Take Microsoft’s Q1 2026 earnings call, for example, beneath the numbers, the tech giant revealed how its AI strategy is trying to redefine customer experience.

From conversational retail journeys to intelligent collaboration, Microsoft Chairman and CEO Satya Nadella’s comments painted a picture of AI as the new connective layer between work, service, and engagement.

Below are the four key takeaways from Microsoft’s customer experience AI strategy.

Microsoft AI Customer Experience: 4 Key Insights

1. Copilot Becomes the Interface for Work

Perhaps the most striking comment from Nadella came early in the call, when he stated:

“Copilot is becoming the UI for the agentic AI experience. We have integrated chat and agentic workflows into everyday tools like Outlook, Word, Excel, PowerPoint, and Teams.”

That line says a lot about Microsoft’s direction. It is clear that the vendor no longer views Copilot as just a helper; instead, it’s becoming the way people use Microsoft 365.

Nadella revealed that “tens of millions of users” are already engaging with Copilot chat, with usage “growing 50% quarter over quarter.”

For CX and contact center teams, that matters.

If AI chat is becoming the default interface for everyday work, customer-facing workflows are bound to follow.

It will be interesting to see whether this approach ripples into service platforms, knowledge bases, and ticketing systems over the next year.

2. Guardrails Arrive for Enterprise AI

As AI systems gain popularity and take on more autonomy, governance is becoming crucial.

To help its customers keep up with rising compliance demands, earlier this month, Microsoft launched its new Agent Framework, designed to simplify the orchestration of multi-agent systems

During the call, Nadella addressed the significance of this solution:

“Our new Microsoft Agent Framework helps developers orchestrate multi-agent systems with compliance, observability, and deep integration out of the box.”

And this isn’t just theoretical; the Microsoft man claimed that professional services firm KPMG has already used it “to modernize the audit process, connecting agents to internal data with enterprise-grade governance and observability.”

For customer service operations – where trust, data handling, and accountability are paramount – such frameworks are essential.

It’s one thing to deploy a chatbot; it’s another to ensure every AI decision is explainable, auditable, and secure.

3. Teams Gets Its Own AI Sidekick

Collaboration was also a key aspect of Nadella’s address, with the Microsoft man introducing a new “Teams Mode” for Copilot.

He explained how the solution allows users to “invite colleagues into a Copilot conversation.

“Our collaborative agents, like facilitator and project manager, prep meeting agendas, take notes, capture decisions, and kick off group tasks.”

In practice, that means Teams meetings could soon run themselves – or at least the admin side of them.

While this may sound like more of a UC announcement, for CX leaders, it implies the possibility of AI-facilitated teamwork that could make service handovers, escalations, and follow-ups smoother.

4. Security and Efficiency: The Other Side of AI

Much of the discussion focused on capability, but Nadella also underscored AI’s growing impact on efficiency.

In security, for example, he discussed the importance of Microsoft’s phishing triage agent in Defender. The AI‑powered virtual agent automatically triages user‑reported phishing emails, deciding whether a submission is a legitimate phishing attempt or a false alarm

During the call, Nadella claimed that “studies show that analysts can be up to 6.5x more efficient in detecting malicious emails” when using the tool.

At a time when more and more organizations appear to be succumbing to hacks and scams, giving users an extra layer of protection and peace of mind could be a real differentiator.

Indeed, you only have to look back at the recent Google-Salesforce customer data breach, which resulted in the FBI stepping in to warn customers about phishing attacks, to see how big an issue this has become in the customer service and experience space.

Away from security, Amy Hood, Microsoft’s Chief Financial Officer, highlighted continuing strength in the company’s customer and business applications portfolio:

“Dynamics 365 revenue increased 16% in constant currency with continued growth across all workloads.”

It’s a reminder that while Copilot grabs the headlines, Microsoft’s broader CX stack is still growing steadily behind it.

Financial Snapshot

Microsoft’s results underscored the momentum behind its AI ambitions:

• Revenue: $77.7 billion, up 17% year over year
• Operating Income: up 22%
• Earnings Per Share: $4.13, a 21% increase
• Microsoft Cloud Revenue: $49.1 billion, up 25%

The Takeaway

For CX leaders, Microsoft’s latest earnings call provided a glimpse at how the vendor is utilizing AI to reshape both the employee experience and the customer interface.

Microsoft’s message was clear: conversational agents, orchestration frameworks, and intelligent automation are no longer experiments; they’re fast becoming the operational layer for how modern service and engagement will be delivered.

The current collaboration intends to deliver new ways for enterprises to improve customer experiences. 

One of the certified integrations is between Talkdesk and Microsoft Teams to allow organizations to embed Talkdesk Workspace into their systems.

The other certified integration is between Talkdesk Customer Experience Automation (CXA) and Microsoft Azure Partnerships, an AI agent that solves disputes and queries in the workforce. 

Microsoft Teams and Talkdesk Workspace 

The enhanced Talkdesk for Microsoft Teams integration allows for a unified workspace – this is created for various enterprise roles, including agents, supervisors, back-office staff, and subject matter experts. 

Being able to embed Talkdesk Workspace means that organizations can now eliminate app switching, streamline collaboration, and unify both employee and customer experiences. 

Agent efficiency is improved, as they can now use a single interface to experience advanced routing and omnichannel support. 

Presence and directory syncing are also included to deliver greater efficiency, speedier resolutions, and more consistent customer experiences. 

Jaime De Mora, Chief Technology Officer for Digital Natives at Microsoft EMEA, believes the news is particularly beneficial for Teams customers: 

Embedding Talkdesk’s advanced contact center capabilities into Microsoft Teams helps customers strengthen employee productivity and deliver more seamless customer interactions within the flow of work 

Microsoft Azure Marketplace and Talkdesk CXA

With Talkdesk CXA available on the Microsoft Azure Marketplace, enterprises are provided with significant advantages in deploying and automating customer experience. 

Enterprises can deploy specialized artificial intelligence agents faster with the Azure Marketplace, capable of managing both customer interactions and the underlying tasks behind them. 

CXA can also unify customer data and apply continued learning efforts to drive measurable improvements in efficiency, resolution times, and satisfaction. 

Notably, Talkdesk CXA can be deployed on any cloud, hybrid, or on-premises contact center without changing the existing infrastructure. 

For Andres Ortolá, General Manager of Microsoft Portugal, the collaboration “reflects how Microsoft’s cloud and AI infrastructure can support digital firms in delivering more intelligent and connected customer experiences.

By integrating Talkdesk’s capabilities into Microsoft Teams and making CXA available on Azure Marketplace, we’re helping organizations enhance service delivery and explore new ways to engage customers—securely, efficiently, and at scale

The newest partnership is the latest in a long list of collaborations between the two tech firms, which includes SD Worx and Talkdesk’s recognition as Microsoft Digital Native Partner of the Year in 2023. 

Al Caravelli, Chief Revenue Officer and Senior Vice President of Strategic Alliances and Partnerships at Talkdesk says Talkdesk are committed to “helping enterprises deliver exceptional customer experiences inside the tools their employees use every day. 

“Embedding Talkdesk Workspace inside Microsoft Teams and making CXA available through the Azure Marketplace means customers can accelerate innovation, streamline collaboration, and drive meaningful business outcomes.”

Its Online Services portfolio includes Microsoft 365, Azure, Dynamics 365, Power, and other specialized solutions, such as Microsoft Defender and GitHub.

Currently, businesses can secure volume licenses for many of these online services at various price points, across Price Levels A–D. These levels vary by region and customer category.

However, the move means that every Online Service – sold under an Enterprise Agreement (EA) or a Products and Services Agreement (MPSA) – has one consistent price across each tier. That price will be available on Microsoft’s website.

As such, Microsoft limits some customers, renewing after October 31, 2025, from securing the same discounts as in their previous contracts.

That said, the standardized price could be lower than what some customers currently pay.

Moreover, while Microsoft customers may not be able to secure license cost discounts, they could still seek concessions on multi-year terms and value-added services.

Alongside EA and MPSA agreements, the move will extend to include the Online Services Premium Agreement (OSPA) for China.

However, Microsoft stressed that there will be no change to on-premise software costs, and that U.S. Government and worldwide Education price lists won’t be affected.

The tech giant announced this on its website. It wrote:

This update builds on the consistent pricing model already in place for services like Azure and reflects our ongoing commitment to greater transparency and alignment across all purchasing channels.

That transparency and alignment has several advantages. It reduces regional price swings, makes costs more predictable for multinational customers, and simplifies partner selling.

Additionally, it builds on the pricing model already established for services like Azure.

However, the possibility of price hikes for many global businesses seems likely.

As such, all customers with volume licensing should contact their account manager to discuss the potential for a significant skew in pricing. Microsoft itself suggests this, noting:

Microsoft recommends scheduling time with your account team or your partner of record to review these changes and assess any upcoming renewals or new Online Services purchases.

If the move does result in widespread price rises, Microsoft does, however, risk this being interpreted as a move to recover operating costs on its AI services and increased cloud expenditure.

Interestingly, Salesforce attributed its recent price rises to “increasing integrations with AI”, as many enterprise software vendors start to feel the pinch.

The Hot Take: Microsoft’s Enterprise Customers May Scramble to Renew

Tim Banting, Head of Research & Business Intelligence at Techtelligence, is one industry analyst who believes this is likely a move to protect margins as AI infrastructure costs increase after years of higher R&D and restructuring.

That seems critical with Microsoft Cloud gross margins falling to 69 percent in FY25, explicitly “driven by the impact of scaling our AI infrastructure.”

Yet, the main customer impact is on the bargaining chips they hold. Noting this, Banting stated:

Big companies will likely bring purchases forward before 1 November 2025, then focus on longer terms, smarter bundles, and phased rollouts.

The analyst also suggested that finance teams will want clear proof that Copilot merits any potential increase in their pricing.

He continued: “Some enterprises will lose out because the Level B to D price advantage goes away; adding services mid-contract after that date will start from a higher list price.

“Multi-year Copilot-led bundles will be favoured to lift ARPU, and with AI capacity tight. Microsoft will (also) prioritize customers who commit more, which makes negotiations tougher.”

Those commitments may include longer contracts and enterprise-wide Copilot adoption plans.

However, the threat of having to make these commitments could lead to significant pushback from enterprise customers, according to Adam Mansfield, Microsoft, Salesforce, & ServiceNow Practice Lead at UpperEdge.

Mansfield told CX Today that pushback may be particularly strong from larger enterprises with pricing based on Level D+, as they typically include additional negotiated discounting.

“If Microsoft presents them uplifted pricing at renewal that moves that pricing all the way down to list Level A (retail pricing), it is not going to land well,” he said.

I could see, assuming Microsoft doesn’t accommodate, the CIOs…etc. of these companies pulling the plug on considering anything new (i.e., M365 Copilot) and/or making an upgrade (move users to M365 E5), along with decisions being made to seek out Azure alternatives (GCP, AWS).

“I also see this as Microsoft’s way to push more large customers to the MCA-E ( Microsoft Customer Agreement – Enteprise), which they have been trying to do, but not as successfully as they had hoped.”

While MCA-E simplifies purchasing, it against lowers the room for negotiation and may negatively impact costs. As such, that transition, as Mansfield mentioned, has proven a slow burn.

The honor goes to the CentrePal Contact Center for Microsoft Teams.

Via the Unify framework, CentrePal integrates with the collaboration platform using Azure Communication Services (ACS), Microsoft’s CPaaS solution.

ACS provides the underbelly for Microsoft Teams, supporting its voice, chat, video, and AI APIs.

By integrating with Teams through Microsoft ACS, Centrepal establishes one shared communications layer that runs between CCaaS and UCaaS.

That will allow them to standardize interactions across the business, streamline billing, and reduce management burden.

Upon the launch of the Unify model, Tom Arbuthnot, Co-Founder of Empowering.Cloud, highlighted more prospective benefits. He told CX Today:

The tight and easier integration to Teams should bring some benefits, including better options for AI integration, but it also brings a new consumption-based cost model for the ACS service usage.

While Centrepal may be first to gain certification, seven other contact center providers are completing the process for similar solutions.

These vendors are: AnywhereNow, AudioCodes, ComputerTalk, Enghouse Interactive, IP Dynamics, Landis Technologies, and Luware.

Additionally, the Microsoft Dynamics 365 Contact Center, the tech giant’s own CCaaS solution, also integrates with Teams through the Unify model. Microsoft just hasn’t certified itself yet.

Is a “Unify” Microsoft Teams Contact Center Always Best?

Unify is the third model Microsoft has released for integrating Teams with contact centers.

It wipes the need for SIP and Calling plans, which the older Extend and Connect models necessitate.

Moreover, Unify doesn’t limit deployments to the Teams UI. It allows providers to establish a dedicated interface for formal agents with rich agent controls, native AI tools, and embedded third-party apps. Meanwhile, external SMEs and informal agents can converse with customers directly through Teams.

However, this doesn’t necessarily mean that a Unify solution, like CentrePal Contact Center for Microsoft Teams, is always the best option.

Connect or Extend might still make sense if a company only partially uses Teams or isn’t ready for deep integration.

That said, if the organization is heavily invested in Teams, Unify offers tighter integration, better user experience, and long-term benefits.

Organizations considering a Unify contact center may wish to consider Centrepal and any of the other seven vendors currently undergoing certification. After all, that’s a good sign of who’s closely aligned with Microsoft and in it for the long haul.

How to Choose a “Unify” Contact Center Integration

Soon, many more Unify Contact Center integrations will receive certifications. That begs a question for enterprises: How can we select the best solution for us?

While this is much like selecting any other “type” of CCaaS solution, there are several other considerations that jump out when it comes to choosing a Microsoft Teams Contact Center.

For instance, buyers must consider: can this provider meet all my regulatory requirements? What’s the cost model? Will their roadmap align with my anticipated needs?

Another question coming to the fore is: Can this provider be both a vendor and an implementation partner?

Many vendors will pull in service providers to lead the support. However, customers, especially those with Microsoft Teams Contact Centers, typically prefer one partner to handle everything.

After all, businesses that opt for this type of contact center solution may not have the largest agent population, but they’re often spread across many teams in complex structures. Education is the classic example. One provider can stay on top of that, delivering quality and consistency.

But the reality in most contact centers looks very different.

Agents are often jumping between multiple systems, trying to piece together context from fragmented data, and racing to meet rising expectations across every channel.

Microsoft’s latest updates to Dynamics 365 Customer Service and Field Service aim to close that gap.

Announced as part of its 2024 Release Wave 2, these enhancements are heavily focused on AI-driven workflows that promise to streamline resolution and lighten the load for frontline staff.

Among the headline features are:

• Copilot-suggested email templates based on the context of the interaction
• First-party WhatsApp support through Azure Communication Services
• Copilot embedded across the Field Service interface, including Teams Mobile

The vendor is clearly looking to infuse AI into every layer of its customer service offerings – a prerequisite in today’s increasingly crowded space where everyone claims to be an AI innovator.

So far, so familiar. AI enhancements aren’t exactly frontpage news in 2025.

But here’s where it gets interesting: the connection to Microsoft Cloud for Partners (MCP).

Intent Routing Is Nothing New – But Scale Changes the Game

Intent-based routing has been a buzzword for years.

Vendors from niche players to full-suite CCaaS providers offer variations on the theme of using AI to understand the customer’s intent and route them to the right resource.

Microsoft, however, has something many competitors don’t: deep reach across the enterprise stack.

By embedding Copilot intelligence directly into Dynamics and connecting it via MCP, Microsoft isn’t just enhancing one platform; it’s creating a web of workflows that span CRM, contact center, field operations, and even finance systems.

Here’s a practical example taken from Microsoft’s 2024 Release Wave 2 highlights video:

An agent handling a WhatsApp inquiry (supported natively) can now use Copilot to check case history, verify deposits, and process payments – all without leaving the interface.

Copilot achieves this by tapping into multiple data sources inside and outside the Dataverse using plugins.

Not only does this make the process speeder, but it also reduces friction for both agents and customers.

I Microsoft gets this right at scale, it could give businesses a compelling reason to keep everything under the Dynamics umbrella.

AI Everywhere – But Will It Deliver?

Away from MCP and routing, the wider Microsoft roadmap suggests even more ambitious plans.

The vendor references cross-domain intelligence, which pulls in scheduling data, syncing inventory management, and even coordinating field technician workflows in real time.

Moreover, with Teams Mobile now acting as a delivery mechanism for Copilot guidance, Microsoft is betting big on making junior installers as capable as seasoned pros – at least for instances where everything goes according to plan.

Unfortunately, things rarely go exactly according to plan.

History is littered with enterprise platforms that promised seamless integration and delivered something … less than seamless.

AI bells and whistles won’t mean much if the system feels clunky in the real world.

Microsoft will need to prove that these workflows work out of the box, without months of custom development.

For now, the early access program is live, and full availability will follow in the next Dynamics 365 Release Wave.

If Microsoft can deliver on its intent-driven vision – while keeping things simple enough for real-world teams – this could set a new benchmark for integrated customer experience platforms.

Until then, it is maybe best to consider this as a bold move worth watching.

MCP could become the secret sauce that ties it all together, or just another acronym in the alphabet soup of enterprise CX.

He’s joined by four prominent CX analysts to dissect each story.

In this edition, our CX experts include:

• Zeus Kerravala, Principal Analyst at ZK Research
• Liz Miller, VP & Principal Analyst at Constellation Research
• Shelly Kramer, President & CEO at Kramer & Company
• Keith Kirkpatrick, Research Director at The Futurum Group

During the conversation, they share more insight into each of the three following news stories:

A New Lawsuit Alleges That a CCaaS Vendor Recorded a Domestic Violence Hotline without Permission

The lawsuit also accuses the vendor of mining those for communications to improve its own services. Yet, it’s far from the first filing from across the space to make this accusation.

Microsoft Launches a New Contact Center Integration Model for Teams

Once teased as “Power”, the new model goes by the name “Unify” and is Microsoft’s third solution for contact center vendors to attach their offerings to Microsoft Teams.

Mitel Is Set to Emerge from Chapter 11 Bankruptcy

The US courts have accepted Mitel’s bankruptcy plan, which will slash its debts by an astonishing $1.15BN. It’s now betting its future on hybrid enterprise communications deployments.

Stay up to date with the latest in CX space by subscribing to our newsletter.

It is the third and most advanced integration model that Microsoft has brought to market.

Named “Unify”, it allows contact centers to leverage Azure Communications Services (ACS) – Microsoft’s CPaaS platform – to build their own contact center solutions inside of Microsoft Teams.

Alternatively, providers can embed ACS within a third-party client.

ACS underpins Microsoft Teams, providing chat, video, voice, recording, and AI APIs.

As such, the vendors that build solutions via the Unify model will establish one common communications layer that runs across their CCaaS and UCaaS offerings.

Sharing more, Tom Arbuthnot, Co-Founder of Empowering.Cloud, told CX Today:

The tight and easier integration to Teams should bring some benefits, including better options for AI integration, but it also brings a new consumption-based cost model for the ACS service usage.

Arbuthnot also noted that “Unify” is the same integration model Microsoft teased more than three years ago; only then it was billed as “Power”.

However, while the tech giant may have changed the name, it functions in the same way as Microsoft first touted.

How Does Unify Differ from Existing Teams Contact Center Integrations?

As of April 2025, Microsoft has certified 33 Teams contact center integrations from 29 vendors.

These integrations follow the existing “Connect” and “Extend” models.

Only Anywhere365, ComputerTalk, Enghouse Systems, and Sikom offer both.

Here’s a quick rundown of how they work, which helps to frame what makes Unify stand out.

Model #1 – Connect

Connect is the most basic integration model. It allows businesses to integrate with Teams via a session border controller (SBC).

Essentially, this means that the contact center provider routes calls outside of Teams and passes those onto the UCaaS platform as an end-point.

The prominent CCaaS providers Cisco, Five9, Genesys, and NICE all offer this type of integration.

Model #2 – Extend

Extend leverages Microsoft’s Graph API, allowing businesses to manage Teams calls inside a tenant.

As such, contact centers can create apps that appear directly in the Teams interface, with native reporting. It also removes the need for SBCs and direct routing.

Moreover, as the media stream is in Teams, Microsoft can ensure encryption, quality, and security.

Model #3 – Unify

Unify brings the same benefits of the media stream and native reporting as Extend.

However, it enables native Teams connectivity, removing the need for SIP and Calling Plans.

Additionally, with Unify, organizations aren’t limited to the Teams UI only.

Indeed, providers can create a Teams UI for informal agents and external subject matter experts (SMEs). Meanwhile, they may offer a dedicated agent interface for formal reps.

That dedicated interface could include rich agent controls and enable more native AI features. Some providers may even enable embedded third-party apps.

Despite the different UIs, the system enables a cohesive contact center offering.

Unsurprisingly, no Unify contact center integrations have yet to be certified. However, early candidates for accreditation include AudioCodes, Landis Technologies, and Luware – amongst many other possibilities.

A Move Hot on the Heels of Microsoft Teams Phone Extensibility

The announcement of Unify comes shortly after the launch of Microsoft Teams Phone extensibility, as unveiled at Enterprise Connect 2025.

According to Arbuthnot, that’s no coincidence. He said:

Unify… relies on “Teams Phone extensibility”, the name for the technology that ISVs (independent software vendors) and Dynamics 365 Contact Center will use to integrate to Teams.

With this, end-users may benefit from a single telephony solution available globally, which allows them to standardize voice communications across locations.

Moreover, with ACS on the back end of Unify contact centers, brands may standardize digital conversations and streamline their communications billing.

Meanwhile, by bringing communications together, Unify can help organizations reduce their management burden and deliver a smoother user experience.

Where Does Unify Fit Within Microsoft’s Broader Contact Center Portfolio?

Microsoft is making a beeline for the contact center market, making two major moves over the past 12 months.

First, it released the Dynamics 365 Contact Center, a fully-fledged CCaaS platform for midmarket and large enterprises.

It’s building the solution out quickly, too, recently announcing native AI agents, which go far beyond customer contact automation.

Shortly after, the tech juggernaut announced its Queues App targeting SMBs, allowing them to manage and respond to inbound and outbound calls through Teams.

Since then, Microsoft has even introduced a live chat for customer service widgets to further cater to these smaller businesses.

Yet, some organizations want a more complete solution without all the bells and whistles of a fully-fledged enterprise platform.

According to Liz Miller, VP & Principal Analyst at Constellation Research, these businesses often go underserved in the contact center space. She told CX Today:

What’s getting missed is the mid-market: fast-moving organizations that aren’t small but don’t have massive contact centers either. They’re in a weird in-between space, but it’s still a multi-trillion dollar market.

The Teams Contact Centers enabled via this integration program fit that bill, which is perhaps why – after all these years – Microsoft has pushed through its Unify model.

For more thoughts on the latest Microsoft Teams Contact Center integration from Miller and several other prominent industry analysts, watch out for CX Today’s upcoming Big News Show.

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Microsoft Teams is the more commonplace, surpassing 320MN monthly active users in 2024. However, Slack remains a key competitor, with brands like AirBnB, T-Mobile, and Target leveraging the platform.

Moreover, Slack outperforms Microsoft Teams on user review sites (as of January 2025). For instance, on G2, Teams scores an overall 4.3 out of five rating, while Slack scores 4.5.

On Garter Peer Insights, Slack achieves an overall 4.6 out of five rating. Microsoft Teams records a score of 4.4.

However, the difference is small, and – when weighing up the two platforms – there’s much more to consider than user reviews.

Slack vs Microsoft Teams: Key Considerations

Ultimately, selecting Slack or Microsoft Teams depends on several key factors, from how the platforms align with the existing tech stack to the team’s more general communication preferences.

Some of the main factors to consider include:

• Alignment with the existing tech stack: What technology do employees already use? If the organization relies on Microsoft 365, Teams will better align with that tech stack. If the business is Salesforce-orientated, Slack is likely the better option.
• Team size and scalability: How big is the team, and how much will it grow? Some people find Teams better for large-scale organizations, while Slack is a good choice for agile and smaller companies – although both support large deployments.
• Communication preferences: Do teams prefer asynchronous collaboration with chat and messaging options? Or do they spend a lot of time communicating over the phone, or through audio and video calls? Generally, Slack aligns better with the former, and Teams better with the latter.
• Budget considerations: Cost is a deciding factor for many companies. Microsoft Teams can be a less expensive option on the surface, but businesses may need to account for additional fees for Copilot and adjacent apps like Queues.
• Customer service considerations: Will the business align its collaboration tools with the contact center? Slack is fully integrated with Service Cloud, while Microsoft Teams integrates with the Dynamics 365 Contact Center and Customer Service.

Slack vs. Microsoft Teams: Strengths and Weaknesses

Microsoft Teams and Slack share many similarities, but they also have very specific strengths and weaknesses.

For instance, Slack is widely considered a popular choice for those in search of an easy-to-use, flexible collaboration platform focused predominantly on messaging.

The platform integrates with thousands of external apps and allows users to create their own apps for specific needs.

Additionally, it’s closely aligned with the Salesforce ecosystem, making it great for CX teams leveraging Salesforce’s Customer 360 apps.

Lastly, it will benefit considerably from the rise of Agentforce, as Salesforce positions Slack as a hub not only for humans but also for AI employees.

However, Slack has limited video conferencing capabilities compared to Microsoft Teams, and it doesn’t offer the same direct routing and operator connect capabilities. These make it easier to connect external phone providers to the collaboration platform.

Notably, though, businesses can leverage call center integrations with Salesforce and align those with Slack.

Microsoft Teams is ideal for brands that already rely heavily on Microsoft’s tools, like the Microsoft 365 apps and Dynamics 365.

Its UI will also be familiar to many users who have worked with Microsoft apps over the years. That’s a big bonus, as employees may more easily navigate the system.

Additionally, Teams embeds a Copilot that cooperates with various third-party software providers. So, for example, Teams users may leverage Copilot to retrieve knowledge from an SAP app or kickstart an automation in ServiceNow.

However, overall, Microsoft Teams integrates with fewer third-party tools than Slack, and it can have a higher learning curve for people unfamiliar with the Microsoft ecosystem.

Slack vs Microsoft Teams: Our Comparative Analysis

Based on the key considerations above, here’s an overview of how Microsoft Teams and Slack compare on critical buyer’s criteria.

Pricing Options

Both Microsoft Teams and Slack offer a free, lite version of their platform that may meet the needs of SMBs.

Yet, in terms of paid plans, Teams start at $4 per month per user for the Essentials package. The most expensive option – the Business Standard plan – is available at $12.50 per month per user. Although, businesses can select add-ons that come at a higher price.

Meanwhile, the cheapest paid version of Slack is the Pro plan, which is priced at $8.75 per month per user. A Business+ option is also available at $14.10 per month per user. For the enterprise edition, there is no set price. Businesses must contact Slack to discuss their needs.

All these prices are accurate as of January 2025.

User Interface

Slack is one of the more straightforward tools for collaboration, with its simple message-based format and channels for organizing conversations. It is highly customizable, with access to templates that businesses can configure to their heart’s content. However, that can mean it sometimes has a higher learning curve for beginners.

Microsoft Teams features a streamlined interface with chats organized by team structure. It’s simple to navigate and manage, with easily accessible apps and widgets. Still, it might take a little while for people unfamiliar with Microsoft’s tools to master it.

Ecosystem and Integrations

In the Slack vs. Microsoft Teams ecosystem debate, Slack’s strengths lie in its robust connection with Salesforce, the world’s leading CRM, and its huge app marketplace. There are thousands of apps that can integrate directly with Slack, and users can build their own custom apps.

Microsoft Teams benefits from being deeply integrated with Microsoft’s existing tools, from Microsoft 365 apps to Copilot and Microsoft Dynamics. It also has a diverse app market and the option to build apps with the Microsoft Power Platform. But there are fewer direct integrations available here.

On the plus side, users can easily connect Teams with third-party telephony providers and contact center vendors, thanks to its extensive certification program.

Communication Features

Although Slack does support audio and video conferencing through “Huddles”,  its functionality across these channels is limited. Slack mainly encourages interaction through messaging and asynchronous chat.

Microsoft Teams, on the other hand, has similar chat capabilities and deep video and audio conferencing solutions. Microsoft’s conferencing tools also support AI-powered speech translation and transcription, recording, summarization, and virtual backgrounds.

Finally, Microsoft Teams supports external calling through integrations with third-party vendors that support Direct Routing and Operator Connect services.

AI and Automation

In recent years, Slack has made major upgrades to its AI solutions, building on the “Slackbot” with the full Slack AI toolkit for intelligent search, summarization, and daily recaps. Its strong integration with Salesforce also means companies can now create intelligent agents with Agentforce and embed them into Slack workflows.

Indeed, Agentforce in Slack became generally available in January 2025.

Microsoft also has strong AI capabilities, with Copilot embedded into Teams chat, meetings, phone calls, and other Microsoft tools. There are dedicated Copilots for Microsoft Dynamics, too. Plus, users can create Copilot Agents with Microsoft’s new Agentic AI tools in the new-look Copilot Studio.

Customer Service Features

For brands looking to align the UCaaS and CCaaS experience, Slack offers limited contact center options. Ultimately, they’ll likely need to work with an expert to combine their contact center platform with Slack and Salesforce through integrations. Microsoft Teams is easier to transform into an all-in-one solution with direct routing and Operator Connect.

It also integrates with Microsoft’s Dynamics 365 contact center system and offers specific features for customer service teams, like Teams Queues and auto attendant capabilities.

Slack vs Microsoft Teams: The Verdict

So, which platform is best? Well, Microsoft Teams is likely better placed for enterprises already investing in the Microsoft ecosystem. Moreover, those looking for advanced video conferencing capabilities, streamlined AI, and intuitive ways to align UCaaS and CCaaS may be tempted to pick Teams.

Alternatively, Slack is great for simple and agile collaboration. It’s ideal for teams who value flexibility, deep integration with the Salesforce environment, and extensive third-party apps.

Our advice? Test both platforms yourself. Free options are available for both Microsoft Teams and Slack, so you can determine which works best for your business.

Introduced in November 2023 at the Ignite conference, Copilot Studio first enabled businesses to create custom use cases for a human-in-the-loop virtual assistant.

Yet, it’s fast becoming a hub for “human at the helm “AI agents that cross enterprise platforms, leveraging various generative AI foundation models and secure business data to autonomously complete tasks.

But that’s the whistle-stop tour explanation. Below is a more comprehensive guide to the ever-evolving Copilot Studio.

What Is Microsoft Copilot Studio?

Microsoft Copilot Studio is a comprehensive low-code toolkit that allows users to both create their own custom agentic AI (autonomous AI) bots and customize pre-built AI agents.

With the Studio, anyone can design agents using a low-/no-code interface (or natural language prompts).

They can connect those agents to their data sources using pre-built or custom plugins and publish for various environments, including Microsoft 365 apps.

The toolkit builds on Microsoft’s Power Virtual Agents tool, designed for the era of generative and autonomous AI.

It’s integrated with the Power Platform and Power Platform admin center and is available worldwide – even in Government Community Clouds.

When it was first released, Copilot Studio primarily enabled the creation of custom “GPT” bots – similar to Microsoft’s Copilot tools for solutions like Microsoft Teams or ChatGPT.

At Ignite 2024, however, Microsoft upgraded Copilot Studio with new agentic AI features. That means you can now create “Agents” that can complete multi-stage tasks autonomously.

These agents coordinate language models, instructions, context, actions, topics, inputs, knowledge sources, and triggers to accomplish specific goals.

Key features of Copilot Studio include:

• Agent Development or Customization: Either build a new agentic AI model from scratch or customize one of Microsoft’s pre-built agents with your internal knowledge from your assets, websites, Microsoft Graph, and the Microsoft Dataverse.
• AI Deployment: Publish agents directly to the applications your employees already use, such as your website, Microsoft Teams, SharePoint, social media, and more.
• AI Management and Governance: Streamline AI governance with guidelines, access controls, and visibility into agent actions through Power Platform.

Microsoft Copilot Studio: Agent Use Cases

The potential for autonomous AI agents is practically limitless – particularly in the worlds of sales, marketing, and customer service.

A complete list of potential use cases for agentic AI solutions is available here, but just some examples of what businesses can build with Microsoft Copilot Studio include:

• Retail bots: Intelligent agents that can proactively minimize abandoned carts with custom, personalized offers, issue supply alerts, and deliver post-purchase assistance.
• Hospitality bots: Copilots that can manage flights and schedules in real-time, create personalized itineraries, and handle customer service requests.
• Customer service bots: Agents that can handle everything from order update insights to purchasing assistance, troubleshooting, and onboarding.
• Employee copilots: Intelligent assistants that can handle time off requests, deliver training to team members, or answer common questions about tasks and products.
• Sales bots: Bots capable of creating sales pitches for agents, personalizing product recommendations, and tracking inventory details.

How Much Does Microsoft Copilot Studio Cost?

The great thing about Microsoft Copilot Studio is how easy it is to use – even if you don’t have any programming or data science knowledge. Yet, to get started, the first thing a business will need is a license for Copilot Studio.

While a license for Microsoft 365 Copilot costs $30 per month, per user, Copilot Studio costs much more.

Indeed, Microsoft Copilot Studio is currently available at $200 per month, per user: This standalone plan allows users to build agents available across multiple channels for customer and employee assistance.

Yet, there’s also a pay-as-you-go plan that allows users to pay exclusively for what they build and use. This plan requires an Azure subscription too.

Once a brand has a plan, users can access Copilot Studio either through the standalone web app or through Microsoft Teams.

How to Create a Custom Agent in the Copilot Studio Web App

When it comes to creating an agent, Microsoft offers the option to either “build” a new agentic AI bot from scratch or extend the existing Microsoft 365 Copilot (or another pre-built agent) with new features.

Users can customize an existing agent by simply logging into their Studio account, selecting the “Agents” panel, and choosing “Microsoft 365 Copilot”.

From there, they can select the “Add” button, and they’ll be sent to a conversational authoring experience. There, they can describe what they want their agent to know and do.

Microsoft’s guide here showcases how to “add” knowledge to the customized agent using various plugins and tools.

To create a Copilot Agent from scratch using the web app, a user can:

• Log into Copilot Studio with their Microsoft credentials, and click “Create” on the left-hand panel. Select “New Agent” when the option appears.
• Use the chat to describe what the agent should do. A tip here is to keep the instructions simple and structured. Users can also describe the tone they want for the agent.
• Add an image to represent the agent by clicking the agent icon in the top bar and select “Change Icon”. Then, choose an image (PNG format).

Optimizing and Publishing an AI Agent

After creating an agent, a user can customize it further.

To do so, select “Agents” in the left navigation panel within Microsoft Copilot Studio, then choose the individual agent.

From there, click the “Topics” tab to make changes to certain things, like how an agent introduces itself to a user. To change basic elements:

• Click on the “Overview” tab and select “Details”
• Edit details such as the agent’s name, description, or instructions, or scroll to the “Knowledge” card to click “Add Knowledge”, and infuse the agent with extra data.
• Select the type of knowledge that the agent should use, such as public websites or specific file locations within theMicrosoft ecosystem.

Additionally, users may test their agents by asking questions and selecting the “Details” card to edit agent instructions.

From there, the user can publish it to a website or another source by selecting “Publish” at the top of the page.

How to Create a Custom Agent in Microsoft Teams

Creating an agent with Microsoft Copilot Studio within Microsoft Teams is pretty straightforward too. All the user needs is the Copilot Studio integration for Microsoft Teams and the right license.

To access the app, go to the Teams app store and search for “Copilot Studio” then click “Add” or “Open”. Users will then be taken to the Copilot Studio home page.

From there, they can click “Start Now” and choose the team they want to manage the agent. Then, they can give the bot a name (describing what it’s going to do, such as HR agent).

Finally, pick the language that the agent should communicate in, and select an icon, then hit “Create”.

Customizing an AI Agent on Teama

Each agent created in Teams will come with a collection of “topics” that it can provide support with. Click on the “Topics” tab to see the topics available, then select “New Topic” to create a new one.

Select “From Blank” and choose the “Details” option to adjust the topic details. Users can add trigger phrases like “Information on Time Off” for a bot designed to help with HR topics.

From here, they’ll be able to create “question flows” that identify the kinds of responses agents will give to each “prompt” chosen.

Copilot Studio users can also leverage “Variable properties” to allow the agent to dynamically respond to different types of questions – like questions about paid and unpaid time off.

Plus, there are options to adjust how the agent ends a conversation, like telling it to send a survey to end-users to see how helpful the agents are.

Microsoft recommends testing each agent with the “Test Agent Canvas” to ensure it’s responding appropriately to questions before publishing.

Once ready to publish your agent, users can hit “Publish” in the navigation menu. They can also “Open the Agent” on this page and select “Share the bot” to ensure it’s available to employees in the Teams app store.

Once the agent is published, it should be available in the “Agent Extensions” section of the Teams app store, and anyone in the company will be able to add the agent to Microsoft Teams.

Getting Started with Microsoft Copilot Studio

Microsoft Copilot Studio makes it simple for any organization to take advantage of the latest innovations in agentic AI. Whether you’re looking for a bot that can help you handle customer queries, streamline sales strategies, or even improve the employee experience, it only takes minutes to build an autonomous agent with this toolkit.

Want to learn more about the opportunities offered by agentic AI technology? Check out CX Today’s proprietary report on 2025: The age of AI Agents here.

The feature offers small businesses a way to engage with customers on their websites directly from Teams.

These businesses may configure the widget through the Microsoft Teams Admin App, which is available in the Teams App Store.

As they do so, Microsoft promises an “out-of-the-box” implementation experience.

Alongside baseline communications, the widget will enable users to collect visitor contact information, assign cases, and close conversations from Teams Chat.

Meanwhile, employees may post customer requests and associated transcripts in the Teams channel for real-time support and escalations.

Additionally, managers can dashboard all customer queries across a given timeframe, as evidenced in the screenshot below.

As suggested, the widget will be available in all Microsoft Business Plans, including the Business Basic, Standard, and Premium offerings.

However, businesses on Enterprise plans won’t be able to access the tool, as Microsoft stresses that the solution aims to support SMBs in boosting their customer service.

The rollout will start in mid-January in the US and expand globally in March 2025.

The Latest Move to Build a Lite Contact Center on Teams

Microsoft offers a standalone CCaaS platform for enterprises: the Dynamics 365 Contact Center.

Yet, SMBs don’t need all the bells and whistles of a CCaaS platform.

Recognizing this, Microsoft launched its Queues Apps for Teams last year. Available at $10 per user per month, this add-on allows customer service teams to manage, monitor, and handle inbound and outbound customer interactions from the UCaaS platform.

Now, with Microsoft throwing live chat into the mix, Teams looks increasingly like a Contact Center Lite for SMBs.

While its chief UCaaS rivals – including Cisco, RingCentral, and Zoom – have built adjacent CCaaS platforms for midmarket and larger companies, Microsoft can target smaller brands that typically rely on bolt-ons for customer service.

Many of these brands won’t have a formal customer service department. Instead, everyone chips in.

For such businesses, a Teams Lite Contact Center may be ideal as employees can communicate with customers from the first app they open up every morning.

Moreover, the familiar UI will significantly lower training requirements.

Elsewhere… Microsoft Introduces SMS Message for Teams

Alongside live chat, Microsoft will soon make another channel available on Teams: SMS.

In doing so, the tech giant will allow users to send and receive SMS messages natively in their Teams client – with texts appearing on the Teams app, no matter the operating system.

The capability will come to all Microsoft Teams Phone for Calling Plan users in the US and Canada. Its launch is slated for the end of Feb 2025.

There’s currently no date touted for a global rollout of SMS across Teams Phone.

Zach Bennett, a Microsoft Teams MVP & Principal Architect at Loop, shared the news on LinkedIn. In doing so, he wrote:

Although I think this is a valuable addition for US- & Canada-based customers, are we still seeing a demand for SMS-based communication?

“For someone in the UK with an iPhone and WhatsApp, I can’t remember the last time I sent an SMS to someone, especially not for business purposes.”

However, some niche businesses may ask for it, alongside others moving from competitive UC platforms that offer the capability.

Additionally, this could help lay the foundation for an SMS channel if Microsoft ever formalizes a contact center lite offering within Teams.

Eager to make sense of Microsoft’s contact center portfolio? If so, check out CX Today’s article: Microsoft’s Big Contact Center Push? 2025 Seems Set to Be the Year