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If your finance or supply chain team spends much of the day navigating ERP screens and toggling between Outlook, Teams, spreadsheets and Dynamics just to build a single picture, you’re far from alone and a better way of working is closer than you might think.

Microsoft’s Model Context Protocol (MCP) is one of the more meaningful shifts in enterprise software in recent years. Not because it makes AI sound smarter, but because it finally enables AI to do things. For teams running Dynamics 365 Finance and Supply Chain Management, that matters far more than another chatbot.

AI that advises vs AI that acts

The AI tools in use across most enterprises are, at their core, very capable text generators. They’ll summarise a document, draft an email, explain a concept. What they can’t do is log into your ERP, check a supplier’s delivery record, release a purchase requisition or reconcile a set of accounts. That work still falls to a person, working through a system that, in many cases, hasn’t really changed in a decade.

MCP changes that. Rather than sitting beside your business systems, AI connects directly into them — reading live data, applying your business logic and triggering actions inside Dynamics 365 Finance and Supply Chain Management. It’s the difference between an assistant that advises and one that actually does the work.

 

How MCP works

MCP is an open standard. It gives AI agents a common way to talk to any business system you’ve connected, so a single governed framework replaces what used to require a custom API for every integration point.

Until recently, connecting AI to Dynamics 365 meant building a bespoke integration. Connecting it to Teams meant building another. Linking it to your analytics environment, another still. MCP replaces all of that: build the connection once, and any agent you deploy can use it.

Microsoft introduced the Dynamics 365 Finance and Supply Chain Management MCP Server at Build 2025 and has moved quickly since. The latest version exposes hundreds of thousands of ERP functions — the same data and logic your people work with through the application interface to agents in real time, with no custom code.

 

What this looks like in practice

None of this is a future roadmap promise. Across finance and supply chain, there are practical, production-ready scenarios delivering results today:

Account reconciliation. Out-of-the-box agents reconcile subledgers against the general ledger, identify discrepancies and surface exceptions. Hours of manual cross-checking, gone.

Supplier selection. A procurement agent inside Dynamics 365 Finance and Supply Chain Management weighs price, lead time, stock availability and approved vendor status in real time, then recommends the right supplier for a given purchase order. No more chasing answers across multiple screens.

GRNI resolution. Agents track Goods Received Not Invoiced items, chase them up automatically through Teams and speed up invoice matching. Better cash flow without adding headcount.

Procurement data quality. Missing bank details, expired certifications, gaps in contact information — agents spot them, request the right details from the supplier and update the record themselves.

Inventory and supply planning. Ask: “What’s our on-hand stock for this item in the Manchester warehouse?” or “Which confirmed sales orders are at ATP risk this week?” You get an accurate, live answer straight from Dynamics 365 Finance and Supply Chain Management.

In each case, work that used to mean cross-referencing screens and toggling between systems now happens through a short prompt, in seconds.

 

Your security model doesn’t change

The MCP server applies your existing Dynamics 365 Finance and Supply Chain Management security roles and governance policies to every connected agent. An agent works within exactly the same boundaries as the user or role it is set up for. It sees only what that role can see and does only what that role is allowed to do. Your compliance posture, data governance and audit trail all remain exactly as they are. What changes is how quickly authorised work gets done.

 

You don’t need a development team to build this

Agents are built in Microsoft Copilot Studio, with no traditional coding involved. The MCP server handles the connection to your ERP environment. Copilot Studio handles the agent logic. A finance director or supply chain lead can put together a working proof of value without waiting months for a development cycle.

It’s good news for IT too. Because MCP is an open, industry-standard protocol rather than a proprietary connector, what you build today won’t turn into technical debt tomorrow. As Microsoft extends MCP across Azure, Power Platform and analytics, the agents you build now carry forward with you.

For most organisations, their ERP systems have been the place data lands once decisions have already been made. MCP turns Dynamics 365 into something that takes part in those decisions, runs the processes and closes the loop without someone navigating screens at every step.

This isn’t about replacing finance or supply chain teams. It’s about clearing away the admin, the context-switching and the screen-hopping that keep those teams from the work that genuinely needs their expertise.

 

What comes next

Microsoft is continuing to invest heavily here. A new MCP server for analytics is already in development, extending the same framework to business intelligence. This means teams will soon be able to query ERP analytics as conversationally as they handle any other process. As MCP becomes the standard across Dynamics 365, Azure and the wider Power Platform, organisations laying the groundwork now will be best placed as each new capability arrives.

 

See it in action — join our free webinar

On Wednesday 15 July at 12pm, Hitachi Solutions is hosting a free Teams webinar. Rob Sambrook, our AI Business Solutions Architect, and Siphesihle Mlangeni, Senior AI Solution Engineer at Microsoft, will explain what MCP is, demonstrate a live agent working inside Dynamics 365 Finance and Supply Chain Management, and talk through what a realistic first step looks like for your organisation today.

It’s aimed at finance and supply chain leaders, system administrators, product owners and enterprise architects already running Dynamics 365 Finance and Supply Chain Management who want to see what’s available right now rather than what’s promised in eighteen months’ time.

 

Sign up now