Earlier this year, Microsoft announced the 2025 Release Wave 1 plan.
A release wave is how Microsoft rolls out major updates and new features across its ecosystem. Instead of launching everything at once, Microsoft follows a phased approach, introducing innovations in two waves each year—one in the first half (Wave 1) and another in the second half (Wave 2).
2025 version update 1 will roll out between April and September 2025.¹ Early access is already available, but general availability will begin in April. This guide explores what’s new and how these changes could impact your business.
Where Microsoft Dynamics 365 Left Off in 2024
Before we explore what’s new in 2025 Release Wave 1, here’s a quick recap of major updates from 2024 release wave 2:²
- Copilot offerings got smarter in Power Apps, Power Automate, and Copilot Studio.
- Power Automate introduced natural language-based workflow creation, simplifying automation for all users.
- New security and governance tools helped businesses manage AI adoption, protect low-code assets, and scale solutions.
- AI Builder added advanced AI models for document processing, analytics, and real-time insights.
- Microsoft Dataverse improved AI-powered app building and data connectivity.
What’s New in Microsoft Dynamics 365 2025 Release Wave 1?
Here’s a breakdown of the biggest updates in Dynamics 365 2025 release wave 1, which touches everything from sales and customer service to finance, HR, and logistics.
1. Improved Copilot for Sales
Sales qualification agents often handle multiple leads, follow-ups, and customer interactions, which can make it easy to lose track of high-value opportunities. To help sellers stay focused and work more efficiently, Microsoft is upgrading Copilot in Dynamics 365 Sales.
With this update, AI takes over time-consuming tasks like researching prospects, tracking follow-ups, and prioritizing leads. Instead of manually sorting through data, sales reps get AI-driven insights that highlight the best opportunities, refine strategies, and accelerate deals.
The new, streamlined interface also makes it easier to stay organized, ensuring sellers never miss key actions and can spend more time closing deals instead of managing their inboxes.
2. Better AI Assistance for Customer Service & Field Teams
Handling customer support requests can be overwhelming, especially when there are too many support tickets and not enough time. To make things easier, Microsoft is enhancing AI automation in Dynamics 365 Customer Service, Contact Center, and Field Service.
AI now automates customer intent detection for contact centers, making it easier for customers to help themselves through self-service options while ensuring that complex issues are quickly routed to the right support teams. Improved workforce management and routing features mean cases won’t get stuck in long queues or land with the wrong agent.
On-site service teams will also see big improvements. AI will automate scheduling, generate work orders, and provide real-time insights to technicians so they can focus on getting the job done instead of searching for information. Plus, deeper integrations with Teams and Outlook make it easier for frontline workers to access everything they need while on the go.
3. Automated Financial Processes & AI-Driven Accounting
Managing company finances can be time-consuming and prone to errors. With this update, AI can now automate bank reconciliations, tax calculations, and account balancing, meaning finance teams won’t have to spend hours manually verifying transactions. The system also monitors tax rules and suggests adjustments, helping businesses stay compliant with the latest regulations without extra effort.
But it’s not just about automation—this update also improves financial planning. AI can now analyze trends, provide smarter forecasting, and refresh financial data more efficiently, giving businesses more precise insights into their cash flow and performance.
4. Smarter Logistics & Operations Management
Microsoft is introducing AI-powered forecasting and automation in Dynamics 365 Supply Chain Management to help businesses manage their stock more efficiently.
The system can now predict inventory needs based on past sales and seasonal trends, helping businesses avoid overstocking or running out of key products. It also automates communication with suppliers, so purchase orders can be sent automatically when stock is running low. Additionally, warehouse operations will be optimized with AI that helps determine the best ways to pick and pack items for shipping.
5. AI-Powered Project Planning & Automation
Project managers often deal with unexpected delays, budget constraints, and changing priorities. Microsoft addresses these challenges by enhancing Dynamics 365 Project Operations with AI-powered tools and improved usability.
AI also plays a key role in automating project proposals, helping teams generate timelines, assign resources, and structure tasks based on past successful projects. Additionally, a new mobile app for time tracking makes it easier for employees to log work hours on the go, while improvements in invoicing and transaction processing ensure smoother financial management for large projects.
6. Faster Hiring & AI-Assisted HR Management
Hiring and managing employees became easier with AI-driven HR tools in Dynamics 365 Human Resources. Instead of manually reviewing hundreds of job applications, AI automatically screens candidates and ranks them based on skills and experience. The system automatically schedules interviews by matching recruiter and candidate availability, cutting out endless back-and-forth emails.
7. Pricing Strategies for E-Commerce & Retail
For retailers and e-commerce businesses, Microsoft is introducing AI-powered pricing tools that automatically adjust product prices based on demand and competition. Businesses can now set pricing rules so that AI adjusts prices in real-time, keeping products competitive without requiring constant manual changes.
Another useful addition is automated discounting, where AI determines when and how to offer discounts based on customer behavior. Instead of manually setting up promotions, businesses can let the system analyze sales data and recommend the best times to lower prices.
8. Better Business Insights for Small & Mid-Sized Businesses
Microsoft is bringing smart AI tools to Dynamics 365 Business Central to help small and midsize businesses work more efficiently. These updates automate repetitive tasks and provide real-time insights, taking the hassle out of managing finances, tracking inventory, and handling everyday operations.
With AI-powered assistants, businesses can automate complex tasks like creating orders, generating reports, and processing transactions, saving time and reducing errors. AI also helps with financial tracking, billing, and forecasting, making managing cash flow easier and keeping expenses under control.
In addition to these core improvements, Microsoft is rolling out new industry-specific features for manufacturing, digital documents, and sustainability management. This ensures businesses in different sectors can get even more value from the platform. There are also better integrations with Shopify for e-commerce businesses and Dynamics 365 Field Service for managing on-site work, making connecting and streamlining operations easier.
How to Prepare for Microsoft Dynamics 365’s 2025 First Version Updates
If you’re using Dynamics 365, now is the perfect time to start preparing for these updates and figuring out how to make the most of them. A little preparation can help prevent disruptions, improve efficiency, and make the transition smoother for your team. Here’s what you can do:
1. Review Your Current Setup
Take a moment to examine how your business currently uses Dynamics 365. Will the update affect any of your processes, workflows, or automation? If so, you may need to adjust settings or update integrations to keep things running smoothly.
2. Try Out the Preview Features
Microsoft usually releases some features in preview mode before the full rollout. If you have the option, enable and test these features in a safe environment before deploying them system-wide. This lets you experiment with new tools, spot potential issues, and train your team in advance.
3. Train Your Team
New AI and automation tools can be powerful, but only if your employees know how to use them. Make sure your team is prepared by offering training, setting up demos, or sharing Microsoft’s learning resources. The sooner they get comfortable with the updates, the faster they’ll be able to put them to good use.
4. Check Your Integrations
You’ll want to ensure everything stays connected if you use multiple Microsoft tools—like Power Platform, Microsoft 365, or Azure. Some new updates improve cross-platform integrations, so now’s a great time to review your setup and make any needed adjustments to keep everything running smoothly.
5. Consult With Professionals
If your business relies on complex customizations or has many moving parts, consider getting help from an IT consultant. They can help you assess what the updates mean for your business, guide you through the changes, and make sure you’re fully optimized for the new features.
Need help implementing these changes? Let C4 Technical Services assist you!
At C4 Technical Services, we specialize in helping businesses adopt and optimize Microsoft Dynamics 365. Whether you need help with training, migration, or integration, we’re here to make the process seamless.
Ready to unlock the full potential of Dynamics 365? Contact us today—let’s talk!
References:
- “Microsoft-Dynamics 365: 2025 release-wave 1 plan” Microsoft, 23 Jan. 2025, learn.microsoft.com/en-us/dynamics365/release-plan/2025wave1/.
- “Microsoft Power Platform: 2024 release-wave 2 plan” Microsoft, 20 Dec. 2024, learn.microsoft.com/en-us/power-platform/release-plan/2024wave2/.
