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Microsoft Introduces AI-Powered Dynamics 365 Contact Center

The new solution grants a 360-degree customer perspective, supported by live voice transcriptions and sentiment tracking


has announced the release of its Dynamics 365 Contact Center on July 1, an advanced CRM platform embedded with AI functionalities. According to Dynamics Corporate Vice President Jeff Comstock, the new tool aims to significantly improve customer service by utilizing state-of-the-art technology.

The Contact Center grants a 360-degree customer perspective, supported by live voice transcriptions and sentiment tracking. Features like real-time translation across digital channels and conversation summaries help reduce agent wrap-up time. Generative AI features help to automate tasks such as drafting emails and suggesting responses, further streamlining operations.

AI Capabilities and Features

Dynamics 365 Contact Center operates as a standalone contact-center-as-a-service (CCaaS) platform. Embracing a “-first” approach, the system uses Microsoft's cloud infrastructure to bring generative AI into various customer service functions. These include communication, self-service, intelligent routing, and agent assistance—aiming for streamlined and efficient operations.

Incorporating prebuilt Copilots and connecting with the low-code Microsoft Copilot Studio, the platform provides tools for creating custom, intelligent self-service interactions. Speech recognition and other intelligent voice features, sourced from the 2022 Nuance acquisition, further enhance its capabilities for both chat and voice communications.

AI-based features such as advanced routing ensure calls reach the best-suited agents. Additionally, tools for sentiment analysis, real-time transcription, and translation help customer service representatives quickly grasp customer needs. These features aim to improve KPIs and adapt to evolving customer demands.

Efficiency Gains

Microsoft highlights the benefits of AI-powered customer service systems through the example of its own Customer Service and Support (CSS) team. Before adopting Microsoft's first-party CRM tools, the CSS team relied on “16 different systems and over 500 individual tools“, according to Comstock. Since implementing Copilot, the team has seen significant efficiency improvements.

According to the company, its CSS team has achieved a 12 percent reduction in average handle time for chat engagements and a 13 percent decrease in the need for agents to seek peer assistance for incident resolution. More broadly, the team has experienced a 31 percent increase in first call resolution and a 20 percent reduction in missed call routes.

Managerial Tools for Operational Efficiency

Managers benefit from AI-augmented real-time reports that enhance efficiency. These capabilities enable service teams to identify issues proactively, improving KPIs and swiftly adapting to new challenges. Integrating ChatGPT provides further efficiencies and scales the platform's AI functionalities.

Markus Kasanmascheff
Markus Kasanmascheff
Markus is the founder of WinBuzzer and has been playing with Windows and technology for more than 25 years. He is holding a Master´s degree in International Economics and previously worked as Lead Windows Expert for Softonic.com.