Agentic ERP glossary: agents, MCP, Foundry and D365

In 2025-2026 Microsoft introduced new vocabulary around AI and ERP. Here are short definitions, each taken from a Microsoft source cited at the bottom of the page and linked to the article that covers the topic for Dynamics 365 Finance & Operations. Last checked: 11 Oct 2026.

An AI program that performs tasks for a user or autonomously, using tools. Microsoft describes agents as "expert systems that surface in different channels, including in the background of Copilot". In F&O, an agent acts with the rights of the security role assigned to it. See Copilot Studio agents for D365 F&O.

Microsoft platform for creating and managing custom agents, workflows and apps with no code. You add the Dynamics 365 ERP MCP server to it as a tool so an agent can act in F&O. See Copilot Studio agents: what still needs X++.

An open standard that connects AI agents to data systems; it standardises how applications provide context to large language models. Microsoft uses it to expose F&O to agents. See Dynamics 365 ERP MCP server.

Microsoft server giving agents three tool families on F&O: data (CRUD through data entities), forms (navigation like a user) and actions (X++ classes exposed as tools). Everything is filtered by the agent's security role. The old "static" 13-tool version is retired on 1 October 2026. See what F&O developers need to know.

Azure platform that unifies agents, models and tools under a single management grouping, with tracing, monitoring, evaluations, role-based access control (RBAC), networking and policies. Formerly Azure AI Foundry. It underpins the Agent Landing Zone. See AI landing zone for your agents.

Reference Azure architecture published by Microsoft for deploying secure, resilient AI apps and agents (Portal, Bicep, Terraform). It includes the Agent Landing Zone (Foundry) and the AI Gateway Landing Zone (Azure API Management). In preview. See do you need one for D365 F&O agents?.

Term from Microsoft's 2025 Work Trend Index: an organisation structured around on-demand intelligence and hybrid human + agent teams. At Ignite 2025, Microsoft added that it puts Copilot, agents and agentic business applications at the core of its operating model. See Frontier Firm and ERP.

Vision Microsoft shared in October 2025: business applications built on agents, Copilot and unified data. See Frontier Firm and ERP.

Phrase Microsoft used at Ignite 2025 to present Dynamics 365: a system where agents do not just read data but trigger business operations. See Frontier Firm and ERP.

The single roadmap where Microsoft has published, continuously since September 2026, new Dynamics 365, Power Platform and Dataverse capabilities. It replaces release waves 1 and 2; Release Planner retires by 15 Nov 2026. Each item moves through In Development, Rolling Out and Launched. See release waves retired.

Microsoft MCP server that lets organisations pull AI at Work roadmap data into their own AI tools. See release waves retired.

X++ class that implements the ICustomAPI interface, carries the CustomAPI attribute and is covered by a privilege; it becomes an action an agent can call through the MCP server. A preview feature according to Microsoft Learn. See Copilot Studio agents: what still needs X++.

To have these classes, data entities and roles built: AI X++ development and Basic, Pro and Max plans. For context: building X++ without a consultant in 2026.

• Microsoft, "Microsoft Copilot Studio", accessed 11 Oct 2026.
• Microsoft Learn, "Use Model Context Protocol for finance and operations apps", updated 18 Aug 2026, accessed 11 Oct 2026.
• Microsoft Learn, "What is Microsoft Foundry?", updated 13 Aug 2026, accessed 11 Oct 2026.
• GitHub, Azure, "AI Landing Zones", accessed 11 Oct 2026.
• Microsoft WorkLab, "2025: The Year the Frontier Firm Is Born", 23 Apr 2025, accessed 11 Oct 2026.
• Microsoft Dynamics 365 Blog, "Microsoft Ignite 2025: Powering Frontier Firms with agentic business applications", 18 Nov 2025, accessed 11 Oct 2026.
• Microsoft Dynamics 365 Blog, "One always-on roadmap", 25 Aug 2026, accessed 11 Oct 2026.
• Microsoft Learn, "Create AI tools with finance and operations business logic (preview)", accessed 11 Oct 2026.