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Contact Center - The Newest Business Application in the Microsoft Dynamics Portfolio

Thursday, June 26, 2025
Reading time: 10 minutes

Microsoft Dynamics 365 Contact Center is the latest addition to the Dynamics 365 portfolio, designed to revolutionise customer service operations through AI-powered automation, omnichannel engagement and deep CRM integration. Built as a Copilot-first, cloud-native solution, Contact Center empowers organisations to deliver seamless, intelligent, and personalised customer experiences across every engagement channel.

Nuance Acquisition

In April 2021, Microsoft announced the acquisition of Nuance Communications, a leader in conversational AI. This acquisition significantly bolstered Microsoft’s capabilities in AI-driven customer engagement solutions. The Nuance technology, particularly its advanced speech recognition and natural language understanding, has been integrated into Dynamics 365 Contact Center. This integration enables sophisticated conversational Interactive Voice Response (IVR) systems and helps enhance the overall customer service experience with more intuitive and responsive interactions.

For example, instead of “Press one for sales, two for support, three for…” the technology can be used to enable voice response to questions such as “Tell me how I can help you today?”

Contact Center

Dynamics 365 Contact Center is a standalone, cloud-based contact center platform that can integrate with Dynamics 365 Customer Engagement and other CRM systems. It combines generative AI, omnichannel communication, and intelligent routing to help enhance customer and contact center service professionals’ experiences.

Benefits of Dynamics 365 Contact Center

  • Copilot-Powered Assistance: Embedded AI helps agents resolve issues faster, generate summaries, and automate repetitive tasks.
  • Omnichannel Support: delivers consistent experiences across all communication channels such as voice, SMS, chat, email, social media, and Microsoft Teams for unified customer interaction.
  • Conversational IVR: Powered by Microsoft Copilot Studio and Nuance, enabling voice-based self-service with natural language understanding.
  • Unified Routing: AI-driven routing assigns work items to the most suitable agent based on skills, priority, and availability, helping reduce call handling time.
  • Real-Time Analytics: Real-time insights into agent performance, customer sentiment, and operational metrics, with supervisor dashboards for where real-time performance monitoring and intervention are essential.

Licensing Overview

Dynamics 365 Contact Center is available as a standalone product or is included with Dynamics 365 Customer Service Premium, licensing includes access to Copilot features, IVR, and omnichannel capabilities.

Commercial Opportunities for Partners

Dynamics 365 Contact Center opens new avenues for Microsoft partners:

  • AI-Driven Service Transformation: Deliver Copilot-powered solutions that reduce costs and improve customer satisfaction.
  • CRM Integration Services: Help clients integrate Contact Center with their existing CRM systems.
  • Custom IVR and Routing Solutions: Build tailored voice and workflow experiences using Copilot Studio and unified routing.
  • Analytics and Reporting: Offer advanced dashboards and insights for operational optimisation.

Conclusion

Dynamics 365 Contact Center represents a significant leap forward in customer service technology. By combining generative AI and omnichannel capabilities, it empowers organisations to deliver exceptional service experiences. For Microsoft partners, it presents a compelling opportunity to drive innovation, improve customer outcomes, and expand service offerings in the rapidly evolving contact center landscape.

Chris Parkes
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