In retail, speed is everything. Yet the reality for most organizations tells a different story. Planning a new season or launching a sales channel can take days or even weeks. Teams find themselves scrambling through spreadsheets, managing complex assortments, navigating approval chains, and coordinating sales activities across disconnected systems.
Meanwhile, customers are moving faster than ever. They shop across apps, engage through chat platforms, and expect seamless experiences across new digital touchpoints. The gap between customer expectations and retail operations has never been wider.
It’s time for a new way to work, humans and AI agents, collaborating together.
The New Retail Operating Model
Agentic Commerce represents a fundamental shift in how retail teams operate. Instead of working in isolation across disconnected tools, merchandisers, planners, and marketers now collaborate with AI agents embedded directly within their workflow.
Consider a typical scenario: a merchandiser and marketing manager preparing for a winter collection launch. In traditional retail operations, this process involves countless hours of manual coordination. With Agentic Commerce, they work alongside AI retail agents built using Microsoft Copilot Studio and integrated with Dynamics 365 and Microsoft Teams, where ideas flow naturally, trends surface automatically, and decisions align in real time.
Orchestrating Tasks Across Systems
The power of Agentic Commerce lies in intelligent orchestration. As teams chat and collaborate, Retail Agent springs into action behind the scenes, coordinating tasks across multiple systems without manual intervention.
Catalog Enrichment
The agent engages specialized catalog enrichment capabilities to capture product ideas and instantly enhance them with:
- Detailed product descriptions
- Relevant attributes and specifications
- Appropriate category assignments
- Market-specific content tailored to regional audiences
Demand Planning Intelligence
Next, the agent analyzes critical business data to inform smarter decisions:
- Historical sales patterns
- Current stock levels
- Regional trend analysis
- Price optimization recommendations
- Inventory allocation strategies
- Promotion planning to maximize sell-through and profitability
This intelligence transforms how retailers operate. Teams plan smarter, move faster, and turn data into actionable decisions in real time.
Streamlining Operations
To maximize profitability and efficiency, Retail Agent can help with operational tasks that traditionally consumed hours of manual effort:
- Update promotional campaigns
- Optimize inventory allocation across locations
- Configure product assortments by channel
- Set delivery methods and fulfillment options
- Sync trade agreements directly into ERP systems
What once required navigating complex ERP screens and filling out endless forms now happens conversationally within Teams Chat using Copilot and agent workflows. Decisions that took hours can be reviewed and approved in minutes.
From Backstage to Front of House
With product setup handled efficiently by Retail Agent, the momentum shifts seamlessly from internal operations to customer-facing experiences. This is where conversational commerce transforms the shopping journey.
Imagine a customer planning a ski weekend for her family. Instead of navigating multiple websites, filtering through endless product pages, and managing separate transactions, she simply chats with a conversational agent. She can shop for skis, snowboards, helmets, and gear through a natural conversation that’s safe, easy, and enjoyable.
In conversational commerce scenarios, purchases can be completed directly within chat-based experiences.
The Conversational Commerce Advantage
This personalized, conversational experience represents the future for both sellers and customers. Agents meet shoppers wherever they are, extending far beyond traditional stores and websites.
Benefits for Customers:
- Browse products naturally through conversation
- Discover personalized recommendations
- Complete checkout instantly within the chat
- Enjoy seamless, friction-free shopping experiences
Benefits for Retailers:
- Greater market reach across channels
- Higher conversion rates
- Deeper customer engagement
- New revenue streams through conversational commerce
The Foundation: Model Context Protocol
Dynamics 365 Commerce powers this new era of retail through an intelligent foundation called the Model Context Protocol. This technology enables agents to collaborate seamlessly across systems and channels, breaking down the silos that have traditionally separated merchandising, planning, and marketing teams.
With this foundation in place, retailers can:
- Forecast demand with greater accuracy
- Plan products more efficiently
- Optimize inventory in real time
- Sell effortlessly across all channels
Welcome to Agentic Commerce
This is Agentic Commerce: retail reimagined for the connected era. It’s a fundamental transformation in how retail organizations operate, moving from fragmented, manual processes to intelligent, orchestrated workflows where humans and AI agents work together seamlessly.
The retail industry is at an inflection point. The brands that will lead tomorrow are those willing to rethink how their teams work today. Agentic Commerce, powered by Microsoft Dynamics 365, isn’t just an upgrade to existing tools, it’s a fundamental reimagining of the retail operating model.
By bringing AI agents into the heart of daily workflows, retailers can close the gap between customer expectations and operational reality. Faster decisions, smarter planning, personalized shopping experiences, all working together in real time. The future of retail isn’t just digital. It’s agentic.
FAQs:
What is Agentic Commerce in retail?
Agentic Commerce is a new retail operating model where human teams, merchandisers, planners, and marketers, collaborate with AI agents embedded directly in their workflows. These agents handle tasks like catalog enrichment, demand planning, and inventory optimization, allowing teams to move faster and make smarter decisions.
How does Microsoft Dynamics 365 support Agentic Commerce?
Dynamics 365 Commerce serves as the intelligent foundation for Agentic Commerce. It uses the Model Context Protocol to enable AI agents to work across systems and channels, breaking down silos between merchandising, planning, and marketing teams.
What is the Model Context Protocol in Dynamics 365 Commerce?
The Model Context Protocol is the underlying technology in Dynamics 365 Commerce that allows AI agents to collaborate seamlessly across multiple systems and channels. It enables more accurate demand forecasting, real-time inventory optimization, and unified selling across all retail touchpoints.
How do AI retail agents work within Microsoft Teams?
AI retail agents built with Microsoft Copilot Studio integrate directly into Microsoft Teams. Teams can chat, share ideas, and trigger workflows — while the agent handles backend tasks like updating promotions, syncing trade agreements with ERP, or configuring product assortments — all conversationally within Teams Chat.
What is conversational commerce and how does it benefit customers?
Conversational commerce lets customers shop through natural chat-based interactions rather than browsing traditional product pages. Customers can discover products, get personalized recommendations, and complete purchases — all within a single conversation — making the experience faster and more enjoyable.
How can Folio3 help my retail business implement Dynamics 365 Commerce?
Folio3 specializes in implementing Microsoft Dynamics 365 Commerce solutions tailored to your retail business. From streamlining internal operations to enabling conversational commerce across new channels, Folio3’s experts guide you through every stage of the transformation.
Conclusion
At Folio3, we specialize in implementing Microsoft Dynamics 365 Commerce solutions that help retail businesses embrace the power of Agentic Commerce. Whether you’re looking to streamline operations, enhance customer experiences, or scale across new channels, our team is here to guide you every step of the way.
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