The AI Benefits of Upgrading from AX to Dynamics 365

1. Cash Flow Forecasting and Payment Prediction

Dynamics AX

• Relies primarily on reporting and historical analysis
• No native machine-learning payment prediction capability
• Greater dependence on spreadsheets and manual forecasting processes

Dynamics 365

Dynamics 365 Finance includes cash flow forecasting capabilities that use data from accounts receivable, accounts payable, budgets and other transactions to help organisations understand future cash positions.

In addition, payment prediction functionality uses machine learning to estimate when customers are likely to pay outstanding invoices. This can help finance teams prioritise collection activities and improve visibility into future cash inflows.

2. Financial Close Process Automation and Visibility

Dynamics AX

• Close activities are typically coordinated through manual processes
• Less visibility across multiple entities and teams
• Greater reliance on spreadsheets, emails and local tracking methods

Dynamics 365

Dynamics 365 Finance includes the Financial Period Close Workspace, which helps organisations manage month-end and year-end close activities.

The workspace allows teams to:

• Create close process templates
• Automatically generate close tasks
• Assign responsibilities
• Track progress across legal entities
• Manage task dependencies

This improves visibility and coordination throughout the close process.

3. Modern Demand Forecasting Capabilities

Dynamics AX

• Forecasting capabilities are more limited
• Often require additional configuration or third-party tools
• Less flexibility for modern forecasting scenarios

Dynamics 365

Dynamics 365 Supply Chain Management includes demand forecasting functionality that helps organisations generate forecasts based on historical demand data.

Forecasts can be refreshed and adjusted as new information becomes available, supporting more informed inventory and supply planning decisions.

Some of the main D365 features of demand forecasting include:

• Generate a statistical baseline forecast that's based on historical data.
• Use a dynamic set of forecast dimensions.
• Authorise the adjusted forecast for use in planning processes.
• Remove outliers.
• Create measurements of forecast accuracy.
  
  

4. AI-assisted Invoice Processing

Dynamics AX

• Invoice processing is largely manual
• Automation typically requires custom development or external solutions
• Higher administrative effort for finance teams

Dynamics 365

Dynamics 365 Finance offers Invoice Capture, which uses AI to extract information from vendor invoices automatically. This reduces manual data entry and can help accelerate invoice processing while improving consistency and accuracy.

5. Embedded Copilot Experiences

Dynamics AX

• No native Copilot functionality
• Users must navigate reports, forms and menus manually
• No built-in conversational experience

Dynamics 365

Microsoft continues to add Copilot capabilities across Dynamics 365 applications.

These AI capabilities enable users to interact with the system using natural language, generate summaries, receive contextual assistance and complete tasks more efficiently within their existing workflows.

6. Enhanced Operational Insights

Dynamics AX

• Primarily focused on transactional processing
• Analytics often depend on separate reporting environments
• Limited access to modern AI-powered insight capabilities

Dynamics 365

Dynamics 365 combines operational data with embedded analytics, Microsoft Power Platform integration and AI-powered services to provide more timely business insights.

Organisations can use these capabilities to identify trends, monitor performance and support decision-making across finance, supply chain and operations.

7. Continuous Innovation Through Microsoft's Cloud Platform

Dynamics AX

• Mainstream innovation has ended
• New functionality often requires custom development
• Increasing effort required to maintain and modernise the platform

Dynamics 365

Dynamics 365 follows Microsoft's One Version approach, with regular service updates delivering new features, security enhancements and platform improvements.

This allows organisations to adopt new capabilities without major upgrade projects.