Microsoft Dynamics 365 ERP is getting a measure of generative AI through the new Copilot feature.
New Copilot capabilities are coming to Dynamics 365 Project Operations for project management, Dynamics 365 Finance for credit and payment management, and Dynamics 365 Supply Chain Management for procurement.
In March, Microsoft launched Copilot 365, which builds AI into Office business suite applications such as Excel, Outlook, PowerPoint, Teams and Word.
According to Microsoft, the new features are currently in public preview and will be included in the October update release of Dynamics 365.
According to Georg Glantschnig, Vice President of Dynamics 365 Finance and Service-Centric ERP at Microsoft, the goal behind the addition of Copilot AI to Dynamics 365 ERP is to automate manual processes and add intelligence.
“In finance, for example, there are still a lot of manual and tedious processes that can be automated,” he says. “But more importantly, Copilot AI will enable humans to make better and faster decisions.”
Create a project plan quickly
For example, with Dynamics 365 Project Operations, Grantschnig says project managers can improve the process of creating project plans. This is traditionally a time-consuming manual process, but Copilot allows project managers to quickly build plans using templates based on previous projects. You can also recommend resource allocations to projects.
Copilot also continuously monitors project risks and proposes mitigation plans when there are problems with the project.
Project managers can also use Copilot to generate regular overview and status reports, but this process can take hours to do manually, Grantschnig said. . However, the project manager can proofread and adjust the report as needed.
Microsoft Copilot AI capabilities in Dynamics 365 Project Operations enable project managers to quickly summarize reports.
Copilot’s capabilities in Dynamics 365 Finance will give collectors quick access to credit and payment history, allowing them to prioritize accounts and personalize communications with customers, he said. increase.
“This will make it easier for us to maintain good relationships with our customers, and we expect to receive payments on time and guarantee cash flow,” said Grantschnig.
For Dynamics 365 Supply Chain Management, customers can use Copilot to respond and coordinate purchase orders to better assess sourcing benefits and risks to make better sourcing decisions. Data management and security are essential for customers who embrace AI as an ERP function, he explained.
Copilot 365 is an enterprise version of AI built on OpenAI that uses large language models trained on Azure infrastructure. Follow Microsoft’s data security and data residency policies in various countries. Copilot 365 also limits the context of user interaction to business applications.
Generate better business use cases for AI
By using Copilot 365 AI capabilities for ERP processes, Microsoft is at the forefront of changing the debate on business use cases for generative AI, said Kevin Permenter, research director at IDC.
What is surprising is that among many other ERPs, Microsoft was one of the first to market with a coherent strategy based on generative AI business use cases.
Kevin ParmenterIDC Research Director
For example, companies have long struggled to cope with the overwhelming task of managing accounts payable and other financial functions such as communicating with suppliers, change notifications, and collections.
“The amazing thing is that among many other ERPs, Microsoft was one of the first to market with a coherent strategy based on generative AI business use cases,” said Permenter. I’m here. “Creating reports within operations teams, summarizing large amounts of data, and communicating on the claims side is at the forefront of AI efforts, and Copilot 365 puts Microsoft ahead of many of its competitors.”
This should allow Dynamics 365 to better compete with cloud ERP systems such as Oracle NetSuite and Acumatica, which are also targeted at midsize businesses, but more robust systems such as SAP S/4HANA and Oracle Fusion Cloud. ERP systems may not make much headway, he said.
“Does Copilot 365 provide enough depth of functionality in supply chain, operations and finance functions to make up for the depth of functionality available in larger software packages?” Parmenter said. “Maybe not, but it’s definitely a step in the right direction.”
According to Predrag Jakovljevic, Principal Industry Analyst at Technology Evaluation Centers, the Copilot strategy is impressive and impacts nearly every aspect of CRM, ERP and supply chain management in Dynamics 365.
“With OpenAI using Azure for research and development, Microsoft seems to be ahead of the competition,” he said.
Jakovljevic agrees that Copilot 365’s project management and finance capabilities are great business use cases that give Dynamics 365 an edge over competing ERP systems such as Oracle NetSuite and Acumatica, at least for the time being.
“It’s definitely better [than what the competitors have now]”But over time, they’ll all catch up,” he said, adding, “Microsoft is ahead now and more inclusive.”
Jim O’Donnell is a senior news writer for ERP and other enterprise applications at TechTarget Editorial.
