Transcribed
Dynamics 365 ERP MCP Server - Simply Explained
Jul 15, 2026 ·
13m 25s
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Dynamics 365 ERP MCP Server - Simply Explained
Description
Connecting AI assistants to an ERP used to mean custom APIs, connectors and security workarounds. This Simply Explained episode is for Dynamics 365 users, IT pros and partners who want...
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Connecting AI assistants to an ERP used to mean custom APIs, connectors and security workarounds. This Simply Explained episode is for Dynamics 365 users, IT pros and partners who want to understand how the Dynamics 365 ERP MCP server and the analytics MCP server let agents read ERP data and act on it through natural language, and how to try it safely in Copilot Studio or VS Code.
In this episode
Key takeaways
Worth quoting
“MCP is an open standard that lets AI applications discover and call tools and data sources in a structured way. Think of it like a universal remote.” – Mirko Peters (00:49)
“Customizations and ISV extensions become automatically visible to the agent. You don't need to write special code to expose your custom fields or custom processes.” – Mirko Peters (03:27)
Explore more on M365.FM
Follow and rate M365.FM in your podcast app, and join the free M365 community at m365con.net.
Become a supporter of this podcast: https://www.spreaker.com/podcast/m365-fm-microsoft-365-azure-cloud-power-platform-ai--6704921/support.
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In this episode
- 00:00 – Why ERP data is hard to bring into AI
- 00:46 – What the Model Context Protocol is
- 01:52 – Static vs. dynamic ERP MCP server
- 03:36 – The analytics MCP server and BPA
- 05:25 – Real-world use cases from Microsoft and partners
- 07:25 – How to get started: prerequisites, Copilot Studio, VS Code
- 09:33 – Roadmap and future direction
- 11:26 – What this means for users, IT and partners
Key takeaways
- The Dynamics 365 ERP MCP server exposes finance and operations functions to AI agents through one governed interface, and the dynamic version lets agents work through forms, including customizations and ISV extensions.
- The analytics MCP server on Business Performance Analytics needs only two tools, get dataset schema and execute DAX query, and combining it with the action server turns insights into ERP actions.
- Agents inherit the connected user's Dynamics 365 security, but the preview has limits such as a 120-second timeout, so start with low-risk tasks and keep a human in the loop for high-risk actions.
Worth quoting
“MCP is an open standard that lets AI applications discover and call tools and data sources in a structured way. Think of it like a universal remote.” – Mirko Peters (00:49)
“Customizations and ISV extensions become automatically visible to the agent. You don't need to write special code to expose your custom fields or custom processes.” – Mirko Peters (03:27)
Explore more on M365.FM
- Episode page: the full episode with chapters, quotes and a short FAQ on ERP MCP
- Model Context Protocol (MCP) – the open standard that lets AI agents discover and call ERP tools through one interface
- Dynamics 365 Finance and Operations – the ERP whose forms, actions and customizations the MCP server exposes to agents
- ERP Analytics MCP – the separate server that lets agents query Business Performance Analytics data with DAX
- Related episode: THE DEATH OF THE PROXY: Architecting Dataverse for the Agent Fabric
Follow and rate M365.FM in your podcast app, and join the free M365 community at m365con.net.
Become a supporter of this podcast: https://www.spreaker.com/podcast/m365-fm-microsoft-365-azure-cloud-power-platform-ai--6704921/support.
Information
| Author | Mirko Peters M365, Azure & AI |
| Organization | m365 FM |
| Website | www.m365.fm |
| Tags |
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