1 00:00:00,000 --> 00:00:01,760 Today's topic is one you've probably heard about, 2 00:00:01,760 --> 00:00:03,000 but maybe don't fully understand. 3 00:00:03,000 --> 00:00:06,120 The model context protocol for Dynamics 365 ERP. 4 00:00:06,120 --> 00:00:08,760 You've seen the acronym, MCP, and Microsoft announcements, 5 00:00:08,760 --> 00:00:10,800 partner webinars, and community posts. 6 00:00:10,800 --> 00:00:12,000 But what does it mean for someone 7 00:00:12,000 --> 00:00:14,160 who works with Dynamics 365 every day? 8 00:00:14,160 --> 00:00:17,600 Here's the thing, your ERP holds your most important data. 9 00:00:17,600 --> 00:00:20,000 Finance records, supply chain transactions, 10 00:00:20,000 --> 00:00:22,720 inventory levels, vendor info, customer histories. 11 00:00:22,720 --> 00:00:24,000 It's how your company runs. 12 00:00:24,000 --> 00:00:26,840 But getting that data into AI tools has always been a headache. 13 00:00:26,840 --> 00:00:30,200 You needed custom API, special connectors, security workarounds. 14 00:00:30,200 --> 00:00:32,920 Every time you wanted to connect an AI assistant to your ERP, 15 00:00:32,920 --> 00:00:34,480 you had to start from scratch. 16 00:00:34,480 --> 00:00:36,280 By the end of this episode, you'll understand 17 00:00:36,280 --> 00:00:39,160 what the MCP server is, why Microsoft built it, 18 00:00:39,160 --> 00:00:41,760 and how it turns your ERP into a system AI agents 19 00:00:41,760 --> 00:00:43,080 can talk to directly. 20 00:00:43,080 --> 00:00:44,400 No custom code needed. 21 00:00:44,400 --> 00:00:46,640 So grab your coffee and let's dive in. 22 00:00:46,640 --> 00:00:48,720 What is a model context protocol? 23 00:00:48,720 --> 00:00:50,120 Here's the simplest definition. 24 00:00:50,120 --> 00:00:53,440 MCP is an open standard that lets AI applications discover 25 00:00:53,440 --> 00:00:55,600 and call tools and data sources in a structured way. 26 00:00:55,600 --> 00:00:57,840 Think of it like a universal remote. 27 00:00:57,840 --> 00:01:01,160 Without MCP, every AI agent needs its own custom wiring 28 00:01:01,160 --> 00:01:04,640 to each system, one cable for your CRM, another for your ERP, 29 00:01:04,640 --> 00:01:06,400 another for your data warehouse. 30 00:01:06,400 --> 00:01:08,880 Every time you add a system, you run another cable. 31 00:01:08,880 --> 00:01:11,600 With MCP, you plug in once and get access to everything, 32 00:01:11,600 --> 00:01:14,120 one connection, one protocol, one way of working. 33 00:01:14,120 --> 00:01:17,280 Before MCP existed, connecting an AI assistant to your ERP 34 00:01:17,280 --> 00:01:18,400 was a full project. 35 00:01:18,400 --> 00:01:20,440 You had to build custom APIs, maintain connectors, 36 00:01:20,440 --> 00:01:22,600 deal with security headaches, and update everything 37 00:01:22,600 --> 00:01:23,760 whenever the ERP changed. 38 00:01:23,760 --> 00:01:25,920 It was expensive, slow, and fragile. 39 00:01:25,920 --> 00:01:27,400 MCP changes all of that. 40 00:01:27,400 --> 00:01:29,560 Instead of building a custom bridge every time, 41 00:01:29,560 --> 00:01:32,160 you get a standard interface that any MCP compatible tool 42 00:01:32,160 --> 00:01:35,120 can use, the model context part is important too. 43 00:01:35,120 --> 00:01:37,080 The AI agent doesn't just get raw data. 44 00:01:37,080 --> 00:01:39,520 It gets detailed info about what tools exist, what they do, 45 00:01:39,520 --> 00:01:41,480 how to use them, and what data is available. 46 00:01:41,480 --> 00:01:43,400 So when an agent needs to do something, 47 00:01:43,400 --> 00:01:46,240 it can look at the tools, understand which fits the task, 48 00:01:46,240 --> 00:01:47,320 and call it correctly. 49 00:01:47,320 --> 00:01:48,720 That's how it makes smart decisions 50 00:01:48,720 --> 00:01:50,160 because it understands the system. 51 00:01:50,160 --> 00:01:52,680 So why does this matter for Dynamics 365 specifically? 52 00:01:52,680 --> 00:01:56,800 Microsoft built an MCP server for finance and operations apps, 53 00:01:56,800 --> 00:01:59,720 and that means hundreds of thousands of ERP functions 54 00:01:59,720 --> 00:02:02,920 become tools AI agents can discover and use. 55 00:02:02,920 --> 00:02:05,280 From creating a purchase order to posting a journal entry 56 00:02:05,280 --> 00:02:07,040 to running a financial report, 57 00:02:07,040 --> 00:02:09,680 every function is exposed through a single governed interface. 58 00:02:09,680 --> 00:02:10,560 That's the big idea. 59 00:02:10,560 --> 00:02:14,600 But what exactly does that MCP server look like inside Dynamics 365? 60 00:02:14,600 --> 00:02:15,920 Let's break it down. 61 00:02:15,920 --> 00:02:19,240 The two flavors of ERP MCP, when Microsoft first released 62 00:02:19,240 --> 00:02:22,320 the ERP MCP server, they didn't have the full vision in mind. 63 00:02:22,320 --> 00:02:25,240 The initial version came with a fixed set of 13 tools. 64 00:02:25,240 --> 00:02:27,320 You could do specific things like find approved vendors 65 00:02:27,320 --> 00:02:29,960 or release purchase requisition lines, it was useful. 66 00:02:29,960 --> 00:02:30,960 But it was also limited. 67 00:02:30,960 --> 00:02:32,200 Think of it like a vending machine. 68 00:02:32,200 --> 00:02:33,760 You could only pick from what was stocked. 69 00:02:33,760 --> 00:02:35,520 If you wanted something that wasn't on the menu, 70 00:02:35,520 --> 00:02:36,520 you were out of luck. 71 00:02:36,520 --> 00:02:37,960 Then Microsoft evolved it. 72 00:02:37,960 --> 00:02:40,840 The new Dynamic MCP server, now in public preview, 73 00:02:40,840 --> 00:02:42,520 is a completely different beast. 74 00:02:42,520 --> 00:02:44,120 Instead of a fixed tool list, 75 00:02:44,120 --> 00:02:48,040 it lets agents navigate ERP forms just like a human user would. 76 00:02:48,040 --> 00:02:50,120 The agent can open forms, set field values, 77 00:02:50,120 --> 00:02:51,600 click buttons and run actions. 78 00:02:51,600 --> 00:02:53,200 And it works through the same business logic 79 00:02:53,200 --> 00:02:55,720 and validation rules that apply when you do it manually. 80 00:02:55,720 --> 00:02:57,400 The difference, night and day. 81 00:02:57,400 --> 00:02:59,280 The static server was a vending machine. 82 00:02:59,280 --> 00:03:01,040 The Dynamic server is a full supermarket. 83 00:03:01,040 --> 00:03:03,080 You can browse every aisle and pick anything 84 00:03:03,080 --> 00:03:04,240 your security allows. 85 00:03:04,240 --> 00:03:05,160 And I mean anything. 86 00:03:05,160 --> 00:03:07,960 We're talking hundreds of thousands of ERP functions 87 00:03:07,960 --> 00:03:09,880 across tens of thousands of forms, 88 00:03:09,880 --> 00:03:13,160 finance supply chain, human resources, project operations, 89 00:03:13,160 --> 00:03:15,280 every form, every action, every button 90 00:03:15,280 --> 00:03:18,040 that a user can access becomes available to the agent. 91 00:03:18,040 --> 00:03:19,280 Here's the part that really matters 92 00:03:19,280 --> 00:03:21,760 for organizations that have customized their ERP. 93 00:03:21,760 --> 00:03:23,680 Customizations and ISV extensions 94 00:03:23,680 --> 00:03:25,920 become automatically visible to the agent. 95 00:03:25,920 --> 00:03:27,640 You don't need to write special code 96 00:03:27,640 --> 00:03:30,280 to expose your custom fields or custom processes. 97 00:03:30,280 --> 00:03:32,760 If it's in the ERP and a user can interact with it, 98 00:03:32,760 --> 00:03:34,640 the MCP server makes it available. 99 00:03:34,640 --> 00:03:35,600 No extra coding needed. 100 00:03:35,600 --> 00:03:37,480 But MCP isn't just about taking actions, 101 00:03:37,480 --> 00:03:39,640 it's also about understanding your data. 102 00:03:39,640 --> 00:03:41,400 The analytics MCP server. 103 00:03:41,400 --> 00:03:42,680 So we've got this Dynamic server 104 00:03:42,680 --> 00:03:44,840 that can take actions inside your ERP. 105 00:03:44,840 --> 00:03:46,360 But actions without data are blind. 106 00:03:46,360 --> 00:03:47,520 You need to know what's happening 107 00:03:47,520 --> 00:03:49,200 before you can decide what to do. 108 00:03:49,200 --> 00:03:50,880 That's where the second piece comes in. 109 00:03:50,880 --> 00:03:54,040 Microsoft also announced a separate analytics MCP server. 110 00:03:54,040 --> 00:03:56,840 It entered public preview in December 2025. 111 00:03:56,840 --> 00:03:58,360 This server connects to something called 112 00:03:58,360 --> 00:04:00,840 Business Performance Analytics or BPA. 113 00:04:00,840 --> 00:04:03,640 Think of BPA as the analytical data store for your ERP. 114 00:04:03,640 --> 00:04:06,440 It brings together data from all your ERP instances 115 00:04:06,440 --> 00:04:08,640 into one unified schema with pre-built reports 116 00:04:08,640 --> 00:04:09,800 and dimensional models. 117 00:04:09,800 --> 00:04:13,000 Instead of having to pull data from five different environments 118 00:04:13,000 --> 00:04:14,800 and figure out how to join it yourself, 119 00:04:14,800 --> 00:04:16,400 BPA does that work for you. 120 00:04:16,400 --> 00:04:19,360 Now the MCP layer on top gives AI agents a way 121 00:04:19,360 --> 00:04:20,480 to query that data. 122 00:04:20,480 --> 00:04:21,840 And here's the elegant part. 123 00:04:21,840 --> 00:04:23,120 It only needs two tools. 124 00:04:23,120 --> 00:04:25,320 You get data set schema and execute DAX query. 125 00:04:25,320 --> 00:04:26,080 That's it. 126 00:04:26,080 --> 00:04:27,560 The agent first asks for the schema 127 00:04:27,560 --> 00:04:29,000 to understand what data is available, 128 00:04:29,000 --> 00:04:31,160 what tables exist, what measures are defined. 129 00:04:31,160 --> 00:04:33,760 Then it writes a DAX query to get exactly the data it needs. 130 00:04:33,760 --> 00:04:34,640 Why does this matter? 131 00:04:34,640 --> 00:04:37,080 Because instead of building complex power BI dashboards 132 00:04:37,080 --> 00:04:38,720 and waiting for someone to refresh them, 133 00:04:38,720 --> 00:04:40,440 you can ask natural language questions 134 00:04:40,440 --> 00:04:42,000 and get answers instantly. 135 00:04:42,000 --> 00:04:43,720 What are my top 10 vendors at risk? 136 00:04:43,720 --> 00:04:46,040 Show me this bike in cost of goods sold by quarter. 137 00:04:46,040 --> 00:04:48,680 Which customers have the highest outstanding balances? 138 00:04:48,680 --> 00:04:51,080 The agent figures out the schema, writes the query, 139 00:04:51,080 --> 00:04:52,480 and brings back the answer. 140 00:04:52,480 --> 00:04:54,000 No dashboard building required. 141 00:04:54,000 --> 00:04:56,960 But the real magic happens when you combine both servers. 142 00:04:56,960 --> 00:04:59,480 Imagine an agent that uses the analytics MCP 143 00:04:59,480 --> 00:05:02,480 to identify a vendor with more than five overdue invoices. 144 00:05:02,480 --> 00:05:04,080 It flags that vendor as high risk. 145 00:05:04,080 --> 00:05:06,320 Then it uses the action MCP to automatically put 146 00:05:06,320 --> 00:05:08,080 that vendor on hold in your ERP. 147 00:05:08,080 --> 00:05:09,240 No human needed. 148 00:05:09,240 --> 00:05:11,920 Insights lead to actions all in one continuous flow. 149 00:05:11,920 --> 00:05:14,080 That's the vision Microsoft is building toward. 150 00:05:14,080 --> 00:05:15,800 So what does this actually look like in practice? 151 00:05:15,800 --> 00:05:17,560 Let's look at some real examples. 152 00:05:17,560 --> 00:05:19,040 Real-world use cases. 153 00:05:19,040 --> 00:05:20,760 Let's start with a real demo Microsoft 154 00:05:20,760 --> 00:05:24,040 showed during their tech talk, the vendor risk management agent. 155 00:05:24,040 --> 00:05:26,560 This thing monitors open invoices in your system. 156 00:05:26,560 --> 00:05:29,760 And when it spots a vendor with more than five overdue invoices, 157 00:05:29,760 --> 00:05:32,400 it puts that vendor on hold in the ERP automatically. 158 00:05:32,400 --> 00:05:33,800 No one has to lift a finger. 159 00:05:33,800 --> 00:05:36,120 The agent checks the data, makes the decision, 160 00:05:36,120 --> 00:05:38,200 blocks any new purchase orders with that vendor, 161 00:05:38,200 --> 00:05:40,560 and then sends an email to the accounts payable team 162 00:05:40,560 --> 00:05:42,120 explaining what happened and why. 163 00:05:42,120 --> 00:05:44,760 All of that runs without any human intervention. 164 00:05:44,760 --> 00:05:46,920 Next up is prepayment invoice automation. 165 00:05:46,920 --> 00:05:49,560 And this one comes from Ted Olsen at Cap Gemini. 166 00:05:49,560 --> 00:05:52,240 A user asks an agent to create a prepayment proposal 167 00:05:52,240 --> 00:05:53,760 for a specific sales order. 168 00:05:53,760 --> 00:05:56,840 And the agent just navigates through the ERP forms on its own. 169 00:05:56,840 --> 00:05:58,960 It sets the prepayment type to percentage, 170 00:05:58,960 --> 00:06:01,920 sets the value to 50%, confirms the sales order, 171 00:06:01,920 --> 00:06:04,240 creates the prepayment invoice, and posts it. 172 00:06:04,240 --> 00:06:06,360 That's multiple steps across multiple forms, 173 00:06:06,360 --> 00:06:08,560 all handled by the agent walking through the interface 174 00:06:08,560 --> 00:06:09,960 just like a person would. 175 00:06:09,960 --> 00:06:12,320 The user only described what they needed in plain English 176 00:06:12,320 --> 00:06:14,120 and the agent handled the rest. 177 00:06:14,120 --> 00:06:15,280 Now for the wild one. 178 00:06:15,280 --> 00:06:16,920 Scott Gaines, a solution architect, 179 00:06:16,920 --> 00:06:19,200 built a team of AI agents inside VS Code 180 00:06:19,200 --> 00:06:21,360 that configure an entire ERP environment. 181 00:06:21,360 --> 00:06:22,800 He set up a project manager agent 182 00:06:22,800 --> 00:06:25,000 that orchestrates the work, a solution architect agent 183 00:06:25,000 --> 00:06:27,200 that reviews the requirements, a consultant agent 184 00:06:27,200 --> 00:06:29,960 that runs the actual setup, creating legal entities, 185 00:06:29,960 --> 00:06:32,360 chart of accounts, and fiscal calendars, 186 00:06:32,360 --> 00:06:35,360 and a data migration agent that uploads master data. 187 00:06:35,360 --> 00:06:37,160 These agents pass work between each other. 188 00:06:37,160 --> 00:06:39,280 The project manager hands off to the consultant, 189 00:06:39,280 --> 00:06:41,240 the consultant configures the ERP, 190 00:06:41,240 --> 00:06:43,720 and the data migration agent loads the accounts. 191 00:06:43,720 --> 00:06:45,480 A complete ERP implementation, 192 00:06:45,480 --> 00:06:48,760 partially automated by a team of AI agents working together. 193 00:06:48,760 --> 00:06:50,360 These aren't PowerPoint concepts. 194 00:06:50,360 --> 00:06:52,360 They're real demos from real partners. 195 00:06:52,360 --> 00:06:55,760 Capgemony, Scott Gaines, Aventico, Microsoft themselves. 196 00:06:55,760 --> 00:06:57,400 MCP is not theoretical. 197 00:06:57,400 --> 00:06:59,720 It's working today in preview environments. 198 00:06:59,720 --> 00:07:01,160 The key takeaway is simple. 199 00:07:01,160 --> 00:07:04,320 MCP turns natural language into ERP actions. 200 00:07:04,320 --> 00:07:06,680 You don't need to memorize menu paths or write code. 201 00:07:06,680 --> 00:07:07,840 You describe what you need 202 00:07:07,840 --> 00:07:09,680 and the agent figures out how to do it. 203 00:07:09,680 --> 00:07:11,160 But how do you actually set this up? 204 00:07:11,160 --> 00:07:12,800 Let's walk through the basics. 205 00:07:12,800 --> 00:07:14,040 How to get started. 206 00:07:14,040 --> 00:07:15,720 So you're interested in trying this out. 207 00:07:15,720 --> 00:07:17,440 What do you actually need to get started? 208 00:07:17,440 --> 00:07:18,920 First, the prerequisites. 209 00:07:18,920 --> 00:07:21,880 You need a Dynamics 365 Finance and Operations Environment 210 00:07:21,880 --> 00:07:24,280 running version 10.0, 38 or higher. 211 00:07:24,280 --> 00:07:25,840 If you're on the Analytics MCP, 212 00:07:25,840 --> 00:07:27,760 you'll also need Business Performance Analytics 213 00:07:27,760 --> 00:07:30,000 installed version 2.5 or later. 214 00:07:30,000 --> 00:07:32,480 And you need an MCP compatible client to talk to the server. 215 00:07:32,480 --> 00:07:33,160 That's it. 216 00:07:33,160 --> 00:07:34,160 Three things. 217 00:07:34,160 --> 00:07:36,160 Now you have two main options for how to connect. 218 00:07:36,160 --> 00:07:38,080 The easiest path is co-pilot studio. 219 00:07:38,080 --> 00:07:40,840 You go there, create a new agent, and add a tool. 220 00:07:40,840 --> 00:07:45,120 Search for Dynamics 365 ERP MCP, connect it to your environment, 221 00:07:45,120 --> 00:07:46,560 and you're ready to start prompting. 222 00:07:46,560 --> 00:07:47,840 It's a low-code experience. 223 00:07:47,840 --> 00:07:49,120 No coding required. 224 00:07:49,120 --> 00:07:51,720 Just configure and start talking to your ERP. 225 00:07:51,720 --> 00:07:53,720 The second option is Visual Studio Code. 226 00:07:53,720 --> 00:07:55,840 If you're more technical or want to test things directly, 227 00:07:55,840 --> 00:07:57,400 this gives you more control. 228 00:07:57,400 --> 00:07:59,120 You use the VS Code MCP client, 229 00:07:59,120 --> 00:08:01,600 paste in the ERP MCP endpoint URL, 230 00:08:01,600 --> 00:08:03,680 provide your credentials, and you're connected. 231 00:08:03,680 --> 00:08:05,600 It's a few more steps than co-pilot studio, 232 00:08:05,600 --> 00:08:07,080 but it's still straightforward. 233 00:08:07,080 --> 00:08:08,600 And Microsoft has documentation 234 00:08:08,600 --> 00:08:10,960 that walks you through the exact URL format. 235 00:08:10,960 --> 00:08:13,480 Here's something important to understand about security. 236 00:08:13,480 --> 00:08:15,240 The agent uses the security permissions 237 00:08:15,240 --> 00:08:16,840 of the user identity that's connected. 238 00:08:16,840 --> 00:08:18,960 So whatever role-based access controls you've set up 239 00:08:18,960 --> 00:08:21,320 in Dynamics 365 apply automatically. 240 00:08:21,320 --> 00:08:23,760 If a user can only see their own legal entity, 241 00:08:23,760 --> 00:08:25,800 the agent can only see that legal entity. 242 00:08:25,800 --> 00:08:28,360 If a user can't post journals, the agent can't post journals, 243 00:08:28,360 --> 00:08:31,440 your existing security model becomes the agent's security model. 244 00:08:31,440 --> 00:08:34,400 No separate configuration needed. 245 00:08:34,400 --> 00:08:35,840 A few tips for writing good prompts. 246 00:08:35,840 --> 00:08:38,360 Always specify the legal entity you're working in. 247 00:08:38,360 --> 00:08:40,600 The agent doesn't assume, if you don't tell it, 248 00:08:40,600 --> 00:08:42,160 it might pick the wrong company. 249 00:08:42,160 --> 00:08:43,720 Use clear natural language. 250 00:08:43,720 --> 00:08:45,560 You don't need to speak in technical terms 251 00:08:45,560 --> 00:08:48,080 and break complex tasks into smaller steps. 252 00:08:48,080 --> 00:08:50,440 Instead of asking for a 10-step process in one prompt, 253 00:08:50,440 --> 00:08:52,040 ask for one step at a time. 254 00:08:52,040 --> 00:08:53,760 The agent is smart, but it's more reliable 255 00:08:53,760 --> 00:08:55,160 when you keep things focused. 256 00:08:55,160 --> 00:08:56,840 One honest note about limitations. 257 00:08:56,840 --> 00:08:58,280 This is still in public preview. 258 00:08:58,280 --> 00:09:00,200 There's a 120-second execution time 259 00:09:00,200 --> 00:09:02,160 out so long-running operations might fail. 260 00:09:02,160 --> 00:09:05,160 Each query can return about 10 megabytes of data, 261 00:09:05,160 --> 00:09:06,600 which is plenty for most questions, 262 00:09:06,600 --> 00:09:08,160 but not for massive data dumps. 263 00:09:08,160 --> 00:09:10,320 And the AI is not perfectly consistent yet. 264 00:09:10,320 --> 00:09:12,600 It might handle a task perfectly one day 265 00:09:12,600 --> 00:09:14,640 and struggle with the same task the next day. 266 00:09:14,640 --> 00:09:17,360 Test thoroughly before you trust it with anything important. 267 00:09:17,360 --> 00:09:18,360 So what's coming next? 268 00:09:18,360 --> 00:09:21,000 Microsoft has a clear roadmap for MCP. 269 00:09:21,000 --> 00:09:22,640 Roadmap and future direction. 270 00:09:22,640 --> 00:09:24,240 So where is Microsoft going with us? 271 00:09:24,240 --> 00:09:25,800 They're all in on MCP. 272 00:09:25,800 --> 00:09:27,840 All new ERP agents will be built on it. 273 00:09:27,840 --> 00:09:31,280 And existing agents will migrate by December 2025. 274 00:09:31,280 --> 00:09:32,880 This isn't a side experiment. 275 00:09:32,880 --> 00:09:35,800 It's the strategic direction for the entire platform. 276 00:09:35,800 --> 00:09:38,840 For the analytics, MCP specifically, several features are coming. 277 00:09:38,840 --> 00:09:40,320 Granular schema retrieval is on the way 278 00:09:40,320 --> 00:09:42,960 so the agent can request smaller pieces of the data model 279 00:09:42,960 --> 00:09:44,320 instead of pulling everything at once. 280 00:09:44,320 --> 00:09:45,320 That's better for performance 281 00:09:45,320 --> 00:09:47,800 and for managing the AI models context window. 282 00:09:47,800 --> 00:09:50,200 Agents will also be able to create and update dashboards 283 00:09:50,200 --> 00:09:53,040 and measures directly, not just query existing ones. 284 00:09:53,040 --> 00:09:55,200 A native integration into co-pilot and teams 285 00:09:55,200 --> 00:09:58,480 is on the roadmap so you can ask questions about your ERP data 286 00:09:58,480 --> 00:10:00,120 without leaving your everyday tools. 287 00:10:00,120 --> 00:10:01,760 Here's where Microsoft sees this going. 288 00:10:01,760 --> 00:10:04,240 Imagine a CFO opens a dashboard in business performance 289 00:10:04,240 --> 00:10:06,520 analytics and clicks an analyze button. 290 00:10:06,520 --> 00:10:08,400 An agent immediately scans the data, 291 00:10:08,400 --> 00:10:11,280 finds a spike in cost of goods sold and flags it. 292 00:10:11,280 --> 00:10:14,080 It drills into vendor spend, identifies the supplier, 293 00:10:14,080 --> 00:10:16,560 driving the increase, pulls in external data 294 00:10:16,560 --> 00:10:18,480 like tariff changes and news stories, 295 00:10:18,480 --> 00:10:20,960 builds a slide deck explaining the root cause 296 00:10:20,960 --> 00:10:23,480 and flags action items for the team. 297 00:10:23,480 --> 00:10:24,800 All of this happens in seconds. 298 00:10:24,800 --> 00:10:26,760 From a dashboard click to a complete analysis 299 00:10:26,760 --> 00:10:29,840 with recommendations without anyone writing a single query. 300 00:10:29,840 --> 00:10:32,200 MCP is also expanding beyond finance and operations 301 00:10:32,200 --> 00:10:34,680 to commerce, business, central and customer service. 302 00:10:34,680 --> 00:10:36,720 That creates a unified AI agent layer 303 00:10:36,720 --> 00:10:39,600 across the entire Dynamics 365 ecosystem. 304 00:10:39,600 --> 00:10:42,480 An agent that works with your ERP can also talk to your commerce 305 00:10:42,480 --> 00:10:44,440 system and your customer service platform 306 00:10:44,440 --> 00:10:45,840 all through the same protocol. 307 00:10:45,840 --> 00:10:49,360 The partner ecosystem is growing fast with RSM, HSO, 308 00:10:49,360 --> 00:10:52,680 FellowMind, KPMG, Crow, and others already building agents 309 00:10:52,680 --> 00:10:54,840 on MCP for specific industry needs. 310 00:10:54,840 --> 00:10:57,320 Think shop floor automation for manufacturing, 311 00:10:57,320 --> 00:10:59,640 invoice payment agents for accounts payable, 312 00:10:59,640 --> 00:11:01,880 inbound load processing for logistics, 313 00:11:01,880 --> 00:11:04,480 quality impact recall agents for product safety, 314 00:11:04,480 --> 00:11:06,680 each taps into the same MCP foundation, 315 00:11:06,680 --> 00:11:10,120 long term MCP becomes the standard way to integrate ERP systems. 316 00:11:10,120 --> 00:11:12,120 You'll hear the phrase, headless ERP plus 317 00:11:12,120 --> 00:11:15,080 agente workflows, meaning the ERP runs in the background 318 00:11:15,080 --> 00:11:17,200 as a system of record and AI agents 319 00:11:17,200 --> 00:11:19,040 handle the front end interactions. 320 00:11:19,040 --> 00:11:20,560 So instead of clicking through forms, 321 00:11:20,560 --> 00:11:23,000 you describe what you need and agents make it happen. 322 00:11:23,000 --> 00:11:25,280 Let's wrap up with what this means for you. 323 00:11:25,280 --> 00:11:26,520 What this means for you? 324 00:11:26,520 --> 00:11:29,520 If you're a Dynamics 365 user, here's what changes. 325 00:11:29,520 --> 00:11:30,920 You'll soon delegate routine tasks 326 00:11:30,920 --> 00:11:33,280 like posting journals, creating purchase orders, 327 00:11:33,280 --> 00:11:35,720 running reconciliations and checking vendor balances 328 00:11:35,720 --> 00:11:37,440 just by describing what you need. 329 00:11:37,440 --> 00:11:40,000 Instead of navigating through menus, you tell an agent 330 00:11:40,000 --> 00:11:42,960 and it handles the steps, your job shifts from doing the work 331 00:11:42,960 --> 00:11:44,400 to supervising it. 332 00:11:44,400 --> 00:11:47,480 If you're an IT professional, MCP simplifies your life. 333 00:11:47,480 --> 00:11:49,640 No custom APIs for every AI integration, 334 00:11:49,640 --> 00:11:51,480 no separate connectors for every tool. 335 00:11:51,480 --> 00:11:54,000 Your existing security model applies automatically, 336 00:11:54,000 --> 00:11:56,480 so the agent inherits the permissions you've already set up. 337 00:11:56,480 --> 00:11:59,240 That means less custom code, fewer maintenance headaches, 338 00:11:59,240 --> 00:12:01,520 and faster delivery of new capabilities. 339 00:12:01,520 --> 00:12:05,240 If you're a partner or ISV, MCP opens up new opportunities. 340 00:12:05,240 --> 00:12:08,560 You can build reusable agents that work across multiple tenants. 341 00:12:08,560 --> 00:12:11,280 Your customizations become agent-ready by default 342 00:12:11,280 --> 00:12:13,440 with no special exposure layers needed. 343 00:12:13,440 --> 00:12:16,360 If it works in the ERP interface, it works through MCP. 344 00:12:16,360 --> 00:12:17,480 Here's the bigger picture. 345 00:12:17,480 --> 00:12:18,960 This isn't just a new feature. 346 00:12:18,960 --> 00:12:19,960 It's a structural shift. 347 00:12:19,960 --> 00:12:22,920 We're moving from systems of record to systems of action. 348 00:12:22,920 --> 00:12:25,160 Instead of storing information and waiting for humans 349 00:12:25,160 --> 00:12:27,440 to act on it, the ERP becomes a platform 350 00:12:27,440 --> 00:12:30,720 that AI agents use to execute business processes directly. 351 00:12:30,720 --> 00:12:33,400 The data is still there, but now it's connected to action. 352 00:12:33,400 --> 00:12:34,560 One word of caution. 353 00:12:34,560 --> 00:12:36,400 Governance still matters. 354 00:12:36,400 --> 00:12:38,720 Plan for human in the loop for high-risk actions 355 00:12:38,720 --> 00:12:40,880 like posting large financial transactions 356 00:12:40,880 --> 00:12:42,920 or changing supplier terms. 357 00:12:42,920 --> 00:12:45,080 Monitor agent behavior and keep audit trails. 358 00:12:45,080 --> 00:12:48,160 The technology is powerful, but it needs responsible oversight. 359 00:12:48,160 --> 00:12:52,880 Start with low-risk tasks, build confidence, and expand from there. 360 00:12:52,880 --> 00:12:54,920 So that's the MCP server in plain English. 361 00:12:54,920 --> 00:12:58,440 It gives AI agents a governed way to talk to your ERP. 362 00:12:58,440 --> 00:13:01,280 Kind of like turning Dynamics 365 into a toolbox, 363 00:13:01,280 --> 00:13:03,360 any smart assistant can open and use. 364 00:13:03,360 --> 00:13:04,160 Here's your homework. 365 00:13:04,160 --> 00:13:06,720 If you're on a supported version, try the public preview. 366 00:13:06,720 --> 00:13:08,680 Create a simple agent in co-pilot studio 367 00:13:08,680 --> 00:13:10,680 that reads your top five open invoices. 368 00:13:10,680 --> 00:13:12,120 See how easy it actually is. 369 00:13:12,120 --> 00:13:13,120 I'm Mirko Peters. 370 00:13:13,120 --> 00:13:14,920 And this has been a Microsoft Knowledge Nugget. 371 00:13:14,920 --> 00:13:17,120 Subscribe on your favorite podcast platform 372 00:13:17,120 --> 00:13:19,200 for more plain English explanations. 373 00:13:19,200 --> 00:13:22,320 Next time, we'll look at how MCP works with Power Platform agents. 374 00:13:22,320 --> 00:13:25,660 Share this episode with someone exploring AI in ERP.