As organizations continue to seek ways to differentiate through exceptional customer service, many are turning to emerging agentic AI capabilities as a catalyst for transformation. However, the promise of agentic service—better experiences, greater efficiency, and continuous improvement—can only be realized when AI is deeply embedded and seamlessly orchestrated across every workflow and channel. This requires more than just automation; it demands a unified context and intelligence layer that travels with the work.
At Microsoft, we believe the future of customer service is one where Microsoft Dynamics 365 becomes the context and intelligence platform for Copilot and AI agents, grounding every interaction in rich customer data and business processes. With Dynamics 365 providing composable skills across the tools people already use every day, we enable intelligent, proactive self-service and augment human capabilities. This empowers service reps, supervisors, and leaders to amplify their impact, delivering more consistent, personalized, and effective service at scale.
With Microsoft Dynamics 365 Customer Service, we’re already delivering on this vision, helping our customers achieve tangible business outcomes with agentic service. Dynamics 365 Customer Service combines our latest AI advances with robust core capabilities, all deeply integrated with the entire Microsoft portfolio across Microsoft 365, Dynamics 365, Microsoft Power Platform, Microsoft Azure, and the Microsoft Fabric data platform.
Today, we’re excited to announce that Microsoft has been named a Leader in The Forrester Wave™: Customer Service Solutions, Q1 2026.
Delivering measurable outcomes with agentic service
Our customers and the industry at large recognize we’re leading the way in agentic service innovation and enterprise adoption.
In Dynamics 365 Customer Service, AI agents orchestrate context and automate workflows in simple and complex inquiries across voice and digital channels. Agents can handle routine interactions and execute actions autonomously within robust governance and compliance guardrails. Customer Intent Agent continuously discovers new intents from conversations across channels, enabling evergreen self-service.
Agents like Case Management Agent automate repetitive tasks and integrate with Copilot to surface next-best actions during human-assisted interactions, helping reps offer rapid resolutions.
Importantly, these service agents create self-learning loops, helping improve resolution accuracy and speed. This continuous improvement extends to service reps as well. Quality Evaluation Agent monitors service quality in AI-powered and human-assisted interactions to enhance agent performance and recommend coaching opportunities for reps. Meanwhile, Customer Knowledge Management Agent adapts knowledge bases, updating content and generating new articles based on fresh insights or recurring issues.
This powerful combination of agentic and human service is orchestrated through Agent Hub, which routes tasks to the most appropriate AI agent or service rep and optimizes task distribution based on real-time KPI results.
Customers like Visa are saving time by using the Customer Knowledge Management Agent to turn customer conversation data into knowledge articles.
Auto-knowledge generation reduces article creation time by 88%, from four hours down to 30 minutes per article. And by mining 7,000 cases, we’ve been able to produce 700 knowledge articles, just for one line of business and we continue to accelerate knowledge creation at scale.
Lidia Daldoss, Vice President, Service Digitization & AI Acceleration, Visa
Accelerating successful AI adoption
Despite the numerous benefits on offer, navigating the AI adoption journey can be extremely complex for many organizations. Sometimes there’s uncertainty about where to start, or a lack of clarity about how to get a measurable return on AI investments.
Microsoft simplifies AI adoption, enabling organizations to quickly realize significant efficiency and productivity gains in customer service operations. We offer structured guidance and proven methodologies to help accelerate adoption success for organizations at every level of AI maturity.
Our customers particularly value the FastTrack for Dynamics 365 program, which is built on our Success By Design framework that paves the way for effective solution design, deployment, and operation. With proactive, expert guidance, organizations can confidently implement an agentic service platform based on advanced technologies that are already delivering tangible business outcomes for enterprises worldwide.
Enhancing core customer service capabilities
While AI agents automate and orchestrate workflows, and Copilot provides contextual guidance for reps, Dynamics 365 Customer Service also offers a strong set of core capabilities.
Intelligent, omnichannel routing, for example, is a cornerstone of effective service, directing inquiries to wherever customers will find the fastest path to resolution. Similarly, Microsoft’s longstanding strengths in business intelligence, process management, and forecasting and scheduling provide an essential foundation for efficient operations.
Integration with Microsoft Teams also enables seamless collaboration across service, sales, and marketing, streamlining issue resolution and highlighting opportunities to enhance the end-to-end customer experience.
Another notable strength of Dynamics 365 Customer Service is its extensibility, both within Microsoft’s suite of business applications and productivity tools, and across our extensive partner ecosystem and third-party marketplace.
The biggest impact of Dynamics 365 is that the customer information is more centralized, which saves time and gives us a 360-degree view of the customer.
Petra Velten, Business Expert Customer Service, Lufthansa Cargo
With Dynamics 365, our team has a single pane of glass with all customer information and tasks in one place. The Rheem knowledge base within Dynamics 365 Customer Service also gives [reps] fast, easy access to specific product information during customer calls.
Jordan Bond, Senior Manager, Product Owner, Dynamics Service, Rheem
Amplify your impact with Dynamics 365 Customer Service
We’re delighted to be recognized as a Leader in The Forrester Wave™, but this is just the beginning of the agentic service era that Microsoft and our partners are shaping. We’ll continue to make significant R&D investments that help accelerate AI breakthroughs and work alongside our pioneering customers to define the future of service.
Explore how you can boost efficiency and enhance service in every channel:
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity here.
