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 Studio continues 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 administration introduces 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 consumption 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

April 15, 9AM PDT

Register now

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
• Register for the Power Platform and Copilot Studio update April 15 at 9 AM PDT

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.

We’re pleased to introduce a new capability for Dynamics 365 Finance and Operations archive with Dataverse long-term retention: parallel processing for archive jobs. This enhancement allows the Archive job scheduler to run multiple archive jobs at the same time, dramatically reducing the time required to archive high volumes of transaction data across legal entities. 

The challenge: Sequential bottlenecks 

Previously, archive jobs within the same scenario were processed sequentially. For organizations operating across dozens of legal entities—each with millions of transaction records in General Ledger, Sales Orders, or other scenarios—this approach created a bottleneck, and archiving could take days or even weeks to complete. 

For example, a multinational organization may have 50–200+ legal entities, each containing one fiscal year of General Ledger transactions. Archiving one legal entity data at a time delays storage optimization, increases SQL Server load, and slows the movement of data into long-term retention in Dataverse. 

The solution: Use Job criteria key partition to enable parallel processing 

Parallel processing introduces the Job Criteria Key—a partition identifier you set when you build the archive job contract. The job criteria key tells the archive job scheduler which archive jobs operate on independent data sets. This allows them to run simultaneously without conflict. 

How it works 

1. Define the partition key — When you build the archive job contract, set the criteria key (typically the legal entity) that represents the data partition. 

2. The scheduler identifies parallel candidates — The archive job scheduler detects that jobs with different criteria keys target non-overlapping records. 

3. Jobs run concurrently — Rather than waiting in a queue, archive jobs for different partitions execute in parallel. 

The zero-overlap guarantee 

The job criteria key depends on one critical invariant: when multiple archive jobs run within the same scenario, each job with a different job criteria key must process a completely distinct set of records with zero overlap. 

For example, if you run two Sales Order archive jobs at the same time—one with job criteria key “USMF” and another with “DEMF”—the records archived by the USMF job must not overlap with those archived by the DEMF job. This is why DataAreaId is a natural choice for many scenarios: it inherently partitions data by legal entity. 

Monitoring parallel jobs 

You can monitor archive jobs running in parallel from the Archive with Dataverse long term retention workspace in Dynamics 365 Finance and Operations. Each job shows its criteria key value, making it easy to confirm which partitions are being processed concurrently. 

Join the private preview 

Parallel processing for archive jobs is currently available in private preview. If you’d like to try this capability in your environment, we’d be happy to have you participate. 

Submit your request to join the private preview 

By joining the preview, you’ll get early access to parallel archive job execution. You’ll also have an opportunity to provide feedback that helps shape the final release. The preview is open to all Dynamics 365 Finance and Operations customers and partners.

The post Support Parallel Processing for Archive Jobs in Dynamics 365 Finance and Operations appeared first on Microsoft Dynamics 365 Blog.

As enterprise workloads become more agentic, the expectations of ERP systems—and the teams that operate them—are shifting. Batch jobs, workflow orchestration, data import/exports, and background processes are no longer “just” technical plumbing–they are critical pieces of the operational fabric. They deliver timely financial results, accurate supply chain data, and reliable business intelligence driving process optimization. 

To support this shift, observability needs to evolve beyond simple logs and reactive troubleshooting. Observability needs to provide meaningful insights into execution behavior, performance patterns, and operational context. This ensures IT teams can run ERP with confidence and reliability. 

In Dynamics 365 ERP apps, we’ve long provided integration with Azure Application Insights to help organizations collect telemetry about user activity, failures, and application behavior. Now, with the expansion of batch telemetry signals — including start/stop events, failure data, throttling conditions, thread availability, and queue behavior — administrators and IT architects can gain deeper visibility into the health of critical batch-based workloads.  

Why Observability Matters Now 

ERP observability historically focused on basic monitoring. It observed which jobs were running, whether a job failed, or whether alerts were triggered. These indicators are useful, but they lack operational context. Modern enterprise workloads are increasingly interconnected, and automation driven. Delays or failures in one workload can ripple outward, affecting downstream processes, reporting accuracy, and service delivery. 

At the same time, teams are beginning to rely on AI agents to help monitor, diagnose, and in some cases suggest remediation steps. These tools need high-quality signals to be effective. 

Batch workloads are a prime example. Batch jobs directly impact business outcomes, from overnight posting to inventory sync and settlements.
Without execution insights, teams guess root causes and waste time on manual investigation.

What Batch Telemetry Brings to the Table 

The monitoring and telemetry capabilities in Dynamics 365 ERP enable customers to send application telemetry to Azure Application Insights for analysis and alerting. The recent expansion of telemetry signals for batch workloads builds on this foundation by adding behavioral data specifically for batch execution patterns. 

These signals include: 

• Batch start and stop events to show how long jobs take to run, not just whether they completed. 

• Failure information that correlates with info log entries and execution context. 

• Throttling indicators that highlight contention due to system load. 

• Thread availability data that helps reveal when jobs are waiting because capacity is constrained. 

• Queue depth metrics shows number of waiting tasks for all queues that are part of the Priority Based Scheduling queues.  

Emitting these signals into a customer-owned Application Insights resource means teams can apply their existing monitoring pipelines, dashboards, and alerting logic without changing how data is consumed. 

From Visibility to Insight 

Once batch telemetry data flows into Application Insights, teams can query it using Kusto Query Language (KQL) and build dashboards that correlate workload behavior with other operational metrics.  

This richer observability enables several practical outcomes: 

• Faster investigation of execution behavior without sifting through logs. 

• Trend analysis to detect regressions or capacity bottlenecks before they impact business cycles. 

• More informed capacity planning based on actual observed patterns. 

• Alignment of SLA expectations with real operational performance. 

Here are some real‑world business scenarios that show how telemetry insights are helping customers troubleshoot issues and resolve problems faster. 

A global consumer goods company frequently sees high priority jobs completing late. Batch Queue telemetry exposes queue congestion and thread exhaustion, showing when noncritical tasks bury priority workloads.

It helps surface when priority-based scheduling queues build up and delay time‑sensitive workloads, while also revealing misconfigured priorities that cause jobs to be processed out of order. It further enables teams to closely monitor queue health during cutover or high‑load events, ensuring critical workloads flow smoothly. 

Similarly, a finance team’s bank reconciliation jobs remain “Waiting” for long periods. Thread telemetry reveals thread starvation—jobs were queued, but threads were fully consumed. 

It helps explain why jobs remain stuck in a “Waiting” state by revealing when thread capacity is fully consumed by parallel workloads. It also highlights thread saturation patterns, enabling teams to right‑size AOS batch capacity for smoother, more predictable processing. 

A Foundation for Intelligent Operations 

The expanded telemetry signals are not just a diagnostic tool. They serve as a foundation for smarter operations in an era where agents play an increasing role. High-fidelity Batch telemetry enables experiences like: 

• Automated detection of anomalies based on execution baselines. 

• Correlation of workload performance with business-critical thresholds. 

• Enhanced alerts that tie operational conditions to business impact. 

By making execution behavior more observable and actionable, Dynamics 365 ERP helps teams focus on outcomes, not just symptoms. 

Getting Started 

If you haven’t already configured monitoring and telemetry for your environment, the first step is to integrate your Dynamics 365 ERP instance with Azure Application Insights – refer. Monitoring and telemetry overview – Finance & Operations | Dynamics 365 | Microsoft Learn .  

Once telemetry is configured, expanded batch signals can be toggled on from within system administration and begin flowing to your Application Insights pipeline for analysis.  

Rich observability is a core requirement for running modern ERP workloads, especially as organizations adopt more automation and begin exploring agent-assisted operational tooling. By bringing deeper insight into batch execution behavior, our ERP portfolio apps in Dynamics 365 helps IT teams move from reactive troubleshooting toward proactive reliability and informed decision-making.  

For more details visit Available telemetry – Finance & Operations | Dynamics 365 | Microsoft Learn. 

The post Building Smarter Observability for Agentic ERP World using Dynamics 365  appeared first on Microsoft Dynamics 365 Blog.

Markets are shifting faster than traditional operating models can adapt. Customer expectations are rising. Capital constraints require every decision to deliver measurable value. In this environment, organizations that thrive are those treating business model innovation as a core capability–not an occasional strategy exercise. They are rethinking how value is created, how operations scale, and how technology supports the enterprise. 

ERP is evolving to meet this moment. As Satish Thomas described in his recent blog, we’re entering the era of agentic business applications: systems moving beyond recording transactions to actively orchestrating processes, anticipating needs, and adapting to change. For leaders, this evolution means ERP is becoming a system of action. It aligns people, data, and workflows around the outcomes the business is driving toward. 

Why rental business models are accelerating 

In asset- and across product-driven industries, the ability to generate value from equipment, tools, and machinery has always been central to business performance. Increasingly, customers want access to what they need, when they need it, without long-term ownership. This asset-as-a-service shift is expanding across industries–from heavy equipment, consumer goods, and automotive to medical devices, technology assets, and renewable energy. 

Global forecasts underscore this momentum. Industry forecasts from the American Rental Association and independent market analysts indicate the North American equipment and tool rental market will exceed $80 billion. Global rental and leasing revenues are already well above $500 billion annually. Similar trends are emerging in adjacent verticals, all signaling that the opportunity extends far beyond traditional equipment categories. 

Today, rental processes often run across fragmented systems for quoting, dispatching, billing, and financials. The result: avoidable idle time, slow handoffs, margin erosion, and most critically, subpar customer experiences. 

This is where Dynamics 365 ERP can help you with transforming your rental operations business processes. 

A strong connected foundation  

Operational excellence in rental management demands more than isolated workflows. It requires seamless integration and orchestration across the entire lifecycle. From rental rate management, quoting, and asset reservation to contract management, inspections, maintenance, and billing, every step must work in harmony to keep revenue moving and customers delighted. 

Building these capabilities into Dynamics 365 connects the full lifecycle of work within a single agentic ERP. 

Today, we are announcing that we are making investments to accelerate adding new capabilities for rental operations. These capabilities are now in development, planned for release in Q4 of 2026, including new ERP capabilities designed for: 

• Quoting and reservations to confirm availability and seamlessly convert opportunities into contracts. 
• Contract and pricing management for short- and long-term rentals, rent-to-own programs, or seasonal pricing with flexible terms and rate structures. 
• Inspections orchestration to coordinate inspections upon deliveries, transfers, and returns. 
• Billing and invoicing tied directly to rental activity to improve accuracy and reduce reconciliation effort. 

Rental operations succeed when every handoff–from quoting to return–is coordinated and timely. The forthcoming capabilities bring structure and clarity to these moments. They are designed to help organizations accelerate deal cycles, improve asset utilization, enhance customer satisfaction, and reduce reliance on custom or manual processes. 

By unifying these processes inside Dynamics 365, leveraging the composability of Dynamics 365 Finance & Supply Chain Management, Project Operations, and Field Service, organizations will be able to run rental as a natural extension of their operations rather than as a separate system or afterthought. 

Driving utilization, uptime, and margin 

The levers that shape rental performance–utilization, uptime, margin, and cash flow–are all influenced by how well operational data connect across the lifecycle. When organizations have a single view of reservation status, asset availability, and maintenance needs, they can plan more effectively and limit avoidable idle time. Consistent pricing and billing structures then help ensure every transaction reflects the same rules and logic, reducing confusion and rework. When maintenance activities are linked to actual rental usage, teams can schedule work proactively, support asset longevity, and reduce the risk of unplanned downtime. 

With these elements working together, rental operations can run with greater predictability – improving financial clarity while delivering more reliable, trusted customer experiences. 

Turning operational telemetry into financial clarity 

Operational data is only as valuable as the financial clarity it enables. Information such as rental item status, reservations, and maintenance history can become a strategic asset when used to drive accurate forecasting, informed capital allocation, depreciation planning, and profitability analysis. By connecting operational metrics with financial outcomes, organizations can optimize resource utilization, reduce risk, and uncover opportunities for growth. 

Enabling a strong ecosystem  

The rental management capabilities that we are developing in Dynamics 365 will form a robust foundation for rental businesses. Rental operations vary significantly within and across industry verticals. To address this, we continue to build on our proven model of success. We are empowering the extensive ecosystem of Microsoft Dynamics 365 partners and ISVs to deliver specialized, deeply vertical solutions that meet unique business needs. 

Because these foundational capabilities will run natively in Microsoft Dynamics 365 on the Microsoft Cloud, customers, ISVs, and partners can extend them with AI agents using MCP and Microsoft Copilot Studio to support vertical-specific requirements from front-office process optimization and automation to compliance, pricing strategies, and equipment lifecycle planning. The flexibility of the Microsoft Cloud, combined with advanced AI, is designed to help organizations accelerate innovation, optimize operations, and deliver differentiated customer experiences that drive growth and profitability. Microsoft remains committed to enabling innovation across the ecosystem.  

Microsoft Ignite 2025: Powering Frontier Firms with agentic business applications

Looking forward: the future of rental, built into agentic ERP 

Flexible, service-based operations are transforming how organizations create value from their assets. Our investment in rental management capabilities is designed to help customers meet this moment. It will simplify processes, improve visibility, and deliver measurable business outcomes. 

If your organization operates or supports rental models today, now is an ideal time to explore what’s possible with Dynamics 365. If you’re attending Convergence 2025, you’ll see firsthand how these investments align with our broader vision for adaptive, agentic ERP systems–solutions that work alongside your teams to drive operational excellence and unlock new opportunities for growth. 

The post Transforming how organizations run rental operations with Dynamics 365 ERP 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.

In today’s economy, enterprise resource planning (ERP) systems have evolved far beyond traditional back-office functions. They are now strategic drivers of growth, agility, and resilience. Modern business leaders require ERP solutions that deliver more than transactional processing; they need intelligence, insights, and automation at scale. Selecting a platform with embedded AI today helps set your organization up for tomorrow’s competitive advantage.

We’re excited to announce Microsoft Dynamics 365 is a Leader in three Gartner® Magic Quadrant™ reports:

• Cloud ERP for Service-Centric Enterprises
• Cloud ERP for Product-Centric Enterprises
• Cloud ERP Finance

We believe the recognition of Microsoft Dynamics 365 Leader placement in all three Gartner® Magic Quadrant™ reports shows our commitment to delivering end-to-end coverage for modern organizations. Our expertise is especially critical as most businesses today need the flexibility to manage both products and services, backed by the trust and security of a robust financial backbone. With embedded AI capabilities at the core of Dynamics 365, enterprises can confidently unify operations, adapt to evolving market demands, and help ensure their financial systems are secure, scalable, and future-ready.

Magic Quadrant for Cloud ERP for Service-Centric Enterprises

The ERP landscape is evolving rapidly. Gartner® Magic Quadrant™ for service-centric enterprises predicts “by 2027, 62% of ERP application spending will include AI capabilities, a significant leap from just 14% in 2024.”¹ Dynamics 365 is at the forefront of this transformation, helping businesses harness AI to drive efficiency, agility, and growth.

Dynamics 365 is a software as a service (SaaS) ERP, delivered from Microsoft Azure data centers worldwide. It combines natively developed ERP components with a robust partner ecosystem to deliver industry-specific functionality. Serving midsize to large service businesses across EMEA, the Americas, and APAC, Dynamics 365 is designed for scale and flexibility.

Our core competencies

• AI-powered innovation: Embedded AI through Microsoft Copilot delivers actionable insights and automates finance, operations, and service processes. Tasks like account reconciliation and cash flow forecasting can become simpler and smarter.
• Connected ecosystem: Smooth integration with Microsoft 365, Microsoft Teams, Power Platform, and Azure enables unified data and workflows across the enterprise.
• Industry-specific capabilities: Our partner ecosystem extends Dynamics 365’s functionality for specialized industries, supporting flexibility and scalability.

Key strengths driving leadership:

• AI-powered capabilities: Advanced AI empowers organizations with actionable insights and automation to enhance critical business processes.
• Integrated business management: Core financial and operational systems seamlessly connect with productivity and collaboration tools, enabling holistic visibility and informed decision-making.
• Cloud platform advantage: Built-in integrations with enterprise-grade cloud services provide scalability, security, and a unified data foundation for innovation and growth.

Magic Quadrant for Cloud ERP for Product-Centric Enterprises

Microsoft is also recognized as a Leader in the Gartner® Magic Quadrant™ for Supply Chain Management and Finance solutions, which in our opinion underscores our commitment to helping upper-midsize and large enterprises transform operations with intelligent, connected systems.

Dynamics 365 integrates with the broader Microsoft ecosystem. Azure provides scalability and security; Microsoft 365 enables collaboration, and Power BI delivers actionable insights. When data flows freely and tools work together, businesses can operate faster, smarter, and with greater confidence.

Key strengths

Three core strengths for driving enterprises success:

• AI-powered automation: Advanced AI and Copilot technologies enable intelligent automation and empower organizations to create custom agents for streamlined and tailored workflows.
• Unified cloud platform: Seamless integration across Microsoft’s cloud ecosystem delivers a secure, scalable, and unified foundation for business operations.
• Global capabilities: Comprehensive localization and language support helps ensure Microsoft solutions meet the needs of organizations worldwide.

Magic Quadrant for Cloud ERP Finance

Microsoft Dynamics 365 Finance has been recognized as a Leader in the Magic Quadrant for Cloud ERP Finance for its Completeness of Vision and Ability to Execute. In an era where CFOs face mounting pressure to deliver agility, transparency, and predictive capabilities, Dynamics 365 Finance stands out as a transformative solution.

Microsoft Dynamics 365 Finance is a robust platform designed for enterprises operating across multiple geographies. It offers extensive financial dimensions, user-defined tags, and a global chart of accounts, enabling organizations to manage complex, multi-entity environments in over 50 countries. These capabilities support compliance with diverse regulatory frameworks while maintaining operational efficiency.

One of the most innovative features is Microsoft Copilot Studio, which empowers users to build AI agents using natural language. This functionality allows finance teams to automate repetitive tasks, freeing up time for strategic decision-making.

Key strengths driving leadership

1. AI automation
   Microsoft Dynamics 365 leverages Copilot and embedded AI agents to deliver advanced automation across core business processes. These capabilities support predictive analytics, automated transaction processing, and real-time insights, empowering finance leaders to:
   • Enhance forecasting accuracy by analyzing both historical and live data.
   • Minimize manual reconciliations, freeing up valuable time.
   • Identify anomalies in transactions to help reduce compliance risks.
2. Customer-driven innovation
   Microsoft’s product development is guided by direct customer feedback, gathered through surveys, advisory boards, and innovation hubs. This approach has resulted in:
   • Low-code automation tools that enable teams to build workflows without developer support.
   • Enhanced dispute resolution features, streamlining interactions between organizations and their customers.
   • Capabilities that optimize cash flow management, supporting business business resilience in dynamic markets.
3. A global partner ecosystem
   Transformation is a collaborative journey. Microsoft’s extensive global partner network brings specialized expertise in cloud migration, industry-specific solutions, and deployment support. Whether operating in manufacturing, retail, or professional services, organizations benefit from:
   • Tailored implementations that help accelerate time-to-value and mitigate risk during transitions from legacy systems.
   • Co-development opportunities that foster innovation and deliver best-in-class solutions for unique business needs.

Why this matters for CFOs

The role of the CFO is evolving from financial steward to strategic advisor. Today’s finance leaders must deliver insights that drive growth, manage risk, and enable agility. Dynamics 365 equips CFOs with tools to:

• Predict outcomes using AI-powered analytics.
• Automate routine tasks, freeing resources for strategic initiatives.
• Collaborate seamlessly across global teams through integrated workflows.

Looking ahead: The future of finance

As we approach 2026, the finance landscape will continue to shift toward intelligent automation and predictive capabilities. Microsoft’s vision for agentic AI promises a future where finance teams operate with unprecedented efficiency and foresight. From managing exceptions autonomously to delivering real-time scenario planning, these innovations will redefine what’s possible in enterprise finance.

Organizations that embrace these technologies today will be better positioned to navigate uncertainty, capitalize on opportunities, and maintain a competitive edge.

Your path to a smarter future

Microsoft Dynamics 365 exemplifies how technology empowers business leaders, including CFOs, operations executives, and IT strategists, to move beyond transactional processes and become architects of enterprise strategy. We believe being recognized as a Leader in three Gartner® Magic Quadrant™ reports: Cloud ERP for Service-Centric Enterprises, Cloud ERP for Product-Centric Enterprises, and Cloud ERP Finance, Dynamics 365 sets the standard for modern ERP solutions.

With its combination of AI-powered automation, customer-centric innovation, and global scalability, Dynamics 365 delivers intelligent, adaptable solutions for organizations across industries and geographies. Whether optimizing operations, transforming supply chains, or streamlining finance, Dynamics 365 offers a clear path forward—one that blends intelligence, agility, and trust.

As organizations embrace the opportunities of an AI-powered future, Microsoft remains dedicated to empowering enterprises with solutions that are intelligent, seamlessly connected, and built to scale. Discover how we are positioned by Gartner and read the full Gartner® Magic Quadrant™ service-centric, product-centric, and finance reports for deeper insights. 

See how organizations using Dynamics 365 are enhancing operational efficiency, boosting flexibility, and unlocking intelligent insights throughout their business processes.

• Dynamics 365 drives Cat® dealership into the 21st century
• Camfil harmonizes processes with Dynamics 365 bolster sustainability and profitability
• Alltech fortifies business operations with Dynamics 365

1. Gartner, Magic Quadrant for Cloud ERP for Service-Centric Enterprises, Robert Anderson, Johan Jartelius, Tomas Kienast, Sam Grinter, Denis Torii, Chaithanya Paradarami, 13 October 2025.
2. Gartner, Magic Quadrant for Cloud ERP for Product-Centric Enterprises, Greg Leiter, Tomas Kienast, Johan Jartelius, Denis Torii, Dennis Gaughan, 13 October 2025.
3. Gartner, Magic Quadrant for Cloud ERP for Finance, Mike Helsel, Irmina Melarkode, Nick Duffy, Nisha Bhandare, 27 October 2025.

Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designations. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner is a registered trademark and service mark and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

The post Microsoft Dynamics 365 named a Leader in three Gartner® Magic Quadrant™ reports: Cloud ERP for Service-Centric Enterprises, Cloud ERP for Product-Centric Enterprises, and Cloud ERP Finance appeared first on Microsoft Dynamics 365 Blog.

https://aka.ms/IgniteMCPBlog

At Microsoft Build 2025, the Dynamics 365 ERP Model Context Protocol (MCP) server was introduced as a foundational step in connecting AI and enterprise resource planning (ERP) systems through a shared, governed protocol. The MCP server provides a standardized way for AI agents, applications, and services to securely access ERP data and execute business actions within Dynamics 365.

That first release represented a milestone. It made ERP data and logic discoverable and callable through a standard set of tools, paving the way for agentic innovation across finance and operations.

Now, Microsoft is extending that foundation with two major advancements:

• The Dynamics 365 ERP MCP server is evolving from static to dynamic. This unlocks hundreds of thousands of ERP functions for secure, real-time use by agents, developers, and applications. The new dynamic server is now in public preview.
• A new Dynamics 365 ERP MCP server for analytics is being introduced. It applies the same model-context principles to business intelligence and insights, with public preview of the server coming this December.

Together, these capabilities advance how ERP systems, data, and AI agents connect: simplifying extensibility, supporting accelerated development, and enabling consistent governance across business processes.

The Model Context Protocol: A shared foundation for ERP and AI

The Model Context Protocol (MCP) defines a common language for how agents, applications, and services interact with enterprise data and business logic. MCP provides a unified framework, instead of relying on custom APIs or point-to-point integrations. MCP standardizes access to ERP operations, helping ensure consistency, context, and control.

In practical terms, MCP enables developers to:

• Build once and reuse across multiple ERP applications and environments.
• Expose new ERP actions or data endpoints dynamically to the agent framework.
• Maintain consistent data access, permissions, and auditability across all integrations.

This framework helps simplify how partners and customers create and extend agentic experiences. An agent built to reconcile accounts or process supplier invoices can use the same MCP standards to trigger journal entries, validate transactions, or retrieve KPIs across Finance, Supply Chain, Human Resources, and Project Operations–without custom code or repeated integration work. Adding the MCP server to your agent provides access to data, operations, and analytics in the server for the agent’s security role.

As organizations move from systems of record to systems of action, MCP provides the connective tissue. It brings ERP data, analytics, and AI together under a single, trusted framework. The evolution from static to dynamic MCP—and the addition of MCP for analytics—marks a significant step in making ERP systems more adaptive, extensible, and aligned with how businesses operate today.

From static to dynamic

The initial ERP MCP server launched at Build 2025 as a static implementation with a curated set of 13 tools for Dynamics 365 Finance and Supply Chain Management. These tools exposed high-value ERP operations through MCP, helping early adopters test and validate real-world agent scenarios.

However, static systems, have natural limits. The set of available tools was fixed, updates required code changes or redeployments, and extending functionality took time. As developers began building more complex agents that span processes and applications, a new level of flexibility became essential.

The new dynamic ERP MCP server, now available in public preview, addresses that need. It transitions from a fixed catalog of tools to a dynamic framework that adapts as business needs evolve. You can now build agents that can work with data and perform nearly any function available to a user through the application interface, without the need of custom code, connectors, or APIs.

How it works

The tools in the new server work by enabling the agent to navigate server forms to complete tasks. Agents work with the application data and business logic through server APIs just like humans perform tasks in the application client. Static tools with very specific actions, like Find Approved Vendors or Release Purchase Requisition Lines, have been replaced. The agent uses the new tools to open forms, set field values, and click actions available on the form.

This evolution unlocks hundreds of thousands of ERP functions across tens of thousands of forms. These forms—in Finance, Supply Chain, Human Resources, and Project Operations—are instantly accessible through MCP. Each function inherits ERP’s existing controls for permissions, auditing, and security, allowing IT to scale innovation while preserving compliance.

The context provided to the agent through the MCP server dynamically updates with each tool call based on the agent’s security permissions and application configuration, extensions, and personalization. This helps ensure the server is working with an accurate view of available actions and data for the given context. Additionally, it automatically makes available in the MCP framework the ISV extensions and customizations in the environment.

Consider an agent that performs supplier selection for purchase requisitions. When submitting the requisition, the agent gathers and analyzes price and supplier performance information from the ERP applications. It then reasons over the data to select the appropriate supplier for the requisition. The agent updates requisition record with the selected supplier by opening the form, populating the appropriate fields and saving the record. The agent then submits the document to an approver for review by selecting the available workflow action on the form. The native capabilities of the MCP server support these interactions between the agent and ERP data and business logic, among many others.

Extending MCP to analytics

The new Dynamics 365 ERP MCP server for analytics extends the same model-context approach to data, metrics, and insights. It provides governed access to the ERP analytics data available in Business Performance Analytics (BPA)—including measures, dimensions, reports, and semantic models. AI agents and analytics tools can reason over consistent, trusted definitions.

This new server creates a bridge between ERP transactions and business intelligence. It ensures that agents and users reference the same definitions for revenue, margin, or cash flow when generating insights or forecasts—reinforcing trust and mitigating discrepancies between analytics systems.

By aligning analytics and operations under one protocol, ERP data becomes agent-ready and explainable. Access AI-driven analysis, forecasting, and variance detection with natural language prompts and surface results directly into the applications people use every day, including Microsoft Copilot and Microsoft Teams.

The MCP server for analytics also creates new opportunities for the partner ecosystem. Developers can build analytics extensions that plug directly into ERP data models while maintaining full governance and auditability.

Why this evolution matters

This announcement is not just about new APIs—it’s about creating a governed, extensible foundation for innovation across ERP.

For IT organizations, the dynamic ERP MCP server simplifies extensibility and accelerates delivery. MCP standardizes how these capabilities are published, managed, and secured—allowing IT to focus on innovation rather than maintenance.

For business leaders, the analytics MCP server connects insight to action. Forecasts, reconciliations, and recommendations produced by AI are grounded in ERP’s trusted definitions, helping to ensure accuracy and supporting compliance. This helps finance and operations teams shift from retrospective reporting to proactive performance steering.

Together, the servers create a single, unified model where data, analytics, and process automation operate in sync. This helps reduce friction, increases visibility, and accelerates the time from signal to action.

By making hundreds of thousands of ERP functions accessible through a dynamic, governed model, and by extending that same model to analytics, Microsoft is building the foundation for ERP systems that evolve continuously with the business—securely, intelligently, and at enterprise scale.

Partner innovation and ecosystem impact

These changes also expand opportunities for Microsoft’s partner ecosystem. ISVs and system integrators can now build and deliver agents faster. Know that MCP provides a consistent integration and governance layer across all ERP workloads.

The dynamic MCP server enables partners to:

• Create reusable, compliant ERP agents that can be deployed across multiple tenants.
• Publish agents that tap into hundreds of thousands of ERP functions, including extensions and customizations, without deep code dependencies.
• Deliver analytics and insight-driven applications powered by the new MCP for analytics.

Early partner adoption is already demonstrating the potential of this architecture. These examples highlight how MCP can reduce integration overhead, standardize access, and help partners deliver new business value faster, while maintaining enterprise-grade trust and compliance.

• RSM: Shop Floor by RSM empowers manufacturers to operate as frontier firms by minimizing downtime, improving quality. It enables teams to resolve production issues in real time, driving greater resilience and growth. This intelligent agent transforms the shop floor with automation, actionable insights, and seamless collaboration to set a new standard for operational excellence in manufacturing.
  
• HSO: The PayFlow Agent enhances invoice payment efficiency in accounts payable by automating payment inquiries and delivering real-time status updates. PayFlow streamlines payment processes, minimizes manual intervention, and accelerates resolutions. Empower finance teams and project managers to manage “pay when paid” terms with transparency. This intelligent automation enhances supplier relationships and ensures vendors receive timely, accurate information about their payments.
  
• Fellowmind: From inbox to Inbound Load in seconds. The Inbound Load Agent transforms emailed delivery notes into inbound loads in Dynamics 365, eliminating repetitive data entry, reducing manual error and accelerating and streamlining workflows.
  
• Cegeka: The Quality Impact Recall Agent identifies product quality failures and traces their downstream impact across inventory and customers. It orchestrates potential recall efforts, ensuring timely notifications and corrective actions to safeguard safety and brand reputation.
  
• Crowe: AP automation is table-stakes today, and ERP automation shouldn’t end there. From sales orders and contracts to customer and vendor interactions, Crowe’s AI Agents handle the unstructured, high-touch processes that traditional automation can’t reach.
  
• KPMG: KPMG’s Supplier Performance Insight Agent automates critical finance workflows by integrating internal ERP data with external market signals to give leaders a complete view of supplier relatability and risk. This showcases how AI can make ERP faster, smarter and more connected for organizations.
  
• Annata: Annata’s Autonomous AI Agents automate and accelerate complex service processes—turning multi-day breakdowns into minutes of coordinated action. By connecting directly to enterprise data and workflows through the MCP server, the solution secures parts, creates appointments, and orchestrates the entire service chain to maximize equipment uptime. 
  
• SignUp Software: The Axtension Downtime Agent steps in when a machine fails in a production environment or a resource becomes unavailable. The Downtime Agent suggests resolutions and generates alternative production plans, factoring in constraints like promised delivery dates and capacity. Multiple simulation scenarios can be validated and published, enabling organizations to maximize production efficiency.

Building the foundation for adaptive ERP

Building on MCP is a strategic priority for Dynamics 365 applications. ERP teams across Microsoft are aligning on a unified approach to help ensure all agents and applications share this common foundation:

1. All new ERP agents will be built using MCP.
2. Existing agents will migrate to MCP by December 2025.
3. All tools hosted on the static ERP MCP server will transition to the new dynamic framework.

This alignment helps ensure that every ERP agent—whether developed internally or by a partner—operates with shared context, consistent governance, and interoperability across Dynamics 365 and the broader Microsoft ecosystem.

What’s next

The dynamic Dynamics 365 ERP MCP server is now in public preview! The MCP server for analytics will enter public preview in December 2025. Over the coming months, Microsoft will continue validating new features with early partners and enterprise customers, gathering feedback to guide the next phase of development. MCP will continue to be a strategic priority in the agent foundation for Dynamics 365 ERP.

Customers and partners interested in joining the preview can contact their Microsoft representative or explore the latest documentation: Use Model Context Protocol for finance and operations apps

Join us in San Francisco, November 18 –21 at Microsoft Ignite for a deep technical dive into Agentic ERP during the Reinvent Finance & Operations with Agentic ERP session. Discover what MCP means for extensibility and learn how to build an ERP roadmap that enables adaptive, intelligent operations.

Looking ahead, we’ll continue the conversation at Convergence in Miami, December 9–11. Explore how AI and MCP are reshaping the future of ERP, secure your spot today.

The post Evolving the Dynamics 365 ERP Model Context Protocol (MCP) Server  appeared first on Microsoft Dynamics 365 Blog.

The Finance solution in Microsoft 365 Copilot is now generally available 

Finance plays a critical role in helping organizations make confident, data-driven decisions. Yet despite decades of automation, much of finance work still happens in spreadsheets and emails. Teams spend hours reconciling data from multiple systems, investigating variances, or fielding ad-hoc questions about budgets, spend, or invoices. The result is slower insight, longer close cycles, and less time for strategic analysis. 

The Finance solution in Microsoft 365 Copilot, formerly Microsoft Copilot for Finance, is now generally available, helping finance teams bring ERP-connected data and workflows directly into the flow of work. Built with Microsoft 365 Copilot, this role-based AI solution connects to your existing systems of record, such as Microsoft Dynamics 365 Finance or SAP. It also infuses AI assistance into the tools you already use every day, like Excel and Outlook. 

The result: faster financial operations, fewer manual handoffs, and better collaboration between finance, business teams, and IT. 

A New Way to Work With Finance Data 

Microsoft 365 Copilot bridges productivity tools and enterprise systems, so financial information becomes conversational and accessible. Instead of switching between applications or waiting for manually generated reports, you can simply ask questions in natural language: 

• “Identify the key drivers for forecast variances for March.” 

• “Highlight period over period trends across regions.” 

• “Draft a response to the customer regarding the last payment.” 

Copilot interprets the request; when needed, retrieves data from ERP systems under your existing governance controls, and provides traceable, actionable answers. It not only lists figures, it highlights anomalies, explains the drivers of change, and creates draft narratives ready for review or sharing. 

This connected experience reduces repetitive work. It also shortens the time between question and answer, and keeps financial insights grounded in governed, auditable data. 

Core Capabilities Now Available 

The Finance solution in Microsoft 365 Copilot delivers a suite of capabilities designed to simplify financial operations, improve accuracy, and enhance productivity across the finance organization. 

Financial Reconciliation (Generally Available) 

Reconciliation has always been one of finance’s most time-consuming tasks: matching transactions, detecting exceptions, and validating balances. Copilot transforms this process into an interactive experience.

It identifies unmatched transactions, detects potential differences, and suggests next steps. You can review and confirm matches directly in Excel, reducing manual work and improving audit confidence. Show the desired workflow to Copilot once, save it as a template and set up an AI action to get the same steps to be performed on a regular basis. The results can be mailed directly to your inbox. Organizations piloting these capabilities have reduced reconciliation time from days to hours while improving overall data quality. 

Customer Communications in Outlook (Public Preview) 

Finance teams often handle hundreds of customer inquiries via email: checking payment status, confirming invoices, or clarifying balances. With Copilot in Outlook, these messages become opportunities for automation. When an inquiry arrives, Copilot drafts a context-aware reply that includes relevant invoice details or payment confirmations pulled directly from ERP data. Finance professionals can review and send with confidence, knowing each response is accurate, consistent, and aligned with company records. 

Variance Analysis (Public Preview) 

When actuals deviate from the forecast, finance teams must quickly understand why. Variance analysis in Copilot accelerates this process. It identifies anomalies or shifts in financial performance and uses natural language to explain key drivers, such as currency fluctuations, delayed revenue recognition, or cost overruns. It can even draft summary explanations for management reporting. Instead of spending hours building pivot tables, finance teams can spend minutes reviewing insights and refining recommendations. 

Data Preparation in Excel (Public Preview) 

Preparing data for analysis can consume more time than the analysis itself. Through the Finance solution, Copilot automates this step. When ERP data is exported into Excel, Copilot recognizes column types, fills missing values, and reshapes tables into analysis-ready formats. The result is cleaner, standardized data for forecasting, reporting, and machine-learning models—all produced in a fraction of the time. 

Together, these capabilities give finance professionals a connected, AI-assisted workflow across Microsoft 365, where every task, from reconciliation to communication, happens faster, with fewer errors and greater insight. 

Enterprise-Grade Security and Governance 

The Finance solution is built on the same trusted security foundation as Microsoft 365. All interactions honor existing role-based access, compliance, and audit controls, ensuring users only see the data they’re authorized to view. Finance data never leaves your governed environment, and all prompts and responses remain subject to your organization’s security, data-loss-prevention, and privacy policies. 

For IT leaders, this design delivers confidence that Copilot operates within the same enterprise boundaries as your other Microsoft 365 workloads—no additional infrastructure or integration complexity required. Identity management, permissions, and governance remain consistent across finance, sales, and service scenarios. 

Deployment and Management Made Simple 

IT administrators can deploy the Finance solution directly from Microsoft AppSource, making it easy to discover, install, and configure without custom integration work. Once installed, the solution can be connected to your organization’s ERP systems, such as Dynamics 365 Finance or SAP, through guided setup experiences. 

Because it runs within Microsoft 365 Copilot, deployment aligns with your existing Microsoft 365 tenant configuration. There’s no new infrastructure to provision and no separate AI environment to secure. Administrators can manage permissions, configure data connections, and monitor adoption through familiar Microsoft 365 admin centers. 

Finance leaders, meanwhile, can roll out Copilot incrementally, starting with high-impact tasks like reconciliation and variance analysis, before expanding to broader finance workflows across teams and regions. 

How to Get Started 

The Finance solution in Microsoft 365 Copilot is designed to integrate with your current environment quickly. Here’s how to begin: 

1. Check prerequisites – Ensure your organization is licensed for Microsoft 365 Copilot and that the users who will access the Finance solution have permissions aligned with your ERP system (for example, Dynamics 365 Finance or SAP). 

2. Visit Microsoft AppSource – Search for Finance in Microsoft 365 Copilot and initiate the installation. 

3. Connect your ERP system – Use the guided configuration experience to establish a secure connection between Copilot and your ERP environment. All credentials and permissions remain governed by your existing identity and compliance policies. 

4. Assign access and roles – Within the Microsoft 365 admin center, assign appropriate access to finance teams and business users based on their roles. 

5. Start using Copilot – Launch Excel or Outlook and begin exploring finance-related tasks, such as reconciliation support, variance explanations, or drafting customer communications. 

6. Monitor and optimize adoption – IT can track usage, gather feedback, and adjust configurations as needed through existing Microsoft 365 management tools. 

Welcome to the Finance solution in Microsoft 365 | Microsoft Learn 

Finance solution in Microsoft 365 Copilot Series | Dynamics Bites Series

From Systems of Record to Systems of Action 

By bringing ERP data, productivity tools, and AI assistance together, the Finance solution in Microsoft 365 Copilot helps organizations move from static systems of record to dynamic systems of action. Finance teams no longer have to wait for reports or toggle between applications. They can access insights instantly, collaborate seamlessly, and act with confidence. 

For finance professionals, that means faster close cycles and clearer insights. 
For business leaders, it means timely answers grounded in governed data. 
For IT, it means secure scalability across the Microsoft cloud. 

This is finance reimagined for the agentic AI era—more connected, conversational, and compliant by design. 

Learn More 

The Finance solution in Microsoft 365 Copilot is now generally available. Explore how you can bring AI assistance into your finance organization today. 

• Visit Microsoft AppSource to download and configure the solution. 

• Review Microsoft Learn documentation for setup and administration guidance. 

• Discover more about Microsoft 365 Copilot and role-based AI solutions across Sales, Service, and Finance. 

With Microsoft 365 Copilot bringing finance together with your ERP data, you can accelerate decision-making, enhance data confidence, and empower every finance professional to do more, directly within Microsoft 365. 

The post Empowering Finance with an AI Assistant in Microsoft 365 Copilot  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.

How the Advanced Tax Calculation Engine Supports Businesses in a Time of Change

Brazil’s sweeping tax reform is reshaping indirect taxation and creating new compliance demands for companies of all sizes. To help organizations prepare, Microsoft is introducing the Brazilian Tax Reform solution in Dynamics 365 Finance—a flexible, transparent, and compliance-ready approach designed to support modern enterprises.

Dynamic Flexibility: Preparing for Reform with Confidence

At the core of the solution is the Advanced Tax Calculation engine, which enables organizations to configure, test, and run both legacy and new tax regimes in parallel during the transition period. This approach supports continuity, allowing businesses to adopt reform at their own pace while minimizing disruption or downtime.

Figure 1: Legacy core tax plus Advanced Tax Calculation engine

Practical Tools for Day-to-Day Compliance

The Brazilian Tax Reform solution provides intuitive tools that simplify setup and ongoing operations. Users can:

• Define tax groups and rules
• Manage NF-e updates and new CST/cClassTrib fields
• Configure electronic invoicing in Electronic Reporting aligned with Brazilian requirements

Clear documentation and guided configuration help minimize errors and improve readiness for future regulatory changes.

Continuous Compliance with Built-In Updates

Tax reform is not a one-time change—it will continue to evolve. Dynamics 365 Finance Globalization delivers updates as requirements shift, reducing the need for long upgrade projects. This continuous compliance model ensures businesses remain current with legislation and better prepared for future adjustments.

Solution Architecture for Agility

The Brazilian Tax Reform solution is built on a modern, extensible data model that adapts as regulations change:

• Tax Engines: Legacy and reform engines can operate side by side only during the transition period to support migration.
• Entity-Centric Tax Rules: Flexible definitions for tax groups, item groups, and conditional tax logic.
• Electronic Invoicing: Updated NF-e and new NFS-e formats are generated through Electronic Reporting. NF-e continues via SEFAZ; NFS-e submission requires customization or third-party integration.
• Built-In Compliance: Automated updates, audit trails, and reporting to support transparency and regulatory alignment.

Figure 2: Brazilian Tax Reform Solution Structure

Conclusion: A Practical Path Forward

The Brazilian Tax Reform solution in Dynamics 365 Finance gives organizations the flexibility and tools they need to manage compliance confidently. With dual tax engines available only during the transition period, flexible configuration, and continuous updates, the solution supports a smooth shift to Brazil’s new requirements while maintaining operational continuity.

This solution is designed not only to meet today’s compliance needs but also to help businesses stay adaptable in the face of ongoing regulatory change.

The post Introducing the Brazilian Tax Reform Solution in Microsoft Dynamics 365 Finance appeared first on Microsoft Dynamics 365 Blog.