Smart Ways to Cut Tariff Risk with AI Agents in Dynamics 365

Lately, I’ve seen more businesses get blindsided by sudden tariff changes … and you’ve felt that pressure too, haven’t you? One day it’s a manageable margin. The next, it’s a surprise cost spike, a delayed shipment, or a contract that needs urgent renegotiation.

But I’ve also seen how companies are solving it. Several organizations have started using AI agents in Dynamics 365 Supply Chain Management to monitor tariff schedules in real time. These agents scan thousands of classification updates and immediately alert compliance or procurement teams when something shifts. One manufacturer was able to identify alternative suppliers, calculate new cost scenarios, and generate supplier outreach messages.

Some are taking it further with custom agents built in Copilot Studio. These agents are connected to ERP systems, supplier data, shipping records, and contract libraries. They surface risks early, flag deals that might need to be renegotiated, and even suggest how margins will be affected.

In another case, a mid-sized manufacturing company faced an overnight 20% tariff hike. Before, their teams would have scrambled for days to update budgets, sourcing, and production. But using Dynamics 365’s AI-driven ERP features, they quickly recalibrated plans and avoided major delays.

What’s interesting is that none of these solutions required starting from scratch. Microsoft provides a few different paths. Some organizations use built-in supplier communication agents in Dynamics 365. Others build their own agents. And many work with trusted Microsoft partners to add custom tools for their industry.

So, let’s take a closer look at the three ways businesses are building resilience into their supply chain and finance ops, without adding more complexity.

Tariff Implications at a Glance

Tariffs raise landed costs and disrupt competitiveness for both importers and exporters, with ripple effects on sourcing, pricing, and delivery performance. Understanding these dynamics explains why AI-driven tariff intelligence in Dynamics 365 BC/SCM is imperative.

For importers

Higher duties squeeze margin and force hard choices on pricing, supplier mix, or cost absorption. Volatility can delay shipments, create inventory imbalances, and weaken competitiveness against domestic manufacturers that are not subject to the same duties. Procurement and finance need rapid, accurate visibility so customer commitments and gross margin stay intact.

For exporters

Retaliatory tariffs in key markets pressure price strategy and market entry plans. Exporters face similar operational turbulence, including route changes and supplier shifts, to preserve delivery reliability and unit economics. Proactive contract terms and flexible sourcing reduce exposure and help protect share.

Why this matters for AI-enabled tariff management

Manual monitoring cannot keep up with policy shifts. Dynamics 365 with AI agents, including custom agents built in Copilot Studio, scans thousands of updates, flags exposure, and helps you adjust sourcing, pricing, and contracts in near real time.

What you get?

• Accurate landed cost: Duties, freight, and brokerage flow into procurement and invoicing data so inventory value and COGS stay correct.
• Faster risk detection: Agents watch HS and HTS changes, map affected SKUs and POs, and trigger supplier outreach with the right context.
• Better forecasting: Fewer surprises reach the planning team, so demand and margin forecasts stabilize earlier.
• Stronger resilience: Run quick what-if scenarios, see alternate suppliers, and check contract clauses before problems escalate.

Ways to Cut Tariff Exposure Using AI Agents and Dynamics 365

Tariff changes can impact everything—from your landed costs to supplier timelines and margin visibility. Fortunately, Microsoft Dynamics 365 offers two powerful platforms to help: Business Central and Supply Chain Management. Each brings unique capabilities depending on whether you're focused on financial control or operational agility.

1. Use what’s already available inside Dynamics 365

When tariffs shift without warning, the last thing you need is to scramble through spreadsheets trying to figure out which suppliers or items are affected. Many businesses I’ve worked with didn’t start with a custom build or advanced integration. They simply used what Dynamics 365 already offers.

The built-in capabilities Dynamics 365 can automatically track landed costs, duties, and freight charges across your procurement and inventory data. As new tariffs apply, the system identifies which products or suppliers are impacted, so teams don’t have to piece it together manually. It flags the changes and shows you where to focus.

If an order is at risk due to cost spikes or restrictions, the system helps you find alternatives that are already in your supplier database. You can generate emails or outreach messages using templates connected directly to your records. That removes the need for manual coordination or switching between tools.

The cost allocation process is also automated. When an invoice includes new duties or shipping fees, the system applies those to your inventory value using item charges. This keeps financial reporting accurate and helps you maintain control over gross margin.

I’ve seen companies avoid major setbacks simply by relying on these features. They didn’t need a full rebuild. They just turned on the tools already available and let the system do the work.

2. Build your own custom agents with Copilot Studio

Some businesses need more than alerts and templates. Especially when tariff changes ripple across departments, raising costs, affecting supplier timelines, or triggering contract clauses.

I’ve seen finance, procurement, and compliance teams spend entire weeks gathering scattered data just to figure out the impact of a single policy shift.

To cut through that complexity, several organizations are using Microsoft Copilot Studio to build their own AI agents. It’s not about being fancy. It’s about having a system that watches what matters and acts before problems spiral.

With Copilot Studio, businesses are building agents that:

• Monitor supplier emails and contract libraries for signs of risk
• Watch live tariff schedules and detect any cost exposure
• Flag contracts that need attention
• Recommend alternate suppliers or pricing changes before margins take a hit

But what’s more useful is how this actually works in practice.

You start by identifying a specific challenge. Maybe it’s getting notified when duties spike on aluminum. Maybe it’s knowing which suppliers are tied to at-risk shipping routes. Whatever the case, you define the scenario and build around it.

Then, inside Copilot Studio, you create an agent using simple prompts or templates. You connect it to the right data, whether that’s Dynamics 365, SharePoint, Outlook, or even external sources like SAP or contract archives. You choose what the agent can see, who it can notify, and where it resides, whether that’s in Teams, Dynamics, or across your internal tools.

Once deployed, these agents don’t just wait for input. They scan, interpret, and act. They flag risks, surface insights, and even suggest what the next step should be. And when your team asks a question like “Which of our contracts are exposed if tariffs go up 10% next month?” the agent doesn’t return a blank screen. It returns answers, tied to your systems, in real time.

And, if you’re managing tariff exposure with spreadsheets, disconnected dashboards, or outdated reports, Copilot Studio lets you replace that noise with clarity. And because you control the data, access, and automation, it’s secure and scalable from day one.

3. Extend your capabilities with a trusted Microsoft partner

Having the right tools is one thing. Making them work the way your business needs is another. That’s where a trusted Microsoft partner can step in to help you close the gap between potential and real results.

If your internal teams are already stretched, or if you want to avoid guesswork in setting up AI for tariff management, working with an experienced partner can save time and frustration. It is not about handing everything over. It is about bringing in expertise where it counts.

Here is what that might look like in practice:

• They configure Dynamics 365’s built-in agents to monitor procurement data, alert you to tariff impacts, and surface supplier options without relying on spreadsheets or manual tracking.
• They help you build custom agents in Copilot Studio that connect to your ERP systems and external data. These agents flag contract exposure, calculate cost impacts, and deliver real-time insights to the right people.
• They ensure secure, governed integration across platforms. Your finance, supply chain, and procurement data stays connected, accurate, and actionable.
• And they move with your business. From quick pilot setups to scalable enterprise-wide rollouts, you get hands-on support without long delays or unnecessary complexity.

Myth vs. Fact: What Your Team Needs to Know About AI Agents in Tariff and Supply Chain Management

Conclusion

The biggest issue I see isn’t that companies don’t have access to the right technology. Take Dynamics 365. It has everything needed to support connected finance, supply chain, and procurement operations.

But in many cases, it’s only being used on the surface. Teams use it to track data or generate reports, while the tools for automation, intelligent agents, and cross-functional decision-making are sitting idle.

The companies that are seeing results are the ones implementing Dynamics 365 AI to solve their unique business problems.

Quick Hacks Anyone Can Follow

• Start your day with one list: Make a saved view called Tariff Watch that shows products and orders linked to risky tariff codes. Check this list first each morning.
• Use ready-made cost labels: Create three labels for extra costs: Duty, Freight, Brokerage. Apply the right label when invoices arrive so totals roll up correctly at month end.
• Do not approve an order without a tariff code: Add a required field called HS or HTS code on each PO line. If it is blank, the order cannot move forward.
• Get a ping when a new fee appears: Set an alert that watches supplier or broker invoices. If a new fee shows up, you get a message in Teams with the affected order.
• Keep a one page cheat sheet: Define HS code, landed cost, pass-through clause, FOB, CIF. Share it with buyers so everyone uses the same language.
• Test container cost split on one lane: Pick one shipping lane, let the system auto split freight across items in that container, and compare to your manual method for a month.
• Show risk in one number: Add a simple card on your dashboard called Margin At Risk. It multiplies the tariff change by your annual spend for the affected products.
• Only escalate the big ones: If tariff change is 5 percent or more and the product is high spend, the system should draft a supplier email for you to approve.
• Make a Tariff Watch channel in Teams: Pin three tabs: your Tariff Watch list, Open Extra Costs, and the Margin At Risk dashboard.
• Set clear approvals: Buyers approve supplier emails, Finance approves cost postings, Compliance checks the codes. This keeps work moving without confusion.