104 The dynamic revolution Microsoft Dynamics 365 is evolving from a unified ERP and CRM suite into a foundation for agentic operations. Alex Smith speaks with Microsoft’s Sameer Verma to find out more More than 20 years after its launch as a unified offering, Microsoft Dynamics 365 has become a leading platform for enterprise resource planning and customer relationship management. Businesses of all sizes use it to connect workforces, reach new markets and deliver agile services at scale. Fully embedded agentic AI capabilities are now set to transform how modern organisations operate. Sameer Verma, vice president and chief product officer of Dynamics 365 AI ERP at Microsoft, sees the platform’s cloudnative foundations as an essential enabler of effective AI. “Dynamics 365 ERP provides a powerful foundation for agentic operations,” he says. “Our Model Context Protocol (MCP) server exposes more than 650,000 capabilities, enabling agents to take actions natively under the same governance and access controls that apply to people.” The power of Dynamics 365 increasingly lies in the way it directs AI agents, rather than simply making models available for customers to use, suggests Verma. “Microsoft Copilot today can already use various models for different tasks, and the same model can produce materially different outcomes depending on the harness around it,” he says. “Increasingly, the differentiation is in the orchestration layer – how the experience assembles context, selects tools, applies business skills, plans the work, evaluates the result, and recovers when something goes wrong.” Microsoft has therefore shifted its approach to focus on these strengths. It began by making nearly every action in Dynamics 365 available to agents through an ERP MCP server, meaning customers can plug in any AI agent. “In January 2026, we made our core ERP MCP server generally available, enabling agents to operate the ERP within strict guardrails through the MCP protocol and tools,” explains Verma. “Tools let approved agents act in the system of record; skills encode repeatable business processes; and Work IQ supplies the context, IN FOCUS: DYNAMICS 365
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