As AI becomes more deeply embedded in business software, Microsoft Dynamics 365 Business Central users are increasingly asking a key question: What is the difference between Copilot and AI agents?

At first glance, they may seem similar; both promise productivity gains, reduced manual effort, and greater intelligence in daily operations. But the distinction between these two tools is more than semantic. Understanding the capabilities of Dynamics 365 Copilot vs Agents will help you make the most of your ERP investment and better prepare for the future of intelligent automation.

Let’s unpack what each one does, how they work, and when it makes sense to use them in your business.

Copilot and agents serve different purposes

Microsoft Copilot in Dynamics 365 is designed to assist users by making existing tasks easier and faster to complete. It relies on generative AI and natural language processing to support day-to-day operations, typically with the user initiating the action.

Common examples of Copilot in Business Central include:

• Suggesting email responses to customers
• Summarizing financial records or reports
• Answering natural language queries (e.g., “show overdue invoices”)
• Drafting product descriptions or messages for approval

These capabilities are especially helpful for speeding up manual processes and reducing cognitive load. They enhance the user’s experience, but they don’t entirely take over tasks.

AI agents, on the other hand, operate at a different level. They are built to act on your behalf, often without needing a prompt. Think of them as digital coworkers rather than digital assistants.

Here’s what agents can do:

• Monitor your systems continuously for data changes or exceptions
• Match invoices with purchase orders and post them automatically
• Flag anomalies or discrepancies proactively
• Route documents or tasks based on thresholds and business rules
• Learn from outcomes and improve their recommendations over time

This is the key difference when discussing Dynamics 365 Copilot vs Agents: Copilot assists you with tasks, while agents can perform them autonomously within defined parameters.

When to use each tool in Business Central

Your use of Copilot and agents should align with the complexity, risk, and repeatability of the tasks at hand.

Use Copilot for:

• Tasks that benefit from creative input (emails, descriptions)
• Getting quick summaries or views on data
• Supporting user-led decisions or explorations

Use AI agents for:

• High-volume, rules-based processes (e.g., accounts payable)
• Monitoring exceptions in real time (e.g., stockouts, payment delays)
• Reducing approval workloads and manual intervention

Microsoft is already embedding both capabilities throughout Dynamics 365 Business Central. While some features are available today, many are still in preview or on the product roadmap. Still, the trajectory is clear: a dual-layer approach where Copilot enhances user interaction and agents handle execution behind the scenes.

Why tis matters for business leaders

Understanding this distinction isn’t just an IT concern; it’s a strategic one.

Companies that embrace both Copilot and AI agents will see broader productivity gains and a competitive advantage. The key lies in knowing when to keep the human in the loop and when to let the system take over. This balance can improve compliance, increase employee satisfaction, and create capacity for higher-value work.

Additionally, as agent-based automation becomes more prevalent, businesses will need to invest in:

• Structured data models that support autonomous decision-making
• Clear approval thresholds and escalation logic
• Employee training to foster trust and confidence in automated systems

By embracing both tools in the proper context, you can transform ERP from a tool that supports your business into a system that actively drives it.

Looking ahead

Microsoft’s roadmap shows continued investment in both Copilot and agent technology. In the coming months, we can expect deeper integration between them, with agents initiating tasks and Copilot supporting their interpretation or summarization.

This synergy will redefine how we experience ERP, shifting the focus from forms and navigation to decisions and outcomes.

Now is the time to assess your readiness, clean your data, and identify which processes are best suited for early automation. Whether you’re ready to pilot agents today or still exploring how Copilot fits into your daily workflows, the shift toward intelligent ERP is already well underway.

Curious how your team can benefit from both Copilot and agents in Dynamics 365?

Get in touch with AlfaPeople for a personalized readiness consultation.