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How to use Copilot AI with Microsoft Dynamics 365

March 20, 2024

Microsoft Dynamics 365 Copilot is revolutionizing the way businesses operate by integrating an AI-powered assistant across various enterprise functions, from sales and customer service to supply chain management and marketing. By automating time-consuming tasks like manual data entry, content creation, and note-taking, this innovative tool enhances operational efficiency and improves both customer and employee experiences. The introduction of Copilot marks a significant milestone in leveraging generative AI to streamline workflows and foster productivity within organizations.

Designed to assist in day-to-day tasks, Copilot delivers interactive, AI-driven assistance, helping users to create content faster, complete tasks with ease, and gain actionable insights. Its capabilities span summarizing meeting notes, aiding in email composition, suggesting responses, and predicting supply chain risks, making it an indispensable tool for boosting business efficiency.

As part of the broader Dynamics 365 ecosystem, Microsoft Dynamics 365 Copilot is built on responsibly developed artificial intelligence, ensuring that businesses can safely deploy this powerful technology to unlock new levels of productivity.

Understanding Copilot AI

Microsoft Dynamics 365 Copilot, powered by generative AI, serves as a versatile virtual assistant, streamlining various business processes across CRM and ERP systems. Its integration with Microsoft Teams and Dynamics 365 Sales creates a collaborative workspace, enhancing productivity and customer engagement. Here’s a deeper look into how Copilot AI revolutionizes business functions:

Customer Service Enhancement:

  • Utilizes NLP and ML to help agents resolve issues efficiently, leading to quicker and more accurate customer resolutions.
  • Provides 24/7 assistance, ensuring customers receive help anytime, anywhere, and maintains consistent service quality across all channels.
  • Offers personalized recommendations and solutions, leveraging customer data for tailored interactions.

Sales and Marketing Support:

  • Assists in drafting email responses, creating summaries of Teams meetings, and generating compelling product descriptions, reducing time spent on clerical tasks.
  • Empowers sales teams with deal management, customer data access, and collaboration tools, fostering streamlined collaboration.

Operational Efficiency:

  • Automates repetitive tasks like manual data entry, content generation, and note-taking, allowing employees to focus on more complex issues.
  • Provides actionable insights for supply chain management, predicting risks, and flagging external issues impacting processes.

By offering a range of functionalities from administrative task handling to personalized customer service, Microsoft Dynamics 365 Copilot not only boosts efficiency but also enhances the overall customer experience.

Benefits of Microsoft Sales Copilot AI for CRM

How does Copilot integrate with Microsoft Dynamics 365?

Copilot in Microsoft Dynamics 365 enhances its capability with business data by combining foundation models with distinctive Microsoft technologies. Key functions include:

Cognitive Search: In order to give suggestions domain-specific context, Copilot utilizes Bing and Microsoft Azure Cognitive Search. This feature allows Copilot to integrate data from a variety of sources, including the organization’s tenant, manuals, and documents. At the moment, this retrieval-augmented generation approach is used as a pre-process before an LLM call is made by Microsoft Power Virtual Agents and Dynamics 365 Customer Service.

Microsoft Business Applications: Copilot, when used in conjunction with other Microsoft applications like Microsoft Dynamics 365, Microsoft Power Platform, and Viva Sales, as well as the business data that is kept in the Dataverse, functions in an effective manner.

Microsoft Graphs: The Microsoft Graph API enables Copilot to acquire contextual awareness by gaining access to customer signals from a variety of sources, such as conversations, meetings, data gathered from emails, documents, and so on.

Setting Up Copilot AI with Microsoft Dynamics 365

To seamlessly integrate Microsoft Dynamics 365 Copilot into your business operations, follow these essential setup steps tailored for Dynamics 365 Sales and Customer Service environments. This structured approach ensures Copilot’s functionalities are fully leveraged to enhance customer interactions and operational efficiency.

Dynamics 365 Sales Setup:

To make use of Copilot AI in Dynamics 365 Sales, follow these steps:

  • Access Sales Hub: Begin by going to the Sales Hub application within Dynamics 365.
  • Navigate to Settings: In the lower-left corner of the page, click on Change area and then select App Settings.
  • Select Copilot: Under the General Settings section, you will find the option for Copilot. Click on it to proceed.
  • Setup Copilot: If this is your first time setting up Copilot, you’ll need to click Set up Copilot.
  • Enable Features: Choose the specific features you want to enable by selecting the areas and toggling the Compose and Chat checkboxes on or off.
  • Preview Features: If you wish to try the newest preview features before their general release, select the option Try our newest preview features before they’re rolled out to everyone.
  • Consent for Data Movement: If you haven’t provided consent for data movement yet, choose Go to Power Platform admin center and follow the instructions to give consent.
  • Global and App-level Settings: Decide on the global setting you want to apply for all Sales apps, and if necessary, override this setting at the app level. For example, to enable Copilot only for the Sales Hub app, select Off for all Dynamics 365 Sales apps and then select On for the Sales Hub app.

Microsoft Dynamics 365 Customer Service Setup:

License Requirements:

  • Required licenses include Dynamics 365 Customer Service Enterprise and the relevant Customer Service add-in.


  • Enable data movement across regions in the Power Platform admin center if your business operates in multiple geographies.

Enabling Copilot Features:

  • In the environment settings, activate ‘Copilot allows editors to get AI-powered answers’.
  • For Sales Hub or custom apps, navigate to sales, then app settings, click ‘Setup sales copilot’, and enable it accordingly.

By carefully following these steps, businesses can effectively set up Microsoft Dynamics 365 Copilot, unlocking new dimensions of efficiency and customer service excellence.

Leveraging Copilot AI for Enhanced Customer Interactions

Leveraging Microsoft Dynamics 365 Copilot for enhanced customer interactions involves integrating AI-driven capabilities to streamline communication and improve service quality. Here’s how businesses can implement Copilot AI effectively:

Automated Content Creation:

  • Item Descriptions: Copilot analyzes images to create accurate item descriptions, categorizing them appropriately for e-commerce platforms like Shopify.
  • Marketing Texts and Ledger Matching: It generates compelling marketing texts and improves transaction matching with ledger entries, remembering specific descriptions for future reconciliations.

Customer Service Enhancement:

  • Efficiency in Case Handling: Copilot AI assists agents by summarizing case details, drafting email replies, and generating context-based chat responses, saving considerable time.
  • Personalized Customer Experience: Utilizing generative AI, Copilot personalizes interactions across various channels, ensuring a seamless and efficient customer journey.

Operational Optimization:

  • Cross-Channel Engagement: Through conversation summaries, Copilot facilitates engagement across email, calls, and chat, reducing the time agents spend on reading transcripts.
  • On-the-Job Training: It provides real-time assistance and training for agents, significantly reducing the need for traditional training methods.

By integrating these functionalities, businesses can enhance customer interactions, optimize operations, and ensure that their service teams are more effective and efficient.

Customizing Copilot AI to Fit Your Business Needs

Customizing Microsoft Dynamics 365 Copilot to fit specific business requirements involves a strategic approach to leverage its full potential while adhering to data governance and security protocols. Here’s a breakdown of how businesses can tailor Copilot AI to their unique needs:

Data Governance and Feature Activation:

  • System-wide Activation: Understand that Copilot is a system feature within Business Central, affecting all users.
  • Customizable Controls: Utilize data governance controls to deactivate individual Copilot and AI capabilities per environment, ensuring compliance and data security.
  • Geographical Data Movement: Configure access control to allow or restrict data movement across regions, catering to global operations.

User-Specific Access and Customization:

  • Permission Management: Leverage Business Central’s permission management system to grant user access to specific Copilot and AI capabilities, ensuring role-appropriate utilization.
  • Microsoft Copilot Studio: Employ Microsoft Copilot Studio for low-code customization, integrating with Azure OpenAI Studio and other AI technologies for enhanced functionality.

Advanced Customization with Microsoft Copilot Studio:

  • Workflow Automation: Automate routine tasks and scenarios with tailored conversations for efficiency.
  • Custom Plugins and Prompts: Create and integrate custom plugins for exceptional data connectivity and access to system records like CRM, ERP, and HRM through a user-friendly drag-and-drop interface.

By following these guidelines, organizations can tailor Microsoft Dynamics 365 Copilot to their operational needs, enhancing productivity and ensuring a seamless integration into their existing systems.


From augmenting customer service with artificial intelligence to streamlining sales, marketing, and operational tasks, Microsoft Dynamics 365 Copilot emerges as an indispensable tool for modern businesses aiming to increase efficiency and improve customer and employee experiences. The integration of this AI-powered assistant across CRM and ERP systems underscores a significant leap towards leveraging advanced technology to simplify complex processes and foster a more productive and engaging workspace.

As businesses continue to navigate an increasingly digital landscape, the adoption of Microsoft Dynamics 365 Copilot offers a strategic advantage in optimizing operations and enhancing service delivery.

By customizing and integrating Copilot AI according to specific business needs and ensuring adherence to stringent data security and compliance standards, organizations can unlock new levels of productivity and innovation.

Microsoft Dynamics 365


By TechcronusAdmin

Techcronus is a worldwide supplier of Enterprise Business Solutions and Custom Software Development Services, with locations in the USA, Australia, and India. It has accomplished the successful delivery of over 800 projects to start-ups, SMBs, and well-known brands, such as Starbucks, Unilever, and IKEA. The firm's areas of expertise include Microsoft Dynamics 365 ERP/CRM solutions, Web Development, Business Applications Management (.NET and DevOps), Mobile Development (Native, Hybrid, Blockchain), Staff Augmentation, Product Development & Support, and UI Design and UX.