Microsoft is pleased to announce the latest milestone in its journey toward modernizing customer service: Microsoft Dynamics 365 Contact Center, a Copilot-first contact center solution that brings generative AI to every customer engagement channel.
With general availability starting July 1, this standalone Contact Center as a Service (CCaaS) solution enables customers to maximize their existing investments by connecting to preferred customer relationship management (CRM) systems or custom applications.
With this solution, Microsoft reaffirms its commitment to transforming customer service through innovative technologies—helping businesses stand out in a competitive landscape and deliver service excellence.
Customer service expectations are higher than ever. It’s not just frustrating for customers to deal with long wait times, incorrect transfers, or having to repeat themselves multiple times—it’s bad for business. When customers have poor service experiences, over half end up spending less or take their business elsewhere (Qualtrics).
Generative AI is transforming customer service and revolutionizing how contact centers operate—from delivering rich voice and digital experiences that enable customers to resolve their needs independently to equipping agents with relevant context in the flow of work, ultimately unifying operations to improve efficiency and reduce costs.
We’ve seen the transformational impact of generative AI firsthand within Microsoft’s own Customer Service & Support (CSS) team—one of the largest customer service organizations in the world. Before migrating to Microsoft’s own tools, CSS used 16 different systems and over 500 individual tools—slowing down service, complicating collaboration, and creating inefficient workflows.
With Copilot integrated into the solution, the CSS team saw a 12% reduction in average handle time for chat interactions and a 13% drop in agent escalations. More broadly, CSS recorded a 31% increase in first-call resolution and a 20% reduction in misrouted cases.
Applying insights from our internal Copilot use along with multi-year investments in voice and digital channels, the Dynamics 365 Contact Center infuses generative AI throughout the entire contact center workflow—covering communications channels, self-service, intelligent routing, agent services, and assisted operations—to help contact centers resolve issues faster, empower agents, and reduce costs.
Moreover, Dynamics 365 Contact Center is natively built on the Microsoft Cloud to deliver extensive scalability and reliability across voice, digital channels, and routing—while allowing organizations to preserve their current CRM systems or custom applications.
Key features of Dynamics 365 Contact Center include:
Next-Generation Self-Service: With sophisticated, pre-integrated copilots for digital and voice channels that enable personalized, context-aware conversations, contact centers can deliver rich self-service experiences. By combining Nuance’s advanced IVR capabilities with the no-code/low-code designer in Microsoft Copilot Studio, contact centers can deliver engaging, AI-powered customer experiences.
Accelerated Human-Assisted Service: Across all channels, unified and intelligent routing directs inquiries requiring human assistance to the most suitable agent, improving service quality and efficiency. When a customer reaches an agent, Dynamics 365 Contact Center provides a 360-degree view of the customer, enhanced with generative AI. Real-time conversation tools like sentiment analysis, translation, conversation summarization, transcription, and more are included to improve the experience. Additional AI features automate repetitive agent tasks such as case summarization, email drafts, suggested replies, and the Copilot’s ability to answer agent queries using trusted knowledge sources.
Operational Efficiency: A contact center’s performance depends just as much on what happens behind the scenes as it does on agent and customer experiences. This solution helps service teams detect issues early, improve key KPIs, and adapt rapidly. With real-time, AI-generated reporting, Dynamics 365 Contact Center enables service leaders to optimize operations across all support channels, including workforce performance.
Talk to our expert consultants and discover how we can accelerate your business with innovation and efficiency. Our mission is to help you grow and thrive.
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