvement extends to service reps as well. Quality Evaluation Agent monitors service quality in AI-powered and human-assisted interactions to enhance agent performance and recommend coaching opportunities for reps. Meanwhile, Customer Knowledge Management Agent adapts knowledge bases, updating content and generating new articles based on fresh insights or recurring issues.

This powerful combination of agentic and human service is orchestrated through Agent Hub, which routes tasks to the most appropriate AI agent or service rep and optimizes task distribution based on real-time KPI results.

Customers like Visa are saving time by using the Customer Knowledge Management Agent to turn customer conversation data into knowledge articles.

Auto-knowledge generation reduces article creation time by 88%, from four hours down to 30 minutes per article. And by mining 7,000 cases, we’ve been able to produce 700 knowledge articles, just for one line of business and we continue to accelerate knowledge creation at scale.

Lidia Daldoss, Vice President, Service Digitization & AI Acceleration, Visa

Accelerating successful AI adoption

Despite the numerous benefits on offer, navigating the AI adoption journey can be extremely complex for many organizations. Sometimes there’s uncertainty about where to start, or a lack of clarity about how to get a measurable return on AI investments.

Microsoft simplifies AI adoption, enabling organizations to quickly realize significant efficiency and productivity gains in customer service operations. We offer structured guidance and proven methodologies to help accelerate adoption success for organizations at every level of AI maturity.

Our customers particularly value the FastTrack for Dynamics 365 program, which is built on our Success By Design framework that paves the way for effective solution design, deployment, and operation. With proactive, expert guidance, organizations can confidently implement an agentic service platform based on advanced technologies that are already delivering tangible business outcomes for enterprises worldwide.

Enhancing core customer service capabilities

While AI agents automate and orchestrate workflows, and Copilot provides contextual guidance for reps, Dynamics 365 Customer Service also offers a strong set of core capabilities.

Intelligent, omnichannel routing, for example, is a cornerstone of effective service, directing inquiries to wherever customers will find the fastest path to resolution. Similarly, Microsoft’s longstanding strengths in business intelligence, process management, and forecasting and scheduling provide an essential foundation for efficient operations.

Integration with Microsoft Teams also enables seamless collaboration across service, sales, and marketing, streamlining issue resolution and highlighting opportunities to enhance the end-to-end customer experience.

Another notable strength of Dynamics 365 Customer Service is its extensibility, both within Microsoft’s suite of business applications and productivity tools, and across our extensive partner ecosystem and third-party marketplace.

The biggest impact of Dynamics 365 is that the customer information is more centralized, which saves time and gives us a 360-degree view of the customer.

Petra Velten, Business Expert Customer Service, Lufthansa Cargo

With Dynamics 365, our team has a single pane of glass with all customer information and tasks in one place. The Rheem knowledge base within Dynamics 365 Customer Service also gives [reps] fast, easy access to specific product information during customer calls.

Jordan Bond, Senior Manager, Product Owner, Dynamics Service, Rheem

Amplify your impact with Dynamics 365 Customer Service

We’re delighted to be recognized as a Leader in The Forrester Wave™, but this is just the beginning of the agentic service era that Microsoft and our partners are shaping. We’ll continue to make significant R&D investments that help accelerate AI breakthroughs and work alongside our pioneering customers to define the future of service.

Explore how you can boost efficiency and enhance service in every channel:

• Dynamics 365 Customer Service
• Dynamics 365 Contact Center

Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity here.

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