Microsoft is transforming the humble checkout counter into an AI-powered hub as it modernizes Dynamics 365 Commerce with new Copilot and agentic capabilities. The push comes as retailers face pressure to bridge in-store and digital shopping while boosting conversion and loyalty.
Despite growth in online channels, nearly 70% of total retail sales still happen in brick-and-mortar stores, according to the National Retail Federation. To stay relevant, Microsoft says retailers must upgrade physical stores with the same intelligence and personalization customers expect online.
The revamped Dynamics 365 Commerce Point-of-Sale (POS) now runs on a modern React and Fluent 2 Design framework, making it faster and more intuitive, especially on mobile and touch devices.
Copilot features surface real-time insights, helping store associates recommend products, upsell loyalty benefits, and handle payments with fewer clicks.
Key updates include faster checkout workflows, smart payment suggestions, loyalty upsell prompts, and flexible toast notifications to keep staff informed in real time. Retailers like Vera Bradley and Memory Express are already seeing value, reporting quicker transactions and better customer conversations.
Microsoft says these AI-driven tools not only enhance the shopper experience but also help retailers retain staff by making daily tasks easir and more engaging. With role-specific GenAI for store associates projected to be the norm by 2027, retailers that modernize early are better positioned to thrive.
Retailers can explore these new capabilities in Dynamics 365 Commerce now—and keep up with what’s next through Microsoft’s release planner for ongoing updates.
Read more about Dynamics 365 Commerce capabilities
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