AI in fully locked Dynamics 365 Business Central environment? Yes, you can!


AI features in Dynamics 365 Business Central are divided into Microsoft-owned AI features and Partner/Customer-owned AI features. Microsoft-owned AI features work with a Microsoft-owned AI model in Azure OpenAI, while Partner/Customer-owned AI features are created by partners or customers using the Copilot Developer Toolkit. However, it is possible to use a different AI platform with Dynamics 365 Business Central and use AI models in a fully offline way if you have Dynamics 365 Business Central on-premise. Microsoft has developed small language models (SLMs) that offer similar capabilities to large language models (LLMs) but are smaller in size and trained on smaller amounts of data. One example is Phi-3 Mini, a lightweight AI model that can be used offline and is free and open-source for academic and commercial use. Integrating Dynamics 365 Business Central on-premise with Phi-3 Mini can be done using tools like Ollama and Semantic Kernel.


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