Microsoft 365 Copilot is generally available inside model-driven apps now — Dynamics 365 Customer Engagement and custom Power Apps on Dataverse. From the Copilot control in the upper-right, people can ask plain-English questions about the tables in that app and get answers grounded in Dataverse, with citations that open the related form. Microsoft listed it as GA from 13 April 2026 in the Power Apps 2026 release wave 1 plan, and they are positioning it as the replacement for the older in-app Copilot chat.
What you have to turn on
A Power Platform admin enables M365 Copilot under Copilot settings in the admin centre for the environment or environment group. Makers still have to finish the job in the app: set M365 Copilot in model-driven apps to On under Features and publish, or set the Default Solution value Enable M365 Copilot in model-driven apps so new apps inherit it.
Dataverse Search must be Default or On, and the tenant must allow Dataverse data in Microsoft 365 Copilot. Expect some extra Dataverse capacity use for search indexing — that is the part most teams underestimate. We wrote up the index and capacity detail separately if you need the deeper checklist.
Licensing and the fine print
Power Apps users need both a Power Apps premium licence and a Microsoft 365 Copilot licence. Dynamics 365 Enterprise or Premium covers Copilot inside the D365 app itself; you still need an M365 Copilot licence for the fuller Work IQ experience beyond Dataverse grounding.
Today the chat is read-only against Dataverse. Writes need a customised agent. It is not available in the Power Apps mobile app. If both Microsoft 365 Copilot and the legacy Copilot chat are enabled, the menu splits into Chat (M365 Copilot) and App Skills (the older experience).
Where this fits for CE teams
For Dynamics 365 CE and Power Platform teams already on model-driven Sales or Customer Service, this is the natural next step after AI record summaries: ask questions over the same secured Dataverse data without leaving the app. Line up the admin and maker switches together, confirm Dataverse Search and capacity, then pilot with a small licensed group before you retire the older App Skills path.
Microsoft Learn: add Microsoft 365 Copilot · use Microsoft 365 Copilot. For the search prerequisites, see our post on Dataverse Search for Microsoft 365 Copilot.