Microsoft on June 30 announced the general availability of Service Agent and Model Context Protocol (MCP) tools in Microsoft 365 Copilot. The release unifies customer service workflows across Dynamics 365 and Microsoft 365, giving service representatives AI-driven access to case data, knowledge sources and actionable tools within a single conversation interface. Service Agent first entered public preview in March 2026 with natural-language reasoning across both platforms. According to Microsoft, the GA release moves the tool from answering and summarizing to taking action across the entire service workflow, delivering 70-plus new MCP tools and 20-plus core product enhancements. The release also introduced interactive app-in-chat experiences, which Microsoft said allow representatives to investigate issues, navigate processes and complete tasks without leaving the Copilot conversation. Licensing requires a Dynamics 365 Customer Service license (Enterprise or Premium) for case data access, and a Microsoft 365 Copilot license unlocks the fully integrated experience.