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Leveraging AI and ML Features in Dynamics 365 Finance & Operations

Microsoft Dynamics 365 Finance, along with its companion application Dynamics 365 Supply Chain Management, is a comprehensive business management solution that brings together various business processes into a unified system.

The integration of artificial intelligence (AI) and machine learning (ML) in these apps, commonly known by their former name, Dynamics 365 Finance & Operations (F&O), has revolutionized how businesses operate, transforming traditional enterprise resource planning (ERP) features into intelligent, efficient, and highly responsive systems. This transformation enhances operational efficiencies, improves decision-making, and provides actionable insights for better business outcomes.

This blog explores the AI and ML features in Dynamics 365 F&O and how they can benefit your business.

AI/ML Capabilities in Dynamics 365 Finance

Finance Insights in Dynamics 365 Finance combines the power of Dataverse, Azure, and AI Builder to provide advanced forecasting and analytical tools. These tools help businesses improve financial planning and operational efficiency.

Budget Proposals

AI enhances the budgeting process by generating intelligent budget proposals. These proposals consolidate and analyze years of historical data to predict future budgets accurately.

  • Accuracy: AI-driven budget proposals use historical data to make accurate predictions, improving financial planning and resource allocation.
  • Efficiency: By automating the budgeting tasks, AI saves time and reduces manual errors, allowing finance teams to focus on strategic planning.

Cash Position and Cash Forecasting

Cash position and forecasting features help businesses manage their cash flow effectively by providing accurate projections of cash receipts and disbursements.

  • Cash Position: This feature provides a near-term projection of cash flow based on outstanding invoices and purchase orders. It helps businesses maintain liquidity and avoid cash shortages.
  • Cash Forecasting: Using machine learning, this feature forecasts cash flow more accurately than traditional methods, helping businesses plan for future financial needs.

Customer Payment Predictions

AI-driven customer payment predictions provide insights into the likelihood of customers paying their invoices on time.

  • Improved Collections: By predicting payment behaviors, businesses can prioritize collections efforts and reduce overdue receivables.
  • Better Customer Management: This feature helps in identifying customers who might need more attention, enabling personalized communication and improving customer relationships.

Expense Receipt Processing

Expense receipt processing in Dynamics 365 Finance uses optical character recognition (OCR) and AI to automate expense entry and processing.

  • Automation: By using OCR to extract data from receipts, the system automatically populates expense reports, reducing manual data entry and associated errors.
  • Efficiency: This automation speeds up the expense management process, allowing employees to focus on more value-added tasks.

Copilot in Dynamics 365 Finance

Copilot in Dynamics 365 Finance enhances productivity by providing AI-generated summaries and assisting with administrative tasks.

  • Collections Workspace Timeline Summary: Copilot provides comprehensive summaries of customer accounts, overdue invoices, and payment histories, helping collections managers prioritize their tasks efficiently.
  • Administrative Assistance: Copilot automates data gathering and report management, generating customer email communications, and much more, ensuring accuracy and consistency while freeing up time for strategic activities.

AI/ML Features in Dynamics 365 Supply Chain Management

Demand Forecasting

Demand forecasting uses AI to predict future demand based on historical sales data and market trends.

  • Accurate Predictions: AI-driven demand forecasting improves accuracy, helping businesses optimize inventory levels and reduce stockouts.
  • Integration with Azure Machine Learning: This integration allows businesses to leverage advanced ML models hosted on Azure for even more precise demand forecasts.

Inventory Management with AI

AI enhances inventory management by providing insights and allowing natural language queries.

  • Enhanced Insights: AI-driven insights help businesses make informed decisions about inventory levels, reducing excess stock and minimizing shortages.
  • Natural Language Querying: Users can query inventory levels using natural language, making the system more user-friendly and efficient. For example, you can simply ask the system “How many blue pants do we have in stock?” and receive accurate results, without having to know where they’re located, or how they’re categorized.

Additional AI-driven Features in Dynamics 365 Supply Chain Management

  • Proactive Disruption Management: AI identifies potential disruptions in the supply chain and suggests proactive measures to mitigate them.
  • In-flow Work Enhancements: AI provides real-time assistance within workflows, reducing the need for switching between tasks and improving overall productivity.
  • AI and Machine Learning Based Forecasts: These advanced forecasts integrate data from various sources to provide comprehensive demand predictions, helping businesses plan more effectively.

Power Platform and AI/ML Integration

The Power Platform allows businesses to build custom AI and ML models to enhance Dynamics 365 applications.

  • Custom AI Solutions: Businesses can create custom AI models tailored to their specific needs, further optimizing their operations.
  • Integration Benefits: By integrating custom AI solutions with Dynamics 365, businesses can unlock additional efficiencies and insights, driving better business outcomes.

Ride the AI Wave with Dynamics 365 and a Partner You Can Trust

The integration of AI and ML in Dynamics 365 Finance & Operations offers numerous benefits, including improved decision-making, enhanced operational efficiency, and automated routine tasks. By leveraging these advanced capabilities, businesses can gain a competitive edge, streamline their operations, and achieve higher levels of efficiency.

Embrace the future of business management by adopting AI-powered Dynamics 365 solutions. Contact CogentNext Technologies today for expert guidance on how to get started.

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