What is coming in 2025 Wave 2: Dynamics 365 Customer Service

Microsoft has just released the 2025 Wave 2 notes for Dynamics 365 business applications and the Power Platform, and I couldn’t wait to dive in. Over the past few days, I’ve been going through the details to get a solid understanding of what’s coming as part of this wave. You’ll notice that a sizable chunk of these features have been announced previously but are just reaching GA and/or some of them are already in preview which means you can try them out today! Just like with every release wave, I am creating a series of articles and videos to walk through the functionality. In my previous article I discussed everything that is coming in Dynamics 365 Sales, and in this article, I’ll discuss with what’s coming in Dynamics 365 Customer Service. Stay tuned as I break it all down and help you get ready for what’s coming next!

Protect sensitive information in emails with data sensitivity labels

This feature was also previously announced, unfortunately there are not a lot of details on how this will actually work. According to the release notes an admin has to enable this functionality before customer service reps can start using it. Where or how these labels will show up was not mentioned, but I am guessing that CSRs will be able to tag emails from within Dynamics 365 Customer Service. I do think this is an undervalued feature, with a lot of benefits, one of the biggest being the ability to classify and protect sensitive info in email messages.

Update knowledge base using Customer Knowledge Management Agent

The next 9 features have been announced previously and/or are in preview today, so they will probably sound familiar to you. The Customer Knowledge Management agent was announced in 2025 Release wave 1, it is an autonomous agent that can automatically generate new knowledge articles or update existing ones based on case data and related data such as case notes, emails, etc. I have published a video and written an article on what this agent does, how it works and how to enable the agent back in May of this year. You can access the article and video here. I think this agent will streamline the article creation process and at the same time help with duplication issues and updating existing content. If you haven’t tried this agent out yet, I would highly recommend you do! One thing to note is that the billing for this agent is not included with your Customer Service license. The agent consumes Copilot Messages each time it’s triggered so this is definitely something to keep in mind from a cost perspective.

Use Copilot-powered email template recommendations

Here is another feature that has been announced before and that has been in previous since April 2025. Whether or not your organization will use this feature will depend on how heavily your organization uses email templates and/or knowledge templates. The way this works is that Copilot can suggest relevant email templates when CSR’s respond to an email that is linked to a case. The template suggestions from Copilot are based on the content of the email the CSR is responding to, the intent in the email thread and any of the prompt entered by the CSR. Keep in mind this is another feature that will be billed separately, using the Copilot Studio messages. I wanted to say that if your organization uses knowledge articles then this feature might not be as relevant to you, as Copilot can generate email messages based on the information in the knowledge base.

Insert Copilot prompts in email templates

This feature uses Copilot to help CSR’s create consistent email responses by adding prompts into email templates instead of just static text. Usually when using this feature, you’ll most likely see a mixture of static text and a prompt, for example for an email template that sends an email to the customer notifying them that the case is closed, we can use a prompt to provide the details of the case. Copilot will then use the prompt in the email template to generate appropriate text when the template is added to an email. It looks like this feature works hand in hand with the previously mentioned feature called ‘Use Copilot-powered email template recommendations’.

Tag email templates with line of business

The last feature related to email templates in Dynamics 365 Customer Service is the ability for administrators to tag email templates with a line of business. This will streamline email template use and creation through the application as CSR’s will be able to find relevant content quicker by using the LOB tags, which could come in handy if you have a lot of email templates. I am not sure if Copilot will be using these tags as well, or if you even need this, if you enable copilot based recommendations for email templates…

Optimize customer service with intent-based routing

This feature uses the same intent-library that is part of the Customer Intent Agent in Customer Service / Contact Center. If you are not familiar with the Customer Intent Agent, this is an autonomous agent which is designed to identify and understand the intent of customers when they reach out to customer service. It does that by managing an intent library inside Dynamics 365, which represent the different issues customers might be facing. Intent records can be grouped into categories which are called intent groups, and each intent can have multiple ‘attributes’ associated with them. These attributes are used by the intent agent to generate questions that a CSR can ask the customer to speed up the resolution process. The intent library is constantly updated by the agent, based on the cases and conversations in the system. To learn more about the intent agent, please review the two articles and videos I published on this topic. The intent based routing is a setting inside the Intent Agent and allows for AI to route cases and/or conversations to the most appropriate resource, without the need for traditional routing rules. I am planning to do a deep dive into this functionality later, so stay tuned!

Automate case lifecycle tasks with Case Management Agent

This is another autonomous agent that was previously introduced to us, and it’s been in public preview since April of this year. As the name suggests, this agent streamlines and automates the process of creating and updating cases across channels like chat and email. Instead of relying on customer service reps to manually create cases and enter case details, the agent intelligently extracts relevant data from conversations or messages and populates case fields automatically.

I’m sure you can imagine how this not only saves time but significantly reduces the risk of human error. For organizations, this means faster case handling, more consistent data quality, and a better support experience. By reducing administrative work and enabling CSRs to focus more on resolving issues rather than managing forms, the Case Management Agent has the potential to improve your customer service department’s efficiency and increase overall team productivity. To learn more about this agent including how to configure it, take a look at my previously written article and video here.

Connect AI agents using Model Context Protocol servers

If you read last week’s article, you noticed that there is a model context protocol server for Dynamics 365 Sales. I was happy to learn that this feature is being extended to Dynamics 365 Customer Service as well! Just to clarify, this is not a feature CSRs will access themselves inside of Dynamics 365 Customer Service, this feature allows us to access data in Dynamics 365 Customer Service through MCP servers and connect it to AI agents like Copilot, ChatGPT, Claud, an any other agent that supports MCP. Think about the ability for a Customer Service Rep to ask questions to ChatGPT about their cases, to create a new case or to send an email response to a customer! This is another excellent feature that will improve CSR productivity. According to the release notes the capabilities this integration provides are:

• Creating or updating cases
• Creating case notes
• List cases
• Draft or send an email response
• List all accounts
• Creating or updating accounts

Enable customers to create multisession apps

This is another feature that has been flying under the radar in my opinion. For a long time, customers have been asking for the ability to create their own customer multi-session apps in Dynamics 365 Customer Service. Why? Well because if you want to use the omnichannel capabilities in Dynamics 365 Customer Service, you can’t do this unless the model-driven app you’re using is a multi-session app! Lots of organizations have the need for more than one multi-session app which was not possible prior to this feature. It’s important to note that system apps I.E Sales Hub cannot be converted into multi-session apps, but custom model-driven apps can be. You might be surprised to learn that this conversion is done from the Copilot Service admin center app, and not in make.powerapps.com. Admins can convert model-driven apps by navigating to workspaces > Productivity settings for model-driven apps > selecting the model-driven app and editing the settings.

Perform bulk actions on filtered conversations

This last feature seems to need little explanation, but I will talk a little bit about the benefits of this feature. According to the release notes, this feature will be enabled for supervisors, and they will be able to access this feature directly inside the Omnichannel real-time analytics dashboard. Supervisors will be able to filter large volumes of conversations by natural language or by using any of the available fields. The release notes mention that among the filters that can be used are intent groups, intents, queue status and time frame. I think being able to filter large datasets of conversations and then being able to take action on it will be helpful. Once the data is filtered, supervisors will be able to perform bulk actions on these conversations such as assigning them to a queue, sending wrap-up messages to customers, closing conversations in bulk and agent notifications.

Automatically restore sessions after a browser refresh

This feature was announced in 2024 Release Wave 2 and it has been in preview since October 2024. The title pretty much explains what it does but let me give you some more context to clarify. Before we had this feature, anytime when a CSR would refresh their browser (either because they refresh manually or the browser crashed) only the home page would load after the refresh and any open sessions or tabs would not be reloaded. This feature restores any sessions or tabs that the CSR had opened before the browser refresh or crash. This has been a major pain point so I am glad to see that this feature is set to become generally available in October 2025. If you’re not using this today, I would highly recommend you do! To see demonstrations of some of the new features I discussed in this article, check out the video below. I hope you enjoyed this article! Be sure to check in again next week or subscribe here to never miss another post!