Dynamics 365 Marketing, Sales and Service Updates in 2025

If you work with Microsoft technologies, you know firsthand that Microsoft does not rest on its laurels and constantly improves its technological arsenal. UDS Systems successfully goes hand in hand with them, always staying up to date with the latest innovations in Microsoft Dynamics 365 we offer our clients.    

In February 2025, Microsoft Dynamics 365 Customer Engagement introduced several significant updates to enhance user experience, integrate advanced AI capabilities, and streamline customer relationship management processes.   

Thus, in this overview article, we will tell you about the new features of Dynamics 365 CE, being released from April 2025 through September 2025, and the exciting opportunities they provide for users.

The updates bring mighty AI-powered enhancements. This AI-driven assistant analyzes customer data to offer real-time recommendations throughout the sales cycle, helping identify ideal prospects, predict customer needs, and craft personalized pitches.   

What is more, its automated research, constant follow-ups, and prioritized tasks supply highly effective continuous guidance.   

Copilot and AI-supported agents strengthen a company’s performance and simplify tasks to help grow the pipeline, sharpen strategies, and hasten deals. A sales team employs the Sales Qualification Agent to automatically send personalized follow-up emails to leads, reflecting the company's communication style and improving engagement and conversion rates.  

The latest User Interface improvement streamlines navigation and task execution. AI agents reduce training time and accelerate user adoption. For example, new sales representatives quickly adapt to the system, efficiently managing their pipeline and focusing on high-priority tasks.

Workplace 

On December 31, 2025, Microsoft extracted its Smart Assist from all Customer Service environments. Since February 10, 2025, Microsoft’s Smart Assist has been hidden from new environments. Organizations are encouraged to transition to Copilot capabilities to replace Smart Assist, as support for it will end on June 2, 2025. 

Besides, instead of its legacy on-premises solution, the Unified Service Desk, designed for managing compound customer service environments, whose support ends on June 30, 2028, the Microsoft team proposes users to migrate from the Unified Service Desk to the Customer Service Workspace. This multisession application within Microsoft Dynamics 365 Customer Service has been designed to increase agent productivity and refine customer interactions. It contains foremost productivity tools, including Smart Assist, which offers AI-driven options to assist customer service staff in solving customer issues more beneficially.  

Moreover, the 2025 Release Wave 1 planned betterments comprise configuring session limits for multisession apps, personalized case views in the inbox, automatic session restoration after browser refreshes, and making the inbox view default for service representatives. 

Additionally, this cloud-based platform with Copilot integration and multisession capability gives utilizers a possibility to manage multiple customer interactions concurrently with a tabbed interface, switching between sessions without losing context. Herewith, improved case management experience allows them to create, view, and manage cases faster and more accurately. 

Mobile App 

Users can now get an improved Mobile App experience. The Dynamics 365 Customer Service mobile app now allows representatives to access critical customer information and manage cases on the go, enhancing responsiveness.   

AI-generated summaries offer agents concise overviews of customer issues based on past interactions, reducing time spent reviewing case histories.    

Case and Knowledge Management 

The new peculiarities also supply agentic facilities for Case and Knowledge management and AI-driven routing.  Copilot and AI-based agents automate intent determination for permanent self-service and autonomous knowledge management.  

Additionally, multimodal support in customer intent agents significantly strengthens unified routing features and new workforce and quality management facilities.  

The Case Management Agent automates various tasks within the case lifecycle, streamlining processes and reducing manual effort. A case is automatically assigned to the appropriate agent, escalated when necessary, and closed upon resolution, all without manual intervention.  

Customer service personnel can view email customer sentiment indicators, allowing for more empathetic and tailored responses. This also enables agents to understand customer emotions, leading to more personalized interactions and improving customer satisfaction by addressing concerns more effectively. An agent notices a negative sentiment indicator in a customer's email and saves time by providing pre-written templates that can be customized.   
 
The innovations also grant automated inspection generation from templates, actionable insights for schedulers, swift access to core information for frontline workers and managers, and seamless integrations with Teams and Outlook. 

First of all, the Outbound Marketing module will be deleted from Customer Insights – Journeys on June 30, 2025, so, the current customers are recommended to migrate to the Real-Time Journeys module to avoid disruptions.   

These updates reflect Microsoft's commitment to utilizing AI and real-time data to reinforce customer engagement and optimize business processes within Dynamics 365 CE. 

Campaign Creation 

Among Customer Insights innovations, there is generative AI for campaign creation. Now, in Dynamics 365 Customer Insights – Journeys, Copilot can draft campaign content that aligns with brand identity, expediting the campaign creation process.  

The integration between Dynamics 365 Sales and Customer Insights provides a holistic view of the customer base, enabling personalized interactions and tailored marketing campaigns. It improves lead quality and conversion rates. Ensures consistent messaging across departments. 

Advanced orchestration capabilities enable businesses to respond to customer expectations in real time, ensuring interactions are timely. 

A brand-new impressive innovation is the Sales Qualification Agent, an AI-driven tool designed to assist sellers in efficiently managing leads by analyzing customer interactions and data to identify high-potential prospects. 

Customer Journeys 

Marketers can now describe desired customer journeys in everyday language, and Copilot leverages generative AI to build these journeys automatically.  

A user can produce journeys quickly and effortlessly, even if they have never done it before. The only thing they have to do is to describe in casual words what they want to create and rely on generative AI to build the journey for them.   

Marketing personnel can now deliver highly personalized content for their customers by closely collaborating with their entire team and quickly driving stakeholder alignment.   

By combining the journey creator feature with content ideas for email creation, marketing specialists can now quickly bring their customer experience ideas to market.  

Furthermore, they can use natural language to describe the journey they intend to build, get ideas about how to get started with a list of suggested journeys, see a preview of the journey Copilot has produced, and obtain a detailed summary of the Copilot-created journey before they start adding their content. 

Segmentation 

Such a function as micro-segmentation, strengthened with AI and ML, allows to create highly granular customer segments based on nuanced behaviors, like browsing patterns, purchase history, and content engagement. This treatment allows for more accurate targeting and personalized marketing strategies. 

Perform dynamic segmentation, allowing customer groups to evolve in real-time based on the latest data inputs. For example, dynamically adjusts its content recommendations based on users' viewing habits, ensuring personalized suggestions that reflect their most recent interests. Marketers can now create segments, measures, and predictions using behavioral data. Such integration enlarges targeting precision and personalization across the buyer journey. 

Incorporating psychographic factors such as values, attitudes, and lifestyle choices into segmentation strategies allows for a deeper understanding of customer motivations, leading to more effective personalization, enabling more emotionally resonant marketing messages and improving customer loyalty through alignment with personal values. 

Email Marketing 

The latest improvements let marketers considerably automate follow-up email communications, increasing productivity. The fresh "tone of voice" singularity lets Copilot assess and adopt the user’s communication style in emails, providing a consistent and company-wide voice in all pipeline interactions. Users can now send personalized follow-up emails to leads, reflecting the company's communication style, thereby improving engagement and conversion rates. 

The email editor allows for the inclusion of personalized data fields, enabling the creation of tailored messages for each recipient. It also offers AI-driven image recommendations that align with the email's content and recipient preferences, enhancing visual appeal and engagement. 

Marketers can design emails with content that adapts based on recipient attributes or behaviors, ensuring relevance and increasing engagement. 

Event Planning and Management 

Event partakers can register for particular sessions in a multi-session event and be guaranteed their new experience will be relevant to their interests. With session registration data, they can easily identify which sessions are the most appropriate and tailor post-event follow-ups based on session involvement.   

Some improvements, like event-based triggers, can help to make more timely and personalized communications. What is more, users have now an opportunity to utilize event-specific templates as well as use multichannel journeys. 

Utilizers also have a chance to maximize event registrations. When a spot becomes available, the system automatically registers the following applicant on the waitlist and sends them confirmation and event details.   

Unified platforms offer ticketing, real-time updates, networking opportunities, and personalized schedules. AI chatbots are ready to guide participants throughout events, strengthening their experience. 

Lead Management 

The new lead scoring builder offers a more intuitive interface, allowing marketers to define scoring criteria efficiently. Unlike previous versions, leads can now be scored independently, without the necessity of a parent contact, streamlining the scoring process. Leads are evaluated based on both demographic attributes and interactions, providing a comprehensive assessment of lead quality. 

Leads can now be generated automatically in response to customer interactions, such as event registrations or form submissions, ensuring timely capture of potential opportunities. 

Marketers can indicate when a lead is ready for sales engagement, facilitating a smooth transition and ensuring timely follow-up.  

Furthermore, the system supports the creation of opportunities directly from leads, streamlining the sales process and enhancing collaboration between marketing and sales teams. 

Social Posting  

Because Microsoft has eliminated the social posting functionality, users have to choose and integrate alternative third-party tools for managing social media activities now.  

Although LinkedIn lead generation facilities have also been deleted, custom integration, LinkedIn Developer App with Azure Function and Power Automate Flow, is possible for further LinkedIn lead management in D365 Customer Insights.

All the significant updates and changes for Dynamics 365 Customer Engagement (CE) applications aim to improve user productivity and decision-making and streamline customer service operations by introducing AI-powered case and knowledge management, along with advanced routing capabilities. 

It is especially important these days to keep your finger on the pulse of all innovations. Microsoft has already declared the end of mainstream support for the On-Premises Version until January 12, 2027, and the end of its extended support until January 9, 2029. That is why the new Copilot and AI-powered features, and the advanced and smooth cloud migration are becoming vital for companies’ success.