Smarter ERP with Microsoft AI: What agentic systems can do for your business

Enterprise resource planning (ERP) systems have been at the heart of business operations for decades. They manage key functions like finances, inventory, supply chains, and human resources, helping businesses work more efficiently and stay connected across different departments. Over the years, they have adapted in step with technological advances, evolving from on-premises systems to agile, cloud-based platforms that support global collaboration.

Now, we’re entering a new era of ERP: one where AI agents are becoming built into the platforms businesses already rely on.

This next generation of ERP goes further than managing data or automating routine tasks. It helps your business turn insights into action, supporting faster decision-making and more automated processes. Powered by AI, these systems scan large volumes of data, spot patterns, and forecast outcomes. From there, they can recommend what to do next or act on those recommendations automatically, with human oversight and built-in guardrails keeping things on track.

How  Microsoft is building toward agentic ERP

At Directions EMEA 2026, Microsoft introduced Edit with Copilot, a new Microsoft Dynamics 365 Business Central capability that moves Copilot beyond answering questions and toward taking action. Using natural-language instructions, users will be able to create, update, and delete records, execute actions, and complete multi-step business processes directly within Business Central.

For example, Microsoft demonstrated how users could ask Copilot to update a sales order's delivery date or create related business records, reducing the need to navigate through multiple pages manually.

This builds on Microsoft's wider investment in AI across Dynamics 365, where agents are taking on routine work, helping users make sense of business data, and supporting more connected workflows.

Automating routine business tasks

From processing invoices to managing expenses, routine administrative work can consume time that employees could spend on more valuable activities. Microsoft's AI agents are designed to take on parts of this workload. In Business Central, the Payables Agent helps process vendor invoices, while the Expense Agent supports expense reporting and related tasks. By handling routine steps and flagging exceptions for review, these agents can help reduce manual effort and keep everyday processes moving.

Turning business data into actionable insights

Finding an answer in business data shouldn't mean digging through reports or switching between screens. Copilot lets users ask questions in natural language to explore data, investigate trends, and identify exceptions. This makes it easier to get to the information behind a business decision, whether that means understanding sales performance, investigating an unexpected result, or identifying an issue that needs attention. The next step is connecting these insights more directly to the actions that follow.

Moving from individual tasks to connected processes

A sales order involves more than entering a transaction. Customer requests need to be reviewed, stock availability checked, quotes prepared, and responses followed up. The Sales Order Agent can help manage these steps, from processing requests received by email to converting approved quotes into sales orders. By supporting multiple stages of a process, it can reduce the need for employees to coordinate every action manually.

As AI agents take on more steps within business processes, organizations have opportunities to rethink how work is managed across departments. Employees can spend less time coordinating routine activities and more time handling exceptions, making decisions, and improving how the business operates.

The benefits of agentic ERP

As AI takes on more routine work, helps surface relevant insights, and supports connected business processes, organizations have new opportunities to improve how their operations run. Microsoft is developing these capabilities across Dynamics 365, Power Platform, and Microsoft 365, with governance, security, and responsible AI use remaining important considerations. LS Retail works closely with Microsoft and follows developments in its AI ecosystem, including Copilot and agent capabilities in Business Central.

Through LS Central, businesses can build on this foundation to explore how AI can support their specific retail and hospitality operations. With agentic ERP capabilities, businesses can benefit from:

With agentic ERP capabilities, businesses can benefit from:

1. Enhanced productivity

When AI takes on repetitive tasks and helps users find the information they need, teams can spend less time on manual work and more time on strategic priorities. Activities such as data entry, reporting, and reconciliation can become faster and less resource-intensive, freeing employees to focus on work that requires their expertise.

2. Greater scalability and flexibility

As businesses grow, ERP systems must handle increasing complexity without adding unnecessary manual work. AI-powered, cloud-based solutions like Business Central are designed to scale, while Copilot Studio allows businesses to build and customize their own AI agents to address specific needs and automate additional processes as requirements evolve.

3. More informed and timely decisions

Access to real-time insights helps businesses understand what's happening across their operations and respond more quickly to market changes. AI-driven forecasting can help anticipate disruptions and identify opportunities earlier, giving decision-makers more time to evaluate options and improve business agility and resilience.

4. Reduced risk of errors

Automation and AI-assisted workflows can reduce manual data entry and repetitive work, helping lower the risk of human error in routine processes. Governance frameworks and human oversight remain essential, ensuring that automated actions follow business rules and support compliance requirements.

Is your business ready for agentic ERP?

Microsoft’s latest developments point toward ERP systems that can do more than record transactions and provide insights. With AI agents taking on routine tasks and new Copilot capabilities enabling users to initiate actions through natural language, ERP is moving toward a model where more work can be completed with less manual intervention.

“Microsoft is leading the way to a new reality for ERP – a world where ERP solutions run more autonomously, constantly adapting to ever-changing conditions, bringing users in when they’re needed,” said Georg Glantschnig, Vice President of AI ERP at Microsoft.

As these capabilities advance, businesses have an opportunity to rethink how work gets done across finance, supply chain, sales, and other core operations. The key is understanding where AI can make a meaningful difference, which processes are ready for greater automation, and where human judgment remains essential.

Contact us to find out more about LS Retail’s vision for AI-driven operations and how we can help you take this technology further in your business.