Scaling a business is one of the most challenging tasks for any decision-maker. Research indicates that 44% of small to medium-sized enterprises fail due to cost overruns caused by operational inefficiencies. With Artificial Intelligence (AI) becoming integral to business processes, it offers an effective solution to this challenge, particularly for C-suite executives. A prime example of AI enhancing business solutions is the integration of Microsoft Copilot in Business Central. The Microsoft Copilot functionality within Dynamics 365 Business Central drives innovation and optimizes business outcomes across various departments.
Microsoft Copilot is transforming the way businesses handle ERP by leveraging AI to automate essential tasks, streamline workflows, and provide deep insights for better decision-making. This combination of AI and ERP is the productivity booster that modern businesses need to remain competitive in ever-changing markets.
An Overview of Business Central & Copilot: AI and ERP
Dynamics 365 Business Central is Microsoft’s cloud-based ERP solution, succeeding Dynamics NAV with additional capabilities. It supports up to 3,000 users, enables cross-functional collaboration, and unifies your team by providing a shared database. Moreover, it allows the automation of repetitive tasks that may otherwise hinder productivity. Its seamless integration with other Microsoft 365 applications like Outlook, Excel, and Teams enhances its utility, making it a robust system for any enterprise.
Microsoft Copilot is an AI-driven assistant that utilizes large language models (LLMs) with data from Microsoft Graph and Microsoft 365 apps. This AI-powered assistant adapts to various Microsoft applications, offering functionalities like content recommendations in Word, data analysis in Excel, and presentation designs in PowerPoint. It aids in email drafting in Outlook, meeting summaries in Teams, site creations in SharePoint, and brainstorming in Loop. Indeed, Copilot boosts the productivity of your business in numerous impactful ways.
Key Features and Benefits of Copilot in Business Central
Copilot offers an impressive range of advanced features that significantly enhance Business Central’s capabilities. Businesses gain from various functionalities like content creation, predicting late payments, bank reconciliation, inventory forecasting, and other management functions. Here’s a detailed breakdown of the benefits:
Natural Language Prompts: As a sophisticated generative AI, Copilot comprehends, processes, and responds to natural language prompts. This makes it easier for users to interact with the system. The intuitive feature streamlines workflows, saves time, and allows users to focus on strategic tasks by making navigation ten times more efficient.
Bank Reconciliation: Copilot enhances reconciliation processes using advanced AI that verifies and matches transactions with ledger entries. This results in accurate bank statements and account reconciliations, speeding up an often time-consuming process.
Content Creation and Product Listings: Copilot revolutionizes content creation and product listings by generating content in seconds via relevant prompts. It can even analyze images to suggest product categories, descriptions, and attributes, making content creation more efficient.
Inventory Forecasting & Detecting Shortfalls with AI
Inventory forecasting can be challenging, but Copilot’s predictive capabilities allow for seamless analysis and projection of inventory needs. With Copilot, businesses can avoid stockouts or overstocking, leading to proficient inventory management and improved client satisfaction. Additionally, Copilot detects potential inventory shortages by considering factors like customer demand, lead times, and existing stock levels. When low inventory is anticipated, it provides suggestions for restocking or adjustments, ensuring that businesses can meet demand without incurring stock problems.
Cash Flow Analysis: AI-driven cash flow analysis in Microsoft Business Central offers decision-makers a comprehensive view of their financial position and market share. Cash flow is a crucial indicator of a company’s solvency and helps secure a business’s financial future. Copilot’s insights allow decision-makers to take timely actions to protect the company’s financial health, such as securing loans during shortfalls or managing credit during times of surplus.
Summarizing and Sharing Information Efficiently
One of Copilot’s key but often overlooked advantages in Business Central is its ability to efficiently summarize and share information. Copilot provides concise summaries of data, analytics, and reports that can be easily shared with teams. This allows for quick access to essential insights and supports better decision-making by ensuring that all team members have the necessary information at their fingertips.
Streamlined Sales Order Process: Handling customer orders can often be a tedious task involving numerous searches or sifting through lengthy product catalogs. With Copilot in Business Central, users can quickly add items to sales orders or quotes by providing descriptions or pasting details from emails. Copilot assists by describing needed services or products and references previous input to provide the appropriate line items from the original product catalog, thus speeding up the order management process.
Use Cases for Copilot in Business Central: AI in ERP
AI integration in ERP is beneficial for all business functions, providing a clearer understanding of Copilot’s capabilities in Business Central. Businesses are leveraging Copilot for various purposes, including HR & payroll, finance, sales and client relations, and supply chain management:
HR & Payroll: Copilot automates payroll processing, performance evaluations, and employee onboarding. It also analyzes workforce data to identify trends and patterns, aiding appropriate action.
Finance: Copilot automates invoicing, payment operations, and financial reporting, ensuring accurate financial records. Its predictive insights into cash flow trends help businesses make necessary adjustments to maintain financial stability.
Sales and Client Relations: Copilot assists sales teams in managing client relationships and sales processes through efficient pricing strategies, tailored product recommendations, and valuable customer insights.
Supply Chain Management: Copilot takes a proactive stance with supply chain management by analyzing data from multiple sources to forecast disruptions, suggest ideal inventory levels, and recommend alternative suppliers during shortages.
Configuring Capabilities of AI in Business Central with Copilot
To fully utilize Copilot in Business Central, certain prerequisites must be met. You need to be using the online version of Business Central and must have administrative access. The administrator needs SUPER permissions in their Business Central user account or one of the following licenses: Internal BC Administrator, Delegated Admin Agent – Partner, Dynamics 365 Administrator, Internal Admin, or Delegated Helpdesk Agent – Partner. As Business Central doesn’t provide detailed, object-level permissions, only specific administrators can configure Copilot.
Additionally, once the necessary Copilot features have been enabled and consented to in Business Central, businesses are ready to use them, allowing seamless integration and maximization of AI capabilities.
Activating Functions of Copilot AI in Business Central
While Microsoft defaults to enabling Copilot in the Business Central environment once it becomes generally available, specific features can be manually enabled or disabled as needed.
Here’s how you can enable and manage the features:
Access the Copilot & AI Capabilities Page
Navigate to the Copilot & AI capabilities section. This section displays all available Copilot features along with their current status. Features are divided into two categories: one for preview features and one for generally available features. You can switch them on or off as needed.
Enable a Feature
To turn on a feature, select it from the list and choose Enable.
Disable a Feature
To turn off a feature, select it from the list and choose Disable.
Grant Consent
Once you have enabled and given consent for the necessary Copilot features in Business Central, you’re ready to start using them.
Why Integrate AI with ERP?
Copilot enhances the functionality of Business Central with a diverse set of advanced features. Companies benefit from various tools, such as content creation, late payment prediction, bank reconciliation, inventory forecasting, and additional management functions. Here’s an in-depth look at the advantages:
Natural Language Prompts: Copilot, as a robust generative AI, can understand, process, and respond to natural language inputs. This facilitates easier interaction with the system. The intuitive feature streamlines workflows, saves time, and enables users to concentrate on strategic tasks by making navigation significantly more efficient.
Bank Reconciliation: Copilot improves reconciliation processes with advanced AI that verifies and matches transactions with ledger entries. This ensures accurate bank statements and account reconciliations, expediting a previously time-consuming task.
Content Creation and Product Listings: Copilot transforms content creation and product listings by generating content instantly based on relevant prompts. It can even analyze images to recommend product categories, descriptions, and attributes, enhancing content creation efficiency.