Microsoft named a Leader in IDC MarketScape for AI-Enabled Large
Business Leaders today are under increasing pressure to deliver operational excellence while navigating fragmented systems, manual workflows, and rising expectations for real-time insights. For Frontier Firms, traditional enterprise resource planning (ERP) platforms are no longer sufficient. Businesses now require agentic ERP solutions that enable scalable growth, intelligent automation, and data-driven decision-making.
According to IDC’s May 2025 SaaSPath Survey, 44% of organizations surveyed plan to invest in AI-powered ERP and 22% of organizations surveyed say they plan to replace their current systems if generative AI isn’t included in the next release.1 This marks a pivotal moment for innovation and Microsoft is in the forefront.
Microsoft’s commitment to AI-powered ERP
Microsoft’s ongoing investment in Microsoft Dynamics 365 ERP empowers finance and operations Leaders to meet evolving needs. We’re proud to be named a Leader in the first AI-centric IDC MarketScape: Worldwide AI-Enabled Large Enterprise ERP Applications 2025 Vendor Assessment.
We believe this recognition highlights the strength of Dynamics 365, particularly its Copilot and agent capabilities, redefining procure-to-pay and record-to-report processes with intelligent automation, predictive insights, and streamlined integration.
The evolution of Copilot: From assistant to agent
The IDC MarketScape notes, “Microsoft AI strategy is one of the first announced in the industry. It is progressing with Microsoft Copilot, transitioning from an assistant and advisor to an agent. The agents are developing in Microsoft Dynamics 365 as tasks and basic workflow agents, to more encompassing agents across larger business processes. In addition, Microsoft Copilot Studio lets teams design and govern agents, publish them into Microsoft 365 surfaces, and enforce data controls with Microsoft Purview.” For decision makers, this signals a strategic opportunity to drive operational transformation, help reduce manual overhead, and unlock scalable innovation through AI-powered ERP.
Why Microsoft was name a Leader
Microsoft was positioned as a Leader in the 2025 IDC MarketScape for Worldwide AI-Enabled Large Enterprise ERP Applications based on three strengths: “AI vision,” “comprehensive stack,” and “adaptability, extensibility, and improved KPIs.” The IDC Market Scape notes that, “Microsoft Dynamics 365 is designed for AI from the infrastructure through models, data, and orchestration to apps and extensibility layers. It is built for composability, extensibility, config, security, and global scale. References noted they like the full-stack approach.”
This full-stack approach is important. By integrating AI at every layer—from infrastructure to applications, Microsoft ensures that organizations can innovate quickly, scale confidently, and adapt to changing business needs.
Real-world impact: Customer success stories
The true measure of any technology is its impact on customers. Across industries, Microsoft customers are driving efficiency, flexibility, and intelligence in their operations with Dynamics 365:
- Walki transforms packaging operations by standardizing and streamlining processes, enabling greater agility and responsiveness to market demands.
- Schur drives packaging innovation, automation, and efficiency, leveraging Dynamics 365 to stay ahead in a competitive industry.
- Glidewell collaborates with Avantiico to increase sales order processing by 12% with the same workforce, demonstrating the power of intelligent automation.
These stories illustrate what’s possible when organizations embrace AI-powered ERP: streamlined processes, enhanced decision-making, and future-proofed enterprise systems.
Looking ahead: The future of ERP is agentic
As the pace of business accelerates, the need for dynamic, AI-led ERP systems will only grow. The IDC MarketScape suggests that organizations consider Microsoft if they “need to move to a dynamic, AI-led ERP system to bring significant benefits to their organization.” Whether you’re looking to streamline processes, enhance decision-making, or future-proof your enterprise systems, Microsoft is ready to help you lead.
We encourage you to explore the full insights in the IDC MarketScape excerpt: IDC MarketScape: Worldwide AI-Enabled Large Enterprise ERP Applications 2025 Vendor Assessment.
At Microsoft, we believe the future of ERP is agentic—intelligent, adaptive, and deeply integrated with the way people work. We are committed to helping our customers harness the power of AI to drive operational excellence, unlock new opportunities, and achieve more.
Source: IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a three-to-five-year timeframe. Vendor market share is represented by the size of the circles.
1 SaaS Path Survey, 2025: Executive Summary — Examining the SaaS Buyer’s Journey
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