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Microsoft Dynamics 365 2025 Release Wave 2: Key Updates Across Dynamics 365, Power Platform & Copilot

5 August 2025
Sam Peterson
Sam Peterson
Microsoft Dynamics 365 2025 Release Wave 2: Key Updates Across Dynamics 365, Power Platform & Copilot

We are at a tipping point in the evolution of business software. The age of AI agents is no longer a distant future- it's here. These intelligent systems aren’t just assisting humans with repetitive tasks. They’re transforming how work is executed, how insights are discovered, and how outcomes are achieved. And with the 2025 Release Wave 2, this vision is getting expanded.

On July 16th 2025, Microsoft unveiled the upcoming wave of capabilities for Microsoft Dynamics 365, Microsoft Power Platform, and growing family of role-based Microsoft Copilot offerings, all set to release between October 2025 and March 2026. These updates bring the power of AI deeper into workflows, allowing organizations to operate with more agility, intelligence, and automation than ever before.

This blog highlights the key innovations and capabilities in the 2025 Release Wave 2 for Microsoft Dynamics 365, Microsoft Power Platform, and role-based Microsoft Copilot offerings.

The focus of this wave is clear:

  • Autonomous AI agents that act, not just advise
  • Low-code tools that accelerate development
  • Role-specific copilots that empower every function from sales to service to finance

Whether you're a digital leader, a business user, or a developer, these updates are designed to help you unlock value across every part of your organization. From reimagined customer journeys to AI-assisted project planning, the next generation of business transformation is here and it’s powered by Microsoft.

Highlights from Dynamics 365

Customer Experience Revolutionized

Customer Insights – Data fuels Copilot and AI agents with unified, real-time customer profiles. Teams can now act on deeper insights directly in their workflows.

Customer Insights – Journeys leverages Copilot and enhanced orchestration tools to deliver hyper-personalized, AI-driven engagement across the full customer journey.

Empowered Sales and Service

Dynamics 365 Sales integrates AI agents that proactively research leads, highlight deal risks, and deliver tailored insights—accelerating time-to-close with a reimagined, insight-first interface.

Customer Service and Contact Center see expanded agentic capabilities for smarter routing, omnichannel support, and real-time knowledge delivery.

Smarter Field and Financial Operations

Field Service gains new AI-driven scheduling, deeper Microsoft 365 integration, and improved mobile usability—perfect for frontline scenarios.

Finance introduces global-scale AI agents to speed financial close, streamline reconciliations, and optimize operations at scale.

Seamless Supply Chain and Project Excellence

Supply Chain Management adds intelligent forecasting, automated vendor interactions, and warehouse efficiency tools.

Project Operations focuses on usability—mobile/browsing enhancements, better billing workflows, and new planning tools.

HR and Commerce Transformation

Human Resources introduces new onboarding agents, integration with Viva and Entra ID, and AI tools for job descriptions and interviews.

Commerce enables offline-capable, mobile-first POS systems and modern payment features like Pay by Link. .

AI-first Small Business Management

Business Central introduces natural language-powered AI agents for automation, reporting, and order optimization. Added capabilities target sustainability, subcontracting, and quality control.

Explore the Dynamics 365 Release planner HERE

Highlights from Microsoft Power Platform

Copilot Studio Enhancements

Build autonomous, collaborative agent teams.

Deep integration with Azure AI Foundry and Microsoft Graph ensures your agents can access the best of AI with contextual, enterprise-grade data.

Power Apps with AI Collaboration

A new agent feed helps monitor agent progress and AI-assisted problem-solving.

Use Plan Designer and App Agent to build solutions using simple language or visuals.

Power Pages and Power Automate

Power Pages: Rapid, secure portal creation with new AI security agents for admins and developers.

Power Automate: Advanced human-in-the-loop automation with governance and observability upgrades in Automation Center. .

Dataverse and Platform Governance

Dataverse for Agents and the new Model Context Protocol (MCP) make AI-ready business logic seamless.

New unified governance across Power Platform ensures scalable, secure development of agents and automations.

Explore the Microsoft Power Platform Release Planner HERE

Copilot Offerings: Agents that Work Like You Do

Microsoft 365 Copilot continues its evolution with role-based AI agents for sales, service, and finance:

Sales: Agents help prioritize leads, uncover engagement strategies, and auto-generate customer insights.

Service: Agents boost CRM connectivity and enhance email drafting directly in the tools reps use.

Finance: Excel-integrated agents speed reconciliation and enable smart financial analysis right from the spreadsheet.

Explore the Copilot Release Planner HERE

Early Access and What’s Next

Starting August 4, 2025, customers and partners can test Wave 2 features in a non-production environment—an ideal opportunity to fine-tune adoption strategies and gather early feedback.

Explore early access features HERE

What This Means for You

Whether you're a business leader, functional user, or IT professional, the 2025 Release Wave 2 introduces game-changing capabilities across AI, automation, and data intelligence.

For Business Decision-Makers

Accelerate digital transformation with AI-driven processes that reduce manual work and operational friction.

Use real-time insights from Dynamics 365 and Copilot agents to make faster, more informed decisions.

Unlock new revenue potential through personalized customer experiences and smarter forecasting.

For Sales, Service & Finance Teams

Sell smarter and faster: AI agents in Dynamics 365 Sales help prioritize leads, reduce admin work, and uncover deal risks proactively.

Deliver better service: Copilot in Customer Service and Contact Center offers faster resolutions and intelligent routing.

Boost financial accuracy: Finance teams can leverage Copilot for faster close cycles, reconciliation, and planning—all from Excel.

For IT Admins & Developers

Gain centralized governance for agents and automation with Power Platform’s updated admin center and Automation Center.

Build and scale secure AI agents using Copilot Studio, with integration into Microsoft Graph and Azure AI services.

Reduce development time with low-code tools in Power Apps, Power Pages, and Power Automate.

For Organizations of All Sizes

Benefit from scalable AI tools—from small businesses using Business Central to enterprises managing global finance and supply chains.

Enable omnichannel, always-on commerce with POS enhancements, modern payments, and unified pricing models.

Enhance employee onboarding, HR automation, and recruiter efficiency with AI-powered experiences in Dynamics 365 Human Resources.

Plan Your Future with Confidence

The 2025 Release Wave 2 isn’t just a set of updates but it’s a strategic step forward in reimagining how business applications serve people. From autonomous agents to intelligent orchestration across platforms, they are delivering tools that don’t just respond—they anticipate.

Whether you're optimizing sales, transforming service delivery, streamlining operations, or building low-code AI solutions, this wave equips you with the intelligence and automation you need to stay ahead.

Now is the time to embrace AI agents as core business enablers. Start planning. Start building. Start transforming.

FAQ

1. What is Microsoft’s 2025 Release Wave 2, and when will it be available?

The 2025 Release Wave 2 is Microsoft’s latest round of updates for Dynamics 365, Power Platform, and Copilot, focused on advancing AI, automation, and low-code development. These features will begin rolling out from October 2025 through March 2026. Early access for testing begins on August 4, 2025.

2. What are the key AI innovations introduced in this release?

Wave 2 introduces autonomous AI agents that don’t just assist, they act. Copilot and AI enhancements are deeply embedded in customer insights, sales forecasting, service routing, financial reconciliation, field service scheduling, and more. Low-code tools also gain smarter automation and agent-building capabilities.

3. How will this release benefit different types of users?

Business users gain actionable insights and automated workflows.

Developers get enhanced low-code tools like Copilot Studio, Power Apps, and Plan Designer.

IT teams benefit from centralized governance, enhanced observability, and integration with Azure AI and Microsoft Graph.

4. Are there specific improvements for small and mid-sized businesses?

Yes. Dynamics 365 Business Central introduces AI agents for automation, reporting, and order optimization. SMBs can also benefit from offline-capable POS, simplified HR tools, and sustainability features designed for scale without complexity.

5. Where can I preview or explore the upcoming features in more detail?

You can explore detailed release plans and preview features via these official planners:

Dynamics 365 Release Planner

Power Platform Release Planner

Copilot Release Planner Early access to test new features begins August 4, 2025 in non-production environments.

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