106 FEATURE fairness, reliability and safety, privacy and security, inclusiveness, transparency, and accountability. Dynamics 365 agents operate through existing ERP security roles, permissions, business controls and auditing, with people retaining authority over the policies and exceptions that matter. The EU Data Boundary includes Dynamics 365 and gives eligible European customers defined controls over where their data is stored and processed, alongside broader Microsoft Sovereign Cloud options. Microsoft also remains committed to becoming carbon negative, water positive and zero waste, and we regularly report on our progress.” Partners are already using this foundation to address complex industry processes. “The Dynamics 365 ERP MCP server gives partners a governed foundation for building agents that can execute real ERP operations, including customers’ existing extensions and configurations,” says Verma. “That makes it possible to address high-friction industry processes without creating another disconnected application.” Examples include HSO’s PayFlow Agent, which automates supplier payment enquiries in Dynamics 365 Finance; Cegeka’s Quality Impact Recall Agent, which traces quality failures across inventory and customers; and TrueGradient’s Forecast Enrichment Agent, which selects an appropriate forecasting model for a given scenario, while a companion agent turns those predictions into planning decisions. “These are not generic assistants layered over ERP data,” says Verma. “They operate inside the processes customers use to run their businesses.” Looking ahead, Verma sees Dynamics 365 as uniquely positioned to take advantage of the capabilities of agentic AI. “We believe Dynamics 365 is the most agent-ready ERP because agents can operate the underlying business services directly, Work IQ gives them the wider context of how the business works, and the Dynamics 365 ERP apps plugin for Copilot Cowork brings those capabilities into the flow of work,” he says. “As we continue to enhance and enrich the intelligence layer, we’ll see fragmented institutional know-how converted into a shared organisational knowledge layer that agents can reason over. That intelligence will also grow as Work IQ brings in contextual knowledge about your work, and with tools like Fabric IQ, you’re able to bring in context-aware information about how the business works, including signals from external sources.” The next phase, adds Verma, will involve bringing greater depth across end-toend processes. Partner-built agents will be added, and more decisions will be coordinated across finance, supply chain, commerce, projects, human resources and services. Governance standards will be maintained even as agent adoption scales. “Customers should expect an evolution from process-driven features to more complete, end-to-end processes, with agents working under human direction.” “ Dynamics 365 ERP provides a powerful foundation for agentic operations” Sameer Verma, Microsoft
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