AI Inside Microsoft Dynamics 365
We build AI that runs inside the ERP you already use, Microsoft Dynamics 365, rather than a separate system your team has to learn.
Most AI teams have never worked inside an ERP. Most ERP integrators cannot ship production AI.
We do both, and that intersection is where the useful work lives.
Why build AI inside the ERP, not beside it
Your ERP is where the work already happens. Inventory, orders, receipts, and locations live there. AI that sits in a separate tool asks your team to copy data back and forth, and adoption dies on that friction. AI that reads from the ERP and writes its results back means your team keeps working exactly as they do now, and the system just gets smarter underneath them.
We add a missing layer. We replace nothing.
Presentation layer
Business logic layer
ERP core
Dynamics 365
Data layer
Infrastructure layer
AI
the missing layer
reads from the ERP · writes its results back
Your team
keeps working exactly as they do now
Inventory, orders, receipts,
and locations live there
We add a missing layer.
We replace nothing.
The distinction most people get wrong
Dynamics 365 is two different products that share a name and almost nothing else.
Customer Engagement
Covers Sales, Customer Service, and Field Service. It is built on Dataverse and the Power Platform, with clean REST APIs.
Finance and Operations
Supply Chain ManagementCovers Finance, Supply Chain Management, and Commerce. It is the real ERP core, with a different data layer, different APIs, and a different environment model.
Your warehouse work lives in Finance and Operations, in Supply Chain Management specifically. A team that asks for the wrong environment, or that does not know an Entra app registration has to be registered inside Finance and Operations and mapped to a service role before a single API call will succeed, will spend weeks stuck before they touch a line of your data. We do not.
What we build
Microsoft Dynamics 365
Location Truth
Start hereFix inventory location accuracy at the source. A worker photographs a part or a shelf label, computer vision and OCR identify the item and the location, and the system updates Dynamics automatically. This is where most engagements start, because everything else depends on knowing where things actually are.
Warehouse Pick Optimization
Read your order history, work out where inventory should live so your team walks less, and push the changes into the system you already run.
Learn more about pick optimization
Enterprise Knowledge Assistant
An internal assistant over your documents and your training videos, so people find an answer instead of sitting through a two-hour recording. Secured so a warehouse worker cannot see finance documents. Built to cost less than the per-seat licence of a generic copilot.
Transportation and Logistics
Route planning, proof of delivery, and a recommendation engine that picks the right vehicle for the load. Built on the same integration layer as the rest.
Built on the same integration layer as the rest.
How we connect to your ERP
We use the standard, supported integration surface, not brittle workarounds. On Dynamics 365 Finance and Operations that means OData data entities for reading and writing master data, inventory, and locations, custom services for specific business logic, and Business Events for reacting to receipts and put-away as they happen. Authentication is service-to-service through an Entra app registration mapped to a Finance and Operations service role.
Dynamics 365 Finance and Operations
OData data entities
master data · inventory · locations
Custom services
specific business logic
Business Events
receipts · put-away, as they happen
Entra app registration
service-to-service
Service role
inside Finance and Operations
The standard, supported integration surface, not brittle workarounds
Reading and writing
master data, inventory, and locations
For specific business logic
custom services
Reacting to receipts and put-away
Business Events
Service-to-service
Entra app registration
Mapped to
a Finance and Operations service role
not brittle workarounds
You keep full ownership of the code and the data
Secure by design
Everything is built secure by design: least-privilege access, encryption in transit and at rest, and an audit trail on every interaction. You keep full ownership of the code and the data.
- Least-privilege access
- Encryption in transit and at rest
- An audit trail on every interaction
- You keep full ownership of the code and the data
Service-to-service token
POST https://login.microsoftonline.com/<tenant>/oauth2/v2.0/token grant_type = client_credentials scope = https://<env>.operations .dynamics.com/.default
Read via OData data entities
GET https://<env>.operations.dynamics.com /data/InventWarehouses Authorization: Bearer <token>
Business Events envelope
{
"BusinessEventId": <event>,
"ControlNumber": <n>,
"EventTime": <timestamp>
}Illustrative. These are the documented Dynamics 365 Finance and Operations surfaces described above, with environment-specific values left as placeholders. They are not a capture of a running system.
Where we start
Most engagements begin with one of two low-risk steps.
If your location data is reliable
We start with a pick diagnostic: send us twelve months of order lines if you have them, ninety days is enough to start, and a location master, and we tell you what your current placement is costing you. No cost, no obligation.
If your location data is not reliable
We start there instead, because optimizing on data you cannot trust produces confident, wrong answers.
Integration surface
- 1OData data entities
- 2Custom services
- 3Business Events
- 4Entra app registration
- 5Finance and Operations service role
Drawing
Integration surface
Platforms
Dynamics 365 F&O
Auth
Service-to-service
Ownership
Yours, code and data
Keep reading
The rest of the warehouse and Dynamics 365 material, in the order it tends to be useful.
Warehouse pick optimization
The operator guide: the five layers, why slotting sits above routing, and why location accuracy gates everything above it.
Read more
The methods behind pick optimization
The operations-research layer: slotting, batching, zoning and routing, and what each one can and cannot decide.
Read more
Business Central vs Finance & Operations
What each Dynamics 365 tier actually gives you for warehouse work, read off Microsoft's own documentation.
Read more
The optimizer family
Pricing, pick-path, demand and inventory, contract review: apps that work in tandem with Dynamics, on the decisions it records but cannot optimize.
Read more
The pick diagnostic
A structured read of your own order history, so the arithmetic comes from your floor and not from a case study.
Read more
Where Copilot stops, in detail
What Microsoft ships inside Dynamics, what it does not, and the engineering that starts where a general assistant runs out.
What can't Copilot do in Dynamics 365 — and what do you build instead?
Copilot's boundary in Dynamics 365 is not a missing feature list. It is four engineering decisions — scope, data freshness, failure handling and cost — that Microsoft deliberately leaves to you.
Read more12 min readAre Dynamics 365 ERP form tools just RPA with a new name?
Form tools in the Dynamics 365 ERP MCP server look like screen automation and are not. They drive the application through server APIs against its view model, with no browser, no screenshots and no pixel coordinates.
Read more7 min read
Can an AI agent in Dynamics 365 give itself more permissions?
No — not through the administration forms. The Dynamics 365 ERP MCP server (generally available 27 January 2026) excludes the security, user, Microsoft Entra application and feature-management forms by name. The role you assign is still yours to scope.
Read more8 min readWhy is my ERP agent answering with yesterday's numbers?
Because it is reading the analytics surface, where Business performance analytics pre-transforms currently run twice daily and the pipeline behind them takes hours more. The rule — if the answer changes within 12 hours, it does not belong on the analytics server, and 12 hours is the floor.
Read more7 min read
Why did my ERP agent report success when the write actually failed?
Two documented failure modes make a Dynamics 365 ERP agent lie to you — a row cap on form state whose only mitigation is an instruction, and a fallback pattern where a failed write is reported using data the agent read instead. Both are in Microsoft's own starter instructions.
Read more8 min read
What does a Dynamics 365 ERP agent actually cost to run?
Your ERP AI budget has three meters, not one — Copilot Credits, invoice capture transactions, and AI Builder credits whose seeded entitlement ends on 1 November 2026. What each one counts, what a credit costs, and where the caps are.
Read more12 min read
Do I need a Dynamics 365 licence for an AI agent's identity?
Currently not for the identity itself, when the agent is built in Copilot Studio or reaches the ERP through the Dynamics 365 ERP MCP server. A security role that grants nothing marks the identity as licence-exempt — and every human who chats with that agent still needs their own licence.
Read more8 min readWhy can't I see my ERP agent's permissions in Entra?
Microsoft's documentation says that today, custom connectors, MCP servers and REST API tools added to an agent do not add API permissions to the Entra Agent ID. Control of an MCP-based ERP agent lives in three places, and none of them is the Entra connector-permission view.
Read more9 min read