Microsoft is named a Leader in 2025 Gartner® Magic Quadrant™ for

Across the globe, pioneering organizations are harnessing the power of AI and agents to enable smarter, faster decisions, and take action to deliver meaningful business outcomes. The rise of AI and agents is especially apparent in customer service, where automation, productivity tools, and access to insights have the potential to improve customer experiences and boost operational efficiency.

Now, Frontier Firms are building on past successes to create the foundations for agentic service. They’re reimagining how work gets done by using agents to continuously monitor, analyze, and execute key processes across self-service and human-assisted interactions.

As agentic service continues to gain traction in the customer service world, we’re delighted to announce that Microsoft has been named a Leader in the 2025 Gartner® Magic Quadrant™ for CRM Customer Engagement Center.

Microsoft is named a Leader in 2025 Gartner® Magic Quadrant™ for CRM Customer Engagement Center

Read the report

We believe this placement recognizes the successes our customers are achieving with Microsoft Dynamics 365 Customer Service. To take just one example, Rheem Manufacturing is seeing remarkable efficiency gains—and customer satisfaction improvements—with Dynamics 365.

“Our goal is to continually improve average call-handling-time and we’re seeing those times reduced with Dynamics 365. We’re on track for a 14% total improvement in average call-handling-time and we are starting to see CSAT scores trending up in some of our contact centers.”

—Adam Schuster, Director, Customer Experience at Rheem Manufacturing

What’s truly exciting to see is the Gartner evaluation of our completeness of vision. We believe it’s a testament to the continuing strategic investments we’re making across the service category—including Dynamics 365 Customer Service and Dynamics 365 Contact Center—as well our broader Dynamics 365 and Microsoft 365 portfolio.

Rather than following the market, our approach is to deliver innovative agentic capabilities that will revolutionize the way people work and how customer service teams deliver value.

Gartner defines CRM customer engagement center (CRM CEC) as a cohesive set of software built around core case management tools used to provide customer service and support by engaging with customers, while intelligently orchestrating the processes, data, systems, and resources of an organization. CRM CEC applications also offer workflow management capabilities and may be used as a system of record for customer interactions.

We’re entering the era of agentic service

Our recognition as a Leader coincides with the general availability of a suite of agents for Dynamics 365 that span the service lifecycle:

• The Case Management Agent simplifies and streamlines case management by creating cases, updating details, following up with customers, and enabling timely closures.
• The Customer Knowledge Management Agent keeps knowledge content current by autonomously creating or updating articles based on insights from cases, conversations, emails, and notes.
• The Customer Intent Agent supports evergreen self-service and assisted service by analyzing customer interactions to understand how to identify and resolve issues as they emerge.
• The Quality Evaluation Agent gives supervisors real-time insights into service quality across AI-led and human-assisted interactions, along with proactive recommendations for improvement.

At yourtown, a charity that provides children’s services, agents are already having an impact.

“By adopting agents in Dynamics 365 service solutions, we’re making every interaction faster and more empathetic. In a service where demand exceeds capacity, this can be a game changer. Agents help gather information, route contacts based on need, and streamline resolution—enabling counselors to focus on direct support to young people.”

—Helen Vahdat, Chief Information Officer at yourtown

Similarly, California State University, San Marcos (CSUSM) is using agents to help support its students.

“Providing individualized support across multiple channels is central to our student philosophy. Service Agents for Dynamics 365 have the promise to both help us enable personalized 24/7 self-service capabilities and provide our staff with the necessary information to ensure continuity of support.” 

—Tasos Lazarides, Ph.D., Director of Digital Transformation at CSUSM

Many of our customers are also creating bespoke agents in Microsoft Copilot Studio. At Vera Bradley, for example, a customer support agent integrated with Dynamics 365 Customer Service automates more than 2,000 monthly support cases, significantly improving efficiency and easing the burden on the customer service team.

“The use of Microsoft Copilot Studio for autonomous chat-based self-service has reduced live agent chat escalations by 25%, allowing our agents to focus on more complex issues. By offloading routine inquiries, our agents report feeling more empowered and engaged in solving meaningful customer challenges. The AI-powered agent has been especially valuable during peak retail seasons, handling increased case volume without additional staffing.”

—Susan Campbell, Director, Customer Experience at Vera Bradley

Shaping the future of customer service

We’re proud to be recognized again as a Leader in the Gartner® Magic Quadrant™. Alongside our trailblazing customers, we’ll continue to pioneer AI-fueled innovation that supports amazing customer experiences.

Next steps

Read the 2025 Gartner® Magic Quadrant™ for CRM Customer Engagement Center report.

Join us at Microsoft Ignite 2025 to connect with industry leaders, explore hands-on demos, and delve deeper into how agentic business applications are reshaping the future of work—including my session on agentic CX and how organizations are evolving toward frontier service models.

¹ Gartner, Magic Quadrant for CRM Customer Engagement Center, Pri Rathnayake, Drew Kraus, Francesco Vicchi, Jim Robinson, October 27, 2025

*Gartner is a registered trademark and service mark and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.  

**This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Microsoft.  

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