AI and Agents: Transforming Retail in 2025

Hyper-Personalized Customer Experiences

AI-powered Dynamics 365 enables retailers to tailor customer experiences across physical and digital channels. By analyzing vast customer data, retailers can deliver personalized shopping experiences based on preferences and behaviors.

"With AI, we're able to surface product recommendations that delight our customers and boost brand loyalty," says a Venchi spokesperson.

Seamless Omnichannel Experience

Dynamics 365 AI-powered ERP systems integrate customer data from all channels to ensure a consistent shopping experience. Customers receive accurate information and service regardless of how they choose to interact.

Lighting retailer Visual Comfort & Co. enhanced their operations by linking 53 showrooms and their online platform with Dynamics 365. With real-time inventory visibility, their associates can accurately promise order availability and delivery.

Redefining Convenience: Innovative Fulfillment and Flexible Shopping

Dynamics 365 and agents enable retailers to transform fulfillment and offer flexible shopping options.

Build-A-Bear uses Dynamics 365 to optimize fulfillment and offer flexible options like BOPIS and BOSFS, reducing processing days by 28% and boosting productivity.

Embedding Sustainability and Ethical Sourcing

Dynamics 365 AI features aid retailers in implementing sustainable practices, reducing waste, and promoting ethical sourcing.

Fashion brand ONLY supports sustainability goals by choosing fulfillment options that minimize carbon emissions and prioritizing eco-friendly shipping options.

"Our AI capabilities help us manage vendor compliance, enforce procurement policies, and ensure our products align with ethical standards," says a Devold of Norway representative.

Future-Proofing Retail Operations

AI-powered ERP solutions are a strategic necessity for retailers to deliver exceptional experiences, build loyalty, and achieve profitability. They provide the foresight and agility to anticipate changes and remain competitive.

Join us at NRF '25

Visit the Microsoft booth (#4503) at the National Retail Federation (NRF) 2025. Join Microsoft leaders and industry partners as they discuss the transformative power of AI in retail.