We need to talk about... Dynamics 365 Customer Service... Release Wave 2 for 2025

Next in my blog, I will launch a series on the changes we can expect to see as part of Release Wave 2 for 2025 and today’s article outlines the new features and functionality we can expect to see within Dynamics 365 Customer Service.

Microsoft’s 2025 Release Wave 2 for Dynamics 365 Customer Service introduces a whole series of new AI-driven enhancements and tools designed to help agents work smarter, resolve cases faster, and deliver more personalised customer experiences.

Administrator Experiences

The Customer Service Admin Centre now offers a unified, modern interface that brings together Customer Service, unified routing, and omnichannel administration in one intuitive app.

The guided setup makes it easier to configure new environments or enhance existing ones, while features such as health checks help maintain the best possible performance. Additionally, administrators can apply data sensitivity labels to emails for improved governance, with this feature entering public preview in January 2026.

Copilot & AI Innovation

Copilot is becoming deeply integrated into customer service workflows, delivering smarter automation and contextual assistance.

Knowledge base articles can now be automatically refreshed using the Customer Knowledge Management Agent, while AI-driven recommendations for email templates streamline communication. Copilot prompts embedded in templates and AI-generated partial email content help agents craft responses quickly and accurately.

Case lifecycle automation and evaluation agents further reduce manual effort, and supervisors gain visibility into AI agent activity through dedicated monitoring tools. These enhancements collectively empower agents to work faster and with greater confidence.

Service Representative Enhancements

Wave 2 introduces significant improvements to agent productivity. Multi-session capabilities allow agents to manage several customer interactions simultaneously, while session resiliency ensures work continuity even after browser refreshes.

Custom productivity tools provide flexibility for tailored workflows, and bulk actions on conversations simplify repetitive tasks. SLA timeout overrides add another layer of control, enabling agents to handle exceptions without disrupting service commitments.

Supervisor Tools & Management

Supervisors benefit from enhanced oversight and control features. Email templates can now be tagged by line of business for better organisation, and real-time routing monitoring provides visibility into intent and agent group performance.

These tools help supervisors optimise routing strategies and maintain service quality across teams.

Unified Routing Enhancements

Routing capabilities receive a boost with new options like automatic updates to agent capacity and presence when assignments occur.

Combined with existing features such as percent-based routing and overflow management, these refinements ensure workloads are distributed intelligently and efficiently.

Embracing the Power of AI

AI-driven capabilities are as you'd expected embedded right across this release wave. From automated case handling and contextual drafting to integrated monitoring and evaluation frameworks, these innovations reduce friction and elevate customer experiences.

Agents gain the tools to respond faster and more accurately, while supervisors and administrators enjoy greater control and insight, while also introducing significant improvements to agent productivity.

Summary

AI-driven capabilities are at the heart of this release wave. From automated case handling and contextual drafting to integrated monitoring and evaluation frameworks, these innovations reduce friction and elevate customer experiences. Agents gain the tools to respond faster and more accurately, while supervisors and administrators enjoy greater control and insight.

Hope you all enjoyed this post on the Dynamics 365 Customer Service Release Wave 2 for 2025. I will continue this series with some additional content specifically related to Dynamics 365 Customer Insight Journeys for Release Wave 2 for 2025. Take Care, Speak Soon!