The introduction of Microsoft Copilot has transformed how you interact with Dynamics 365 Business Central. By harnessing the power of natural language queries, Copilot helps streamline your everyday tasks, enhancing your efficiency.

In this overview, we’ll explore Copilot’s functionality within Dynamics 365 Business Central, highlight some exciting new features, and share practical examples of how these capabilities can make a real difference in your daily workflow.

If you want to step back and take a broader perspective on what differentiates Business Central from other ERP solutions, check out our guide, No ERP Can Do It All.

Table of Contents

• Copilot in Dynamics 365 Business Central
• Copilot Across the Microsoft Ecosystem
• Dynamics 365 Business Central Wave 2 Release, October 2025
• Dynamics 365 Business Central Wave 1 Release, April 2025

Copilot in Dynamics 365 Business Central

You may have noticed the new Copilot icon in the top menu bar of your Business Central environment. This sidebar Copilot provides access to a prompt guide to help you find specific data within Business Central. You can ask questions conversationally and receive guided responses.

For example, you can submit queries using everyday language, such as:

“Provide me with the last three invoices that were over $100,000 in this customer group.”

Copilot interprets your request and retrieves the relevant data, saving you time and effort. Whether you’re in sales, marketing, or finance, Copilot enhances user experience, allowing you to focus on the most critical parts of your work.

Copilot Across the Microsoft Ecosystem

Business Central works seamlessly with Microsoft 365 apps like Teams, Outlook and Excel. Copilot acts as your AI-powered assistant across these tools, helping you stay in the flow of work:

• In Outlook: Interact with customers and vendors, manage inquiries, and process payments directly through your inbox. Copilot surfaces customer history, accelerates transactions, and enables you to create and send sales quotes without leaving your inbox.
• In Excel: Export data from Business Central, analyze and edit it using familiar Excel tools, then publish changes back with business rule validation. Copilot assists with deep financial analysis and helps you generate reports faster.
• In Teams: Share Business Central data instantly in chats or channels, look up business contacts, and take action without switching apps. Copilot ensures timely insights and collaboration, even for users with only a Microsoft 365 license.

This deep integration means employees can collaborate, analyze, and act on business data in the tools they use every day, guided by Copilot’s AI capabilities.

Quote-to-Cash Without Leaving Outlook or Teams

With Copilot, you can manage the entire quote-to-cash process without ever leaving Teams or Outlook:

• Enter a quote, convert it to an invoice, post the invoice, and apply payment, all within Teams or Outlook.
• In Outlook, get instant contact insights from an email. Business Central displays customer data such as aged accounts receivable, documents, sales history, and other key metrics.
• Create sales quotes directly in Outlook. The system recognizes data within the email (like inventory requests) and recommends information for your approval. You can review and edit the sales quote, then convert it to an order or invoice, all within Outlook.
• Once you receive the invoice, you can request approval or post it through Teams, working where and how you want.

Because Teams and Outlook are already familiar tools, user adoption is seamless. This integration reduces data entry time and enables quick responses to customer requests.

New Features in Dynamics 365 Business Central Wave 2 (October 2025)

In this release, Microsoft focused on expanding Copilot’s capabilities, below I’ll highlight a few of the enhancements that stand out.

Advanced Semantic Search (“Tell Me”): The enhanced “Tell Me” search now allows users to enter natural language queries, even if you don’t know the exact terminology. Copilot uses semantic search to find relevant items, journals, and reports, making navigation and data discovery much more intuitive.

Autofill with Copilot: Autofill with Copilot lets users automatically populate address and contact fields for new customers, vendors, or items. By clicking the Copilot icon, Business Central searches the web and downloads accurate information, saving time and reducing manual entry. It appears as suggested fields, and you have the ability to approve before the data is entered, to ensure accuracy.

This feature is currently available for master data like customers, vendors, and items, and always prompts users to validate the auto filled data to ensure accuracy.

Enhanced Summarization: Copilot now offers enhanced summarization across master data cards (vendors, GL accounts, items, etc.). Users can quickly view summaries of balances, overdue amounts, payments, and last modifications, with clickable references to validate the source data. This feature streamlines data review and sharing, allowing users to copy summaries directly into Teams or other platforms.

Enhanced Insights: Reviewing KPIs and Identifying Trends

Copilot isn’t just about answering questions – it surfaces insight that helps you make better decisions. For business leaders and managers, Copilot makes it easy to:

• Review KPIs: instantly access color-coded KPIs for sales and purchasing, tailored to your chosen thresholds.
• Analyze profitability: drill into sales orders and see at-a-glance summaries for profit margins, with clickable links to validate the underlying data.
• Identify trends: use Copilot and integrated Power BI reports to visualize sales overviews, gross profit by item, and sales forecasts.

For example, you can quickly analyze late payments with visual charts showing amounts and average days late, helping you identify customers or products that may need attention. Copilot’s AI-powered predictions also provide confidence scores for late payments, supporting more effective receivables management.

Wave 1 Release (April 2025): Role-Based Highlights

To highlight some of the features available with Dynamics 365 Copilot in Dynamics 365 Business Central, here’s a brief overview from a role-based perspective, focusing on sales, marketing, purchasing, and finance:

Sales and Marketing/Purchasing

Marketing Text with Copilot: When viewing an Item Card, Copilot can draft a tagline and paragraph describing the item based on its attributes. You can review and modify the generated content before syncing it to platforms like Shopify.

This feature allows for efficient content creation and management, and Copilot-generated descriptions can be tailored to your preferred tone, format, and length. Once finalized, you can publish to e-commerce platforms with just a few clicks, helping product managers and marketers quickly create compelling, accurate product content.

Note: Reviewing Copilot-generated text is important to ensure accuracy.

Sales and Inventory Forecast: The fact box within an Item Card displays forecasts, including inventory and sales predictions. Azure AI powers these forecasts, which can be updated monthly to weekly, depending on your needs.

Sales/Accounts Receivables

Predictive  Payments: Within a Sales Quote, you can select the ‘Predict Payment’ action, and Business Central will provide a confidence score (low, medium, or high). Additionally, in Customer Ledger Entries, there’s a Late Payment Prediction section where you can view prediction time, confidence rating, and confidence score.

Business managers can enhance their insights by incorporating a predictive payments tab into their role center, highlighting sales invoices for proactive action. Copilot’s predictions are based on historical transactions and offer high confidence levels, helping you manage customer relationships more effectively

Customer Balances and Late Payment Predictions: By examining a customer’s balance, you can see late payment predictions generated by Copilot. These predictions, based on historical transactions, help you proactively manage receivables and cash flow.

Sales Orders and Suggested Sales Lines: When creating a sales order, you can ask Copilot to suggest sales lines based on previous history. You can insert, modify, or delete lines and change quantities as needed. This feature streamlines the order creation process by leveraging past data to make informed suggestions.

Copilot’s suggestions are context-aware, leveraging historical data to recommend the most relevant products or quantities, which is especially useful for repeat customers or frequently ordered items.

Finance

Cash Flow Forecasts: This feature, powered by Azure AI, allows you to view and interact with data in various ways. By clicking on specific areas within the chart, you can see details such as purchase orders against Cash Flow Ledger Entries. The forecasting model used by Azure AI is also applied in the Sales and Inventory Forecast. This model learns from historical transactions and improves its predictions over approximately three months.

The cash flow forecast worksheet can be adjusted for vendor terms, and AI will learn from your activity to provide increasingly accurate projections. This enables granular forecasting and proactive financial planning.

You can configure this setup in various ways to suit your users’ needs.

Reconcile and Post Difference with Copilot: Download a bank statement file and reconcile it against bank account ledger entries using the Reconcile with Copilot feature. The system highlights auto-matched lines and allows you to verify them.

Copilot can also summarize multiple ledger entries into a single bank statement entry, saving significant time during reconciliation. It also suggests appropriate GL accounts for adjustments, boosting efficiency for bank reconciliation processes in Business Central.

Copilot’s reconciliation features can handle large volumes of transactions, auto-matching entries and providing explanations for matches, which significantly reduces manual effort and potential errors.

Reports and Analysis Mode Using Natural Language Commands:

A standout feature of Copilot in Business Central is its ability to use natural language processing for report creation and analysis mode.

Copilot enables users to write commands about the type of report they want to see. After writing the command, Copilot and Business Central work together to automatically generate the report. This enables users to quickly create reports and perform comprehensive data analysis – without the need for complex formatting or queries.

Explore More Copilot Features in Dynamics 365 Business Central

Watch the video overview below for a more in-depth look at the built-in features and functionalities of Copilot in Dynamics 365 Business Central:

As a Dynamics 365 Business Central Partner, Encore Business Solutions provides support, training, implementations, and integrations across the full Microsoft stack. And we advise our clients on how to select and leverage the right technologies for each situation.

If you want insight into the bigger picture of how an ERP can connect with the rest of your technology ecosystem, take time to read our guide, No ERP Can Do It All.

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