Microsoft Ignite 2025: Top 5 AI Announcements for Dynamics 365, Power Platform & Copilot Studio

Agent 365: Centralised governance for AI agents

Agent 365 is Microsoft’s new governance framework for AI agents, providing IT teams with a unified hub to manage agent lifecycle across Microsoft 365 and Power Platform. Rather than a single product, it’s a family of integrated capabilities built on Defender, Entra, and Purview.

Business impact: Companies can confidently move from pilot projects to enterprise wide adoption, supported by strong governance and oversight.

Want to learn more? Dive into the Microsoft blog: Microsoft Ignite 2025: Copilot and agents built to power the Frontier Firm

WorkIQ: Contextual intelligence for smarter automation

WorkIQ introduces contextual intelligence into Copilot and Power Platform, giving agents access to organisational memory and lifecycle context. This enables agentic AI to deliver more personalised and adaptive automation, while reducing repetitive tasks.

This means agents can deliver more personalised responses and automations without requiring users to repeat information.

Business impact: Teams spend less time on repetitive admin and more time on meaningful work, thanks to AI that understands the bigger picture.

Dynamics 365: AI powered industry accelerators

Dynamics 365 continues to embed Copilot capabilities across core applications like Sales, Customer Service, and Finance. Routine tasks such as lead qualification, case resolution, and invoice processing are increasingly automated.

Industry accelerators provide pre‑built solutions tailored to sectors such as retail, manufacturing, and healthcare, helping organisations deploy AI faster in common scenarios.

Business impact: Faster implementation of AI in industry specific processes improves efficiency and enhances customer experiences.

Explore more in the Microsoft blog: Microsoft Ignite 2025: Powering Frontier Firms with agentic business applications

Power Platform: Enhanced AI Builder and automation integration

AI Builder has been upgraded with new capabilities including advanced document processing, sentiment analysis, and forecasting models.

Copilot Studio now integrates seamlessly with Power Automate, enabling agents to trigger workflows as part of end-to-end automation.

Business impact: Both technical and non‑technical users can embed AI into apps and processes more easily, accelerating digital transformation across the business.

Copilot Studio: Custom agents with richer context sharing

Copilot Studio now supports the Model Context Protocol (MCP), allowing agents to draw on context from multiple apps and systems. This results in more connected and relevant responses.

Organisations can design custom agents with specific knowledge and deploy them across Dynamics 365 and the Power Platform, all while maintaining enterprise grade governance.

Business impact: AI becomes more adaptable to unique business needs, enabling tailored experiences without compromising on security or compliance.

Final thoughts

Ignite 2025 marked a turning point in how  AI is positioned within the Microsoft ecosystem. The focus has shifted from AI as a helpful assistant to AI as a fully operational capability.

For organisations, these updates mean:

• Everyday tasks can be automated more quickly
• Copilot experiences are increasingly context aware
• Governance and compliance are embedded as AI scales

Microsoft emphasised that AI is now a foundational capability within its ecosystem, designed to be integrated into core business infrastructure.

Get in touch!

If you are looking for a Microsoft Solutions Partner to help you benefit from some of these exciting announcements – get in touch today by emailing info@pragmatiq.co.uk or calling  01908 038110.