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Embracing the Agentic Era: The Transformative Power of Microsoft's Agentic AI for Businesses

By Fraser Dear, Head of AI and Data Innovation. Posted 16th January 2024

Artificial intelligence (AI) has heralded an era of unprecedented transformation and opportunity for businesses. With 68% of employees reporting that they do not having enough uninterrupted delivery time and 62% of employees spending too much time searching for information, now is the time to act.  

Among the AI advancements, Microsoft’s Agentic AI stands out as a pioneering innovation that is reshaping the way businesses operate, compete, and thrive. As business leaders, understanding the significance of the Agentic Era and the transformative potential of Agentic AI is key to steering your organisations toward sustained profitability and growth. 

Understanding Microsoft’s Agentic AI 

Agentic AI is an advanced form of artificial intelligence developed by Microsoft that embodies the principles of autonomy, adaptability, and collaboration. Unlike traditional AI systems that rely on predefined rules and static algorithms, Agentic AI is designed to operate autonomously, learn dynamically from its environment, and collaborate seamlessly with humans and other AI systems and automations. This capability enables businesses to benefit from the full potential of AI in a more flexible, intelligent, and context-aware manner. 

What makes Agentic AI different? 

  1. Autonomous Decision-Making: These AI agents can analyse real-time data and make decisions aligned with predefined objectives without constant human intervention 
  2. Adaptability: They can evolve based on changing circumstances, learning from their environment to improve their performance over time 
  3. Memory and Planning: Agents possess memory to recall past interactions and experiences, and planning capabilities to predict future states and select optimal actions 
  4. Tool Usage: Agents can utilise various tools, including APIs and external software, to execute code, query databases, and interact with other systems 
  5. Multi-Agent Collaboration: Agents can work together as a system of agents that converse and collaborate with each other to solve complex tasks 
  6. Frameworks: Microsoft provides frameworks like AutoGen and Semantic Kernel to build and orchestrate these agentic AI systems

These features make Agentic AI systems highly versatile and capable of handling complex workflows autonomously compared to process flows and business logic applications where each step is preconceived.  By understanding the context in which they operate, Agentic AI systems can provide more relevant and effective solutions. 

The Importance of the Agentic Era in Business 

One of the most significant benefits of Agentic AI is its ability to streamline and optimise business processes. By automating routine and repetitive tasks, Agentic AI frees up valuable human resources, allowing employees to focus on higher-value activities that require creativity, critical thinking, and strategic insights. This boosts productivity whilst reducing operational costs, contributing to improved profit margins. 

The AI Opportunities Action Plan has demonstrated how AI is now a part of our everyday so delivering exceptional customer experiences is becoming a critical differentiator for businesses. Agentic AI enables businesses to provide personalised and context-aware interactions with customers, leading to higher satisfaction and loyalty.  

For example, AI-driven chatbots and virtual assistants can offer real-time support, resolve queries, and recommend products tailored to individual preferences, thereby enhancing the overall customer journey. 

The adaptive nature of Agentic AI allows businesses to stay ahead of market trends and respond swiftly to changing customer needs and competitive pressures. By continuously learning from your data and insights, Agentic AI can identify emerging opportunities, predict market shifts, and recommend innovative solutions. This agility is crucial for businesses seeking to maintain a competitive edge and drive sustainable growth. 

So What are Agents?  

Imagine an AI agent as a very smart and helpful assistant that lives inside your flow of work.  These assistants can understand what you need, make decisions on their own, and perform tasks for you without needing constant instructions or prompting. 

For example, if you ask it to analyse a customer’s buying habits, it can check the current orders, consider seasonality, review historic orders and suggest their current buying indicators and suggestions from other similar customers with a similar profile.  

Microsoft’s flagship AI experience is Microsoft Copilot which is embedded in many Microsoft applications as well as the Microsoft 365 Copilot which enables AI in M365 applications and Business Chat which can be seen in this Microsoft YouTube video 

Microsoft’s approach is that Copilot is the User Interface (UI) for Artificial Intelligence (AI) and as such, Agents are surfaced to users through the Copilot experience.   

Agents in Copilot Studio 

Agents are created in Copilot studio which is part of the Microsoft Power Platform enabling customised agents to be created and surfaced through the Microsoft Copilot experience.  This means that the user experience is bound by the same Data Protection and Security features central to Microsoft’s security position as demonstrated below. 

Microsoft Agentic AI Diagram

The scale of adoption is significant with over 100,000 organisations already creating or customising agents driving their business forward through AI. 

Agents in Existing Microsoft Applications 

Agents are being rolled out throughout the Microsoft product stack with specific skills and abilities for different use cases and technologies.  Two examples of this are within SharePoint and Dynamics where data specific and specific use cases have been agentified to create powerful platforms for business users. 

Agents in SharePoint 

SharePoint is the workhorse of many businesses to manage documents, projects, team deliverables and general storage of data.  For small SharePoint sites with limited document storage, finding the most up to date or specific insight is relatively straightforward however as the repository grows in scale, complexity and time, it becomes more challenging to find the specific up to date insight you need.  The new SharePoint agent has been built specifically to make information and insight recall from a SharePoint site a simple activity.  The default Agent can be customised and extended using Copilot studio to bring deeper and specific business value to your users making Agents work for your team. 

Microsoft are rolling this feature out now and the following video and Microsoft site shows the power and speed of this Agentic experience.  

Agents in Microsoft Dynamics & Business Central 

Microsoft are also in the process of launching 10 new Agents in Microsoft Dynamics and Business Central enabling customers to move from legacy lines of business applications to AI-first business process.  These new agents are designed to help every sales, service, finance and supply chain team drive business value.  Generally these Agents are due to enter Public Preview Q1 2025, some of which going into General availability in April 2025 however these dates are subject to change.  

  • Sales Qualification Agent: Analyses and prioritises inbound leads and crafts personalised sales emails to commence or enhance relationships. 
  • You can watch the experience here. 
  • Supplier Communications Agent: Manages supplier relationships, collaborating with suppliers to confirm deliveries and navigate potential setbacks with the goal of preventing supply chain disruptions. 
  • You can watch the experience here 
  • Financial Reconciliation Agent: Designed for data preparation and cleansing, makes it quicker and easier to organise data for financial reporting commitments. 
  • Account Reconciliation Agent: Built for accountants and controllers, it accelerates the financial closing process by automating transaction clearing and matching between a company’s sub-ledgers and its general ledger. 
  • Time and Expense Agent: Responsible for managing time entry, expense tracking, and approval workflows, it streamlines the invoicing process and helps organisations manage budgets. 
  • Customer Intent Agent: Identifies intent from existing and previous customer conversations, and maps issues and related resolutions in a managed library. 
  • You can watch the experience here.  
  • Customer Knowledge Management Agent: By constantly analysing case notes, transcripts, summaries, and other materials, it ensures knowledge articles are always up to date. 
  • You can watch the experience here. 
  • Case Management Agent: Service staff can use this agent to automate common case management tasks including creation, resolution, follow-up, and closure. 
  • Scheduling Operations Agent: Provides dispatchers with a means to deliver dynamic, optimised schedules to field-service technicians. 
  • Sales Qualification Agent: In a profession where time literally equals money, this agent enables sellers to focus their time on the highest priority sales opportunities while the agent research leads, helps prioritise opportunities and guides customer outreach with personalised emails and responses.  
  • Supplier Communications Agent: This agent enables customers to optimise their supply chain and minimise costly disruptions by autonomously tracking supplier performance, detecting delays and responding accordingly — freeing procurement teams from time consuming manual monitoring and firefighting.  
  • Customer Intent and Customer Knowledge ManagementAgents: A business gets one chance to make a first impression, and these two agents are game changers for customer care teams facing high call volumes, talent shortages and heightened customer expectations. These agents work hand in hand with a customer service representative by learning how to resolve customer issues and autonomously adding knowledge-based articles to scale best practices across the care team.  

As agents become more prevalent in the enterprise, customers want to be confident that they have robust data governance and security. The agents coming to Dynamics 365 follow Microsoft’s core security, privacy and responsible AI commitments. Agents built in Copilot Studio include guardrails and controls established by maker-defined instructions, knowledge and actions.   

IT Governance Controls for Your Copilot agents – Microsoft Power Platform Blog 

The data sources linked to the agent adhere to stringent security measures and controls — all managed in Copilot Studio. These include data loss prevention and robust authentication protocols. 

Realising Profit Through Agentic AI 

The goal of most business initiatives is to realise profit and drive shareholder value. Microsoft’s Agentic AI offers several pathways to achieve this objective by enhancing operational efficiency, driving innovation, and creating new revenue streams. 

Cost Reduction and Efficiency Gains 

By automating labour-intensive processes and optimising resource allocation, Agentic AI helps businesses achieve significant cost savings. For example, in manufacturing, AI-driven predictive maintenance can minimise equipment downtime and extend the lifespan of machinery, reducing maintenance costs. In logistics, AI can optimise route planning and inventory management, leading to lower transportation and storage expenses. 

Revenue Growth Through Personalisation 

Agentic AI’s ability to deliver personalised experiences translates into higher customer engagement and retention. Businesses can leverage AI-driven insights to create targeted marketing campaigns, recommend products that align with customer preferences, and offer tailored loyalty programs.  

This personalised approach enhances customer satisfaction whilst driving repeat purchases and increases lifetime customer value. 

The Future of Business in the Agentic Era 

As we move into the Agentic Era, the importance of embracing Microsoft’s Agentic AI cannot be overstated. This transformative technology empowers businesses to operate more efficiently, innovate continuously, and deliver exceptional customer experiences. By leveraging the autonomy, adaptability, and collaboration capabilities of Agentic AI, business leaders can position their organisations for long-term success and profitability. 

The potential benefits of Agentic AI are vast, and with 70% of employees stating they would delegate work to AI to lessen their workloads and in 2024 business reported an average of 3.7x return on generative AI investment, the time to act is now.  

We encourage any business to explore the transformative potential of Agentic AI and how it can seamlessly integrate into your business strategy. One of the most effective ways to get started is by partnering with a leading Microsoft Partner. As a Microsoft Cloud Solutions Provider, BCN is among the first to access and adopt the latest advancements in AI technology. Backed by years of experience, our team includes some of the most skilled AI experts in the industry. 

Collaborate with BCN to unlock the full potential of AI in your organisation. Together, we can accelerate growth, enhance services, and ensure your business stays ahead in an AI-driven world. Contact BCN today to discover how Microsoft’s Agentic AI can propel your business forward in the Agentic Era. 

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