Baarez February 10, 2025
Microsoft has announced that it will lose out Smart Assist in Dynamics 365 Customer Service by the end of 2025. This decision aligns with Microsoft’s shift toward AI-driven enhancements, particularly through its Copilot technology.
Smart Assist is an AI-powered tool that provides customer service agents with real-time, contextual recommendations. Integrated into the agent desktop, it pulls insights from knowledge articles and similar cases to guide interactions. Additionally, it suggests and executes automated actions to streamline workflows.
Despite its functionality, Microsoft has deemed Smart Assist unnecessary with the growing capabilities of Copilot, a more advanced AI solution embedded across Dynamics 365 applications.
Why Is Microsoft Retiring Smart Assist?
In an official blog post, Rushil Vora, Program Manager for Dynamics 365 Customer Service, stated:
“We recommend customer service organizations that are using Smart Assist capabilities turn on Copilot to enhance customer service rep productivity. We are continuously updating and enhancing Copilot to provide the best customer support.”
Microsoft first notified customers about the discontinuation of Smart Assist on January 21, 2025. Several key milestones will mark its phase-out:
- February 10, 2025 – Microsoft will stop investing in Smart Assist and disable it for new environments.
- June 2, 2025 – Product support for Smart Assist will officially end.
- December 31, 2025 – Smart Assist will be fully removed from all Dynamics 365 Customer Service environments.
Can Copilot Replace Smart Assist in Dynamics 365 Customer Service?
Copilot brings AI-powered automation to Dynamics 365 Customer Service, offering features such as:
- Auto-drafting customer responses for live chat and email.
- Summarizing cases to improve resolution times.
- Advanced knowledge retrieval for more accurate recommendations.
While Copilot enhances automation, some businesses may still prefer Smart Assist’s capabilities, particularly for managing complex omnichannel interactions. To bridge this gap, Microsoft recommends the following alternatives:
- Copilot’s Ask-a-Question Feature – Enables agents to retrieve relevant knowledge articles across all digital channels.
- Azure Bot Service – Allows businesses to develop a custom Smart Assist bot for knowledge-based recommendations.
- Customer Knowledge Management Agent – Launching in April 2024, this AI-driven solution scans resolved cases to update knowledge bases, potentially enhancing Copilot’s recommendation system.
- Copilot Studio – Provides businesses with the ability to build custom case-handling plug-ins, though this approach requires more resources.
Microsoft’s Vision for Customer Service Evolution
The discontinuation of Smart Assist is part of Microsoft’s broader strategy to centralize its customer service offerings within Dynamics 365. Notably, this marks the second major service retirement in recent months, following the discontinuation of:
- Dynamics 365 Unified Service Desk (USD) – A solution that unified multiple applications on an agent desktop.
- Customer Service Hub (CSH) – A similar agent interface application, which Microsoft will stop selling in February 2025.
Microsoft is shifting its customer service approach towards a single, AI-driven environment powered by Copilot. This transition gained momentum with the launch of Microsoft Dynamics 365 Contact Center in 2023, further integrating CCaaS, CRM, and AI-driven automation.
Introducing Dynamics 365 Customer Service Premium
To facilitate this transformation, Microsoft introduced Dynamics 365 Customer Service Premium in 2024. This package combines:
- Dynamics 365 Customer Service Enterprise
- Dynamics 365 Contact Center
With Copilot acting as the connective AI across these systems, businesses can expect enhanced automation and deeper insights across customer interactions. Priced at $195 per user per month, this premium offering aims to streamline customer support operations while leveraging Microsoft’s latest AI innovations.
Source: Microsoft
What Should Businesses Do Next?
Organizations currently using Smart Assist should begin transitioning to Copilot or explore Microsoft’s suggested alternatives. Businesses that require customized automation may consider leveraging Copilot Studio or integrating AI-driven solutions like Azure Bot Service and Customer Knowledge Management Agent.
As Microsoft continues to expand its AI capabilities, companies leveraging Dynamics 365 can expect further advancements in customer service automation, helping agents work more efficiently and improving overall customer experience.
Final Thoughts
The retirement of Smart Assist signifies Microsoft’s commitment to AI-first customer service solutions. While some organizations may need to adapt to the transition, Copilot’s growing capabilities provide a promising path forward. Businesses should start evaluating their current customer service workflows and explore new AI-powered features to stay ahead in the evolving digital landscape.
