A new way to bring service workflows, insights, and actions directly into Copilot

Microsoft 365 Copilot is becoming the primary interface for how people get work done. As more teams rely on Microsoft 365 Copilot to retrieve information, reason over data, and take action, the need for domain‑specific intelligence, especially for customer service, has never been greater.

On March 9^th, we announced the frontier transformation, where we introduced a new type of business application integrated with Microsoft 365 Copilot. Today, we’re excited to introduce Service Agent in Microsoft 365 Copilot: a purpose‑built agent that brings customer service context, insights, and actions directly into the Copilot experience employees already use every day.

Service Agent enables service teams to move faster, stay focused, and resolve issues with greater confidence, without switching tools or losing context.

What is Service Agent?

Service Agent is a declarative agent that runs inside Microsoft 365 Copilot, designed specifically for customer service scenarios.

It combines:

• The reach and familiarity of Microsoft 365 Copilot
• The depth of Dynamics 365 Customer Service data
• The power of agents that can reason, retrieve, and take action

With Service Agent, service professionals can interact with cases, knowledge, and service workflows using natural language—grounded in both Microsoft 365 and Dynamics 365 Customer Service system data—right from Copilot.

Why this matters for IT and service leaders

For years, service professionals have had to juggle multiple tools: CRM systems, knowledge bases, emails, internal chats, and reports, often switching context.

Service Agent changes that model by making Copilot the primary system of engagement for service work.

This approach delivers three key benefits:

1. One Copilot experience, across all applications including within Dynamics 365 Customer Service

Service Agent brings service workflows into the same Copilot surface used for everyday productivity, reducing friction, training overhead, and context switching.

2. Faster resolution through richer context

By grounding Copilot in both Microsoft 365 data (Outlook, Teams, SharePoint) and Dynamics 365 service data (such as cases, emails, knowledge, customer history), service professionals can build case understanding in seconds—not minutes.

3. Action, not just answers

Service Agent doesn’t stop at reading and synthesizing data. It can help service professionals prioritize cases, update records, draft responses to customers, and trigger workflows—all through natural language.

What Service Agent can do in Public Preview

In its initial release, Service Agent enables scenarios such as:

• Case understanding and summarization
  Quickly generate rich summaries of customer cases, including context from prior interactions and related knowledge.
• Case prioritization and workload awareness
  Ask Copilot what needs attention now, based on customer signals and service data.
• Service knowledge retrieval
  Get relevant answers grounded in Dataverse and SharePoint knowledge, directly within Copilot.
• Make data updates and initiate workflows
  Make updates to service records, add case notes and initiate workflows such as child case creation without leaving Copilot.
• Cross‑app continuity, shared history, shared memory
  Move seamlessly between applications such as Teams, Outlook, and Dynamics 365 Customer Service while maintaining shared memory and chat history.

Figure 1: Getting answers from Dataverse and SharePoint in Copilot Service Workspace

Figure 2: Customer interactions summaries across Dataverse, Teams and Outlook in Microsoft 365 Copilot app

Built for enterprise requirements

Service Agent is designed with enterprise IT needs in mind:

• Grounded in Microsoft 365 Copilot with enterprise‑grade security and compliance
• Aligned with existing Dynamics 365 Customer Service investments
• Extensible, Service Agent will extend to supporting additional skills, apps, and workflows over time
• Admin‑friendly, building on familiar Copilot and Dynamics management models

Service Agent acts as an intelligent layer on top of existing service systems, bringing the right information and actions to users, when and where they need them across the application ecosystem.

Getting started

Service Agent is now available in public preview, with several ongoing enhancements planned as we expand capabilities, performance, and extensibility.

To learn more:

• Turn on Service Agent using the public preview documentation
• Add the Microsoft 365 Copilot to Dynamics 365 Customer Service using the documentation
• Follow updates on Microsoft Learn and the ITPro Blog
• Engage with your Microsoft account team for preview guidance

Looking ahead

Service Agent is a significant step toward a future where Copilot is the primary way people engage with business systems—not just to ask questions, but to get work done.

We’re excited to partner with customers and IT leaders as we continue to evolve Service Agent and bring more service capabilities into Microsoft 365 Copilot.

Stay tuned for more.

The post Introducing Service Agent in Microsoft 365 Copilot appeared first on Microsoft Dynamics 365 Blog.

Growth is exciting—but it introduces complexity. 

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

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

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

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

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

• Potential payback in six months 

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

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

Where the value comes from 

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

Support faster, more efficient finance operations 

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

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

• Up to 30% reduction in monthly close time 

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

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

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

Lower total cost of ownership through ERP consolidation 

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

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

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

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

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

Enable improved profitability through better visibility 

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

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

• Up to 3% improvement in net profit margins 

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

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

Fast reporting and audit readiness 

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

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

• Audit preparation time by up to 30% 

• Time spent creating internal and executive reports 

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

Beyond the numbers: Building an AI-ready foundation

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

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

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

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

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

Read the full study 

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

Join us at Directions North America 2026 

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

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

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

Attendees will: 

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

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

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

In today’s customer-focused landscape, every interaction matters. Modern contact centers must quickly connect customers with the right expert through voice, chat, or digital channels. Effective transfer options are critical—especially in multi-intent conversations, where a customer may start with one request (for example, a loan inquiry) and then pivot to a completely different need. 

Dynamics 365 Contact Center solves this by offering robust transfer features, allowing service teams to route conversations efficiently to experts, specialist groups, or external partners. From direct transfers to warm handoffs or collaboration, these tools keep service smooth and consistent, helping representatives get customers the support they need without disruption. 

To see how these capabilities play out in a real-world setting, let’s visit Contoso Bank. 

Inside Contoso Bank: Delivering Seamless, Expert-Led Customer Experiences 

To see these transfer capabilities in action, let’s walk through a real-world example from financial services. Contoso Bank is a global financial institution known for its premium wealth management offerings. Its Wealth Desk Support team assists high value clients each day. They answer investment queries, clarify portfolio allocations, manage insurance-related questions, and coordinate with Relationship Managers and specialists across the bank. Their mission is simple: connect every client to the right expert instantly, with a service experience that feels seamless, personal, and trusted. 

Here’s how Dynamics 365 Contact Center empowers Contoso Bank’s service representatives to deliver that promise across voice and digital channels. 

Direct Transfer: Fast, Seamless Connections 

Direct Transfer enables service representatives to move a voice or digital conversation to another representative instantly, without a consult step. 

Contoso Scenario: Initial Query → Relationship Manager 

A customer initiates a chat with a general banking question, such as loan eligibility. As the conversation progresses, it becomes clear that the Relationship Manager (RM) is the right person to guide the customer further. The representative performs a Direct Transfer to the customer’s assigned RM. 

What the client experiences: 

From the client’s perspective, the experience feels immediate and effortless. There is minimal wait time, no need to repeat information, and the conversation continues directly with the Relationship Manager who understands their portfolio best. 

Warm Transfer (Consult → Transfer): Perfect for High-Value, Sensitive Cases 

Warm Transfer allows a representative to first consult with another expert while the customer is on hold. This ensures the handoff is informed, confident, and respectful of the client’s needs. 

Contoso Scenario: Relationship Manager → Wealth Specialist 

A customer contacts their Relationship Manager (RM) to discuss concerns about recent market volatility and its impact on their portfolio. The RM consults a Wealth or Portfolio Specialist to review the customer’s risk profile, preferences, and current holdings. Once aligned, the RM completes a Warm Transfer, briefing the specialist before bringing the customer into the conversation. 

Why it works well: 

This approach preserves the personalization and trust already established by the Relationship Manager. It also reduces customer anxiety during sensitive financial discussions, and ensures the specialist receives full context before engaging with the client. 

Transfer to Queues: Seamless Routing for Specialized Work 

When the next handler depends on deeper expertise or workload balancing, conversations can be transferred into a queue, where routing logic selects the best representative. 

Contoso Scenario: Mutual Fund Switch Request 

A client wants to switch mutual funds via chat. The representative transfers the conversation into the Wealth Operations queue, ensuring the next available specialist picks it up. 

Benefits: 

This ensures efficient workload distribution across specialists, supports compliance-friendly handling of regulated requests, and delivers consistent, reliable service for customers. 

Transfer to External Phone Numbers (PSTN): Connect with External Partners 

Banks frequently rely on external insurance, investment, or brokerage partners. Service representatives can transfer voice calls directly to an external PSTN number, creating a unified client experience even across institutional boundaries. 

Contoso Scenario: Insurance Policy Maturity 

A client needs details from Contoso’s insurance partner about an insurance product. The representative enters the partner’s PSTN number and transfers the call seamlessly. 

Outcome: 

The customer experiences a smooth handoff without channel disruption, while Contoso Bank maintains a connected end-to-end journey even when collaborating with external partners. 

Transfer to Microsoft Teams Users: Collaboration Without Barriers 

Many Relationship Managers and wealth specialists work primarily in Teams. Dynamics 365 Contact Center enables representatives to transfer conversations directly to Teams users, bridging contact center operations and collaboration tools. 

Contoso Scenario: Urgent Conversation with a Relationship Manager 

A VIP client calls needing immediate portfolio guidance. The representative sees the Relationship Manager is active in Teams and transfers the call instantly. 

Benefits: 

This enables faster access to advisors, eliminates context loss between systems, and gives Relationship Managers greater flexibility to engage from their primary workspace. 

Wrap Up After Transfer: Protecting Time for Compliance & Documentation 

After transferring a call or chat, representatives often need to document the interaction — capturing notes, updating CRM fields, tagging compliance steps, or recording follow-ups. 

Wrap Up After Transfer provides dedicated time to the expert before new work is assigned, helping maintain accuracy and quality. 

Contoso Scenario: Logging KYC and Notes 

During this wrap up time, the representative can complete KYC verification, add investment-related notes, and schedule any required follow-ups without pressure from incoming work. 

Why it matters: 

This reduces operational errors, strengthens compliance posture, and ensures customer records remain complete and accurate. 

Filtered Transfers: Showing the Right Queues, Every Time 

In large contact centers, not every queue or user should be available for every transfer. An unfiltered list slows representatives down and increases the risk of incorrect or noncompliant handoffs. Dynamics 365 Contact Center addresses this by allowing organizations to control which queues and users are visible during transfer, ensuring representatives see only the most relevant options. 

Contoso Scenario: Precision Transfers in Wealth Operations 

A customer’s chat is transferred into the Wealth Operations queue once their request is identified as a fund switch. Representatives can now see and transfer only to approved Wealth Operations sub-queues and eligible specialists, based on role and policy. This ensures the conversation stays within the correct domain, prevents accidental rerouting, and helps Contoso maintain accuracy, compliance, and faster resolution once work enters specialized queues. 

Why it matters: 

Filtered transfers reduce cognitive load for representatives, improve transfer accuracy, and reinforce compliance—especially in multi-intent conversations where choosing the right next destination is critical to a seamless customer experience. 

Elevate Every Conversation with Dynamics 365 Contact Center 

In any industry, strong customer experiences depend on connecting people with the right expertise quickly. Dynamics 365 Contact Center offers flexible transfers and intelligent routing to keep conversations efficient, regardless of complexity.  

Learn more  

To explore the transfer capabilities in detail, visit the official documentation:  

• Transfer calls and consult with users | Microsoft Learn 

• View the communication panel for conversations | Microsoft Learn 

• Enable consult and transfer settings for representatives | Microsoft Learn 

The post All Transfer Capabilities in Dynamics 365 Contact Center  appeared first on Microsoft Dynamics 365 Blog.

Work is changing at a structural level.

Three forces are converging. The interface layer is shifting to AI assistants. Agents handle workflow orchestration. And an intelligence layer is consolidating information across structured and unstructured sources. Together, these forces mark Frontier Transformation, where AI moves beyond basic efficiency to open new opportunities for creativity, innovation and growth.

This transformation also creates a new kind of business application: one that is integrated with the AI assistant people use every day, accessible to agents and grounded in the unique intelligence of each organization.

We call these agentic business applications. The applications themselves still reflect real business processes. But how people interact with them, how work moves through them and how they connect to the rest of the business is fundamentally different.

Today, we’re taking a significant step forward in bringing agentic business applications to life across Microsoft 365, Dynamics 365, and Microsoft Power Platform.

Interact with business applications inside Copilot

Microsoft 365 Copilot is becoming an interactive workspace for business applications. Dynamics 365 Sales, Dynamics 365 Customer Service, and custom apps built with Power Apps will surface directly as agents with rich UX inside chat in Microsoft 365 Copilot. Agents using Apps SDK and MCP Apps can also bring Microsoft partner apps into the conversation, including tools teams already use, like Adobe Express, Figma, and Wix. This is the interface layer shift in practice. Instead of switching between applications, users state what they need in Copilot and the system responds. You can review data and take action without leaving the conversation. Copilot becomes the place where work gets done.

As an example, a human resources (HR) employee can now call on their custom HR app, built with Power Apps, right within Copilot to compile a list of office locations with the highest new hire counts this quarter, viewing the results in an organized table with filter options. Additionally, they can prompt the application to show the results in a map view, all without leaving their Copilot interface.

Or a customer service representative can begin their day in Microsoft 365 Copilot by reviewing a summary of priority cases they need to focus on, easily viewing and updating their data from Dynamics 365 Customer Service.

Public preview for this capability will be available later this month for Power Apps, with availability for Dynamics 365 Sales and Dynamics 365 Customer Service launching in early April 2026. Throughout the next month, we’ll also introduce support for this capability across a handful of Microsoft partner apps, including Adobe Express, Adobe Acrobat, Base44, Box, Canva, Coursera, Figma, Miro, Monday.com, Optimizely, and Wix. All pre-built partner app experiences will be accessible via the Microsoft 365 Agent Store for users with Microsoft 365 Copilot.

Bring Copilot and agents into Dynamics 365 and Power Apps

The experience works in both directions. Microsoft 365 Copilot and agents like Researcher and Analyst will be accessible directly within Dynamics 365 Sales, Dynamics 365 Customer Service, and custom apps built with Power Apps. Employees get the same Copilot capabilities they trust across Microsoft 365 while staying grounded in their operational systems.

Customers can continue to benefit from pre-built agents in Dynamics 365, including Sales Qualification Agent, Case Management Agent, and Account Reconciliation Agent, which help teams automate routine work and focus on higher value decisions.

Consider a seller working in Dynamics 365 Sales who asks Researcher to generate a full account overview: customer relationship management (CRM) context, internal knowledge, and external research combined in one response, surfaced in place. The unit of value shifts from “find the right screen” to “get the answer and act.” This creates a more consistent experience across productivity tools and business applications. Work moves from insight to execution with less friction between systems.

Microsoft 365 Copilot in Dynamics 365 Sales, Dynamics 365 Customer Service, and canvas apps in Power Apps will be available in public preview by early April 2026. Microsoft 365 Copilot in model-driven apps built with Power Apps will reach general availability by early April 2026. A Microsoft 365 Copilot license is required. This experience with Power Apps also requires a Power Apps premium license.

Microsoft 365 Copilot in Power Apps allows us to ask questions and make decisions directly against our Dataverse data, while also combining insights from Microsoft 365 when needed. The experience now feels truly unified, allowing our users to summarize complex operational data, trigger actions, and seamlessly access insights. We’ve seen significant increases in the value provided to both our internal solutions and customer-facing products.

Peter Kestenholz, Founder & Head of Innovation, Context&

Grounded in your organization’s intelligence with Work IQ

Underpinning all of this is Work IQ. Work IQ connects signals from Microsoft 365 with operational data from Dynamics 365 and Power Apps. It follows work as it happens across documents, meetings, chats, and business processes. This is the intelligence layer: the thing that resolves entities and relationships across structured and unstructured sources, so agents and Copilot share a common understanding of what is happening across the business.

Decisions discussed in a meeting or email can connect to live data in a business application. Changes in one place surface where attention is needed elsewhere. And because this intelligence is grounded in Dataverse and your organization’s own data, actions stay aligned to real processes and real context.

For example, when a pricing change is discussed in a meeting, Work IQ understands how that decision impacts active opportunities in Dynamics 365 Sales, surfacing the affected opportunities within Copilot for review.

Work IQ plays an important role in making business applications agentic. Without it, agents operate on partial information. With it, they act on the full context of the business.

Users with a Microsoft 365 Copilot license can experience Work IQ with Dataverse integration directly inside Power Apps, Dynamics 365 Sales, and Dynamics 365 Customer Service in public preview by early April 2026.

See how it all comes together

Copilot, agents, and Work IQ come together as a system of work. Within that system lies a new generation of business applications: applications that understand context, respond to intent, and support execution where work actually happens. The business application stack is entering a significant architectural shift. What we’re announcing today is one step in that larger transition. We are building a platform where applications, intelligence and execution converge so teams operate with more clarity and less overhead.

You’ll see this foundation expand across Dynamics 365, Microsoft Power Platform, and Microsoft 365 as we bring more agentic capabilities into the flow of work. Agentic business applications are already taking shape.

• Tune in to the Microsoft Frontier Transformation digital event on March 9, 2026 at 8:00 AM PT.
• Register for the Business Applications Update event streaming on March 18, 2026 at 9:00 AM PT.

The post A new way of working is taking shape: Frontier Transformation appeared first on Microsoft Dynamics 365 Blog.

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

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

Microsoft Cloud and agent platform enables inventory to deliver transformation

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

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

Automate vendor communication with a first party agent from Dynamics 365

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

Explore partner agents to support the inventory to deliver process

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

Warehouse Advisor Agent by MCA Connect

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

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

Inventory Acquisition and Re‑Balancing Agent from RSM

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

Inbound Load Agent from Fellowmind

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

Get started with agents for inventory-to-deliver processes

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

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

Retail Frontier Firms are evolving their operating models to keep pace with increasingly dynamic markets, using AI to support more responsive and resilient decision-making and execution across commerce channels. Rather than improving individual functions in isolation, these organizations are rethinking how commerce operates end to end, enabling AI agents to work alongside people to support faster, more consistent outcomes across the business. This evolution is accelerating as retailers navigate rising customer expectations, sustained margin pressure, volatile demand, and ongoing labor constraints: conditions that benefit from decisions being made and executed more continuously.

In Retail Frontier Firms, AI capabilities are embedded where decisions and value are created: in stores, at the digital shelf, across merchandising, pricing, fulfillment, customer service, and checkout. AI agents interpret signals from customers, inventory, suppliers, and channels and help coordinate actions across the enterprise. This supports retailers as they respond to change with greater speed, consistency, and scale across touchpoints.

This operating model is enabled by agents that share context and operate cohesively across the retail ecosystem. At the core of agentic commerce is Model Context Protocol (MCP), which provides AI agents with access to a shared, enterprise-grade understanding of products, inventory, pricing, policies, and customer intent. By grounding agents in a common business context, MCP helps support aligned, governed, and consistent decision-making across channels and functions. The future of retail is increasingly shaped by a human and AI agent operating model, connected by shared context and open protocols.

• Model Context Protocol (MCP) unlocks hundreds of thousands of business functions for secure, real-time use by agents, developers, and applications. 
• Agent Communication Protocol (ACP) enables agents across merchandising, supply chain, store operations, and service to collaborate end to end, helping reduce fragmentation and align execution across functions.
• Payment and transaction agent protocols extend AI capabilities through checkout and settlement, supporting trusted, compliant transactions across in-store, online, and conversational commerce.

Together, these capabilities support a more outcome-driven operating model focused on availability, margin, conversion, service levels, and loyalty. Humans define strategy, priorities, and guardrails, while AI agents help orchestrate execution across day-to-day operations: supporting modern retail operations designed for Commerce Anywhere.

Emerging retail trends shaping the future of commerce

As consumer expectations continue to rise, shoppers increasingly demand seamless, continuous interactions where they move effortlessly from social-commerce discovery to mobile checkout, in-store pickup, curbside fulfillment, or voice-activated reordering. Frontier retail responds to this shift by dissolving the boundaries between channels and touchpoints, allowing commerce to adapt in real time to customer intent, location, and context. For brands, this means the ability to deliver frictionless, anticipatory commerce at scale by meeting customers wherever they are, with relevance and speed, without adding operational complexity.

The industry is rapidly shifting away from static, siloed channels toward autonomous, context-aware agents that orchestrate buying journeys seamlessly across stores, digital experiences, and conversational interfaces. Agents move beyond traditional personalization. They actively guide product discovery, shape contextual offers, negotiate availability, and coordinate fulfillment, helping to continuously optimize inventory, pricing, promotions, and supply-chain decisions behind the scenes. As personalization and automation become table stakes, agentic AI emerges as the strategic engine driving scalable growth and sustainable Commerce Anywhere.

Introducing Microsoft Dynamics 365 Commerce MCP Server

Agentic commerce introduces a new operating model in which AI agents collaborate through MCP, enabling continuous decision-making and coordinated execution across the retail value chain. The new Dynamics 365 Commerce MCP Server exposes core retail business logic including catalog, pricing, promotions, inventory, carts, orders, and fulfillment as MCP-enabled capabilities. Expected to be in preview in February 2026, this will allow retailers to build agentic commerce experiences where AI agents can securely discover, decide, and execute retail workflows across digital, physical, and conversational channels.

By combining the ERP, Analytics, and Commerce MCP servers, Dynamics 365 supports a more agent-driven operating model in which front-office experiences and back-office operations are connected and optimized, helping retailers operate with greater agility and readiness for Commerce Anywhere.

How retailers can begin adopting agentic commerce today

Retail leaders can begin moving toward agentic commerce by adopting AI agents in three practical ways:

1. Starting with agents embedded in Dynamics 365
2. Extending capabilities through custom-built agents using MCP
3. Leveraging partner-built agents across the broader retail ecosystem

Together, these approaches allow retailers to progress at their own pace while aligning agent adoption to their operating model, business priorities, and maturity.

1. Start with agents embedded in Dynamics 365

Purpose-built agents are designed to address common retail challenges and operational friction points. Dynamics 365 agents and retail industry agents can be embedded directly into core business processes, allowing teams to realize value quickly.

Microsoft retail industry agents, like the Catalog Enrichment Agent and Personalized Shopping Agent are examples of vertical-specific agents designed around retail data models, workflows, and decision patterns that support scenarios like product discovery, assortment accuracy, and personalized engagement without requiring custom development.

Today, in Dynamics 365 the Supplier Communications Agent is a good example of embedded agents in action. Retailers can proactively monitor supply signals and engage suppliers in real time to confirm availability, align delivery timelines, and respond to changes earlier. This supports faster coordination, fewer surprises, and more reliable execution at scale.

2. Build custom agents using MCP

Retail operations are shaped by business logic that is unique to each organization: driven by merchandising strategies, store formats, service models, and supply-chain constraints. Microsoft Copilot Studio enables retailers to build custom AI agents that encode their own rules across replenishment, allocation, fulfillment, and store execution, aligning agent behavior directly to how the business operates.

These custom agents can operate across planning and selling in the flow of work using MCP-powered access to enterprise systems. Inside Microsoft Teams, Merchandising Managers and Planners can collaborate in real time with agents that access products, demand forecasts, supplier relationships, inventory, and pricing through Dynamics 365 ERP MCP.

On the selling side, through the Dynamics 365 Commerce MCP Server, your custom agents can extend intelligence into customer experiences. Agents can discover products, personalize offers, assess availability, reserve inventory, and complete transactions across digital, physical, and conversational channels while operating with a unified view of pricing, promotions, and fulfillment.

3. Extend agentic commerce through partners and the ecosystem

Retailers can further accelerate agent adoption by leveraging partner-built agents designed for specific retail scenarios and industries. Commerce MCP enables software development companies and system integrators to build agents more quickly by reducing integration overhead, standardizing access to retail data, and maintaining enterprise-grade trust and compliance.

Early partner solutions already demonstrate the breadth of what’s possible, from store associate productivity and clienteling to conversational commerce and business-to-business (B2B) buying experiences, including:

• Amicis: The Store Commerce Agent is a voice-first, screen-aware assistant designed for in-the-moment store execution. It can help associates complete high-friction tasks like returns, exchanges, order lookups, and policy checks in Dynamics 365 Commerce using natural voice commands, while adapting to what’s on the POS screen.
• Evenica: The B2B Licensee Product Request Agent uses conversational AI and image recognition to support licensees in finding beverage products. When a product is not available in the catalog, the agent can create a request case to support the product intake process.
• Argano: The Retail Clienteling Agent offers a conversational clienteling experience by bringing together customer insights, product data, and agentic AI into a single, governed workflow. It helps retail associates improve customer relationships by delivering personalized, brand-aligned interactions before, during, and after in-store appointments.
• Sunrise: The Commerce Companion is a suite of retail agents that help simplify everyday store operations across inventory and fulfillment to purchasing and store processes. Using natural language, it is designed to deliver fast, accurate answers and guided actions, which can enable associates to serve customers efficiently while keeping operations moving smoothly.
• Visionet: FashionGPT Agent can turn natural-language shopping intent into real-time retail execution across product, pricing, inventory, and promotions. It drives the end-to-end shopping journey and help turn conversations into measurable actions across channels.

Together, embedded agents, custom-built agents, and partner solutions give retailers flexible entry points into agentic commerce supporting near-term impact while laying the foundation for a more adaptive, AI-enabled operating model across Commerce Anywhere.

Agentic retail with Dynamics 365 in action at NRF 2026

At NRF, we will demonstrate how Dynamics 365 works with Copilot and agentic capabilities to support Commerce Anywhere and more efficient, end-to-end retail operations. We will share examples of how retailers are using Dynamics 365 to evolve their operating models and advance Frontier Firm capabilities.

Visit us during NRF expo hours at Level 3, Booth 4503, and join the related theater sessions at our booth:

• Beyond the Boutique: How Frette Uses AI to Transform Store Experience
  January 11, 2026 (Sunday), 2:00 PM ET
  Session led by Sunrise Technologies
• Reimagine retail business processes with Agentic ERP
  January 13, 2026 (Tuesday), 2:30 PM ET

The future of retail belongs to frontier organizations that can sense, decide, and act in real time. With agentic commerce enabled by Dynamics 365, retailers gain the foundation to move faster with confidence, aligning strategy, execution, and customer experience through intelligent agents that operate seamlessly across every channel. We look forward to connecting with you in New York and exploring how agentic business applications in Dynamics 365 can support your next step forward.

The post Agentic AI in retail: How Dynamics 365 powers Commerce Anywhere appeared first on Microsoft Dynamics 365 Blog.

In October 2025, we announced the general availability of the Sales Qualification Agent (SQA) in Dynamics 365 Sales—a breakthrough in autonomous lead qualification. Sales Qualification Agent empowers sellers by helping build higher quality opportunity while eliminating tedious, repetitive work. Sales Qualification Agent autonomously researches every lead, initiates personalized outreach, and engages prospects to understand purchase intent, ensuring that sellers spend their time meeting prospects who are ready to take the next step. With modes enabling both seller-driven and fully autonomous qualification, the agent supports a key goal for sales organizations—increasing revenue per seller.

Customers are using Sales Qualification Agent in two ways: 

1. Helping boost revenue beyond current sales capacity
   • Responding to inbound leads within minutes instead of days, increasing response rates and in turn, qualified opportunities.
   • Engaging leads that sellers are unable to follow up on due to capacity constraints, or those deemed economically unviable to pursue.
   • Increasing pipeline quality by focusing the seller’s time on a handful of high intent, engaged leads recommended by the agent.
2. Helping reduce sales costs
   • Reducing back-office costs related to lead research and validation, using Sales Qualification Agent in “Research only” mode to hand-off only the leads that meet the ideal customer profile criteria.
   • Automatically disqualifying low-quality leads, saving hours of seller time during the week.

Continuing benchmarking the quality of sales AI agents

Microsoft is building the future of agentic Sales technology with prebuilt AI agents, such as Sales Qualification Agent, the Sales Research Agent, and the Sales Close Agent available in Dynamics 365.

At Microsoft, we’re committed to delivering quality, trust, and transparency with our agents, and that requires rigorous evaluation. As we continue to build new agents and improve existing ones for critical sales workflows, evaluation benchmarks provide a structured and transparent way for our customers to measure quality for the jobs the agent does.

Today, we’re announcing the Microsoft Sales Bench—a new collection of evaluation benchmarks designed to assess the performance of AI-powered sales agents across real-world scenarios. This framework brings together purpose-built metrics, hundreds of sales-specific scenarios, and composite scoring validated by both human and AI judges.

The Sales Bench isn’t starting from scratch. It now formalizes and expands what began with the Sales Research Bench, published on October 21, 2025, which evaluates how AI solutions answer business research questions for sales leaders.

Today, we’re extending the Microsoft Sales Bench with a second benchmark: the Microsoft Sales Qualification Bench, focused on measuring how effectively AI agents qualify leads and generate high-quality pipeline.

Introducing the Sales Qualification Bench for lead qualification

This Microsoft Sales Qualification Bench evolved from rigorous evaluations we conducted since the Sales Qualification Agent’s public preview in April, with the goal of objectively measuring quality as we further developed the agent, partnering with customers from a diverse set of industries. Since the preview, we measured every update against these standards, ensuring improvements are real and repeatable.

We generated a synthetic dataset modeled after companies from three different industries, with 300 leads, with attributes such as name, company, and email ID—representative of what sales teams typically work with before any enrichment or hygiene is performed. In addition to these typical attributes, we also added key knowledge inputs such as value proposition of the products being sold, customer case studies, and documentation for answering customer questions.

In addition to Sales Qualification Agent, we used the evaluation framework to measure ChatGPT by OpenAI on the same dataset. Since we didn’t have access to an autonomous agent from OpenAI, we mimicked how a human seller would use ChatGPT to recreate the three key jobs SQA performs. We provided each system—Sales Qualification Agent and ChatGPT—the exact same lead inputs, knowledge sources, and contextual signals under controlled evaluation configurations. We used a ChatGPT Pro license with GPT-4.1. This model is the closest match (and slightly better) to Sales Qualification Agent’s GPT-4.1 mini, which we intentionally chose to deliver optimal quality at lower cost per lead than newer models. Additionally, Pro license was chosen to optimize for quality: ChatGPT’s pricing page describes Pro as “full access to the best of ChatGPT.”¹

The framework evaluates outputs from the three jobs across Sales Qualification Agent and ChatGPT:

• Research: Company research for the lead—background, strategic priorities, financial health, and latest news.
• Outreach: A personalized email generated based on research, to make initial contact with the lead.
• Engagement: The agent’s conversation with a lead until it’s qualified or dispositioned.

Our scoring metrics span core quality (accuracy, relevance, completeness), trustworthiness (grounding and citations), and business-specific success criteria (e.g., relevancy of company research to highlight interest in the seller’s offerings, personalization of the initial outreach emails sent to catch the lead’s attention, accuracy of responses to the lead’s questions to drive purchase intent, and the timing of handoff to a seller when the lead is ready to engage).

Outputs were scored independently by both human reviewers and an LLM judge built with GPT-5.1, using a 1–10 scale for each metric. These metric-specific scores were then rolled up using a simple average to produce a composite quality score. The result is a rigorous benchmark presenting a composite score and dimension-specific scores to reveal where agents excel or need improvement. Our methodology, metrics, and their definitions are described in this technical blog.

Results

In evaluations completed on December 4, 2025, using the Sales Qualification Bench, Sales Qualification Agent outperformed ChatGPT on each of the three jobs required for sales qualification:

1. Research: The Sales Qualification Agent outperformed ChatGPT with 6% higher aggregate scores, leading on relevancy and completeness in research results that highlighted the lead company’s interest in the seller’s offerings.
2. Outreach: Sales Qualification Agent demonstrated 20% better results compared to ChatGPT, generating email drafts with accurate personalization and mentions of relevant recent events that will resonate with the lead.
3. Engagement: Sales Qualification Agent’s email responses to engage a lead over a multi-turn conversation scored 16% higher than ChatGPT’s. SQA generated emails that responded to the lead’s questions with accurate answers that develop their purchase interest and with precise discovery questions that qualify the lead before handing off to a seller.

In addition to performing better on these metrics, Sales Qualification Agent has the ability to run autonomously, which can help significantly reduce the time spent generating pipeline while helping sales teams build better quality pipeline.

Sales Qualification Agent scores well on these three jobs as its optimized for sales-specific scenarios and uses the following techniques to get great results:

1. It uses agentic Retrieval Augmented Generation (RAG) to relentlessly research each lead, ensuring greater completeness. More on this in the following section.
2. With knowledge of what the company sells, it can contextualize every workflow to increase relevancy for both the seller and the lead.
3. It can retrieve organizational knowledge from attached documents and internal repositories like SharePoint with greater precision, boosting accuracy of its responses when engaging with the lead.

The technical blog details which metrics SQA excels at relative to ChatGPT, where it falls short, and why.

Translating evals to real-world impact

Running evals led to major Sales Qualification Agent improvements during its six-month preview. Early results prompted us to try agentic AI design patterns, especially agentic RAG, which improved our company research by allowing iterative web searches and real-time reasoning. They also led us to enhance data coverage by auto-linking existing CRM records to each lead and inferring company names from lead emails. These updates provided sellers with deeper insights, revealing strategic opportunities and risks beyond basic facts.

For instance, when researching leads for a security company, Sales Qualification Agent can link news on recent cyberattacks to increased demand for its software. As highlighted in the technical blog, research synthesized by the agent makes such inferences more consistently than ChatGPT. Enhancing the agent’s research also improved the relevance and personalization of outreach emails, helping agents better engage leads and clarify their ability and intent to purchase before handing them off to sellers.

Sandvik Coromant, a leader in precision cutting tools, partnered with us to pilot Sales Qualification Agent for their Digital Commerce program. After the updates, Pia Cedendahl, Global Sales Manager for Strategic Channels/Partners and Online Sales, noted, “Sales Qualification Agent’s answers became far more on-point to our business—it’s like having a research assistant that already understands what we care about.” Sandvik Coromant saw improved lead conversion and higher engagement from their Digital Account Managers, validating the impact of our evaluation-driven approach. Pia joined Microsoft leaders at the Microsoft Ignite 2025 session, “Accelerate revenue and seller productivity with agentic CRM,” where she shared how the team saved more than 120 hours and $19,000 in just the first three weeks since launching a pilot, and forecasted a 5% increase in revenue with full rollout.

Better insights, more personalization, proven value

Equipped with agentic AI design and backed by data-driven evaluation, customers can confidently use the Sales Qualification Agents so that:

• Sellers receive comprehensive company overviews, timely news highlights, and actionable recommendations that are consistently delivered with high quality—drawing a clear line from insight to action.
• Sales leaders can expand their qualified pipeline cost efficiently, with the agent ensuring high lead quality.
• Prospects benefit from more personalized outreach, enhancing their experience and supporting increased conversion rates.

What’s next

We’ll continue to refine Sales Qualification Agent using agentic design patterns, aiming to make every improvement measurable and meaningful. Stay tuned for the full evaluation results and methodology for the Sales Qualification Bench, which will be published for transparency and reproducibility. We also intend to add more evaluation frameworks and benchmarks to the Microsoft Sales Bench collection including benchmarks that cover future sales agent capabilities.

¹ChatGPT pricing page, accessed November 24, 2025

The post Dynamics 365 sets the bar for agentic sales qualification on new benchmark 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.

Frontier Firms put Copilot, agents, and agentic business applications at the core of their operating model to enrich employee experiences, reinvent customer engagement, reshape business processes, and bend the curve on innovation. Today, we’re announcing several new agentic capabilities to help customers move to the Frontier—read on to learn more.

Transforming sales with Sales Development Agent

Earlier in 2025, we introduced our vision for how AI agents will transform critical sales processes like building pipeline and qualifying leads. Today marks the next milestone in that journey with the Microsoft Sales Development Agent, available through the Frontier Program in December 2025. Many sales organizations are under pressure to deliver more revenue with limited resources, and the Sales Development Agent helps sales teams scale their impact. This allows sellers to focus on nurturing customer relationships and closing deals.

Features include:

• Revenue and pipeline growth: The agent continuously researches prospects, crafts personalized outreach, and automatically follows up to ensure no lead is left behind.
• Scalability: Fully independent, yet collaborative, the agent acts as a teammate, with the ability to hand off leads to human sellers when needed.
• Security and governance: Built on Microsoft’s trusted security and compliance foundation and when enabled with Agent 365, the agent adheres to robust policies and access controls to ensure user data and workflows are protected.

Sales Development Agent connects with leading CRM systems like Salesforce and Microsoft Dynamics 365, and the Microsoft 365 apps your teams already use like Microsoft Outlook and Microsoft Teams.

The Microsoft sales team is among the first to use Sales Development Agent to reinvent the sales engagement process. With the use of Sales Development Agent, there was a 15.1% increase in the lead-to-opportunity conversation rate. ¹

Sales leaders want to help sellers act on more leads, reach more customers, grow faster, and improve revenue per seller. Microsoft Sales Development Agent can make that possible by creating an infinitely scalable sales organization, so no lead is left behind. Accenture plans to pilot Sales Development Agent across our global inside sales-as-a-service business—which helps clients sell to customers around the world—to boost their reach and revenue while maintaining cost to serve. We’ll use what we learn to help clients leverage Sales Development Agent, scale their teams, and unlock new growth.

—Chris Hergesell, Sales Reinvention Lead, Accenture Song

Learn more about Sales Development Agent with Accenture

From System of Record to System of Action

In October 2025, we shared our vision for agentic business applications—built on agents, Copilot, and unified data. These components are what define Dynamics 365 as a system of action.

Today, we’re taking that vision further with updates to Model Context Protocol (MCP) servers across Dynamics 365 and Microsoft Power Platform, strengthening the foundation for agentic capabilities across your entire business. MCP servers are configurable bridges between the business data within your line-of-business (LOB) apps, and the agents you build using tools like Microsoft Copilot Studio. It serves as a universal intermediary, unlocking a unified platform agnostic access to app data, modernizing how AI agents are interoperable with your apps.

For customers of Dynamics 365 Sales and Customer Service, we’ve used MCP to simplify integration between agents in Dynamics 365 and the platforms used by sellers and service reps to execute complementary workflows, like lead research, engagement, and qualification, as well as case management and case resolution, available in public preview on November 21, 2025.

For customers of Dynamics 365 ERP, we are announcing the public preview of the MCP server that unlocks hundreds of thousands of ERP functions for real-time use. We are also introducing a new analytics MCP server in public preview starting in December 2025. These two servers provide a secure, standardized foundation to connect ERP data with AI-powered analytics, helping customers make faster, more accurate decisions and innovate without sacrificing governance.

We are also announcing the Power Apps MCP server in public preview that enables agents to seamlessly trigger app capabilities such as approvals, form submissions, and data retrieval. This makes every Power App a composable, reusable building block in your organization’s AI ecosystem empowering both citizen and professional developers to expose app functionality to agents with confidence and control.

Lastly, the Dataverse MCP server, now generally available, allows people to benefit from natural language interactions, receiving real-time answers grounded in Dataverse data, while makers and admins gain powerful, built-in tools for data operations, search, and prompt execution.

We see tremendous excitement from customers and partners for agentic Dynamics 365 applications. Take Ramp, a financial operations platform designed to save companies time and money. Ramp built an agentic solution, currently in preview, using Microsoft Foundry that integrates with Dynamics 365 Business Central and Teams to streamline employee expense management.

Join the movement to the Frontier with Copilot, agents, and agentic business applications

We know that moving to the Frontier isn’t just about technology. That’s why we’re partnering with Harvard Business School to collaborate on research and executive education to help you put this into practice at your own company. We’re also sharing new resources for leaders on their journey to the Frontier Firm with Frontier Function Guides for Sales, HR, and IT and a look inside our learnings at Microsoft–including three ways to turn insight into action. We’re committed to helping you transform—we’ll see you at the Frontier!

If you’re interested in learning more:

• Explore the Microsoft Ignite 2025 sessions to see agents and agentic business applications in action.
• Register for our year-end webinar to learn about more agents in Dynamics 365 (December 2, 2025)
• Join us at the Convergence ERP Conference (December 9-11, 2025).

¹ Internal Microsoft sales team data based on time period January 1 to November 7, 2025. Total customers outreach by the agent: 61,734. Lead-to-opportunity ratio (sales qualification): 15.1%.

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