Microsoft and CEO Satya Nadella are focusing on adding new AI capabilities, including AI agents, to their Dynamics 365 line of business applications. These agents can complete tasks autonomously in areas such as sales, service, finance, and supply chain operations. The concept of agents is seen as the new apps for an AI-powered world, working on behalf of individuals, teams, or functions to execute and orchestrate business processes. This move is sparking competition between Microsoft and Salesforce in the AI space, with both companies developing autonomous AI technology for various business purposes.
The announcement of 10 new AI agents for Dynamics 365 was made at Microsoft’s “AI Tour” stop in London, just days before Salesforce’s planned release of its competing Agentforce autonomous AI technology for sales and service on Oct. 25. This reflects the ongoing competition and partnership between Microsoft and Salesforce, two tech giants who have a history of collaborating on certain projects while also fiercely competing on others. Salesforce CEO Marc Benioff has expressed criticism of Microsoft’s Copilot AI technology, accusing the company of disappointing business customers and putting their data at risk.
Both Microsoft and Salesforce are part of a broader industry trend towards expanding AI capabilities beyond mere assistance to include autonomous completion of assignments and tasks. Microsoft sees AI as a key driver for growth in various products and services, such as GitHub, Windows, and Microsoft 365. Dynamics products and cloud services have shown steady revenue growth, reaching about $6.5 billion in Microsoft’s fiscal year 2024. Despite this growth, Dynamics still accounts for a small portion of Microsoft’s overall annual revenue of over $245 billion.
Microsoft plans to make the new AI agents available for public preview in Dynamics 365 later this year and into early next year. These agents are categorized into sales, operations, and service, with each designed to help automate and optimize various business processes. These include agents for sales qualification, order intake, supplier communications, financial reconciliation, improving customer service, financial reporting, account reconciliation, time entry, expense tracking, and approval workflows. Additionally, Microsoft will release a public preview next month for the ability to create autonomous agents with Copilot Studio, further enhancing their AI capabilities.
The introduction of AI agents in Dynamics 365 is part of Microsoft’s larger strategy to leverage AI technologies to drive growth and innovation across its business. With a focus on autonomy, these agents can potentially transform how businesses operate by streamlining processes, optimizing workflows, and improving customer interactions. As Microsoft and Salesforce continue to compete in the AI space, the development of autonomous AI technologies will play a significant role in shaping the future of business applications and services.
