I work hands-on with Dynamics 365 Business Central daily. People often ask me how Microsoft integrates AI into its ERP system. The integration is meaningful and secure. One of the most exciting developments recently has been the Copilot features in Business Central, powered by Azure OpenAI Service. Here’s my perspective on how it works. I’ll also explain what data it uses. It’s a big deal for users and organizations alike.
🤖 Copilot Meets Business Central
The Business Central Copilot is not just a chatbot. It’s a context-aware, AI-powered assistant that helps users:
- Find and explore customer data
- Perform analysis directly on lists (e.g., Items by category)
- Reconcile bank transactions faster
- Generate draft documents such as sales lines or emails
- Help navigate and understand Business Central features
All of this is made possible by the Azure OpenAI Service, a Microsoft-hosted and enterprise-grade secure implementation of OpenAI models.
Data Flow: What Gets Shared and What Stays Safe
Every time Copilot runs a task, here’s what happens under the hood:
- Your prompt (like “show customer Adatum”) and related business data (such as table names, field tooltips, captions, and options) are sent to Azure OpenAI.
- This information is scoped and filtered based on the same data access permissions of the user operating Copilot.
- No personal or business data is used to train models. Microsoft only stores prompt/output data for 24 hours, and only for abuse monitoring.
- Importantly, the entire Business Central database is never moved to Azure OpenAI, and regional data boundaries are maintained.
This means even though you’re leveraging AI, you’re still fully protected by Business Central’s compliance framework.
Real-World Examples: What AI Actually Sees
Here are a few examples of how AI in Business Central works:
| Copilot Feature | User Action | Data Sent to Azure OpenAI |
|---|---|---|
| Chat | “Show customer Adatum” | System instructions, object names, field metadata |
| Analysis Assist | “Items by category” on the Items list page | Column captions, tooltips, option field values |
| Bank Reconciliation Assist | Reconcile action on bank page | Bank transaction descriptions, dates, amounts, G/L records |
| Draft Sales Line Generation | Ask Copilot to “Add items from last invoice” | Prior invoice items, line details, system guidance |
| Email Assistance | Compose email for a customer | Contact info, relevant sales/purchase info, instruction text |
Let’s say you’re in Sales and ask Copilot to draft a new order based on the customer’s past behavior. Business Central pulls relevant data—like frequent items, prices, and delivery dates—and combines it with your prompt. The AI then returns a pre-filled sales line suggestion you can review and post.
Why It Matters to Me
As a Business Central Product Manager and Solution Architect, I regularly demo these AI capabilities to customers in utility, government, and non-profit sectors. These clients often have high compliance and data security concerns. What gives me confidence is knowing that:
- Business data is never used to train OpenAI models.
- All user interactions are permission-scoped.
- The entire data flow is transparent and auditable.
With Azure OpenAI and Business Central, we’re not just delivering ERP—we’re delivering insights, automation, and smarter ways to work.
Final Thoughts
Azure OpenAI + Business Central is a great example of responsible AI in action. It shows how Microsoft is pushing the envelope while still keeping security, privacy, and compliance front and center.
If you’re a BC consultant, developer, or user, understanding how these systems integrate is no longer optional—it’s essential. Because the future of ERP is intelligent, secure, and deeply personalized.
Dynamics Decoded 
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