AI Agents in Business Central [Beyond “Just Automated”]

AI Agents in Business Central [Beyond “Just Automated”]

Aug 06, 2025 Aiswarya Madhu

When I think about the sheer number of businesses now running Dynamics 365 Business Central, it’s easy to feel like the digital part is sorted.

But a few days back, I caught myself wondering... if so much is already digital, where do AI agents in Business Central actually fit in?

I did what I often do: I went looking for perspectives. I ended up listening to an interview with Satya Nadella, Microsoft’s CEO, hoping to hear how Microsoft’s own leadership sees what comes after digital.

Actually, I just wanted a spark for a quick piece about where an AI agent in Business Central makes sense... order handling, invoice processing, smart approvals, the usual checklist.

But Satya said something that flipped the whole idea on its head: We celebrate tech companies too much, and don’t ask enough if the tech is actually removing the friction that drags people down.

And it hit me! That’s exactly the part so many businesses miss when they say, “We’re digital now.”... And that’s what motivated me to continue with this piece.

On this page

Business Central Works, But the Manual Layer Is Still There

No one doubts that Business Central is a backbone for mid-sized businesses. It keeps operations organized, connects departments, stores reliable data, and makes it easy to keep the lights on, whether you’re handling inventory, sales, finance, or purchasing.

But, sit with a team that lives inside the D365 BC system every day, and you’ll see what Satya was pointing at: the invisible hours that hide between the screens.

A customer sends an order that doesn’t line up with a standard template, and someone opens Outlook, copies the details, checks inventory, emails the warehouse, updates the quote, then waits for an answer.

A vendor invoice lands in an inbox, someone downloads the PDF, keys in line items, tries to match them to purchase orders, finds a mismatch, fires off an email, waits for a reply, fixes the error by hand.

None of this is glamorous work. None of it shows up on a slide when you present your “digital transformation” story. But it’s glue that keeps the process moving. And it’s the hidden ceiling that still drags your best people into tasks they shouldn’t be doing in 2025.

Curious about how AI agents truly differ from AI assistants? Read the full breakdown here.

The Ceiling Isn’t the Software (It’s The Missing Layer)

What struck me is that Satya Nadella doesn’t just talk about AI for the sake of it. He talks about orchestration.

He calls it the agentic web, open layers and standards that let multiple AI agents work together to push work forward for you.

It’s a big shift from the old mindset. For years, we’ve leaned on automation scripts, RPA bots, and workflows inside Business Central. They help, but they still expect someone to hover nearby, fix mistakes, handle exceptions, and do the bits in between that the system can’t finish alone.

Satya’s point is simple: that human glue is the real ceiling. It’s the hidden layer we don’t talk about on the slide deck when we call a process “digital.”

What changes now is the emergence of AI agents that are not just smart, but also trainable and directly connected to your business rules. With them, you’re not just operating Business Central as usual. You’re adding a layer of intelligent, behind-the-scenes co-workers who quietly handle the messy middle, the parts that slow people down and never make it into the system diagram.

So, when a customer email doesn’t match the template, an AI agent can pull the right data, check live inventory, and build the order draft before someone burns an hour doing it manually.

When an invoice lands, an agent can read it, check it, match it, and push it through for approval without waiting for a human to retype line items at 7 p.m.

Satya’s bigger point is that the real power of tech shows up not when it looks impressive... but when it quietly disappears. When the work just happens.

Business Central has always been good at organizing what you tell it to do. But this new layer? That’s about the system knowing how to keep the flow moving, so your people don’t have to.

What Happens If You Wait

If you keep running Business Central exactly as it is, without adding the orchestration layer, you are not standing still. You are letting valuable time, accuracy, and competitive edge slip through unnoticed.

The Routine Tasks Still Draining Your Team

Business Central is strong at organizing data and standard tasks. But without AI agents, everyday steps in between (like copying order details from emails, re-entering supplier data, or chasing approvals) still need people to do the legwork.

On the other hand, companies that adopt AI agents are quietly removing this burden. They give teams that time back to focus on real growth activities instead of routine admin.

Small Errors Continue When They Could Be Caught Early

Manual data handling means human mistakes. A misplaced decimal or a mismatch between an invoice and a purchase order can seem small but leads to extra work, delays, and extra cost.

Companies that use AI agents (for example, Copilot) get instant checks and early alerts that help them fix issues before they become problems. Sticking with a purely manual layer means paying for corrections that could have been avoided.

Processes Stay Stuck at the Same Speed While Others Become More Agile

Without AI agents, approvals get held up in inboxes. Order processing still needs staff to jump between tasks. Reporting relies on people to pull, check, and format the right data.

Companies using AI orchestration shorten these delays. Faster quotes, faster orders, and quicker approvals add up over time and create a clear advantage that becomes harder for others to match.

Your Best People Stay Busy with Routine Work Instead of Real Priorities

Good teams do not stay motivated if their day is filled with repetitive admin. When you use skilled people for tasks that an AI agent can handle, like matching line items or preparing standard reports, you are paying for work that adds no extra value.

Meanwhile, your competitor frees that same capacity for strategy, sales, or customer service.

You Miss the Chance to Shape How Your AI Understands Your Business

The real advantage is not just using AI but teaching it how your business works. Companies who start now get time to fine-tune agents with their own workflows, rules, and exceptions. Waiting means you will adopt the same tools later but without the benefit of early learning.

Want to see when to choose an AI Agent versus Agentic AI? Explore the full comparison and use cases here.

What Does AI Agents Look Like Inside Business Central?

Here are a few practical ways companies are starting to extend Business Central with AI agents:

AI Agents in Business Central

Sales Order Agents (No More Missed Emails)

One of the biggest everyday leaks is the basic sales order flow.

A customer sends an email with a custom order. A rep opens Outlook, copies it over, checks stock, drafts a quote, clarifies details, and sends it back.

If something’s off, like wrong SKU, missing quantity, short stock, it becomes an email chain that drags for hours or days.

An AI Sales Order Agent takes this entire routine and runs it behind the scenes:

  • Reads incoming orders from email automatically.
  • Extracts line items and specs.
  • Checks live inventory in Business Central.
  • Flags gaps or stock issues and suggests substitutes.
  • Drafts the quote or sales order for review.
  • Loops in the sales team only if something truly needs a human call.

Payables Agents (Let’s Put a Full Stop to Data Re-Entry)

Accounts Payable is another friction zone that never fully goes away. A vendor sends an invoice. A finance assistant downloads it, enters line items, reconciles them with the PO, chases mismatches.

A Payables Agent flips that:

  • Scans incoming invoices from email or portals.
  • Reads line items and matches them to purchase orders automatically.
  • Checks amounts, tax rules, approval thresholds.
  • Flags any mismatches before payment cycles get stuck.
  • Drafts the payables entry and routes it for final approval.

Smart Approvals (Let’s Turn Manual Chains Into Flows)

Approvals are often where “automation” stops cold. A high-value purchase, an expense claim, a sales discount — all of these trigger manual routing through emails and Teams chats.

A tailored Approval Agent changes the flow:

  • Watches for approvals that match certain triggers (amounts, vendors, account codes).
  • Checks policy automatically.
  • Collects supporting documents from connected systems.
  • Drafts the approval flow and routes it only to the necessary decision makers.
  • Tracks status, nudges approvers, and logs everything back in Business Central.

Custom Notification Agents (No More Missed Triggers)

Many businesses still rely on scattered emails to share critical updates . A large order comes in, stock hits a low threshold, or an invoice gets held up for approval. Important, time-sensitive information often sits buried in inboxes instead of reaching people exactly when and where they need it.

With custom AI agents inside Microsoft Business Central, this gap closes. These agents constantly watch for specific triggers, like low stock, overdue balances, or delayed documents, and send proactive, contextual notifications that reach users right where they already work.

For example, instead of just showing passive system tips, custom AI agents can:

  • Send real-time alerts inside Microsoft Teams chats, so a manager knows instantly when an order needs urgent attention.
  • Post updates to automated dashboards, highlighting stuck invoices or stock shortages in a clear, actionable view.
  • Deliver smart in-app nudges inside Business Central, with clear next steps that help users resolve issues directly without switching screens.

Unlike standard notifications, these AI-driven nudges can adapt. They can check conditions, attach extra context, suggest next actions, and learn from how users respond. They also work behind the scenes with tools like Power Automate or AL-based custom rules to make sure alerts appear only when truly needed, cutting down on noise.

Instant Reporting Agents (Less Time Pulling Data, More Time Using It)

Data is only useful when people can use it while it still matters. But inside most ERPs, reporting still eats up hours, digging through filters, building spreadsheets, or waiting for outdated monthly reports.

Finance teams spend days pulling numbers when they can use those numbers to steer decisions.

An Instant Reporting Agent flips that by running quietly inside Business Central and turns raw data into clear reports, sent exactly where people need them. This means no manual prep, no version mismatch.

Here’s how an Instant Reporting Agent works:

  • Generates daily, weekly, or real-time reports on sales, stock, payables, or cash flow.
  • Pulls fresh data from multiple modules at once (sales, inventory, supply chain, finance).
  • Creates clean, tailored snapshots for each role, from CFOs to frontline managers.
  • Delivers reports automatically into Business Central dashboards or Microsoft Teams chats.
  • Flags unusual trends or anomalies before they become bigger issues.
  • Allows drill-downs so teams can click through metrics and see what’s behind the numbers.
Curious how these Microsoft AI Agents can transform your operations? Explore the full overview here.

The Common Thread: Real Advantage Comes from Your Data

Satya Nadella has been clear on one point: the world does not lack generic AI anymore. What is scarce and what creates durable advantage is how a business uses its own domain data to make AI agents distinctly capable in ways competitors cannot easily copy.

When AI understands your discount structures, approval flows, customer habits, and real-world exceptions, it stops guessing and starts operating with judgment shaped by your actual business. This is the new moat.

Inside Dynamics 365 Business Central, that edge lives in data you already own, but most businesses still do not frame it for intelligent use.

Key Data Types That Shape Domain-Specific Agents

Business Central contains the raw material to train truly useful agents:

  • Financial Data: Payment histories, cash flow trends, and expense patterns that help agents detect anomalies, forecast with confidence, and protect against fraud.
  • Sales Data: Historical sales figures, seasonal demand shifts, and customer buying signals that guide agents to personalize outreach, refine pricing, and predict future demand.
  • Inventory and Supply Chain Data: Stock levels, supplier reliability scores, and delivery timelines that let agents automate reordering and flag supply chain risks early.
  • Customer and Vendor Data: Communication records, payment behaviors, and performance trends that help agents draft precise updates, send reminders, and respond instantly when needed.
  • Operational Records: Invoices, purchase orders, ledger entries, and even email attachments that enable agents to handle tasks like data entry, document matching, and workflow routing automatically with minimal human input.

How Companies Turn This Data into a Real Advantage

Turning static data into a strategic moat does not happen by plugging in an off-the-shelf tool. Leaders guide this transformation with four essentials:

Collect and Prepare High-Trust Data

Every agent is only as smart as the data you feed it. That means:

  • Audit your data sources for gaps and duplicates
  • Keep records clean, structured, and well-organized so your agent can act with confidence, not guesswork

For example, a Payables Agent needs vendor invoices pulled reliably from emails and SharePoint, matched to purchase orders, and logged without manual patchwork

Define Clear Agent Goals

Strong AI agents work best when their purpose is sharp and measurable.

  • Give each agent a clear job description, like handling common customer queries or reconciling payables
  • Break big goals into clear, specific tasks and outcomes
  • Track success by linking tasks to cost savings, time saved, or error reduction

For example, a customer agent trained on past queries can handle FAQs instantly and escalate only the edge cases that truly need a human touch

Customize and Fine-Tune

This is where generic AI stops and real advantage begins.

  • Use tools like Copilot Studio to train agents on your specific workflows, not just generic tasks
  • Tune them with your actual business data, including approval thresholds, discount policies, tone, and templates

For example, a legal agent drafts contracts that follow your firm’s real clause libraries. A finance agent knows which KPIs your CFO wants surfaced without extra steps

Integrate Where People Already Work

An agent only delivers value if it fits naturally into how teams already get work done.

  • Embed agents directly inside Dynamics 365 Business Central to handle tasks in real time
  • Bring them into Teams chats so staff can interact without switching tools
  • Add them to dashboards to surface trends and alerts automatically

For example, the FinVendor agent runs inside Teams and pulls financial reports on request, no jumping between apps or systems

The Hidden Risks of Rushing AI Integration in Business Central

AI agents can bring real efficiency. But moving too fast without the right planning introduces risks that quietly chip away at trust, accuracy, and performance. Here’s what to watch for before scaling automation in your Business Central environment:

AI Agents Still Have Limits

AI agents are built for structure and repetition, which makes them great for tasks like data entry, matching invoices, and pulling reports. But they still hit walls when:

  • Decisions require judgment, tone, or context that doesn’t fit a clear pattern.
  • Complex scenarios or edge cases fall outside their training.
  • You need someone to innovate, empathize, or handle nuanced exceptions.

This is where people still matter. Agents are assistants, not replacements for strategy, leadership, or customer relationships.

Automation Without Oversight Can Quietly Fail

The more AI takes over, the more dangerous it becomes to assume it's always right. Without clear oversight:

  • Mistakes can go unnoticed and keep repeating.
  • Incomplete workflows can leave gaps where errors build up.
  • People trust the system blindly and only catch issues when it’s too late.

Automating a broken process does not fix it. It just speeds up the failure.

Bad Data Makes Everything Worse

AI depends on clean, structured, and reliable data. If the data going in is messy or incomplete, here’s what happens:

  • The AI amplifies existing errors instead of solving them.
  • Reports and outputs start drifting from reality.
  • Decision-makers lose confidence in the system.

Before building agents, make sure your data is audit-ready and consistent.

Training AI Takes Time and Consistency

AI agents are not plug-and-play tools. To make them useful and trustworthy, you will need:

  • Clear goals for what each agent is supposed to do.
  • Real data from your business to tune the models.
  • Iteration to refine how they handle exceptions or unusual cases.

This requires upfront effort, but it is the only way to build agents that truly fit how your teams work.

More Agents Can Mean More Complexity

Orchestration works well when agents run quietly in the background. But if you keep adding automation layers without a clear plan:

  • You end up managing the agents instead of freeing up time.
  • Workflows become harder to troubleshoot.
  • Your system grows more fragile instead of more agile.

Keep things lean and intentional to avoid turning automation into a burden.

Security and Compliance Are Non-Negotiable

AI agents often handle sensitive financial and operational data. Without the right controls in place:

  • Unauthorized access becomes a real threat.
  • Regulatory violations can happen without being detected.
  • Shadow AI tools used without governance can expose critical data.

Each agent needs strict access rules and clear logging. It is not just about performance. It is about trust and protection.

One Small Start and the Ceiling Lifts

I’m still in awe of how Microsoft’s top leadership sums up this entire shift so simply.

You don’t get fit by watching others go to the gym.

Right now, someone in your industry is already moving, pairing the Business Central ERP with a layer of AI agents that handle what old workflows never could.

They have agents reading orders, drafting quotes, flagging exceptions, nudging approvals, sending smart updates, all without a single extra hour of manual back and forth.

What about you?

We know this is not an easy process. But don’t worry. We’re here to help you figure out how to build agents that work for you... “only for you”.

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Aiswarya Madhu

Aiswarya Madhu

Aiswarya Madhu is an experienced content writer with extensive expertise in Microsoft Dynamics 365 and related Microsoft technologies. With over four years of experience in the technology domain, she has developed a deep understanding of Dynamics 365 applications, licensing, integrations, and their role in driving digital transformation for organizations across industries.

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