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?

Reimagine your procurement strategy

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

Get started today

The post Reinventing source-to-pay with agentic ERP 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.

We’re entering a new era of AI-powered business applications, and today we’re excited to publish the 2026 release wave 1 plans for Microsoft Dynamics 365, Microsoft Power Platform, and role-based agents in Microsoft 365 Copilot, outlining a broad set of capabilities slated for release between April 2026 and September 2026. These updates reflect our ongoing commitment to making AI an essential partner in how organizations operate, innovate, and grow.

Dynamics 365 leads this wave with AI-powered, agentic innovations across sales, service, finance, supply chain, human resources (HR), and commerce—helping organizations unify data, automate processes, and elevate customer and employee experiences. Microsoft Power Platform continues to expand modern app development, intelligent automation, and enterprise-grade governance to empower makers and developers to innovate with confidence. Role-based agents in Microsoft 365 Copilot further evolve into intelligent daily command centers, helping to deliver richer, data-grounded insights and extensibility that help teams work smarter across every role.

To help you stay current on the most important and innovative capabilities, we’re moving beyond bi-annual launch events to lighter, more frequent business applications updates, featuring expert insights and demonstrations from Microsoft product leaders and engineers.

• Watch on demand: Dynamics 365 Business Applications Update
• Register for the Power Platform and Copilot Studio update April 15 at 9 AM PDT

Be sure to stay updated on the latest features and create your personalized release plan using the release planner.

Highlights from Dynamics 365

2026 release wave 1 updates for Dynamics 365 deliver AI-powered, agentic experiences across sales, service, finance, supply chain, commerce, HR, projects, sustainability, and enterprise resource planning (ERP)—bringing deeper Copilot integration, intelligent automation, unified customer and operational data, and enhanced cross-app capabilities to help organizations drive efficiency, elevate customer and employee experiences, and operate with greater agility and confidence.

Dynamics 365 Sales

Dynamics 365 Sales brings the power of AI to help sellers build their pipeline, enrich opportunities, and accelerate deal closure, while helping sellers easily access accurate, up-to-date information and recommending high-impact actions that sellers can take. Copilot experiences in Dynamics 365 Sales can draw on data spanning customer relationship management (CRM) and Microsoft 365 signals, like email and meeting recaps, to deliver actionable insights across Dynamics 365 and Microsoft 365 experiences.

Dynamics 365 Customer Service

Dynamics 365 Customer Service will continue to enhance agentic capabilities across case management, email, customer intent, quality evaluation, and knowledge management. AI-infused admin and supervisor help to provide more transparency and quicker time-to-value. These investments strengthen end-to-end service orchestration, from helping identify customer intent to driving autonomous workflows that elevate service quality and responsiveness.

Dynamics 365 Contact Center

Dynamics 365 Contact Center advances the agentic contact center in 2026 release wave 1 with new AI-powered capabilities that improve self-service, support accelerate assisted service, and help organizations run contact center operations more intelligently in 2026 release wave 1. It expands to include emerging channels, supervisor insights, and extensibility, giving organizations a unified, AI-powered system to elevate the customer experience.

Dynamics 365 Field Service

Dynamics 365 Field Service strengthens service execution across technician productivity, resource scheduling, and work order management. Investments focus on mobile usability and reliability, intelligent scheduling through the Scheduling Operations Agent, and end‑to‑end execution across assets, projects, and financial operations in this release wave. Together, these updates help organizations manage service complexity and deliver consistent service outcomes.

Dynamics 365 Sustainability

Dynamics 365 Sustainability introduces more intuitive reporting navigation, advanced calculation versioning, and granular data‑locking to reinforce governance and regulatory confidence in this wave. Expanded finance integration, streamlined workflows, and updated templates and factor libraries will further empower organizations to make informed decisions and support progress toward their sustainability goals.

Dynamics 365 Finance

Dynamics 365 Finance delivers continued global scale enhancements that drive greater financial automation, strengthen global regulatory compliance posture, and enhance financial planning and analytics—helping organizations operate more efficiently and achieve their financial and operational goals with confidence.

Dynamics 365 Supply Chain Management

Dynamics 365 Supply Chain Management’s 2026 wave 1 enhances supply and demand planning with price-demand correlation and capacity-to-promise (CTP) date protection. Supplier communication and engagement are streamlined, while warehousing gains AI-powered picking, inventory rebalancing, and hands-free scanning—driving supply chain efficiency.

Dynamics 365 Project Operations

Dynamics 365 Project Operations brings rich capabilities in 2026 release wave 1—from change order support and smarter project planning to smoother quoting, budgeting, and contract workflows. New enhancements streamline item consumption, mobile expense management, subscription billing, and modern-architecture migration—delivering connected project experience.

Dynamics 365 Commerce

Dynamics 365 Commerce strengthens business-to-business (B2B) with multi-outlet ordering, unified sign-in, outlet-specific catalogs, and built-in credit management to help reduce friction and protect cash flow. It modernizes order management and assisted-selling workflows in retail stores, helping to improve associate productivity, and customer experiences across channels. It also enables cross-legal-entity inventory lookup and flexible, attribute-based pricing to help accelerate mass updates and help drive higher sales.

Dynamics 365 Human Resources

Dynamics 365 Human Resources continues to advance in areas such as recruitment, onboarding, reporting, and integrated workforce management. By merging enhanced user experiences with broader ecosystem integration and expanding regional payroll collaborations, the platform enables organizations to optimize employee engagement, support operational accuracy, and confidently achieve their workforce objectives.

Finance and operations cross-app capabilities

Finance and operations cross-app capabilities will introduce new enhancements that strengthen the foundation for AI experiences across Dynamics 365. These updates include improvements to Model Context Protocol (MCP) servers, as well as the general availability of immersive home, which is an AI-powered workspace designed to help users stay focused and prioritize what matters most.

Dynamics 365 Customer Insights – Data

Dynamics 365 Customer Insights – Data acts as the grounding layer for CRM copilots and AI agents, delivering real‑time, unified customer profiles that help power accurate decisions. With enriched data, teams can act on insights directly in their workflow to deliver timely, personalized experiences that deepen engagement and drive better outcomes. The result is an AI-ready data core that elevates agents and helps deliver more connected, intelligent CRM experiences.

Dynamics 365 Customer Insights – Journeys

Dynamics 365 Customer Insights – Journeys empowers end-to-end, agentic customer engagements across sales, marketing, and service, allowing businesses to proactively react to customer behavior using Copilot and AI agents. With smarter orchestration tools, teams can deliver impactful campaigns at scale to drive stronger relationships, higher efficiency, and revenue growth. Part of Dynamics 365, every interaction within your organization benefits from shared data and consistent intelligence across Microsoft CRM applications.

Dynamics 365 Business Central

Dynamics 365 Business Central accelerates the move to agentic ERP with enhancements to our AI‑powered agents that automate sales and purchase scenarios in 2026 release wave 1. Alongside new business capabilities, we invest heavily in developer productivity to support extensibility—improving advanced language (AL) testing, debugging, Copilot extensibility, and agent design.

Highlights from Microsoft Power Platform and Microsoft Copilot Studio

2026 release wave 1 updates for Microsoft Power Platform deliver modernized app experiences across Power Apps and Power Pages, AI-powered automation and agent innovation in Power Automate and Copilot Studio, enhanced Dataverse intelligence and programmability, and strengthened governance, security, and cost management capabilities to help organizations build, scale, and manage intelligent solutions with confidence.

Power Apps

Power Apps continues to modernize app experiences with a refreshed model-driven user interface (UI), improved mobile and offline capabilities, streamlined search, and expanded AI features. This release brings standardized modern theming to everyone, real-time Dataverse access for offline-first canvas apps, enhanced search in grids and lookups, and broader availability and extensibility of generative pages to help teams build and scale intelligent apps faster.

Power Pages

Power Pages will further empower pro-developers and low-code makers to build intelligent business portals for your employees, customers, citizens, and partners through better integration with market leading AI tools. Additionally, enhanced security agent features will further support low-code makers, pro-developers, and admins with actionable insights and abilities for securing their websites.

Power Automate

Power Automate is Microsoft’s comprehensive automation platform for cloud flows, desktop flows, and process mining. This release introduces AI agent authoring, optimization, and self-healing capabilities for desktop flows, Copilot Studio-powered actions in cloud flows, enhanced maker and collaboration tools across both, general availability of object-centric process mining, and consolidated governance reporting.

Microsoft Copilot Studio

Microsoft Copilot Studiocontinues its journey to make agent and agentic workflows even easier to build and more powerful. Now you can further customize agents built with Agent Builder in Microsoft 365 Copilot, and power your automation with high value AI actions. Deeper governance, multi-agent orchestration, and evaluations enable further scaling. With connections to Microsoft Foundry and Work IQ, your agents can use the latest AI technology in coordination with your organizational data.

Microsoft Dataverse

Microsoft Dataverse continues to invest in enterprise-ready agentic and low-code data platform capabilities. The spotlight is on Work IQ and Copilot integration, delivering organization-specific decisions with adaptive learning and full auditability. We’re also enhancing agent programmability with Dataverse APIs, MCP servers, and Python SDK, plus new storage management tools for enterprise-grade compliance at scale.

Microsoft Power Platform governance and administration

Microsoft Power Platform governance and administrationintroduces admin controls for agent security, real-time risk assessment in Copilot Studio, and AI-powered governance agents that automate tenant monitoring and remediation in this release. Enhanced visibility into usage patterns, granular Copilot credit usage with pay-as-you-go (PAYG) caps, and connector dependencies help you optimize costs, demonstrate return on investment (ROI), and enforce compliance with organizational policies using features within the Power Platform Admin Center. GitHub integration and deploy from Git mature your application lifecycle management (ALM) practices with full audit trails.

Business Applications Update

Power Platform &

Copilot Studio edition

Watch on demand

Updates to role-based agents in Microsoft 365 Copilot

2026 release wave 1 updates for Microsoft role-based agents transform Sales Agent and Finance Agent in Microsoft 365 Copilot into intelligent daily command centers, helping to deliver richer, data-grounded insights, enhanced chat and mobile experiences, contextual support across Outlook and Teams, and strengthened governance and extensibility to help organizations drive productivity and scale AI responsibly.

Sales Agent

Sales Agent becomes the seller’s daily command center with richer Sales Chat and Sales Home experiences across desktop and mobile in 2026 release wave 1. Sellers will gain streamlined access to deal and account insights through configurable record summaries, contextual support in Outlook and Teams, and improved email and meeting intelligence. New governance and extensibility controls will also help organizations scale AI responsibly.

Finance Agent

Finance Agent helps finance professionals and their stakeholders interact with financial information from their ERP within the flow of work. In 2026 release wave 1, we continue expanding how this financial assistant supports common finance tasks such as reconciliation, variance analysis, and data preparation in Excel, as well as customer communications in Outlook. By bringing financial insights and assistance directly into familiar productivity tools, the Finance Agent helps teams investigate issues faster, respond to stakeholders more efficiently, and spend less time manually preparing or reconciling data so they can focus more on financial analysis and decision support.

For a complete list of new capabilities, please refer to the Dynamics 365 2026 release wave 1 plan, the Microsoft Power Platform 2026 release wave 1 plan, and role-based agents 2026 release wave 1. We also encourage you to share your feedback in the community forums for Dynamics 365 and Microsoft Power Platform.

Business Applications Update

The Business Applications Update offers an early preview of new capabilities coming in the months ahead. This refreshed structure is designed to reflect the reality of our time: innovation does not happen twice a year; it is constant. Whether you are a strategic leader or a hands-on practitioner, this new cadence is built to get you quickly up to speed.

• Watch on demand: Dynamics 365 Business Applications Update
• Watch on demand: Power Platform and Copilot Studio Business Applications Update

The post 2026 release wave 1 plans for Microsoft Dynamics 365, Microsoft Power Platform, and Copilot Studio offerings appeared first on Microsoft Dynamics 365 Blog.

Enterprise resource planning (ERP) decisions are among the most consequential investments a business can make; shaping how organizations operate, scale, and compete for years to come. Yet many ERP transformations have historically carried risk: high costs, long timelines, heavy customization, and uncertain returns.

To bring clarity to these decisions, Microsoft commissioned Forrester Consulting to conduct two independent Total Economic Impact™ (TEI) studies examining the business value of Microsoft Dynamics 365 ERP on enterprises and midmarket organizations.

• The Total Economic Impact™ of Microsoft Dynamics 365 ERP for Enterprises
• The Total Economic Impact™ of Microsoft Dynamics 365 ERP for Midmarket Organizations

From fragmentation to integration: Why ERP modernization matters

Across both 2026 studies, Forrester’s projections showed organizations from a similar place: fragmented ERP landscapes, siloed data, manual processes, and highly customized legacy systems that were difficult to upgrade or scale. These environments could limit real-time visibility, slow decision-making, and increased operational risk; particularly as organizations grew, expanded into new markets, or managed increasingly complex supply chains. These constraints didn’t just slow operations; they could limit a leader’s ability to respond to volatility, growth, and supply chain disruption with confidence.

In response, organizations turned to Microsoft Dynamics 365 ERP to consolidate finance and supply chain operations with a unified, cloud-based platform. By centralizing data and standardizing processes, organizations can improve operational efficiency and gain timely, actionable insights across the business.

Importantly, this shift reframed ERP from a back-office system of record to a platform for informed, faster decision-making that connects data, people, and processes across the enterprise.

Quantifying business value with Forrester’s TEI methodology

The strength of the TEI studies lies in their focus on quantifiable business impact. Forrester evaluated benefits, costs, flexibility, and risks over a multi‑year period, modeling a composite organization based on real customer interviews and survey responses. This approach allows leaders to evaluate ERP investments using a transparent financial framework rather than vendor claims alone.

Enterprise ERP: Financial impact at scale

In the enterprise TEI study, Forrester modeled a composite organization representing large, complex businesses using Dynamics 365 ERP. The analysis projects that over three years, the organization achieved:

• 101% return on investment (ROI)
• Net present value (NPV) of $12.9 million

These results were driven by a combination of operational efficiency gains, productivity improvements, and cost reductions, particularly from consolidating legacy systems and reducing infrastructure and IT operations spend.

The study highlights that value did not come from isolated features, but from standardizing processes, unifying data across finance and supply chain functions, and reducing reliance on heavily customized, on-premises ERP environments.

Key enterprise findings business leaders should note

For business decision makers evaluating ERP at scale, several findings stand out:

• Improved operational efficiency and productivity can be enabled through streamlined workflows and better access to real-time insights
• Reduced infrastructure and IT operations costs can be enabled by retiring multiple legacy systems and shifting to a cloud-based ERP model
• Faster, more confident decision making enabled by unified financial and supply-chain data

Together, these benefits contributed directly to the projected positive NPV and ROI modeled in the study, reinforcing ERP modernization as a business investment, not just an IT upgrade.

Midmarket ERP: Enterprise-grade value without enterprise complexity

While enterprises face complexity at scale, midmarket organizations often face a different challenge: how to grow without adding disproportionate cost or operational overhead. Forrester’s Total Economic Impact™ study of Microsoft Dynamics 365 ERP for midmarket organizations examined how modern ERP can support expansion, improve visibility, and standardize operations without the burden of traditional enterprise‑scale implementations.

In the study, Forrester modeled a composite midmarket organization based on customer interviews and survey data. The analysis projects that the organization would achieve:

• Payback in 16 months
• Net present value (NPV) of $3.3 million over three years

These outcomes were driven by streamlined finance and supply chain operations, automation of manual processes, and the replacement of disconnected legacy systems with a single, cloud‑based ERP platform. By consolidating systems and standardizing processes, organizations can reduce operational friction while supporting improved visibility and control across the business.

Key midmarket findings business leaders should note

For midmarket decision-makers, the study highlights several critical outcomes:

• Enabled faster time-to-value, with measurable financial returns realized in just over a year
• Enabled improvements to operational efficiency and productivity through streamlined finance and supply chain processes and automation of manual tasks
• Potentially reduced complexity and IT overhead by replacing disconnected legacy systems with a unified cloud ERP platform

These benefits contributed directly to the projected positive NPV and rapid payback modeled in the study, reinforcing ERP modernization as a financially disciplined investment for midmarket organizations focused on growth and resilience.

Why independent research matters for ERP decisions

ERP investments shape the future of an organization for years—sometimes decades. That’s why independent, third-party validation is critical. The Forrester TEI studies do not ask leaders to accept conclusions at face value; instead, they provide:

• A transparent financial model
• Explicit assumptions and risk adjustments
• Clear linkage between operational improvements and economic outcomes

For executives, CFOs, COOs, and IT leaders, these studies offer a common language for aligning stakeholders and setting realistic expectations for ERP transformation.

Go deeper: Explore the full Forrester TEI studies

This summary only scratches the surface. The full Forrester Total Economic Impact™ studies include detailed benefit breakdowns, cost considerations, and financial modeling that business leaders can adapt to their own organizations.

• The Total Economic Impact™ of Microsoft Dynamics 365 ERP for Enterprises
• The Total Economic Impact™ of Microsoft Dynamics 365 ERP for Midmarket Organizations

For organizations considering ERP modernization, these studies provide a data-driven foundation to evaluate options, build a credible business case, and make informed decisions with confidence.

The post Forrester studies project more than 100% ROI for enterprises and 16-month payback for midmarket organizations using Dynamics 365 ERP appeared first on Microsoft Dynamics 365 Blog.

When customers place an order, they expect speed, accuracy, and reliability. Behind the scenes, inventory-to-deliver processes are what makes that promise possible, helping to ensure the right products are available at the right time to meet customer expectations while controlling costs. For operational professionals, inventory isn’t just a number on a spreadsheet, it’s the lifeline of the supply chain. It determines whether you can fulfill demand without delays, avoid costly stockouts, and keep working capital flowing. From procurement and production to fulfillment and customer satisfaction, inventory-to-deliver impacts every aspect of the supply chain.

In today’s fast-paced market, poor inventory visibility can lead to stockouts, excess holding costs, and missed revenue opportunities. Conversely, a well-orchestrated inventory strategy drives efficiency, reduces waste, and strengthens resilience against disruptions. It enables businesses to optimize working capital, improve cash flow, and deliver on promises consistently. So, how can an agent-ready enterprise resource planning (ERP) platform reinvent the inventory-to-deliver process?

Microsoft Cloud and agent platform enables inventory to deliver transformation

Microsoft Dynamics 365 can transform inventory management from a reactive task into a strategic advantage with an agent-ready foundation that spans across finance, supply chain, sales, and operations for a single source of truth that is both scalable and secure.

This same data foundation enables customers to buy, build, and customize agents to infuse across processes. For a refresher on understanding the agent landscape available today, visit Reinventing business process with AI: Agents in record to report where we explore the difference between first party, third party, and custom agents.

Automate vendor communication with a first party agent from Dynamics 365

The Supplier Communications Agent in Dynamics 365 Supply Chain Management is designed to automate routine procurement communications between purchasing teams and vendors. Traditionally, these interactions—such as following up on purchase orders or confirming changes—are manual, repetitive, and often handled via email, even in organizations using electronic data interchange (EDI). The Supplier Communications Agent can streamline these low-complexity tasks by automating vendor outreach and updates, freeing procurement professionals to focus on strategic activities. This not only seeks to improve efficiency but also reduces overall procurement costs by minimizing time spent on administrative work.

Explore partner agents to support the inventory to deliver process

Model Context Protocol (MCP) servers are configurable bridges between the business data within your line-of-business apps and the partner or custom-built agents you want to use. MCP serves as a universal intermediary, unlocking access to a unified platform and app data, modernizing how AI agents are interoperable with your apps. Let’s explore a few partner-built agents that will help you realize value across your supply chain today.

Warehouse Advisor Agent by MCA Connect

The Warehouse Advisor Agent leverages machine learning and predictive analytics to automate and improve key processes such as slotting, inventory consolidation, and cycle counting. By analyzing real-time data and historical trends, the agent delivers actionable insights that help warehouse teams make smarter, faster decisions.

This solution is ideal for warehouse managers, operations leaders, and supply chain professionals in distribution and manufacturing industries who are looking to reduce inefficiencies, improve inventory accuracy, and increase labor productivity. It integrates seamlessly with Dynamics 365’s Warehouse Management System (WMS), enabling users to deploy intelligent automation without disrupting existing workflows.

Inventory Acquisition and Re‑Balancing Agent from RSM

The Inventory Acquisition and Re‑Balancing Agent from RSM enables smarter inventory decisions by analyzing demand signals, supply availability, and stock imbalances in Dynamics 365. The agent can recommend rebalancing and acquisition actions to reduce stockouts, minimize excess inventory, and improve working capital efficiency.

Inbound Load Agent from Fellowmind

Fellowmind’s Inbound Load Agent can streamline inbound logistics by intelligently composing and optimizing loads based on demand, capacity, and operational constraints within Dynamics 365. The agent seeks to help logistics teams reduce transportation costs, improve warehouse utilization, and simplify complex inbound planning decisions.

Get started with agents for inventory-to-deliver processes

The Microsoft platform brings together secure, scalable cloud services with Dynamics 365’s unified ERP capabilities to streamline the entire inventory-to-delivery process. By leveraging real-time data and intelligent workflows, businesses gain supply chain agility to better meet customer expectations with precision. Partner-built agents, powered by MCP, amplify this value, enabling autonomous actions and predictive insights that transform operations from reactive to proactive. Together, these innovations create a resilient, future-ready foundation for delivering efficiency and growth at scale.

The post Agentic AI for inventory to deliver: From procurement to fulfillment appeared first on Microsoft Dynamics 365 Blog.

The way we work is transforming. Generative AI and agentic business applications are catalysts for a profound shift in how we create, collaborate, and make decisions. What once took hours now happens in moments. Ideas move faster, insights surface sooner, and the boundaries between human creativity and machine capability are blurring. This isn’t the future—it’s unfolding now, and it’s changing the very fabric of how businesses operate.

It’s a move from systems of record to systems of action. In this new era, AI agents go beyond support—they help interpret signals, uncover patterns, and initiate actions and continuously optimize processes on your behalf. At Convergence 2025, December 9–12, we’ll explore how organizations can build an AI-first autonomous enterprise powered by data, copilots, and agents working together across Microsoft Dynamics 365 and the Microsoft Cloud.

From automation to autonomy: The AI-first organization

Businesses have long pursued automation to streamline operations. The next leap is autonomy—systems that interpret signals across the business, adapt workflows in real time, and anticipate decisions. Autonomous enterprises go beyond efficiency—they are driven, adaptive, and human-centered, with intelligent systems that understand context, collaborate across processes, and deliver measurable outcomes.

We believe the recognition of Microsoft Dynamics 365 Leader placement in Gartner® Magic Quadrant™ and IDC MarketScape reports reinforces our ability to connect front-end and back-end operations into one intelligent ecosystem. Our leadership is grounded in the breadth of the Microsoft Cloud, the depth of our data estate, and our ability to bring AI, analytics, and business applications together as a unified platform to accelerate end-to-end AI transformation.

Agentic business applications are built on three connected pillars: data, Copilot, and agents—working together to change how work gets done.

1. Data: The foundation of agent autonomy

Most business processes begin with data. Finance close, order-to-cash, customer insights, case resolution, supply chain planning, field service, HR workflows—each depends on complete, connected, trusted information. When this data is fragmented across systems, agents can’t act with autonomy, and AI can only answer questions instead of accelerating outcomes.

Dynamics 365 spans both front-office and back-office operations—customer relationship management (CRM) and enterprise resource planning (ERP)—providing a continuous, end-to-end view of customers, employees, finances, supply chain, and operations. This structured, governed, and auditable data is the backbone of business processes—how work flows, how controls are enforced, and how organizations maintain compliance at scale.

As business model innovation becomes even more important, we continue to invest deeply in these core applications. We’re expanding capabilities across ERP and CRM, investing in bringing Microsoft Fabric, Microsoft Copilot Studio, and Microsoft Power Platform closer to Dynamics 365 than ever before. From connected frontlines to adaptive supply chains, business applications are becoming composable, intelligent, and outcome-driven—helping customers innovate more quickly while maintaining trust, security, and governance, adapt faster, redesign workflows, and build the operational integrity required for agent-powered processes. At Convergence 2025, you’ll see how Dynamics 365 continues to evolve as the operational engine of AI-first organizations.

At Microsoft Ignite 2025, we announced major advances in how agents connect with ERP systems. The Dynamics 365 ERP Model Context Protocol (MCP) server is evolving from static actions to a dynamic, configurable framework that adapts as business needs evolve. A new analytics MCP server extends this capability to structured metrics and insights, supporting agents to reason over governed operational and financial data—not snapshots or exports, but live business signals. Together, these updates unify data, logic, and actions into a common protocol that can simplify integration and accelerate automation.

And with MCP designed for massive scale—including support of millions of ERP actions—organizations gain the performance and extensibility required for agent-powered business processes at enterprise scale.

The entire Microsoft data and application stack—Dynamics 365 ERP and CRM, Dataverse, Fabric, and more—forms the operational engine of agentic transformation. It provides the structure, governance, and adaptability required to support AI-powered business models and next-generation workflows.

2. Microsoft 365 Copilot: Your strategic productivity partner

Copilot continues to help transform productivity across many roles. It helps sales teams move deals forward, finance teams accelerate reconciliation, and service teams resolve issues before they escalate. But Copilot is more than an assistant—it’s the connective layer that links people, data, and systems, understanding intent, orchestrating workflows, and guiding decisions across Dynamics 365, Power Platform, and Microsoft 365.

3. Agents: Plan, decide, and act

We expect AI agents will be core to how businesses operate—planning, deciding, and acting across systems to accelerate outcomes. These agents will interpret signals, identify patterns, and initiate actions to keep the business in motion.

Microsoft’s strategy spans the full agent ecosystem: first-party embedded agents inside Dynamics 365, agents for specialized industries that can be customized and extended by partners, specific partner-built agents, and custom agents created by organizations through Microsoft Copilot Studio. All share the same security, governance, and identity foundation.

For small to mid-sized businesses, Dynamics 365 Business Central brings agents directly into everyday finance and operations. The Sales Order Agent creates, validates, and updates sales orders which can help improve accuracy and speed by reducing manual entry and exception management. The Payables Agent automates vendor invoices and reconciliations, improving control while freeing finance teams from repetitive tasks. Together, these agents help Business Central customers modernize core processes with governed, AI-powered actions that keep work flowing across purchasing, sales, and accounting.

Across Dynamics 365 finance and operations, embedded agents are transforming core processes—from time and expense entry in Project Operations, to supplier outreach in Supply Chain Management, to reconciliations in Finance and technician scheduling in Field Service. These agents help reduce manual effort and bring greater precision and autonomy to everyday operations.

At Convergence 2025, we’re also thrilled to announce the public preview of the Product Change Management Agent Template—an AI-powered solution that transforms how manufacturers manage the process of change across equipment, products, and processes changes. Built on Copilot Studio, the agent automates workflows and connects critical systems, helping teams cut approval times from weeks to days, reduce errors, and bring innovations to market, faster. Learn how customers like Coca-Cola Beverages Africa (CCBA) are using this agent template to optimize their manufacturing operations.

Partner-built agents that extend industry workflows

Partners are building agents that extend domain workflows and connect directly to Dynamics 365 through the MCP. These solutions show how agent-to-agent coordination and cross-system reasoning will define the next era of enterprise automation.

Shop Floor by RSM helps manufacturers gain real-time visibility across production by bringing job details, quality checks, and operational signals into one experience. It can surface issues as they occur and support teams in resolving them quickly, helping to reduce disruptions and maintain consistent output. By connecting workers, data, and actions on the floor, the agent can support more resilient, adaptive manufacturing operations.

The PayFlow Agent by HSO helps finance teams manage vendor payment inquiries with greater speed and accuracy. It analyzes incoming emails, retrieves live payment data from Dynamics 365, and responds with up-to-date status information—which can reduce manual effort and help vendors receive clear, timely communication. The agent streamlines payment cycles and can improve transparency across accounts payable.

The Quality Impact Recall Agent by Cegeka helps organizations identify product quality issues and trace their impact across inventory and customer shipments. It coordinates notifications, guides corrective steps, and streamlines recall preparedness, which can help teams act quickly when risks emerge and maintain trust in the products they deliver.

Factorial connects to the Dynamics 365 Business Central MCP Server to deliver a new agent-to-agent experience. You can use a single Copilot interface to pull, exchange, and act on data across the systems. For example, within expense workflows, Factorial’s agent can request, validate, and reconcile financial data directly with Business Central.

Zensai’s agent integrates with Dynamics 365 Business Central to transform an organization’s operational signals into aligned goals and check-ins inside Microsoft 365. Built in Copilot Studio and connected through MCP for Dynamics 365, the agent converts finance, compliance, HR, and sales insights into structured, cascaded goals within Perform 365. At Convergence 2025, you’ll see how these first-party, partner, and custom-built agents form a connected ecosystem—and how organizations are already using them to move from automation to autonomy.

Convergence 2025

Convergence has always been where our community comes together to learn, connect, and imagine what’s next—and this year we’re reigniting that tradition at a moment of extraordinary change.

Throughout the event you’ll see how organizations are moving from systems of record to systems of agency, and how you can apply these ideas to accelerate your own AI transformation. I’m excited for you to experience everything we’ve been building.

• Learn more about Convergence
• Explore agentic business applications and agentic ERP solutions
• Sign up to receive 2026 Convergence updates

The post The era of agentic business applications arrives at Convergence 2025 appeared first on Microsoft Dynamics 365 Blog.

Tariffs change at lightning speed, threatening profits and forecasts. But for companies that stay ahead, volatility can become an edge—unlocking smarter sourcing decisions and resilience competitors can’t match. The 4,400-page Harmonized Tariff Schedule alone changes dozens of times a year.¹ One week, your steel imports have a 15% tariff. The next week? Maybe 25%. Or maybe zero if a new trade agreement sneaks through.

Every shift in the 4,400-page Harmonized Tariff Schedule puts supply chains at risk. A single misclassification can mean six-figure fines, delayed shipments, or missed revenue targets. Compliance teams burn endless hours chasing updates, while procurement and operations scramble to adjust forecasts and supplier contracts. And despite all that effort, if there is an unexpected policy change, most companies pay the price in lost time, money, and customer trust. The reality is that no human team can easily keep pace with this level of volatility and should instead look to agents and AI to help reduce the busy work and stay ahead of disruptions.

Tariffs are a textbook example of where agents have the potential to excel. No team can realistically monitor 4,400 pages of classifications that shift as chaotically as they do today. Agents take on the repetitive monitoring and data tracking that overwhelm even the best compliance team. When these kinds of tasks are handled by agents, leaders and teams can focus on decisions that move business forward. Microsoft offers multiple ways to make that real, whether you want to start small or transform your entire approach to tariff intelligence.

The Microsoft advantage: 3 ways to build tariff intelligence

Microsoft offers three distinct paths for tackling tariff changes, whether you’re ready for a complete transformation or need to start small and scale up.

1. Use first-party agents in Dynamics 365

Dynamics 365 offers a built-in supplier communication agent that automatically researches supplier information and generates outreach so you can quickly navigate tariff changes and supply chain disruptions. It pulls data from your procurement history, current inventory levels, and supplier performance metrics to identify suppliers that can answer questions about capacity, lead times, and alternative shipping routes.

When tariff changes threaten your delivery schedules, you can quickly compose communications that include relevant data from multiple systems. You no longer need to hunt through spreadsheets to find supplier contact information or manually request alternative sourcing options.

2. Build custom agents in Copilot Studio

With Copilot Studio, you can build custom agents that can calculate the impact of tariff changes on your products and contracts when asked, surface sourcing alternatives, and flag agreements that may need renegotiation.

These agents can connect to the Harmonized Tariff Schedule and Outlook as knowledge sources, and monitor supplier communications for mentions of tariffs, delivery delays, or capacity constraints. Document scanning capabilities mean contracts, shipping manifests, and regulatory updates become searchable, contextual data that informs agent recommendations. Behind the scenes, Microsoft Dataverse maintains data integrity and security with its unified structure and Application Programming Interfaces (APIs). You can deploy quickly without sacrificing governance.

These agents can also connect with your Dynamics 365 and other enterprise resource planning (ERP) systems, whether that’s SAP, Oracle, or another platform, alongside your product data, supplier information, and procurement contracts through the Model Context Protocol (MCP).

MCP is an open standard that enhances the relevance of agent responses. It facilitates the connection of AI agents to various data systems and standardizes how applications provide context to large language models (LLMs). With integration between LLM applications and external data sources, the protocol is useful for building AI-powered tools and workflows like customized tariff agents.

Security and compliance controls are built into the platform, so you can deploy agents rapidly while maintaining governance over what data they can access and what actions they can take. Want an agent that can read tariff schedules but not modify procurement contracts? Copilot Studio makes those boundaries clear and enforceable.

3. Explore partner solutions through the agent ecosystem

Microsoft’s partner ecosystem extends your capabilities with specialized agents tailored for industry-specific needs. Partners like Avanade are already building tariff and trade solutions that plug directly into Dynamics 365, so you can scale faster with proven expertise.

Avanade’s Tariff Navigator provides a single, intelligent agent experience to assess tariff exposure, model “what-if” scenarios, and proactively adjust purchasing, sourcing, and pricing decisions. The cost of inaction is steep and includes margin erosion, unexpected cost spikes, and reactive decisions that weaken competitiveness. And trying to tackle these challenges alone often leads to fragmented efforts and limited impact. Avanade is a trusted advisor with deep technical expertise and experienced industry specialists. Its consultative approach means Tariff Navigator is built around your people, tailored to how they work and the unique business challenges they face.

Using Microsoft’s low-code technologies, Avanade also allows for fast deployment of customized approaches that integrate with your existing systems and empower your teams to act quickly. The result is a practical, business-first application designed for measurable impact.

The Tariff Navigator solution by Avanade doesn’t just manage tariffs—it strengthens your organization’s ability to compete in a volatile global market. It’s about protecting profitability today while building the agility to seize opportunities tomorrow.

Beyond tariffs: Building resilience for what’s next

Tariff management offers you the opportunity to reimagine how supply chain operations handle complexity and uncertainty. The same agent architecture that helps you navigate trade policy changes can tackle other operational challenges, such as supply chain disruptions and vendor performance monitoring.

Agents you build in Copilot Studio or access from Microsoft Marketplace and the partner ecosystem have the potential to help organizations prepare trade agreements, navigate natural disasters, accidents, and other events that reshape supply chains temporarily or permanently. From a Suez Canal blockage to a geopolitical shift that reroutes global trade overnight, agents help you adapt fast.

Ready to take on changing tariffs?

Tariff volatility isn’t slowing down, and the next policy shift could hit tomorrow. The question is whether to react after the fact or build resilience now to better navigate future disruptions. Microsoft empowers customers to get started today, with custom or prebuilt agent options, depending on your needs. Dynamics 365 gives you the intelligent foundation and embedded supplier communications features. Copilot Studio lets customers build custom agents that track schedules, calculate impacts, and surface risks. Or you can use our partner solutions, like Avanade, to extend and customize agents. Either path puts AI agents to work for you, protecting margins, safeguarding compliance, and addressing volatility before it disrupts your supply chain.

Next steps

• Explore updates from the Copilot Studio and Power Platform teams to learn about Power Platform Community Conference 2025.
• Visit Avanade Tariff Navigator.
• Visit Dynamics 365 ERP solution page.
• Watch part 1 and part 2 of the day-in-the-life of a procurement manager videos on YouTube

¹Harmonized Tariff Schedule, United States International Trade Commission.

The post 3 ways to navigate changing tariffs with AI agents appeared first on Microsoft Dynamics 365 Blog.

As innovation speeds up, staying agile is essential. To keep your business ahead of the curve with innovation across Microsoft Dynamics 365, Microsoft Power Platform, and Copilot Studio, join us for the Business Applications Launch Event, debuting live on the Dynamics 365 YouTube channel on Thursday, October 23, 2025 at 9 AM Pacific Daylight Time. Subscribe to our YouTube channel to get notified when the update is live.

The Business Applications Launch Event offers an exclusive first look at new capabilities launching over the next few months.

With a newly streamlined presentation format, you can quickly get up to speed on the most important and innovative capabilities—with expert insights and demonstrations from Microsoft product leaders and engineers. It’s our way of helping you stay current, make informed decisions, and move faster in the era of Copilot and AI agents.

The update is your opportunity to:

• Get insights about the latest low-code and AI innovation transforming business from Charles Lamanna, President, Business and Industry Copilot.
• Get a sneak preview of upcoming capabilities across Dynamics 365, Microsoft Power Platform, and Copilot Studio with live demonstrations from Microsoft product leaders and engineers.
• Discover where to access materials to learn about and plan for new and upcoming capabilities.
• All in a new presentation format designed to quickly get you up to speed on the latest updates, so you can get the most from them.

During this update, you’ll hear from the product leaders and engineers behind the technology, including new Copilot and AI agent innovation for Dynamics 365 and Microsoft Power Platform. Demo highlights will include:

Microsoft Dynamics 365 Sales

Learn about updates to the Sales qualification agent. It autonomously researches and engages with leads, helping sales teams quickly identify those with real purchase intent. In this wave, the agent goes further—moving the lead closer to full qualification and boosting the team’s opportunity pipeline with greater precision and impact.

Microsoft Dynamics 365 Customer Service and Dynamics 365 Contact Center

The latest release wave of Dynamics 365 Contact Center helps service reps better understand customer needs and deliver what they need—quickly, efficiently, and with a human touch. Dynamics 365 Customer Service will continue to enhance agentic and Copilot capabilities for case and knowledge management, as well as AI-based routing. Dynamics 365 Contact Center will also focus on expanding agentic and Copilot capabilities to automate service journeys across digital and voice channels, along with introducing new omnichannel and supervisor features in the 2025 release wave 2.

Dynamics 365 ERP products and solution in Microsoft 365 Copilot

Dynamics 365 Finance expands the capabilities of the Account Reconciliation Agent. Today, it supports your team in effortlessly resolving voucher amount mismatches. In this wave, it extends support to include ledger not in subledger and subledger not in ledger exceptions. Instead of relying on manual exception handling and static reports, the solution reviews all transactions on an ongoing basis, services exceptions, and presents them to you. The agent then suggests the most appropriate action for resolution, and you have the freedom to accept it or choose another path. Core updates to Dynamics 365 Finance also include the automation of remittance advice processing.

Dynamics 365 Supply Chain Management introduces capabilities that make AI-led demand planning more flexible. You can now bring in multiple external signals like inflation, weather, and industry indexes right into your forecast.

And new autonomous and intelligent productivity capabilities for finance solution in Microsoft 365 Copilot will reshape the finance process, from reconciliation to collections to advanced analytics help reduce repetitive work and surface actionable insights.

Explore our updates in Dynamics 365 Supply Chain Management and Finance agents for Microsoft 365:

• Dynamics 365 Supply Chain Management—Improve customer impacting predictions with the Data Quality Agent
• Finance agents for Microsoft 365—Automate finance tasks to improve accuracy and efficiency

Microsoft Power Platform

Microsoft Power Platform is getting a major boost with AI and collaboration features. Power Apps now lets people and agents work together—agents can help with tasks like data entry, visualization, and app creation just by describing what you need or sharing an image. Power Automate is evolving with smarter automation tools, including generative AI actions, intelligent document processing, and new human-in-the-loop experiences like advanced approvals. It’s also, it’s adding stronger governance and security controls to help manage automation at scale. Power Pages is making it easier than ever to build secure, data-driven websites, with new tools for low-code makers and developers, and enhanced security insights to keep everything protected.

See wave two highlights for Power Automate—Proactively spot and resolve automation issues

Copilot Studio

Copilot Studio continues to make agent creation and operation even easier and more powerful with autonomous agents in Microsoft 365 Copilot, the ability to build complete teams of agents that work seamlessly together, and improved governance for enterprise scalability. Copilot Studio will offer even deeper integration with Azure AI Foundry and Microsoft Graph, helping ensure your agents can use the latest AI technology alongside your data in the Microsoft Graph.

Catch the wave—Mark your calendar for BALE

The Business Applications Launch Event will be live on the Dynamics 365 YouTube channel on Thursday, October 23, 2025, starting at 9 AM Pacific Daylight Time. We’ll see you there!

The post Explore new AI innovation for Dynamics 365, Microsoft Power Platform, and Copilot Studio at the Business Applications Launch Event appeared first on Microsoft Dynamics 365 Blog.

We’re entering the age of AI agents, a transformative moment reshaping the landscape of business applications and platforms. AI agents aren’t just making incremental improvements, they’re helping to redefine productivity and can fundamentally change how work gets done.

Published today, the 2025 release wave 2 for Microsoft Dynamics 365, Microsoft Power Platform, and Copilot offerings introduces new and improved capabilities that help organizations to harness the full potential of this new era. These plans compile new capabilities slated for release between October 2025 and March 2026.
Integral to the wave 2 plans, AI assistants and agents not only help humans with day-to-day tasks, but also act as proactive partners to drive better business outcomes. Our upcoming release brings that vision to life, helping to make AI not just accessible but an essential component in daily operations. Whether it’s enabling sellers to close deals faster, providing service teams real-time trusted knowledge, or empowering finance professionals with AI-driven reconciliation and analysis, these enhancements can be transformative to the way we all work.

Be sure to stay updated on the latest features and create your personalized release plan using the release planner.

Highlights from Dynamics 365

The 2025 release wave 2 for Dynamics 365 brings new innovation to transform functions across your business.

Microsoft Dynamics 365 Customer Insights – Data enhances Microsoft Copilot and agents with real-time, unified customer profiles, enabling teams to act on insights within their workflow. With enriched data, seamless platform integration, and faster processing, businesses can deliver timely, personalized experiences that boost engagement and conversions.

Microsoft Dynamics 365 Customer Insights – Journeys empowers businesses to craft personalized, AI-driven customer experiences across all touchpoints. With Copilot, agents, and enhanced orchestration tools, teams can engage the right audiences at scale, streamline lead generation, and accelerate growth.

Microsoft Dynamics 365 Sales brings the power of AI to help sellers achieve their targets and automate busywork. Microsoft Copilot delivers actionable insights in the flow of work, while AI agents research and engage leads, drive purchase intent, and proactively bring key insights and emergent deal risks—helping sellers close more deals faster. A reimagined interface reorients sellers from data to insights. Watch this video to discover the new and enhanced features in this release wave for Dynamics 365 Sales.

Microsoft Dynamics 365 Customer Service continues to enhance agentic and Copilot capabilities for case and knowledge management, as well as AI-driven routing.

Microsoft Dynamics 365 Contact Center continues to enhance agentic and Copilot capabilities to automate the service journey across digital and voice channels, along with the introduction of new omnichannel and supervisor capabilities in the 2025 release wave 2.

Microsoft Dynamics 365 Field Service will deliver AI agents, enhanced scheduling tools, mobile usability improvements, and deeper Microsoft 365 integration in the upcoming release wave. With innovations across inspections, vendor coordination, and connectivity with Microsoft Dynamics 365 Project Operations, Field Service empowers organizations to deliver smarter, faster, and more seamless service at scale.

Microsoft Dynamics 365 Finance brings global-scale finance and agentic operations to our customers, including agents that can lead to faster financial close, and provide additional automation and optimization across large scale operations, as well as enhancements to business performance analytics and planning solutions.

Microsoft Dynamics 365 Supply Chain Management can enhance demand planning with event and promotion forecasting, and help improve quality management for sample handling; and the Supplier Communications Agent will automate vendor interactions. New supplier engagement tools and warehouse app upgrades will also be introduced to further streamline operations and boost efficiency.

Microsoft Dynamics 365 Project Operations will continue to deliver powerful enhancements across the project lifecycle. These include improved mobile and browser experiences for time and expense, better project planning with enterprise custom fields, streamlined billing and invoicing workflows, and expanded support for stocked items, investment projects, and migrations to the modern architecture.

Microsoft Dynamics 365 Human Resources can enhance the hire-to-retire journey with Microsoft Entra ID and Microsoft Viva Connections integration to help reduce duplication. New agentic capabilities will be introduced to streamline onboarding with guided experiences and automation. Recruiter assist will also now support job description generation and interview assistance, helping to improve efficiency across hiring and onboarding.

Microsoft Dynamics 365 Commerce advances in-store experiences by providing a mobile-first point-of-sale that provides business continuity even during a business outage. Improvements to the Adyen payment connector allows modern payments like Pay by Link across channels, offering more purchasing options for omnichannel customers. Additionally, omnichannel unified pricing enables retailers to establish more intricate pricing structures, helping them remain competitive.

Microsoft Dynamics 365 Business Central introduces AI agents to enhance efficiency and automation in the 2025 release wave 2. These agents seamlessly integrate to execute complex tasks, generate reports, automate processes, and optimize order creation using natural language processing. Additionally, this release focuses on quality management, subcontracting, sustainability, and e-document capabilities.

Highlights from Microsoft Power Platform and Microsoft Copilot Studio

2025 release wave 2 updates for Microsoft Power Platform bring new and updated ways for organizations to analyze, act on, and automate data to digitally transform their businesses.

Microsoft Copilot Studio continues its journey to make agent creation and operation even easier and more powerful with autonomous agents in Microsoft 365 Copilot, the ability to build complete teams of agents that work seamlessly together, and improved governance for enterprise scalability. Copilot Studio will offer even deeper integration with Azure AI Foundry and the Microsoft Graph, helping to ensure your agents can use the latest AI technology in coordination with your data in Microsoft Graph. Watch this video to discover how the latest enhancements to Copilot Studio can benefit your business.

Microsoft Power Apps enhances human and agent collaboration with a new agent feed to supervise the work of agents and extensible built-in agents for common tasks like enter, explore, visualize, and summarize data. Bring business problems to Plan Designer and a team of agents will help you build enterprise solutions, including apps, agents, Microsoft Power BI reports, and more. Vibe code with the App Agent to create data-connected experiences—just describe what you need or provide an image, and it can be done.

Microsoft Power Pages enables businesses to build secure, data-driven portals effortlessly. In this wave, we will further expedite site building for low-code makers and pro developers to help build intelligent sites for your employees, customers, and partners. The introduction of enhanced security agent features will further empower low-code makers, pro developers, and admins with actionable insights and abilities for securing their websites.

Microsoft Power Automate is transforming how enterprises automate complex business processes through new human-in-the-loop experiences, such as advanced approvals and AI-native capabilities, such as generative actions and intelligent document processing. To manage complex automations at scale, a comprehensive suite of governance, observability, and security controls will be introduced to the Automation Center and Power Platform admin center.

Microsoft Dataverse continues to serve as a trusted low-code data platform, enabling the creation of scalable agents, Copilot applications, and automations. This update introduces enhancements to core agentic capabilities, including Dataverse for Agents and Dataverse Search to support smarter, AI-ready experiences. New features such as Dataverse Model Context Protocol (MCP) Server and AI-powered business logic tools further expand the ability to build dynamic, intelligent solutions grounded in enterprise data.

Microsoft Power Platform governance and administration will become the unified governance hub for managing intelligent agents, agent-driven apps, and automated workflows across the Microsoft ecosystem in this release wave. This will provide a secure, governable, reliable platform for agent development.

Updates to Copilot offerings

Agents for Microsoft 365 Copilot help maximize business impact across sales, service, and finance. Learn more about the 2025 release wave 2 updates for Copilot offerings. Agent updates for sales will help sellers work smarter, engage strategically, and close deals faster. Agent updates for service will expand CRM connectivity and enhance email insights and drafting—all within the tools reps use daily. Updates for finance will offer easily customizable agents that can be launched from familiar tools like Excel, boosting efficiency and insight.

Early access period

Starting August 4, 2025, customers and partners can validate the latest features in a non-production environment. These updates include user experience enhancements that will be automatically enabled in production environments by October 2025. Take advantage of the early access period to test these updates and effectively plan for your customer rollout. Explore the 2025 release wave 2 early access features for Dynamics 365 and Microsoft Power Platform or visit the early access FAQ page for more information.

For a complete list of new capabilities, please refer to the Dynamics 365 2025 release wave 2 plan, the Microsoft Power Platform 2025 release wave 2 plan, and Copilot offerings 2025 release wave 2. We also encourage you to share your feedback in the community forums for Dynamics 365 and Microsoft Power Platform.

The post 2025 release wave 2 plans for Microsoft Dynamics 365, Microsoft Power Platform, and Role-based Microsoft Copilot offerings appeared first on Microsoft Dynamics 365 Blog.

This week, thousands of manufacturers will gather at Hannover Messe 2025 for insights into solutions to unprecedented challenges, from rising energy costs to supply chain disruptions, workforce shortages to geopolitical conflicts. Top of mind for many attendees is how AI agent-led automation, production, and supply chain processes can help empower a high-performance and sustainable industry.

To help answer these questions, Microsoft leaders and industry partners will showcase the very latest AI innovation for manufacturers designed to help address today’s most critical challenges.

Dynamics 365 ERP solutions

Infuse AI across business processes and workflows.

Contact us to learn more

AI agents will transform manufacturing in 2025 and beyond

Moving forward, four transformative trends will set the pace of growth and success in the evolving manufacturing landscape:

• Improving supply chain operations
• Driving operational excellence with operational technology data from siloed sources
• Delivering great customer experience
• Increasing energy efficiency and employee productivity

At the Microsoft expo booth, manufacturers will learn how they can achieve these trends by using agents across critical business processes and workflows with Microsoft Dynamics 365 autonomous ERP solutions.

Improving supply chain operations with AI agents

Manufacturers face increasing supply chain challenges, from fluctuating customer demand to geopolitical uncertainties that can pressure organizations to restructure supply chains or reshore operations to unaffected regions. It’s imperative to have the agility to adapt to rapid demand shifts while operating profitably and keeping costs in check.

AI agents can play a crucial role in manufacturing operations, autonomously monitoring processes for potential disruptions, with the ability to proactively mitigate potential issues before they’re serious issues.

The Supplier Communications Agent in Dynamics 365 autonomously manages interactions with vendors and suppliers to help ensure on-time delivery of purchase orders helping to avoid downstream delays to customers. The agent provides visibility into the supplier’s supply chain and allows teams to spend more time improving supplier relationships and negotiating better contracts, rather than firefighting shortages.

Lifetime Products—a global manufacturer of products ranging from basketball hoops to picnic tables, sheds, and kayaks—depends on Microsoft Dynamics 365 Supply Chain Management to optimize operational capabilities. In addition to handling logistics and supply chain management more effectively, the manufacturer is implementing AI agents to “rebalance” its knowledge workforce to do more with same and be more efficient rather than reduce labor.

“One of our biggest learnings has been to let the autonomous agent run its own calculations. You’ll get a more comprehensive, better result.”

—Sinahi Lopez, Global IT Functional Manager at Lifetime Products

The company is now preparing to deploy the Supplier Communications Agent in Dynamics 365, to autonomously communicate with suppliers to proactively mitigate order delays and supply chain disruptions.

Based on study with IDC, $3.5 million in annual inventory-related cost savings, using Dynamics 365, optimizing working capital​.¹

Achieving operational excellence with operational technology data from various silos

To stay competitive, manufacturers need to optimize operations by reducing costs, minimizing downtime, improving agility, and ensuring efficient production. This requires data-driven decision making that takes advantage of the industrial Internet of Things (IoT), AI-driven automation, integrated data clouds, and edge-to-cloud architectures to enable real-time insights, predictive maintenance, and quality control. Microsoft Dynamics 365 includes applications to manage finance, supply chain, sales, and customer relationships, designed to unify business data, improve efficiency, and simplify decision-making. The applications work seamlessly with Microsoft 365, which enhances productivity and collaboration with leading applications like Word, Excel, and Microsoft Teams, while Azure provides cloud infrastructure and IoT capabilities.

A key innovation is the AI agent, powered by Microsoft Copilot Studio, that automates tasks and streamlines workflows, securely grounded on data sourced from various systems by using Microsoft Dataverse as a central hub. Microsoft Fabric enhances analytics, helping businesses turn data into insights. For customization, Microsoft Power Platform offers low-code tools to build apps and automate processes, while Microsoft AppSource provides industry-specific solutions from Microsoft partners.

Together, these technologies create a connected ecosystem, reducing data silos and enabling businesses to operate more efficiently. With everything working seamlessly, organizations can focus on growth, innovation, and smarter decision-making.

Enerjisa Üretim, Türkiye’s largest private electricity generation company, replaced its legacy asset management system with Dynamics 365—a modern, user-friendly solution that provides end-to-end lifecycle management of all 312,500 assets across 29 power plants.

The organization is also transforming operations with Dynamics 365 and Azure, achieving efficiency, cost reduction, and workforce empowerment. Integration of asset management, IoT, and Microsoft Azure Digital Twins provides real-time insights for predictive maintenance. Unified systems improve data consistency, streamline workflows, and enhance collaboration, setting new standards for operational excellence in energy.

“Our equipment data is the key to operational efficiency. The Asset Management [capabilities] in Dynamics 365 extends the lifespan of critical infrastructure. By leveraging real-time data and advanced analytics, we can predict equipment failures before they happen.”

—Alper Serçe, Deputy General Manager, Enerjisa Üretim

Dynamics 365 integrates seamlessly with Enerjisa Üretim’s external systems like SAP, streamlining operations and enhancing efficiency. Real-time inventory updates from SAP into Dynamics 365 helps ensures that technicians have the right materials. And integration with HRweb and Yüklenici Entegre Sistemi (YES) optimizes resource allocation, matching skills and qualifications to work orders.

Based on study with IDC, 85% reduction in unplanned asset downtime, using Dynamics 365, ensuring smoother operations​.¹

Deliver better customer experiences

Manufacturers are facing intense global competition, making customer experience essential to maintain relevance. To differentiate and retain customer trust, they must reconsider traditional business models and explore new revenue streams like product-as-a-service and aftermarket services.

Dynamics 365 assists manufacturers in transitioning to a product-as-a-service (PaaS) model by integrating IoT, AI, automation, and flexible financial frameworks.

• Dynamics 365 Supply Chain Management and Microsoft Azure IoT enable real-time product performance monitoring and predictive maintenance, reducing downtime, helping to ensure timely spare parts delivery and streamlined logistics, which are important for service-based models.
• Microsoft Dynamics 365 Field Service uses AI and IoT data for a predictive service model, enhancing efficiency and optimizing service contracts to improve customer satisfaction.
• Microsoft Dynamics 365 Finance supports flexible pricing, pay-per-use, and subscription models, converting products into ongoing services.

Hobart Corporation, a provider of commercial food equipment, needed to modernize its field operations to better support nearly 400,000 customers across the United States and Canada and solve inefficiencies in service delivery.

By adopting Microsoft Dynamics 365 Customer Service and Field Service, Hobart standardized processes, improved dispatch accuracy, and provided field technicians with mobile access to real-time inventory and customer data. This transformation enabled quicker response times, improved first-time fix rates, and better parts availability. The solution also facilitated predictive maintenance, ensuring proactive issue resolution before failures occurred.

As a result, Hobart significantly enhanced operational efficiency, customer satisfaction, and workforce productivity, reinforcing its reputation for high-quality service.

Organizations facing similar issues can also use the recently announced Scheduling Operations Agent (SOA) for Dynamics 365 Field Service, now in preview. This AI agent creates optimized schedules for technicians, even as conditions change throughout the workday. Whether it’s traffic delays, double bookings, or last-minute cancellations, the SOA helps ensure that schedules remain efficient.

The SOA uses advanced algorithms to address common scheduling challenges. By considering factors such as technician skill sets, territories, and promised time windows, the SOA maximizes technician utilization and prioritizes work orders effectively. This enhances productivity and helps ensure that customer commitments are met accurately.

Based on study with IDC, 40% faster order and product delivery times, using Dynamics 365, increasing customer satisfaction.¹

Operating sustainably by driving energy and employee efficiencies

Manufacturers are under increasing pressure to improve energy efficiency and reduce their carbon footprint while maintaining productivity. By integrating Microsoft Dynamics 365 ERP solutions and Sustainability Manager in Microsoft Cloud for Sustainability, manufacturers can gain real-time visibility, AI-driven insights, and automated tracking to drive sustainability at scale.

Dynamics 365 ERP collects energy consumption data from IoT sensors, smart meters, and production systems, offering a comprehensive view of energy usage across facilities. This data flows into Microsoft Sustainability Manager, where AI-powered analytics identify inefficiencies, benchmark performance, and recommend optimizations. Manufacturers can track carbon emissions in real time, ensuring they meet sustainability targets.

With predictive analytics and AI-driven workload balancing, manufacturers can optimize machine usage, reduce energy waste, and lower costs. Additionally, optimized supply chain operations help minimize environmental impact through smarter logistics and material sourcing.

Camfil, a leading manufacturer of premium clean air filtration solutions, is using Dynamics 365 to enhance sustainability and profitability. By implementing Dynamics 365 with a standardized data model, Camfil has harmonized its processes across more than 30 production facilities and nearly 6,000 employees.

The integration of Dynamics 365 Finance, Dynamics 365 Supply Chain Management, Dynamics 365 Project Operations, Dynamics 365 Customer Service, and Dynamics 365 Sales has improved operations such as ordering, manufacturing, warehousing, shipping, and invoicing. This harmonization enabled by Dynamics 365 has led to better resource utilization, improved energy efficiency, a more connected and collaborative culture, and enhanced customer satisfaction through continuous innovation in air filtration systems—all contributing to a more sustainable and cost-effective manufacturing operation.

A well-empowered workforce can better manage inventory, demand planning, and supplier interactions, reducing waste and inefficiencies.

Based on study with IDC, 27% more manufacturing processes automated, 20% improvement of productivity across supply chain, procurement, and inventory management teams by using Dynamics 365 AI-powered ERP solutions.¹

Future-proof your manufacturing operations in 2025 

AI-powered solutions for ERP and service systems are more than a technological upgrade. They’re a strategic imperative for manufacturers aiming to improve the supply chain, drive operational excellence on the factory floor, deliver great customer experience, and operate sustainably and efficiently.

If you’re registered for Hannover Messe, we invite you to visit the Microsoft booth (#G06, hall 17) and join Sameer Verma, Microsoft’s GM, Dynamics 365 AI ERP, to learn how Dynamics 365 drives manufacturing excellence with AI agents. The session will take place on Monday, March 31, 2025, at 12 PM Central European Time (UTC +1).

Also, continue to visit the Dynamics 365 blog to learn more about how Dynamics 365 and Microsoft Power Platform are helping retailers reimagine the road ahead; and feel free to contact us to learn more about the Dynamics 365 AI-powered ERP system solutions. 

Source

¹ IDC White Paper, sponsored by Microsoft, The Business Value of Microsoft Dynamics 365 for Manufacturers, doc #US53226425

The post The future of manufacturing with Microsoft Dynamics 365 is here—are you ready? appeared first on Microsoft Dynamics 365 Blog.