What’s New in 2025 Release Wave 1 for Dynamics 365

The 2025 release wave 1 for Dynamics 365 brings a long list of new features and enhancements that can help boost efficiency and productivity. Many improvements revolve around Microsoft’s investments in Copilot and AI agents in Dynamics 365 Business Central, Dynamics 365 CRM applications, and Dynamics 365 Finance & Operations.

A complete breakdown of features and improvements in release wave 1 would include hundreds of pages of documentation, so we focus on some of the new features where we see the most potential to deliver strong value for our clients. Highlights of this release wave include user-friendly AI agents, enhanced cost adjustments, simplified tax and reconciliation, Copilot-powered autofill recommendations, and automated supplier communications.

Note that some features have already been released at the time of publication, while others are slated to launch over the next few months. Release information is subject to change.

What’s new in:

• Dynamics 365 Business Central
• Dynamics 365 CRM Applications
• Dynamics 365 Finance & Operations

What’s New in Dynamics 365 Business Central in 2025 Release Wave 1

In this release wave, Dynamics 365 Business Central gets improved cost adjustments, Copilot-powered autofill fields, and AI agents ready to enhance efficiency and enable more automation.

Enhanced Cost Adjustments

Release wave 1 provides greater control over the scope of cost adjustment processes for high-transaction items, introducing period-by-period, assembly order, and selected production adjustments. Users will also benefit from proactive notifications when issues arise, and better visibility and control over adjustments.

Dynamics 365 Business Central users should experience significantly improved processing speed for cost adjustments after Microsoft identified and removed bottlenecks in previous versions of the software. Companies can also benefit from greater accuracy for valuations, fewer cost discrepancies, better operational efficiency, and improved decision-making based on data.

Easy-to-Use AI Agents

How businesses use AI will continue to evolve rapidly. Microsoft’s latest release enables agentic AI capabilities for organizations with Business Central deployments.

Microsoft’s AI agents approach tasks by utilizing a model that combines reasoning with generative capabilities. You can use natural language prompts to tell AI agents what you need. The agents then proceed to efficiently perform complex tasks like reporting, creating orders, and extracting insight from documents.

In the current release of AI agents, Microsoft focuses on integrations with Dynamics 365 Field Service and Shopify, as well as manufacturing, document processing, and sustainable business.

Autofill Fields in Records

Copilot enables autofill suggestions for individual fields when creating or editing records in Dynamics 365 Business Central. The suggestions provided are grounded in company data already in the system. Recommendations can include frequently used data entries, recent updates, and context-specific suggestions generated through AI.

Autofill can greatly reduce time spent on data entry while reducing the potential for human error. Users can quickly accept or reject autofill suggestions, maintaining human oversight and control over this AI-driven feature.

In the upcoming months, Copilot is expected to expand autofill by enabling an automatic web search for contact details, product information, and other relevant public data.

What’s New in Dynamics 365 CRM Applications in 2025 Release Wave 1

Microsoft Dynamics 365 CRM applications get an uplift in release wave 1 2025, with a focus on seamlessly blending Copilot into key app functionalities. Sellers can expect increased efficiency and productivity for sales activities, customer journeys, customer experiences, and insight generation.

Increased Seller Productivity

Dynamics 365 Sales receives features that aim to lift seller productivity through efficiency enhancements. Users can look forward to Copilot and AI agents that help simplify various tasks related to pipeline management, strategy development, and faster sales cycles. Note that it will be important to input relevant information about your offers, value proposition, and needs to these agents in order to train them properly.

Integrated AI helps to ensure timely follow-ups, provide guidance based on available data, and automate research for sales teams. These AI capabilities allow Copilot and agents to perform repetitive, time-intensive tasks while your sales team concentrates on high-value objectives that boost sales and customer engagement.

Enhanced Customer Service Experiences

Copilot enhances Dynamics 365 Customer Service with AI capabilities designed to boost productivity and provide a better overall experience for service representatives. You can leverage Copilot to automate some tasks and find resources that help solve issues faster. This includes the ability to find information from internal sources and publicly available external sources.

This release wave adds unified, intelligent routing based on your assignment rules and AI models. Incoming requests from different sources, such as digital messaging, voice messages, chats, records, and cases, can be efficiently routed to the service representative best suited to solve the customer’s issue.

Improved Customer Journeys

In this release wave, Microsoft boosts how businesses manage customer journeys in Dynamics 365 Customer Insights. Streamlined lead generation, optimized customer interactions, and new event management features help capture and nurture high-quality leads through your pipeline.

You can also create new scenarios and business opportunities while making each touchpoint more impactful. Similarly to other apps receiving improvements in release wave 1, integrated AI tools will support these and other advancements in customer engagement.

What’s New in Dynamics 365 Finance & Operations in 2025 Release Wave 1

Dynamics 365 Finance & Operations continues to evolve in release wave 1 with the addition of Copilot, AI, and automated capabilities. These enhancements target gains for managing taxes, compliance, reconciliation, data-driven planning, and natural language interaction with the system.

Simplified Tax, Compliance, and Reconciliation

A Copilot-first user experience now enhances various aspects of Dynamics 365 Finance & Operations. Automation and AI agents help to quicken account reconciliation. The latest feature release also simplifies complex tax management and compliance scenarios.

AI also supports greater extensibility by seamlessly connecting relevant data from integrated systems into the application. This facilitates better financial planning, faster data refreshes, and performance analytics that allow for more context in the analysis.

Enable Productivity Gains and Data-Driven Planning

Newly integrated intelligence capabilities drive automated supplier communications, leading to operational efficiencies and more accurate transactions. AI can now assist with the alignment of production data with manufacturing processes, enhancing efficiency and productivity.

These AI and automation improvements support more accurate and adaptable demand planning in Dynamics 365, including features that enable a detailed, transparent view of data.

Natural Language AI and Agent Capabilities

Microsoft continues to enrich Dynamics 365 Finance & Operations with AI and autonomous ERP capabilities in release wave 1. AI agents will be available for various applications and functionalities, including process automation, compliance, and enterprise-level security.

Users can access these capabilities through natural language interactions with the solution. Similar to no-code tools, natural language processing can empower users to access advanced functionality without knowledge of complex database queries.

What’s Next?

Change is one of the few constants in the industry, so you can expect Microsoft to continue evolving Dynamics 365 with new features, capabilities, and improvements. Keeping track of these changes can be tricky for customers, even for those who are well-informed.

Encore is committed to helping our customers identify and leverage specific changes that are relevant and beneficial to their business.

Do you have questions about this release wave or readiness for future releases? Reach out to your Encore account manager or contact us.