2025 Release Wave 2 Highlights for Dynamics 365, Power Platform and Copilot

We are at a pivotal moment in the evolution of business software. The era of AI agents is no longer in the future. It is already here. These intelligent systems go beyond handling routine tasks. They are reshaping how work is performed, how insights are uncovered, and how results are delivered. The dynamics 365 2025 release wave 2 takes this transformation even further. 

July 16th, 2025, Microsoft announced the upcoming capabilities for Microsoft Dynamics 365, Microsoft Power Platform, and the expanding suite of role-based Microsoft Copilot offerings. These features are scheduled for release between October 2025 and March 2026. The updates integrate AI more deeply into workflows and allow organizations to operate with greater agility, intelligence, and automation. 

This blog highlights the most significant innovations and enhancements in the 2025 Release Wave 2 for Microsoft Dynamics 365, Microsoft Power Platform, and role-based Microsoft Copilot offerings.

Power Apps / All Model-Driven Apps

Enhanced Header and Navigation

The updated header design and sitemap navigation optimize screen space and deliver a cleaner, more intuitive interface across forms and views. A major update is the removal of the traditional command bar, creating additional space and reducing clutter. Some command bar functions have been moved to an overflow menu, which may require an extra click to access. Administrators still have the option to revert to the previous header layout via the site designer. This feature is currently available in preview.

Copilot Features for App Users

1. Copilot Form Fill Assist

Quickly complete record forms by uploading a file or image containing the details you want to add. Copilot reads the content and offers inline suggestions for the form fields. Supported file types include .txt, .docx, .csv, .pdf, .png, and .jpg.

2. Smart Paste

Easily populate record forms by copying content from emails, documents, or other sources. Use the paste button in the form or a hotkey, and Copilot will automatically map the data to the relevant fields, providing suggestions for review.

3. Copilot View Visualizations

Default charts in views can feel outdated, but Copilot’s AI-powered visuals offer a modern approach to interpreting data and uncovering actionable insights. You can easily customize these visuals, though the preview release does not support saving or reusing them. 

4. Restore Deleted Records Within a Specific Time Frame

If records in a table are accidentally deleted, the Dataverse recycle bin offers a simple way to recover them.

Dynamics 365 Sales

 1. Copilot In-Form Banner

AI-generated summaries for leads, opportunities, and accounts will now appear more prominently at the top of each record by default.

2. New Hierarchy Visual

The legacy hierarchy control was deprecated in 2024 and is scheduled for removal in October. While its retirement disappointed many customers, the introduction of a new hierarchy visualization brings positive news. 

As outlined in the release plans, the new control will provide a clear, organized view of complex company structures or multi-level sales teams within a single table, making relationships easier to understand. The initial rollout supports only single-table hierarchies, with multi-table hierarchy capabilities expected “later this year.”

3. Sales Qualification Agent Updates

This AI-powered tool optimize lead generation by automatically researching and prioritizing potential prospects, helping sales teams build stronger pipelines with minimal effort. It analyzes data from Dynamics 365 and external sources to identify high-potential leads, suggests who to reach out to, drafts tailored outreach emails, and can even qualify leads autonomously. 

4. Connect AI Agents with Model Context Protocol

This capability allows sales teams to integrate their preferred AI assistants, such as ChatGPT or Claude, directly into Dynamics 365. Using the Model Context Protocol (MCP) server, connecting an AI agent is as straightforward as installing an app. Once integrated, these agents can assist with tasks like updating accounts or drafting emails to optimize cross-functional processes.

The MCP server makes only selected functions available, including listing leads, retrieving lead summaries via Copilot, qualifying leads into opportunities, generating outreach emails, and sending emails.

Dynamics 365 Customer Insights – Journeys

1. Set Message Expiry

This feature enables marketers to define expiry options for emails, text messages, and notifications, ensuring that customers do not receive outdated communications. 

For offers and other time-sensitive messages, you can configure specific date and time expiry settings, helping maintain relevance and improving the overall customer experience.

2. Export Exact Copies of Emails

A new API will automatically export exact copies of emails, including all personalization and conditional content, to ensure a verifiable record. This feature provides a direct path to general availability, supporting organizations that require email records for legal compliance or dispute resolution.

The release plan specifies that this will be a programmatic export, though the file format has not yet been confirmed.

3. Create Journeys Using Copilot

This feature introduces the ability to build journeys through natural language prompts, where AI generates the journey based on your description. It offers the potential to save significant time; however, during the extended preview period, its capabilities have been limited to basic journey creation. The delayed release from Wave 1 suggests further development is underway to enhance functionality.

General availability: December

4. Automate Scalable Journey Creation

A new API will enable marketing teams to automate the creation of customer journeys at scale. This removes repetitive manual steps, allowing quick deployment of journey variants personalized by time zone, segment, or language. Additional scenarios may include setting up multiple journeys with different trigger rules, improving efficiency and consistency across campaigns. However, each segment and its supporting message will still need to be created separately.

5. Adaptive Forms Based on Previous Answers

Forms can now operate dynamically by adjusting options for one field based on a prior selection, improving both relevance and data quality. 

This is achieved by setting a relationship between two fields in the form editor, where the selection in one field filters the available options in another. This enables adaptive forms in which follow-up questions can be presented to gather more detailed information related to a previous answer. 

According to the release plan, subsequent “lookup” fields are dynamically filtered based on the value selected in another field. However, the initial version may have limited usability if option sets are not supported. 

Public Preview: October 2025

6. Payment Integration for Events

For paid events, this feature introduces integrated card payment processing for a seamless experience alongside built-in event management. It will support price tiers and offer codes, helping boost conversions while ensuring secure payments through Stripe and other trusted providers.

It can also connect with post-payment processes such as sending QR code event passes, which reduces friction and improves operational efficiency. 

Public Preview: October 2025 

7. Event Registration Periods

This update provides event planners with greater control by defining registration open and close dates. Attendees will only be able to sign up within the defined timeframe, after which the registration form will automatically close.

This helps avoid the unpredictability of last-minute bookings while ensuring a more structured event planning process. 

Dynamics 365 Customer Insights – Data

1. Filter Source Data Rows Before Processing

Not every database row needs to be processed in the customer data platform. To improve speed and ensure output quality, row filters can be applied to separate source and output tables. This removes unwanted rows and excludes obsolete data, such as inactive records.

2. Export Segment Audiences and Insights to Ad and Martech Platforms

Marketers will be able to send customer data directly to external platforms to support targeted ad campaigns or gain deeper insights for optimizing spend and engagement. The release will include prebuilt connectors for Facebook Ads, Google Ads, LinkedIn, and Snapchat.

3. Use Interaction Data to Target Audiences

In Customer Insights – Data, segments can now be created using interaction data from Customer Insights – Journeys. This combines unified customer profiles with behavioral data such as email opens and page views, enabling more precise targeting.

Together with the export capability, interaction-based segments can be shared with platforms like Facebook and Google Ads to power remarketing campaigns. 

Public Preview: September
General Availability: March 2026

4. Use Customer Insights – Data as a Knowledge Source in Copilot Studio

This feature will allow organizations to analyze and act on signals from Customer Insights – Data to strengthen the effectiveness of autonomous agents and custom Copilots.

Customer profiles, segments, and other insights can be added as knowledge sources in Copilot Studio, providing agents with a deeper understanding of each customer relationship to make more informed decisions. 

Public Preview: March 2026

5. Copilot Responses Grounded in Customer Insights

Customer Insights – Data creates a unified customer view by combining information from multiple sources. With this feature, teams can access key insights in real time by interacting with Copilot to better understand buying likelihood, customer lifetime value, and recent activity.

By drawing directly from Customer Insights – Data, Copilot delivers personalized responses that help teams prepare for meetings and tailor customer interactions. 

Dynamics 365 Customer Service

1. Case Management Agent

The Case Management Agent helps reduce manual effort and data entry errors by automating case creation from emails and live chat conversations. It extracts relevant details automatically, ensuring accurate records.

Additional capabilities include collaboration assistance to connect with the right experts on Teams and automated alerts that highlight cases requiring immediate attention.

2. Customer Knowledge Management Agent

This preconfigured agent simplifies the creation of knowledge articles by automatically converting case resolution data into help content. When a support case is closed, the system quickly generates knowledge articles to address new issues or fill knowledge gaps, eliminating the need to repeat content manually.

Copilot Email Enhancements

1. Template Suggestions

Copilot analyzes search content to recommend relevant email templates, saving service representatives time that would otherwise be spent manually searching for templates.

2. Insert Copilot Prompts in Email Templates

By adding prompts within templates, Copilot enhances personalization and ensures consistency. Instead of manually customizing each template, Copilot automatically populates specific lines in messages, for example to ask a question or prompt an action. These lines are filled with contextual information to maintain accuracy and a consistent tone throughout communications.

3. Intent-Based Routing

This feature uses artificial intelligence to understand the reason a customer is reaching out via live chat. Once the customer’s pain points are identified, AI assigns the issue to a user group based on relevant intent categorization. Each group contains service representatives with the appropriate skills and expertise to resolve these issues efficiently.

4. Connect AI Agents Using Model Context Protocol

This feature, previously described in the Sales section, is also available for D365 Customer Service. It enables service representatives to connect with AI assistants such as Claude, ChatGPT, and others.

For this release wave, the functions exposed to the MCP server include creating and updating accounts, listing accounts, creating and updating cases, creating case notes, listing cases, and drafting or sending email responses.

Power Pages

1. Unify Power Pages Authorization

This update will store Power Pages users in the Dataverse System User and Contact tables, and web roles in the Security Role and Web Role tables. This eliminates the need to sync contact and web role records, improving performance, enabling new auditing capabilities, and enhancing security through centralized Dataverse authorization.

Public Preview: October 

2. Power Pages Code Security Scan

Identify and fix potential website vulnerabilities quickly using code security scanning built directly into the Visual Studio development environment. The analysis engine reviews code to catch security issues early, including insecure configurations.

Public Preview: October

Power Pages Agents

3. Security Agent

This agent uses AI to suggest suitable roles and permissions for database tables. It continuously monitors site usage patterns and notifies administrators with recommendations, such as downgrading access permissions to reduce risk.

Public Preview: October 

4. Compliance Agent

To protect websites and reduce reliance on third-party security tools, this agent detects threats such as privacy risks, SSL issues, and non-compliant configurations using native capabilities.

Public Preview: March 2026

Copilot

1. Copilot Studio Approvals

With intelligent approvals, an AI stage can be configured to automate specific approval requests based on defined resource logic. Depending on the rules, the agent can approve, decline, or hand off requests for human review by accessing documents, images, and other resources.

For more complex scenarios, advanced approval automation supports multi-stage approvals with rules configured at each stage. For example, a refund approval may require a customer service check involving multiple criteria before moving to the adjustor stage, where it can be approved, declined, or routed to another stage based on the defined conditions.

2. Microsoft 365 Copilot Sales Agent

This AI-powered tool operates across the Microsoft 365 environment and connects with Dynamics 365 to autonomously research, engage, and qualify leads through personalized multi-step communications. It nurtures leads until they are ready for sales handoff. 

The Sales Agent works around the clock to ensure no leads are missed, keeps CRM records updated, and delivers consistent, on-brand messages. By automating early-stage prospecting and qualification, it allows sellers to focus on closing deals, expands the pool of qualified opportunities, increases pipeline volume, and improves productivity. Its seamless integration with Dynamics CRM provides sellers complete visibility and data-driven insights to accelerate sales cycles and improve conversion rates.

 3. Fix Power Automate Expressions with Copilot

Copilot allows you to create and edit complex Power Automate expressions quickly using natural language, reducing manual effort and streamlining workflow automation.

More About the 2025 Release Wave 2

The Dynamics 365 2025 release wave 2 introduces major updates across Dynamics 365, Power Platform, and Copilot. These enhancements reflect Microsoft’s ongoing focus on reducing manual tasks while improving user experience and data-driven insights. 

Intelegain continues to track these developments and assess their practical impact for our clients. For guidance on testing, implementing, or optimizing these new capabilities within your Dynamics 365 environment, we are here to help you navigate these updates effectively.

Contact us today to learn how your organization can leverage the 2025 Release Wave 2 features to maximize efficiency and business outcomes.