Dynamics 365

At NRF 2026, Microsoft unveiled its vision for agentic AI as a foundational layer for retail e-commerce, emphasizing a shift towards protocol-driven, cooperative AI architectures that integrate seamlessly with ERP and commerce systems to orchestrate holistic retail experiences.

Microsoft is evolving ERP through Dynamics 365 to actively manage rental operations and address fragmentation in asset utilization by introducing rental-specific capabilities that enhance workflows, financial clarity, and customer experiences in a cloud-based, AI-extended ecosystem.

Retail tech giants SAP, Microsoft, and Workday are leveraging AI to transform commerce operations into integrated, agent-driven systems at the NRF 2026 event, showcasing a shift from isolated applications to comprehensive retail infrastructure.

Microsoft is deepening its collaboration with OpenAI by leveraging the startup's custom chip designs for its own semiconductor strategy, while addressing concerns about AI hardware depreciation, which may influence enterprise decisions on long-term cloud and AI investments.

Microsoft is transforming its Dynamics 365 ERP by upgrading its Model Context Protocol from a static toolset to a dynamic, real-time gateway, integrating analytics and allowing extensive access to ERP functions for improved AI-enabled operations by December 2025.

Georg Glantschnig of Microsoft emphasizes that future ERP systems must not only support but also run business processes, highlighting a shift towards agentic AI and adaptability over traditional rigidity.

Microsoft is transforming ERP systems from traditional user-initiated processes to intelligent, autonomous platforms that execute tasks independently, emphasizing continuous business value and adapting to user needs rather than the other way around.