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Configure Copilot in Microsoft Dynamics 365 Sales

10 min readApr 21, 2026

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Sales in Microsoft 365 Copilot is an AI-powered solution that enhances the sales process by bringing intelligent insights and automation directly into everyday tools like Outlook and Teams. By integrating with CRM platforms such as Microsoft Dynamics 365 Sales and Salesforce, it enables sellers to access data, generate insights, and take actions without leaving their workflow.

1. Understand the Architecture

Sales in Microsoft 365 Copilot is built on a multi-layered architecture that combines:

· AI capabilities (Copilot + LLMs)

· CRM systems (Dynamics 365 / Salesforce)

· Microsoft 365 applications (Outlook, Teams, Word)

The goal is to bring intelligence directly into the seller’s workflow without requiring them to switch systems.

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High-Level Architecture Layers

The architecture can be understood in five key layers:

1. User Experience Layer (Frontend)

This is where sellers interact with Copilot.

· Outlook (emails, calendar)

· Teams (meetings, chats)

· Word (documents)

What happens here:

· Users trigger Copilot (e.g., “Draft email”)

· AI responses are displayed directly in the UI

This layer ensures a seamless “flow of work” experience

2. Copilot AI Layer

This is the core intelligence engine.

Responsibilities:

· Prompt orchestration

· Context understanding

· Response generation

What powers it:

· Large Language Models (LLMs)

· Microsoft Copilot services

Key Function

Copilot:

· Collects relevant data

· Builds structured prompts

· Sends to AI model

· Returns contextual responses

3. Data & Context Layer

This layer provides the business context required for AI.

Data sources:

· Microsoft Dynamics 365 Sales (Dataverse)

· Salesforce (if integrated)

Data used:

· Accounts

· Contacts

· Opportunities

· Activities

Why this layer is critical

👉 AI without context = generic output
👉 AI with CRM data = business-relevant insights

4. Integration Layer

This layer connects systems together.

Includes:

· Microsoft Graph

· Dataverse connectors

· CRM APIs

Purpose:

· Fetch real-time data

· Sync updates

· Enable cross-platform communication

5. Security & Compliance Layer

This ensures safe and governed AI usage.

Features:

· Role-based access control

· Data privacy enforcement

· Compliance with Microsoft AI principles

Copilot respects:
👉 Existing CRM security roles
👉 Data visibility rules

End-to-End Data Flow

Example: Email Generation Flow

User clicks “Draft with Copilot”

Copilot collects CRM data (opportunity, account)

Builds structured prompt

Sends to AI model (LLM)

Receives generated response

Applies validation & security filters

Displays output in Outlook

What makes this powerful

· Real-time data usage

· Context-aware responses

· Seamless UI integration

Deployment Architecture

Supported Environments

Sales in Microsoft 365 Copilot can be deployed across:

· Outlook (web & desktop)

· Microsoft Teams

· Microsoft 365 apps

Deployment Components

· Copilot service

· CRM connection

· Microsoft 365 app integration

Configuration & Customization Layer

What can be configured

· AI features (email drafting, summaries)

· Data sources

· Security access

Customization options

· Tailoring prompts via data structure

· Custom fields in CRM

· Workflow automation using Power Automate

Extensibility Architecture

Extend Copilot using:

· Power Automate

· Plugins (.NET)

· Azure Functions

Example

Copilot → Power Automate → Trigger Workflow → Update CRM

Performance Considerations

To ensure optimal performance:

· Use structured CRM data

· Avoid excessive text inputs

· Optimize workflows and triggers

Sales in Microsoft 365 Copilot architecture is designed to embed AI directly into sales workflows by combining:

· AI intelligence

· CRM data

· Microsoft 365 productivity tools

This creates a system that is:

· Intelligent

· Context-aware

· Scalable

· Enterprise-ready

2. Installing of Sales in Microsoft 365 Copilot

Installing Sales in Microsoft 365 Copilot involves deploying the Sales app in Outlook and Teams, assigning users through the admin center, and connecting it to a CRM system like Dynamics 365 or Salesforce. Once configured and AI features are enabled, Copilot provides real-time insights and automation directly within the user’s workflow.

Step 1: Install the Sales App (Outlook Integration)

· Go to Microsoft Marketplace / AppSource

· Search for Sales (Copilot for Sales)

· Select “Get it now”

· Confirm and complete installation

👉 This installs the Sales app into Outlook and Microsoft 365 apps.

Step 2: Deploy via Microsoft 365 Admin Center

· Navigate to:

Microsoft 365 Admin Center → Settings → Integrated Apps

· Select Sales

· Assign users who should access the app

· Manage configurations and permissions

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Enable in Microsoft Teams

A. Open Teams Admin Center

1. Go to: https://admin.teams.microsoft.com

2. Sign in with Admin credentials

B. Allow the Sales App (if not already allowed)

1. Navigate to: Teams apps → Manage apps

2. Search for: Sales (Copilot)

3. Click the app

4. Ensure status is: Allowed

C. Create Setup Policy

1. Go to: Teams apps → Setup policies

2. Click: + Add

3. Enter:

  • Name: Sales Copilot Policy
  • Description: Optional

D. Install and Pin App

4. Under: Installed apps → Add apps

  • Search: Sales
  • Add the app

5. Under: Pinned apps → Add apps

  • Select Sales (Copilot)

E. Assign Policy to Users

6. Click: Assign users

7. Select:

  • Sales team users

8. Save

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Result

The Sales app will now appear in:

· Teams sidebar

· Chat

· Meetings

· Collaboration spaces

Step 3: Connect CRM System (Detailed)

Link Copilot to CRM for real-time data and AI insights.

A. Open Sales App

1. Open:

  • Outlook OR
  • Microsoft Teams

2. Launch: Sales (Copilot) pane

B. Start CRM Connection

3. Click: Settings (⚙️ icon)

4. Select: Connect CRM

C. Choose CRM System

5. Select:

  • Microsoft Dynamics 365 Sales

D. Authenticate

6. Enter:

  • CRM credentials

7. Click: Sign in

E. Grant Permissions

8. Accept:

  • Data access permissions
  • API access

F. Select Environment

9. Choose:

  • Correct CRM environment

10. Confirm connection

Result

Copilot can now:

· Access CRM data

· Provide contextual insights

· Generate AI recommendations

Step 4: Enable Copilot AI Features (Detailed)

Activate AI capabilities across the organization.

A. Open Admin Settings

1. Open Sales app in:

  • Outlook OR Teams

2. Click: Settings (⚙️)

3. Go to: Admin Settings

B. Enable Tenant-Level AI

4. Navigate: Tenant → Copilot AI

5. Toggle: Turn ON Copilot AI

6. Configure:

  • Enable for entire org OR
  • Specific security groups

C. Enable Environment-Level Features

7. Navigate: Environment → Copilot AI

8. Turn ON:

  • Email generation
  • Meeting summaries
  • Opportunity insights

D. Save Configuration

9. Click: Save

Why this matters

Admin control ensures:

· Secure AI usage

· Compliance with policies

· Controlled rollout

Step 5: Verify Deployment (Detailed)

Ensure everything is working correctly for end users.

A. Verify in Outlook

1. Open: Outlook (Web or Desktop)

2. Open any email

3. Look for:

  • Sales (Copilot) pane on right side
  • “Draft with Copilot” button

4. Click: Draft with Copilot

5. Confirm:

  • AI-generated email appears

B. Verify in Teams

1. Open: Microsoft Teams

2. Check:

  • Left sidebar → Sales app visible

3. Open a:

  • Chat OR Meeting

4. Look for:

  • Copilot panel
  • Meeting summary option

C. Verify CRM Data Access

5. In Copilot panel, check:

  • Account details
  • Opportunity data
  • Recent activities

👉 If data appears → CRM connection is successful

D. Test Key Features

6. Try:

  • Generate email
  • Summarize meeting
  • View insights

E. Troubleshooting (if not visible)

1] Wait up to: 24–48 hours

2} Check:

  • User assigned policy
  • Permissions
  • App installed

Result

You should now see:

  • Copilot panel
  • Sales app integration
  • AI-powered features working

Note:

  • It may take up to 48 hours to appear after deployment

Key Deployment Flow (Simple View)

Install App → Assign Users → Enable Teams → Connect CRM → Enable AI → Verify Access

3. Customizing Sales

Customizing Sales in Microsoft 365 Copilot involves integrating it with CRM systems, configuring user roles, and tailoring AI behaviour through topics, prompts, and business terminology. By adjusting data visibility and extending capabilities, organizations can ensure Copilot delivers relevant insights and aligns closely with their sales processes and workflows.

Step 1: Integrate Copilot with CRM Systems

Connect Copilot to your CRM so it can use real sales data.

Steps (Dynamics 365)

1. Open Outlook (Web/Desktop)

2. Open the Sales (Copilot) pane

3. Click Settings (⚙️ icon)

4. Select:

Connect CRM

5. Choose:

  • Microsoft Dynamics 365

6. Sign in with your CRM credentials

7. Grant required permissions

8. Select your environment

Steps (Admin side — optional)

1. Go to:

Microsoft 365 Admin Center

2. Navigate:

Settings → Integrated Apps

3. Select Sales app

4. Ensure:

  • CRM connection is enabled

Step 2: Configure User Roles and Permissions

Control what Copilot can access and show.

1. Open:

Power Platform Admin Center

2. Go to:

Environments → Select Environment

3. Click:

Settings → Users + Permissions → Security Roles

4. Assign roles:

  • Salesperson
  • Sales Manager
  • System Administrator

5. Open role → ensure access to:

  • Accounts
  • Contacts
  • Opportunities
  • Activities

👉 Save changes

Step 3: Customize Copilot Experience (Copilot Studio)

Control how Copilot behaves and responds.

1. Go to:

https://copilotstudio.microsoft.com

2. Select your environment

3. Open your Copilot project

4. Navigate to: Topics

Customize Topics

5. Click New Topic

6. Define:

  • Trigger phrases
  • Responses
  • Actions

Customize Prompt Guidance

7. Go to:

Generative AI → Prompts

8. Define prompts like:

  • Email drafting
  • Opportunity summary

👉 Save & Publish

Step 4: Add Business Terminology (Glossary)

Make Copilot understand your business language.

1. Open: Copilot Studio

2. Go to: Knowledge / Data Sources

3. Add:

  • Glossary entries
  • Synonyms

Example:

  • “Deal Size” → Opportunity Amount
  • “Client” → Account

4. Save and publish changes

Step 5: Customize Data Visibility (Forms & Fields)

Control what data Copilot can see and use.

1. Open: make.powerapps.com

2. Go to: Tables → Opportunity (or Account)

3. Click: Forms

4. Edit form:

  • Add/remove fields
  • Rearrange sections

5. Save and publish

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Important

Copilot reads:
👉 Fields available in forms
👉 Data accessible via security roles

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Step 6: Enable and Configure AI Features

Activate Copilot capabilities.

In Sales Hub:

1. Open:

Dynamics 365 → Sales Hub

2. Go to:

App Settings → Copilot

3. Enable:

  • Email generation
  • Meeting summaries
  • Opportunity insights

4. Save settings

In Microsoft 365:

1. Open: Outlook / Teams

2. Open Copilot pane

3. Verify features:

  • Draft email
  • Summarize conversation

Step 7: Extend Copilot Capabilities

Add automation and advanced logic.

Option 1: Power Automate

1. Go to:

https://make.powerautomate.com

2. Create flow:

Trigger: Opportunity updated

3. Add condition:

contains(copilot_summary, ‘risk’)

4. Add action:

  • Create task
  • Send notification

Option 2: Plugin (.NET)

1. Open Visual Studio

2. Create Class Library (.NET Framework)

3. Add logic:

if (revenue > 100000)
{
entity[“description”] += “[High Value Deal]”;
}

4. Register plugin using Plugin Registration Tool

Option 3: Azure Function (Advanced)

1. Create Azure Function

2. Integrate with OpenAI

3. Call from Power Automate

Full Customization Flow

Connect CRM

Assign Roles & Permissions

Customize Copilot (Topics + Prompts)

Add Business Terminology

Configure Data Visibility

Enable AI Features

Extend with Automation / Plugins

Customization Flow (Simple View)

Connect CRM → Assign Roles → Customize Topics & Prompts → Add Business Terms → Configure Data → Enable AI → Extend Capabilities

4. Configure AI Features

Setting up features in Sales in Microsoft 365 Copilot involves enabling AI capabilities at both tenant and environment levels, configuring feature behavior such as email and meeting insights, and assigning appropriate user access. Once configured, Copilot delivers AI-powered assistance directly within Outlook and Teams, improving productivity and enabling smarter sales workflows.

Step 1: Open Sales Copilot Admin Settings

1. Open:

Sales app (Copilot) in Outlook or Teams

2. Click Settings (⚙️ icon)

3. Navigate to:

Admin Settings

4. Select:

Copilot AI / Features

👉 This is the central place to control AI capabilities.

Step 2: Enable Copilot AI Features (Tenant Level)

1. Go to:

Sales Copilot Admin Settings

2. Under:

Tenant → Copilot AI

3. Toggle:

Turn ON Copilot AI

4. (If prompted) Enable:

Allow data movement outside region

5. Choose access:

  • Entire organization
  • Specific security groups

6. Click:

Save

👉 Tenant-level control determines who can use AI features across the organization

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Step 3: Enable Copilot Features (Environment Level)

1. Open:

Sales Copilot Admin Settings

2. Navigate:

Environment → Copilot AI

3. Toggle:

Turn ON Copilot AI

4. Configure:

  • Meeting summaries
  • Email insights
  • AI-generated content

5. Click:

Save

👉 Environment-level settings allow fine-grained control per environment

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Step 4: Configure Feature Behavior

1. In Environment settings, locate feature options

2. Configure:

✔ Meeting Features

· Enable meeting summaries

· Enable participant insights

✔ Email Features

· Enable email drafting

· Enable email summarization

✔ AI Insights

· Enable opportunity insights

· Enable recommendations

3. Save changes

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Step 5: Configure Security and Access

1. Select:

Security Groups / Roles

2. Choose:

  • Include users
  • Exclude users

3. Assign:

  • Sales teams
  • Managers

👉 Copilot only shows data users are authorized to access

Step 6: Enable Optional / Preview Features

1. In Copilot settings:

Enable preview features

2. Turn ON:

Try new Copilot features

3. Save settings

👉 Preview features allow early access to new AI capabilities

Step 7: Verify Features in Microsoft 365 Apps

1. Open:

  • Outlook
  • Microsoft Teams

2. Check for:

  • “Draft with Copilot”
  • Meeting summaries
  • Insights panel

👉 Copilot features now appear directly in the user workflow.

Feature Setup Flow (Simple View)

Open Admin Settings

Enable Copilot AI (Tenant)

Enable Copilot AI (Environment)

Configure Features (Email, Meetings, Insights)

Assign Security Access

Enable Preview Features (Optional)

Verify in Outlook / Teams

👉 Don’t miss the next part of this series, where we break down more key aspects of how Disable Sales in Microsoft 365 Copilot Features in Microsoft 365 Apps

🔗 Continue reading: Click here to read the blog

🔗 Read Previous Series: Click here to read the blog

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CloudOnHire
CloudOnHire

Written by CloudOnHire

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