Microsoft Brings Teams Phone into Dynamics 365

Microsoft is redefining contact center communications by integrating Teams Phone directly into Dynamics 365 Contact Center. This update aims to streamline customer interactions, enhance agent productivity, and leverage AI-driven insights to optimise customer service operations.

With Teams Phone Extensibility, businesses can now embed voice capabilities into their existing workflows, eliminating the need for third-party telephony integrations. But what does this mean for organisations using Microsoft’s ecosystem?

 

Key Features of Teams Phone in Dynamics 365

1. Unified Communications: Seamless Voice and CRM Integration

With Teams Phone now embedded into Dynamics 365, agents can handle calls directly within the CRM interface. This integration allows businesses to:

  • Reduce app switching, enabling agents to stay within Dynamics 365 while making or receiving calls.
  • Access customer data instantly, pulling relevant customer records into view during live conversations.
  • Improve call tracking, logging interactions automatically within Dynamics 365 for better record-keeping and follow-ups.

2. AI-Powered Call Summaries & Real-Time Insights

Microsoft is embracing Generative AI to enhance customer interactions with:

  • Automated call summarisation, reducing post-call admin work by generating real-time call notes.
  • AI-driven insights, providing suggested responses and next-best actions to agents during live calls.
  • Intelligent sentiment analysis, identifying customer emotions to guide agent responses effectively.

This means businesses can boost efficiency while ensuring high-quality service, even in high-volume environments.

3. Enhanced Extensibility for Developers & IT Teams

For businesses looking to customise their contact center experience, the Teams Phone Extensibility framework allows IT teams to:

  • Integrate third-party apps directly into the Teams Phone workflow.
  • Develop custom call-handling experiences using Microsoft’s API framework.
  • Automate workflows that trigger actions based on call interactions, improving customer engagement.

This flexibility makes it easier for businesses to tailor their communications without needing complex workarounds or external solutions.

 

Why This Update Matters for Businesses

1. Increased Efficiency for Contact Centers

For businesses managing high call volumes, this update significantly reduces agent workload by cutting down manual processes. Features like AI-generated call summaries and real-time data retrieval help agents focus on customer needs rather than administrative tasks.

2. Cost Savings & Simplified Tech Stacks

By integrating Teams Phone directly into Dynamics 365, companies can reduce reliance on third-party VoIP solutions, leading to:

  • Lower operational costs by consolidating telephony and CRM platforms.
  • Simplified IT management, reducing complexity in maintaining multiple communication tools.
  • Seamless onboarding for employees, with a familiar Microsoft ecosystem experience.

3. AI-Driven Customer Experience Improvements

AI-powered features like sentiment analysis, real-time suggestions, and automated summaries make it easier to maintain consistent service quality. This ensures:

  • Faster issue resolution by surfacing relevant customer data instantly.
  • Better agent performance, with AI assisting in decision-making.
  • More personalised customer interactions, leveraging historical insights during live calls.

 

Is This the Future of Contact Centers?

Microsoft’s move to integrate Teams Phone with Dynamics 365 signals a shift towards more intelligent, AI-enhanced contact centers. Businesses looking to streamline their communication workflows, reduce costs, and enhance customer service will likely find this update a game-changer.

Are you ready to optimise your customer service with AI-powered voice integration?

 

Frequently Asked Questions (FAQs)

  1. What is Teams Phone Extensibility in Dynamics 365?

Teams Phone Extensibility allows businesses to integrate Teams Phone directly into Dynamics 365 Contact Center, enabling seamless call handling, AI-driven insights, and workflow automation within the CRM environment.

  1. How does AI improve customer service in this update?

AI enhances customer service by automating call summaries, providing real-time agent insights, and using sentiment analysis to improve customer interactions, leading to faster and more personalised service.

  1. Can businesses still use third-party VoIP solutions with Dynamics 365?

Yes, while Teams Phone is now natively integrated, businesses can still use third-party VoIP solutions if they require specific features or prefer alternative providers.

  1. What are the cost benefits of switching to Teams Phone within Dynamics 365?

By consolidating telephony and CRM systems, businesses can reduce licensing fees, eliminate third-party telephony costs, simplify IT management, and improve overall operational efficiency.

  1. Is Teams Phone Extensibility customisable for different industries?

Yes, businesses can tailor the experience by integrating industry-specific applications, automating workflows, and customising call-handling features using Microsoft’s API framework.

  1. How can businesses get started with this update?

Companies using Dynamics 365 Contact Center can enable Teams Phone features through their Microsoft administrator settings and customise the integration based on their specific needs and workflows.

 

Find out more about our Dynamics 365 Services here

Find out more about the update from Microsoft here