Make smarter, faster, and more confident quote decisions—right where you work. 

Project quoting has always required a careful balance—aligning profitability with competitiveness, staffing strategies with delivery costs, and customer expectations with business outcomes. 

But evaluating these trade-offs hasn’t always been easy. It often means jumping between tools, manually recalculating numbers, and relying on assumptions to guide critical decisions. 

That’s where What-if Analysis (Preview) in Dynamics 365 Project Operations comes in. 

This new capability brings real-time simulation directly into your quoting workflow—so you can explore options, compare outcomes, and make decisions with clarity before finalizing a quote. 

What Is What-if Analysis? 

What-if Analysis introduces a dedicated simulation workspace within a project quote, allowing you to model changes to quantities and pricing and instantly see their financial impact. 

Instead of working through “what if” scenarios offline, you can now: 

• Explore multiple approaches within the quote 

• Compare their outcomes side by side 

• Apply the most effective scenario when you’re ready 

All without modifying the actual quote until you choose to. 

It’s a more intuitive, controlled way to move from estimation to decision-making. 

Turn Everyday Questions into Clear Answers 

Every project quote involves key decisions: 

• Should work shift to a lower-cost delivery center? 

• What happens if billing rates increase for specific roles? 

• Can you stay competitive while protecting margin? 

With What-if Analysis, these are no longer hypothetical questions. 

As you adjust quantities and pricing, the system instantly recalculates key financial metrics—including revenue, cost, gross margin, and budget variance—so you can clearly see the impact of every change. 

This real-time feedback helps you move quickly from exploration to confident, data-backed decisions. 

How It Works 

Getting started is simple. From the What-if Analysis tab on a Draft quote, you can create a scenario based on the quote’s existing data. Each scenario is isolated, allowing you to experiment freely without affecting the live quote. 

Within the simulation workspace, you can adjust quantities and pricing across dimensions such as resourcing unit, role, or any custom pricing dimension configured in your environment. Whether you’re making high-level adjustments or refining details at the quote line level, the experience is designed to be flexible and intuitive. 

You can create multiple scenarios—each representing a different approach—and compare them side by side. Built-in comparison views highlight differences in financial outcomes, making trade-offs easier to evaluate. 

When you’ve identified the best approach, applying the scenario updates the Draft quote in place—so you can move forward with confidence, without creating a new revision. 

What This Means for You 

What-if Analysis transforms how you approach project quoting—bringing clarity, speed, and confidence into every decision. 

• Make decisions with confidence: Instantly understand how pricing and staffing changes impact revenue, cost, and margin—before committing to a quote 

• Optimize for both competitiveness and profitability: Evaluate trade-offs in real time and choose the approach that best aligns with your goals 

• Reduce reliance on spreadsheets and manual iteration: Keep simulation and decision-making within Project Operations 

• Drive faster, more aligned conversations: Use data-backed scenarios to align stakeholders and move decisions forward 

Instead of relying on assumptions, your team can now explore possibilities, evaluate outcomes, and finalize quotes with confidence—knowing the numbers support the decision. 

Availability and Prerequisites 

What-if Analysis is currently available as a preview feature in: 

• Project Operations Core (Lite deployment) 

• Project Operations integrated with ERP 

To get started, enable the What-if Analysis feature flag in your environment. The What-if Analysis tab will then be available on qualifying Draft quotes. 

A few things to keep in mind: 

• Scenarios can only be created on quotes in Draft status that contain estimates 

• Activated or closed quotes are not eligible 

• If the underlying quote changes, scenarios will need to be recreated 

As with all preview features, we recommend evaluating this capability in a non-production environment. 

The Bottom Line 

Every project quote is a critical business decision. What-if Analysis gives you the tools to approach that decision with clarity—replacing guesswork with real-time insight and manual effort with seamless simulation. 

The result is not just better quotes, but better decisions—ones that are competitive, financially sound, and aligned with your business goals. 

Get Started 

Enable What-if Analysis in your environment today and start turning “what if?” into “we know.” 

Learn More 

We are making constant enhancements to our features. To learn more about What-Analysis in Project Quotations, visit Quote What-if Analysis 

The post Take the Guesswork Out of Project Quoting with What-if Analysis in Dynamics 365 Project Operations  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 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.

On March 19, 2024, we announced that support for Dynamics 365 Project Service Automation on the commercial cloud will end on March 31, 2025. As planned, end of support went into effect on that date. 

Today we are announcing the end of support for  Dynamics 365 Project Service Automation on the U.S. Government cloud (GCC) beginning March 31, 2027. Dynamics 365 Project Operations has been available in U.S. Government cloud (GCC) since December 2025.  

Beginning March 31, 2027, Microsoft will no longer support PSA on GCC environments. There will not be any feature enhancements, updates, bug fixes, or other updates to this offering. Any support ticket logged for the PSA application on GCC will be closed with instructions to upgrade to Project Operations.    

We strongly encourage all PSA customers on GCC environments to start planning your upgrade process as soon as possible so you can take advantage of many new Project Operations features such as:   

• Integration with Planner capabilities on Dataverse with many new advanced scheduling features  

• Project Budgeting and Time-phased forecasting    

• Date Effective price overrides   

• Revision and Activation on Quotes     

• Material usage recording in projects and tasks   

• Subcontract Management   

• Advances and Retained-based contracts   

• Contract not-to-exceed   

• Task and Progress based billing   

• Multi-Customer contracts   

• AI and Copilot based experiences.   

 For Project Service Automation customers on GCC High or DoD, we will have a future announcement regarding the availability of Dynamics 365 Project Operations. 

Upgrade documentation and FAQ links  

• Upgrade from Project Service Automation to Project Operations | Microsoft Learn  

• Project Service Automation end of life FAQ | Microsoft Learn    

• Feature changes from Project Service Automation to Project Operations | Microsoft Learn  

• Project Service Automation to Project Operations project scheduling conversion process | Microsoft Learn  

Learn more about Dynamics 365 Project Operations  

Project Operations was first released in October 2020 as a comprehensive product to manage Projects from inception to close by bringing together the strengths of Dataverse, Microsoft Dynamics 365 Finance, Microsoft Dynamics 365 Supply Chain Management, and Microsoft Planner. 

Want to learn more about Project Operations? Check this link and navigate to our detailed documentation!   

Want to try Project Operations? Click here and sign up for a 30-day trial!    

The post Announcing End of Support for Dynamics 365 Project Service Automation (PSA) on the U.S. Government cloud 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.

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.

Our mission is to empower everyone to achieve more, and we design our products and services with enterprise-grade security, privacy, compliance, and transparency. As part of this commitment, we continue to evolve our offering to provide administrators with enhanced tools and reporting to optimize access and licensing within Dynamics 365 finance and operations applications.

On April 30, 2025, we delivered a set of enhancements to user license reporting in the Power Platform admin center, providing customers with comprehensive visibility into license usage across security roles. These improvements build on the momentum from our earlier investments in governance tools, as outlined in our March blog post on simplifying license management in Dynamics 365. Together, these updates are designed to help organizations better understand and manage their licensing footprint.

Microsoft is updating the timeline for in-app notifications and per-user license validation to give customers more time to prepare. To enable a smoother and more predictable experience, license validation will follow a staged rollout aligned with customer’s contract renewal or anniversary date. In parallel, we are introducing additional tools and reporting capabilities to increase transparency and improve the overall experience for customers managing their licensing footprint.

Why We’re Taking a Staged Approach

Starting January 15, 2026, license validation for Dynamics 365 finance and operations applications will begin for customers with contract renewals or anniversaries occurring after that date – refer to the FAQ to learn how this applies to your organization. This approach enables several important benefits:

• Proactive Engagement: Aligning validation with contract milestones helps customers plan to review user counts and licensing needs.
• Reduced Operational Impact: This timing allows organizations to plan and implement necessary adjustments with less likelihood of operational disruption.
• Scalable and Transparent: A staggered timeline provides better transparency when license validation occurs, helping customers plan ahead.

Note: Customers granted a grace period as described in this customer blog will continue to have that status honored.

To maintain continuous access and reduce disruptions in the future, we recommend organizations proactively review and assign licenses in advance.  Users without assigned licenses will no longer have access to these applications after technical validation until licenses are assigned and will instead receive prompts to request the appropriate licenses from their administrator.

Preparing for a Smooth Transition

To help customers confidently navigate the upcoming license validation process starting January 15, 2026, we’ve outlined clear steps to enable your organization to be prepared.

As we approach this important milestone, we encourage your administrator to: 

1. Understand licensing requirements: Review the licensing model for clarity on how security roles, duties, and privileges map to license types.
2. Review User Role and License Mapping: Use the Power Platform admin center or Dynamics Lifecycle Services reporting to generate a high-level summary of active users and respective license requirements.
3. Role to license optimization: Use the License Usage Summary Report in Dynamics 365 finance and operations to identify opportunities to optimize user role assignments by removing unnecessary entitlements or permissions.
4. Align license assignments in Microsoft 365 Admin Center: Provision and assign the appropriate licenses to users in the Microsoft 365 Admin Center, ensuring they match the license types mapped in the reports. If needed, make reservations or place supplemental orders for additional licenses.

Following this guidance will help facilitate a smooth transition and position your organization for success managing Dynamics 365 finance and operations licensing across your Microsoft Cloud solutions. This shift toward centralized license assignment underscores our commitment to simplifying administrative processes, providing greater visibility, security, and governance.

For additional information, use the following resources to continue adapting to the new modern reporting tools:

• Licensing Resources
• User security role reporting and technical validation for finance and operations apps FAQ​
• View license consumption for finance and operations apps​
• Stay compliant with user licensing requirements​
• User security governance overview​

The post Simplifying License Management for Dynamics 365 Finance and Operations: Improved User License Validation appeared first on Microsoft Dynamics 365 Blog.

Updated September 25, 2025: Please see Simplifying License Management for Dynamics 365 Finance and Operations: Improved User License Validation

Today, we’re introducing updates that will help centralize user license management and provide clarity for administrators. Starting April 30th, administrators will have access to license usage reporting that shows seats available and seats assigned. Starting September 1st, users that have not yet been assigned a license will start to see an in-product notification asking them to contact their administrator to request license assignment. Beginning November 1, 2025, users will require an assigned license to access the Dynamics 365 Finance and Operations applications. We are giving customers time to prepare with tools and training to support any action needed. For users that already have licenses assigned, there will be no disruption, and no action needed from their administrator.   

Key Dates and Actions for Simplified License Management 

Starting April 30, 2025, we will introduce enhanced license reporting in the Power Platform admin center, offering comprehensive insights into license usage across all security roles.

Starting September 1, 2025, users who do not meet license requirements will receive proactive notifications directly within the Dynamics 365 application, instructing them to request proper licensing through their administrator. This improvement supports your efforts to maintain precise control and ensures compliance while reducing administrative overhead. 

Beginning November 1, 2025, all Dynamics 365 customers will be required to assign user licenses directly through the Microsoft 365 admin center for the following applications: 

• Finance 

• Finance Premium 

• Supply Chain Management 

• Supply Chain Management Premium 

• Commerce 

• Project Operations (in Dynamics 365 Finance and Operations) 

• Human Resources 

This shift toward centralized license assignment underscores our commitment to simplifying administrative processes, providing greater visibility and governance, and enhancing the overall licensing experience across the Microsoft Cloud. 

To maintain continuous access and avoid disruptions in the future, we recommend organizations proactively review and assign licenses in advance.  Users without assigned licenses will no longer have access to these applications and will instead receive prompts to request the appropriate licenses from their administrator.  

Preparing for a Smooth Transition 

As we approach this important milestone, we encourage you to: 

1. Review the “Finance and Operations User license level overview report” in the Power Platform admin center. 

2. Begin assigning your Dynamics 365 licenses in the Microsoft 365 admin center today. 

Taking these steps will help ensure a smooth transition before November 1, 2025, and position your organization for success in managing licenses across Microsoft Cloud solutions. 

Take control of your license reporting: 

Now, administrators can better understand and govern licenses with the improved license reporting capabilities available in both the Power Platform admin center as well as in Dynamics Lifecycle Services (LCS). We have also introduced in-product reporting to provide further control. 

1) In the Power Platform admin center 

Within Power Platform admin center (PPAC), administrators will have access to comprehensive license reporting for required seats. This report also reflects the number of assigned seats from the Microsoft 365 admin center and provides recommended actions to help remediate assignment gaps.  

2) In Dynamics Lifecycle Services (LCS) 

Similarly, in LCS we will be directly integrating the same reporting information from PPAC as part of our admin unification efforts.  This ensures that administrators from both the customer and their system implementation partner will have access to the same reporting details and actions as administrators in PPAC. 

3) In-product reporting 

User Security Governance is also now in Public Preview with Dynamics 365 version 10.0.43, providing administrators with even greater visibility and control. General availability for these features is targeted for June 6, 2025 with version 10.0.44. Customers can opt into these features through Feature Management and test them in sandbox environments ahead of broad deployment. 

Learn More 

Ready to get started with a centralized license assignment? Learn how to assign Dynamics 365 licenses through the Microsoft 365 admin center or explore the recent FastTrack Tech Talk | User Security Governance Overview. 

Updated May 15: in-product notifications have been pushed to September 1, 2025, and license assignment to November 1, 2025, so customers have sufficient time to be able to assign licenses in admin.microsoft.com. 

Updated May 23, 2025: Microsoft is providing customers with active renewals of Dynamics 365 finance and operations apps in FY25 Q4 or FY26 Q1 (present date until 9/30/2025) with a 12-month grace period from their renewal date before in product notification(s) and per-user subscription license (USL) assignment validation(s) will occur.

Updated September 25, 2025: Microsoft is providing customers with contract renewals or anniversaries for Dynamics 365 finance and operations apps occurring after January 15, 2026, with a staged rollout for in-product notifications and per-user license validation, allowing more time to prepare before enforcement begins.

Microsoft remains dedicated to empowering your organization with the tools and resources needed to thrive in today’s complex business environment. These license management improvements are just one more way we’re working to simplify your experience and help you focus on what matters most—delivering value to your customers and driving operational excellence. 

The post Simplifying License Management for Dynamics 365 Finance and Operations: Improved User License Validation 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.

It’s not hyperbolic to say that today’s enterprise resource planning (ERP) solutions have entered a new era: one where organizations are reimagining systems that are AI-operated but human led. This blended approach will take time to mature but with 81% of leaders expecting agents to be moderately or extensively integrated into their company’s AI strategy¹, the time to act is now. In Microsoft Dynamics 365, these agents are redefining how finance, supply chain, and operations teams get their work done and how business operations run: intelligently, cost-effectively, and at scale. Building on the initial wave of agents announced, like the Financial Reconciliation Agent and Sales Order Agent, Microsoft is excited to announce that several new ERP agents are available and ready to start using today.

The rise of autonomous agents

How are agents different from AI-powered assistants? Building on the value of AI acting as an assistant, agents join teams as “digital colleagues”, or agents that take on specific tasks. AI-powered autonomous agents transform how business processes are orchestrated and executed—moving away from human-dependent tasks to intelligent, scalable automation. In Dynamics 365, these agents work on behalf of individuals, teams, and entire functions to streamline processes like lead generation, order management, and account reconciliation and close.

ERP systems in particular are rich with high-volume, rules-based activities that are ripe for transformation. By introducing agents into core ERP scenarios, organizations can reduce manual effort, improve accuracy, and accelerate decision-making across finance, supply chain, and project operations. This shift marks a meaningful departure towards AI-first operations and the below agents, available today in Dynamics 365, are just a preview of what’s to come.

New agents for ERP entering production-ready public preview

Agents for ERP are designed to facilitate complex business processes, like source-to-pay and project-to-profit, to ultimately reduce manual effort, enhance your efficiency, and improve business performance. Some agents fully automate entire workflows, while others support specific steps, but all are built to augment how people work. Today, new ERP agents in Dynamics 365 are now available in public preview.

Account Reconciliation Agent

Reconciling ledger entries is a time-consuming, detailed task that countless professionals spend hours on. With the Account Reconciliation Agent, users can deliver timely, compliant financial statements with fewer manual fixes. The agent accelerates the period-end close by matching ledger entries, flagging discrepancies, and recommending resolution steps. With an agent managing the reconciliation process, users can reduce operational expenses and overall time spent manually reviewing and analyzing results.

Microsoft customer Lifetime Products deployed the Account Reconciliation Agent to automate the matching and clearing of transactions between subledgers and the general ledger and saw immediate process improvements.

“Using AI and autonomous agents are just the next level for us when it comes to realizing the full benefit of our Dynamics 365 environment.“

Ted Esplin, Lifetime Products, COO

Read more about Lifetime’s success here.

Supplier Communications Agent

If the past few years have shown us anything it’s that modern supply chains operate under relentless change—and staying ahead of supplier deliveries is critical to operational performance. The Supplier Communications Agent takes charge of supplier interactions, acting instantly on supplier emails, chasing missing order confirmations and delayed shipments. By closing the loop on every critical supplier touchpoint, the agent slashes rush charges, prevents costly disruptions, and protects your margins. Procurement specialists avoid last minute firefights and can focus on managing supplier relationships, driving resilience and efficiency across your entire source to pay process.

Expense Agent

Catching up with emails after a work trip is challenging enough; providing expense details adds another item on your to-do list. With the Expense Agent, users can streamline expense reporting with accuracy and policy compliance. The Expense Agent uses AI to extract key details from receipts—such as vendor, amount, date, and category—and intelligently suggests classifications aligned with company travel and expense policies. It helps ensure accurate, compliant submissions from the start, reducing manual errors, out-of-policy spending, and the need for rework. By improving data quality at the source, organizations can accelerate reimbursement, maintain policy compliance, and reduce the administrative burden on employees, managers, and finance teams alike. This allows more reliable cost tracking and enhances overall financial visibility into spend.

Time Entry Agent

Reduce time spent on entering details and tracking updates and spend more time using real-time insights into project performance. The Time Entry Agent helps to ensure timely, accurate capture of project hours by prompting employees to log time with smart reminders and context. This agent enhances billing accuracy, payroll, and visibility into project performance. Capturing time spent with an agent reduces the time spent on manual input and gives project planners better insight into resource utilization.

Activity Approvals Agent

Cut through the noise, reduce approval cycle times, and enforce cost controls with the Activity Approvals Agent. Streamline your work by only surfacing entries that need attention. This agent helps managers act faster, prevents unapproved costs, and speeds up downstream workflows. By automating the activity approvals process, project managers can improve project performance and increase visibility into time spent.

Transformative impact on business processes

ERP systems are often considered complex and dense with information, customizations, and requirements. This same complexity makes these processes ripe for automation and agents. By bringing in agents to automate steps across existing business processes and reduce any manual interventions required, agents help teams to achieve greater efficiency and freedom from processes while delivering optimal business outcomes. From finance and supply chain management to project operations and time tracking, these agents streamline workflows, reduce manual effort, and enhance accuracy. With 82% of leaders confident that they’ll use digital labor to expand capacity in the next 12-18 months², the breadth of what is possible with agents for ERP is vast. Get started using agents for ERP processes in Dynamics 365 today to achieve greater efficiency, cost savings, and improved visibility into your operations.

Review documentation of agents and join the public preview today!

• Time, Expense and Approvals Agent
• Account Reconciliation Agent
• Supplier Communications Agent

Curious about licensing? Learn more about Microsoft Copilot Studio billing rates.

Sources:

^1,2 2025: The Year the Frontier Firm Is Born

The post A new era in business processes: AI agents for ERP appeared first on Microsoft Dynamics 365 Blog.