This week’s Microsoft Build 2025 conference featured a wide range of AI integration products and initiatives, including broad support for the Model Context Protocol (MCP) specification, as well as multiple MCP servers designed to facilitate access from AI tools to external systems without building custom integrations.
Among the new products: A Dataverse MCP server that unlocks four new capabilities to be described in detail below, as well as Dynamics 365 ERP and CRM MCP servers that allow agents to work across processes and enable new autonomous scenarios for greater business performance — without silos that can otherwise impede AI-driven productivity gains.
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MCP connects AI agents to various systems where data resides, such as content repositories, business tools, and development environments. An MCP-compliant agent uses rich contextual information to act efficiently, unlike a non-MCP-compliant agent, which lacks necessary context.
Collectively, broad support for MCP and other integration initiatives are aimed at giving customers frictionless AI and agent interactions that span Microsoft and third-party software; multi-vendor, multi-agent interoperability has emerged as a core factor in unlocking the true power of agentic AI, and the MCP specification is increasingly being adopted by top software vendors, signaling collaboration to support such interoperability.
The integration products and initiatives complement other major announcements from Build including Microsoft 365 Copilot Tuning, multi-agent orchestration, and Microsoft 365 Agents Toolkit. Check out more in “Microsoft’s Latest Release Announcements Aimed at Streamlining Agentic AI, Increasing Accessibility.”
Dataverse in Focus
At the core of Microsoft’s MCP push is the Dataverse MCP Server, which turns structured information from Dataverse – the company’s data storage and management foundation underpinning Power Platform, Office 365, and Dynamics 365 — into knowledge that can be queried for agents built in Copilot Studio. This makes data usable on a conversational basis for both developers and users that are configuring agents and experiences.
Dataverse MCP Server drives four new capabilities:
- Queries that discover available tables and retrieve data through structured or natural language queries
- Knowledge and search that lets agents chat over data, search knowledge sources, and deliver contextual answers
- Creating and updating records, inserting new records, or updating existing ones with schema-aware mapping that maintains data integrity
- Generating outputs with custom grounding prompts and real business context such as summarizing a record or drafting a tailored response
In other Dataverse-centric agent developments:
- Dataverse knowledge functionality now connects structured and unstructured data — including Dynamics 365, Power Platform, and external systems — into a unified knowledge network that agents can reason over and act on, including in prompts. New improvements include support for multi-line text and file type columns in Dataverse knowledge.
- The knowledge platform in Microsoft Copilot Studio, powered by Dataverse, allows customers to use their own data — such as local files and Dataverse tables—as knowledge sources to build agents grounded in their proprietary content. That makes it easier to unify and operationalize knowledge across a company’s agent ecosystem.
- An enhanced Power Platform connector SDK makes it easier to bring structured external data into Power Apps, Dataverse, and Microsoft Copilot Studio. With the SDK, connectors can expose structured data like tables and metadata — not just raw APIs — making it easier to ground Copilot agents with business data as a knowledge source.
MCP Servers for Dynamics 365 ERP, CRM
Microsoft said the core goal with both of these MCP servers is to eliminate data and applications silos so agents can interoperate smoothly for improved, frictionless business functionality.
Using the MCP servers, users can connect agents to existing knowledge sources and APIs, facilitating direct interfaces with Dynamics 365 and CRM applications. Actions and knowledge synchronize automatically, facilitating real-time updates. These MCP servers are also available to Copilot Studio using connector infrastructure so they can employ enterprise security and governance controls such as data loss prevention and multiple methods of authentication.
Additional new Dynamics 365 AI functionality rolled out this week: Users can now search and reason over Dynamics 365 data such as contacts, accounts, leads, opportunities, and cases, directly within Microsoft 365 Copilot. This brings business and productivity data together without requiring users to switch tools or contexts.
Additional Interoperability Initiatives
In addition to the aforementioned MCP support, Microsoft is also delivering MCP support in its broadly used GitHub development platform, Copilot Studio, Azure AI Foundry, Semantic Kernel, and Windows 11. Microsoft and GitHub said they’ve joined the MCP Steering Committee to help drive secure, scalable adoption of the open protocol.
Finally, Microsoft introduced NLWeb, which makes it easy for websites to provide a conversational interface for users with the model of their choice and their own data, giving them opportunities to interact directly with web content in a semantic manner. The company said its aim for NLWeb is the play a similar role to HTML for the agentic web.
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