Impossible to use Copilot to Dynamics 365 in Cloud-hosted environments?

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Posted on by ShineK

Hello, everyone,

I struggled to set up Copilot to F&O supply chanin management.

Also I failed to make 'dual-write' setup for using Copilot to F&O.

So I sent a ticket to MS and one of engineers advised that below.

When I checked LCS, all our demo environment is under Cloud-hosted environments.

So I wonder we should install the project again in LCS and how to install the other environment in LCS.

And what environment use for Copilot to F&O.

Please advise as soon as possible.

Thanks in advance.

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Dynamics 365 Supply Chain Management

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André Arnaud de Cal... 303,724 Super User 2026 Season 1 on at

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Hi ShineK,

Copilot in Dynamics 365 F&O is supported for environments linked to a Power Platform. This is usually the case for production environments, and tier 2+ sandboxes. Cloud hosted development environments are usually created without a Power Platform link and for that reason it can't have Copilot features as Copilot Studio is used to support the AI features.

The new Unified Development Environments deployed via PPAC do support Copilot features as these are created based on a PP environment.

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Navneeth Nagrajan 2,538 Super User 2026 Season 1 on at

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Hi ShineK,

This is not a Microsoft Cloud hosted environment. This is the On-Premise D365 environment hosted under the partner or the customer subscription and non a Microsoft subscription. With Microsoft Cloud hosted environments you will not be able to view them under the Cloud Hosted environments section in the Asset Library. Instead, you will see it under the Environments section under the Dynamics Lifecycle Services project.

Cloud hosted environments enable additions of Power Platform add-ons and in addition to this, there is a Co-Pilot add-on that needs to be setup through the Power Platform admin center. Also, if you refer to the architecture diagram it highlights the pre-requisite components required for Co-Pilot in D365 F&SCM. Tier 2+, Unified developer environments support Co-Pilot because they have the Power Platform add-ons enabled. Tier 1 Cloud hosted developer environments do not support Co-Pilot.

Also, there is a note in the reference link below that states that Co-Pilot is not supported in developer environments deployed through Dynamics Lifecycle services (LCS) which means the environment hosted here is hosted through Dynamics LCS.

Another point is you need to enable SQL row based tracking in the environment you are trying to access Co-Pilot for D365 F&SCM from.

References:
https://learn.microsoft.com/en-us/dynamics365/fin-ops-core/dev-itpro/copilot/enable-copilot

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ShineK 19 on at

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Thanks for your kind advice.

Now I realized I am under development environment, so it can not be connected with Copilot.

I fully understood what is the next step.

Thanks

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