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Unlocking AI in Microsoft Dynamics 365 Business Central with MCP Server Configuration

  • April 6, 2026
  • 43 Views

AI is no longer a future ambition in ERP—it is happening now. With the introduction of the Model Context Protocol (MCP) Server in Microsoft Dynamics 365 Business Central, organizations can connect AI agents directly to their business data and processes in a structured, secure, and scalable way.

This blog post walks you through what MCP is, why it matters, and how to configure it effectively—using real-world screenshots from a live environment.

What is MCP Server in Business Central?

The Model Context Protocol (MCP) is an open standard designed to allow AI agents to interact with business systems in a consistent and intelligent way. Think of it as a universal connector between AI and your ERP system.

With MCP Server in Business Central, you can:

  • Expose ERP data (customers, items, invoices, etc.) to AI agents
  • Enable conversational access to business operations
  • Automate workflows using intelligent agents
  • Integrate seamlessly with platforms like Copilot Studio

Microsoft describes MCP as a way to let agents “discover, describe, and invoke operations on remote services” in a standardized manner.

Step-by-Step: Configuring MCP Server in Business Central

1. Enable MCP Server Feature

Before configuration, ensure the feature is enabled:

  • Go to Feature Management
  • Enable: MCP Server Access

This unlocks the capability for AI agents to connect to your environment.


2. Create a New MCP Configuration

Once enabled:

  • Search for MCP Server Configurations
  • Click New
  • Provide a meaningful name (e.g., MCP Server Sandbox)

Below is a real example of a configured MCP setup:

3. Configure General Settings

From the configuration screen:

  • Name – Logical identifier for your agent use case
  • Active – Must be enabled for use
  • Dynamic Tool Mode – Allows AI to choose tools dynamically
  • Discover Additional Objects – Expands accessible data surface
  • Unblock Edit Tools – Enables write operations

4. Add Available Tools (API Pages)

This is the most critical step.

You define what the AI agent can access by adding API pages:

  • Items
  • Customers
  • Vendors
  • Sales Invoices
  • G/L Entries
  • Payment Methods

5. Activate the Configuration

Once setup is complete:

  • Toggle Active = ON
  • Save the configuration

Now it becomes available for AI agents.

Connecting MCP to Copilot Studio

After configuration in Business Central:

  1. Open Copilot Studio
  2. Add a new tool → MCP Server
  3. Select:
    • Environment
    • Company
    • MCP Configuration

Once connected, your agent can interact with ERP data conversationally.

For more information, please contact us info@kaispe.com