Last month, Microsoft announced a range of new Dynamics 365 Customer Service features, which will go live in 2025. The changes are centred around increasing agentic capabilities, adding new Copilot functionalities, and increasing service efficiency through AI-driven routing.
We’ve reviewed the biggest changes and highlighted the benefits for businesses using Dynamics 365 Customer Service. As ever, release dates have been included where possible, but these are subject to change by Microsoft.
Before we get into the changes, it’s worth clarifying what Dynamics 365 for Customer Service actually is.
Dynamics Customer Service is a module in the Dynamics 365 suite, which enables businesses to deliver excellent customer experiences consistently, at scale. It has powerful features such as advanced case routing, intelligent knowledge management, and AI agents. It also integrates with Dynamics 365, Business Central, Copilot, Teams, and more.
These features supercharge customer engagement, allowing teams to shrink customer wait times, improve first-contact resolution, provide proactive services to customers, and more.
Just like the updates to Dynamics Sales announced earlier this month, the Dynamics Customer Service roadmap is heavily geared towards enhancing AI and agent capabilities.
The new features will supercharge customer service, empowering businesses to deliver high-quality, intuitive, and empathetic experiences to customers. There are new features that improve the user experience for employees and boost productivity for those using the platform – specifically, customer service administrators, representatives, and supervisors.
These new features aim to shrink the workload involved in managing customers, allowing businesses to scale customer service without the need to hire. Now, let's look at them in greater depth.
Coming in October 2025, new data sensitivity labels will allow Dynamics Administrators to classify outgoing emails and protect sensitive information.
Label creation is centralised, and the labels themselves can be seen in other Microsoft apps through integrations. This allows businesses to establish a consistent labelling policy that will be followed organisation-wide, on every important app.
Adding data sensitivity labels also ensures your business remains in constant compliance with regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
There’s no other way to say that this new agent will supercharge customer service. From October 2025, Case Management Agent will automate case creation and update records based on real-time information, reducing case handling time, increasing employee productivity, and streamlining processes for businesses.
On a call, the Case Management Agent will create a case automatically and populate fields in real-time, as the conversation goes on. Over email, the Case Management will use automatic record creation (ARC) rules to convert messages into cases and keep them updated as new replies come in.
There are classification filters in place too, so businesses won’t get 100 new tickets that say “thank you” or be inundated with spam.
Coming to the full Dynamics 365 suite in October 2025, the Model Context Protocol (MCP) server will let employees integrate their favourite AI agent to existing workflows as easily as adding a new app.
For Customer Service, linking AI agents like Claude or Copilot to workloads can either increase efficiency or entirely automate:
In October 2025, Copilot prompts will be added to email templates in Dynamics Customer Service. This will reduce response time for customers while increasing the productivity of customer service representatives. It will also ensure consistent communication between customers and representatives, as templates and prompts are set company-wide.
When a representative opens an email template in a case, Copilot will automatically add content based on case information and previous communications. The representative simply has to review, sign off, and send (or change) the email.
The Customer Knowledge Management Agent (CKMA) is coming to Dynamics 365 Customer Service in October 2025.
It will convert real-time (and historic) case data into knowledge articles by analysing case notes, emails, and conversations when a case is closed by a representative. The agent will even identify gaps and suggest solutions for emerging issues it finds, while creating articles.
CKMA will boost productivity in Customer Service operations through automations and workflow efficiency gains, such as:
Customer service representatives are – naturally – the most important piece of the customer relationship puzzle. As when representatives have the tools and knowledge they need to deliver excellent experiences, customers stick around.
Microsoft is adding multiple new features to Dynamics 365 Customer Service between October and November 2025, to boost representative output and improve their experience when using the app. These include:
Microsoft is adding more email template management capabilities in November 2025. These will allow organisation admins to establish line-of-business tags, create custom template views, and apply bulk actions across all templates.
Once implemented, these changes will make it easier for customer service representatives to locate case records and articles and greatly reduce time spent on repetitive, manual tasks.
Better yet, templates will be available in multiple languages for businesses using multi-language support. Making it easier to ensure consistent customer communication – even in a global business.
Dynamics 365 Customer Services’ unified routing is already incredibly powerful. It uses AI models and rules to automatically assign incoming requests, eliminating the need for constant queue supervision and increasing operational efficiency.
From October 2025, there will be new enhanced assign options that enable supervisors to reassign cases without interrupting automated flows. This gives supervisors more control over lead routing and allows them to manage service quality effectively – even when customer or business needs change.
If the customer service representative selected does not have capacity (or doesn’t fit the profile needed), the system will prompt the supervisor and allow them to re-assign the case.
That’s every change announced for Dynamics 365 Customer Service for 2025 (for now!) As Microsoft Dynamics experts, we’re looking forward to helping businesses use these features to deliver world-class customer experiences - with less effort than ever before.
To learn how businesses are benefiting from Dynamics 365 Customer Service, download our free Dynamics of Success: