Copilot in Dynamics 365 Customer Service is an AI assistant that helps human customer service agents do their jobs faster. When an agent is handling a customer issue, the AI reads the conversation in real time, suggests reply text, and pulls relevant answers from knowledge bases — reducing the time agents spend searching for information. Microsoft launched this in March 2023.

Announced March 6, 2023 as part of Microsoft's first Copilot for customer relationship management (CRM) and enterprise resource planning (ERP) software. The AI uses large language models powered by Azure OpenAI to draft email and chat responses, summarize case histories, analyze customer sentiment, and recommend knowledge articles. Microsoft deployed the tool internally with its own customer service team and reported a 12% decrease in average handling time for chat interactions and a 13% decrease in the rate of agents needing help from colleagues. In June 2024, Microsoft launched Dynamics 365 Contact Center, a standalone Copilot-first cloud contact center product built on the same AI foundation.