AI optimization for Microsoft Dynamics 365
Dynamics 365 stores your decisions. It does not work them out.
So someone in your business exports the data to a spreadsheet and decides by hand.
We build the apps that work them out. They run beside Dynamics, on your own systems, and they never change the ERP itself. What your partner set up stays exactly as it is.
Running live across four of our own products, on all three major clouds.
What took a legal team hours comes back inside Microsoft Word.
And we tell you up front when something will not work.
What your ERP stores, and what we work out
Dynamics 365 stores- The price you already entered
- The safety stock you typed in
- The bin you assigned
- The range you chose
Cognilium works it out- The price with the best margin
- Safety stock worked out from what you actually sold
- Where the item should actually live
- How much to buy, and in which sizes
Who builds AI optimization apps for Dynamics 365?
AI optimization for Dynamics ERP comes from three kinds of provider: specialized vendors building sidecar applications, global systems integrators customizing AI workflows, and Microsoft itself. Cognilium AI is a specialized software vendor dedicated to building turnkey AI Optimization Apps for Dynamics 365, and builds in the first two.
Specialized vendors
The sidecar applications
Turnkey optimization apps that run in your own Azure tenancy and compute the decisions a standard ERP records but cannot calculate: demand and inventory, pricing and discounting, warehouse pick-path and slotting, quote-to-order, contract review, invoice processing and reconciliation. They work in tandem with Business Central and Finance & Supply Chain Management on Azure, Power Platform and Dataverse, and never alter core ERP logic.
This is us.
Custom app builders
The bespoke build
Where a business needs something proprietary, its own warehouse mapping, its own supply-chain forecasting, its own financial reconciliation, we build it with Azure OpenAI, Microsoft Fabric and Copilot Studio on Power Platform and Dataverse. We extend Dynamics 365 with Azure and Microsoft 365 Copilot toward autonomous workflows, predictive forecasting and agentic decision-making, and we build the surfaces the work happens on: custom mobile Power Apps and AI-driven extensions for Dynamics 365 Supply Chain Management, covering real-time inventory optimization, IoT-enabled asset tracking and automated warehouse mapping.
This is also us.
Microsoft
The native agent layer
Microsoft ships pre-packaged agents inside the ERP itself, toggled on or shaped in Copilot Studio. Where a native agent covers the job, use it. The apps here exist for the decisions it does not compute, and for the ones that are specific to how your business actually runs.
Not us, and worth knowing.
Between the apps and the bespoke work sits the connective layer for agentic ERP: an MCP server that connects Claude, ChatGPT and the Azure OpenAI models directly to Dynamics data, so an agent can carry out a task from a plain-language instruction rather than only reading a report. Anything that moves money or stock is prepared and put to a person for approval, which is the design that gets an IT director to say yes. Read what is shipped, built to order or still a blueprint, or what agentic ERP actually means.
Underneath all of it sits the data. Microsoft Fabric connects and governs the ERP data that the apps, the reports, Copilot and the agents all depend on — and an optimization app is only ever as good as the data layer it computes on. See the Fabric-enabled, AI-ready data strategy: which link to use, and what it commits you to.
Microsoft Services & Solutions
ERP Optimization
Apps that work out the decisions Dynamics only stores.
AI & Agents
AI that runs beside the ERP, inside your own tenancy.
Data & Platform
The pipelines and knowledge layer the agents read from.
How We Work
Ways to engage, from a scoped build to an embedded team.
The decisions an ERP records but does not compute
An ERP gets a process about 80% of the way. The last 20% is where the margin lives: the optimal price, the optimal stock level, the optimal pick path. Each app takes one of those decisions.
Pricing Optimizer
Business Central applies the lowest price you already entered. It never asks whether that price was right, or where margin leaks between list and invoice.
Read more
Where these decisions bite hardest
The same four decisions show up differently in each business. Pick the one that looks like yours and it goes straight to how that decision gets computed.
Apparel & Fashion
How deep to buy, and in which sizes
Learn more
Retail
What the price should be, not just what was entered
Learn more
Distribution & Wholesale
Where inventory should sit, so pickers walk less
Learn more
Consumer Products
Safety stock derived from demand, not typed in
Learn more
Manufacturing
Where AI belongs around an ERP that already runs
Learn more
Home Furnishings
Bulky items, where travel dominates the pick
Learn more
Read the detail
Each of these answers one question in full. Start with whichever one matches the decision you are trying to fix.
Every app argued end to end: the decision each one takes, what it needs from your data, and how it is built.
The five layers of the order-picking problem, the operations-research algorithms used for each, and the one layer no ERP derives for you.
What each product gives you, read off Microsoft's own documentation, and the placement decision neither one makes for you.
The wider view: where AI belongs around an ERP that is already running, and where it does not.
Alongside this, we run a separate AI engineering practice building production agent, retrieval and data systems for enterprises: multi-agent orchestration, RAG and knowledge graphs, document intelligence and voice AI.
Common questions
Questions we get asked before anything is built
No, and we would not want to. If you already have a Dynamics partner, keep them. We make what they built worth more.
What we do is AI. Your partner owns the ERP and keeps it running; we build the decision layer that sits on top of it, on the platform's own supported surface. The two jobs do not overlap, which is why the arrangement works.
Mid-market manufacturers, distributors and retailers already living on Dynamics, most often Business Central, who have the ERP working and now want better decisions out of it, without asking their implementation partner to build a data science team.
The person who feels it is usually the one exporting data out of the ERP to make the real call: the planner rebuilding safety stock in a spreadsheet, the pricing manager approving discounts by rule of thumb, the warehouse manager who knows the pick paths are wrong and has no way to prove it. If nobody in your business is running that export-and-decide loop, we are probably too early for you.
Each app is built on request, against your own data, inside your own tenancy: Power Platform, Dataverse and Azure where the Dynamics work lives. A working demo exists for each one. Paralegent AI is the only app in this family already running in production, and we say so plainly because the difference matters when you are budgeting.
We do not touch the ERP core. The apps read what Dynamics already holds and hand a decision back to the person who owns it, to accept or override. Nothing is taken out of their hands.
It changes what is already built into the product, and therefore what is worth adding on top. The two differ most in warehousing, where Finance & Operations carries capabilities Business Central does not. There is a page comparing them for warehouse work, written from Microsoft's own documentation rather than our opinion.
It depends on the decision. Pricing work needs posted sales history. Demand and inventory work needs demand history and lead times. Placement work needs order lines and a location master, and ninety days is enough to begin. All of these are standard exports from Dynamics, and no production access is required. Every engagement starts by checking whether your history can actually support the decision you want computed, and when it cannot, we say so before anything is built.
With one decision rather than the whole list, and preferably the one where you already suspect the current answer is guesswork. If that decision is inventory placement, there is an assessment that works from your own order lines and location list and tells you what the present placement is costing you in picker travel, at no cost. If the location data turns out not to be reliable enough to trust, we say that instead of producing a confident number from it.