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Welcome to another episode of Dynamics Corner Agentic, trying to figure that out what it means to you.
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I'm your co-host, chris.
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And this is Brad.
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This episode was recorded on April 23rd 2025.
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Chris, Chris, Chris, I liked to hear you play the, what you call the ukulele.
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I call it ukulele.
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Ukulele.
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It doesn't matter, it doesn't matter, it doesn't matter.
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I've always wanted to hear you play.
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I know you have it, you play it, so we have to figure out.
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One of these times I want you to maybe get a secondary mic or something so you can play it and hear it too.
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But you mentioned agents.
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There's a lot of agents in this world.
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There's travel agents, there's sales agents, there's even AI agents.
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I'm not certain if you've heard of them, but today we did have the opportunity to talk a lot about the payables agents within Business Central and what goes behind it, what its features and intended would be With us.
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Today we had the opportunity to speak with.
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Good afternoon sir.
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How are you doing?
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Hello, nice to see you again.
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Good afternoon, good morning.
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Good morning Is sound coming through, okay.
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The sound is coming through amazingly well.
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That sounds amazing.
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And I'm always fascinated by your backgrounds is coming through amazingly well.
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That sounds amazing, and I'm always fascinated by your backgrounds with the guitars as well.
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Well, you gotta play with uh, play on every string you got right Like yeah you know, with so much going on, I always, I often wish that I played an instrument, but I don't have, or I don't want to say that I don't have the time, because time is what you choose to do with it, in my opinion.
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So it's you can still prioritize other things over.
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I want to play the piano or something.
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I think piano.
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I really enjoy piano music.
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When my daughter was growing up, she played piano and we had a piano in the house and that is probably the one thing that could occur that didn't annoy me.
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Oh, one of the one things that occurred that couldn't annoy me.
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Annoy me because she could play at any time and just hearing the piano music is soothing.
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And I contemplated just See, right, you got to do like a string instrument, then you could just learn four chords and then you can probably play quite a bit.
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I think I'm scarred because when I was a young boy I tried to learn to play the viola and I am left handed and back when I was young they didn't have a lot of left handed devices for anything, for sports, for instruments.
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The instruction didn't go too well because they were trying to teach me to play right-handed when I was holding it left-handed, so the viola was upside down in a sense, so it just didn't work out too well.
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If I could switch one instrument.
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I've often thought if I could choose any other instrument and be equally good at that instrument just by clicking a switch and trade off the guitar or something else, I'd go for the saxophone.
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I don't know Something in the saxophone, that's just amazing.
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Play some blues.
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Yeah, it's always amazing.
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I'm not complaining, I'm not.
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No, it's this.
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I'm finding more.
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I don't know if you get to a certain point.
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There's so much available to do in life and I want to do it all and it's very difficult to choose.
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Where do I focus my time so that I can get the enjoyment enjoyment even though I'd like to do everything I need to hang my stuff because I have them right.
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Oh wow, I got my ukuleles.
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I got a bunch of them right on the floor and I should be getting them off the floor well, maybe we could have you do a jam out session, chris, before we we finish.
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Uh yeah, the conversation.
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How are things going in denmark?
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The weather must be breaking garden getting ready yes, uh, amazing garden days.
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Today, a few days ago had a bit of rain.
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So april is always.
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April is always, uh, a bit of everything.
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I mean you can ever everything from almost summer like, and then you can have everything from almost summer-like, and then you can have almost winter-like some days.
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In a few weeks it'll be more stable, but today, which happens to be my birthday, happy birthday.
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Happy birthday.
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It will be a little bit delayed when we play this, but happy birthday.
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I hope that you have a great day to get to celebrate and enjoy.
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Yes, I was thinking of you.
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The other day I went to what I call the farm store and I'm toying with chickens again.
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No, a real farm like a farm supply store and we're a little bit late for where I am right now for chicks.
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But I was looking to see about getting chicks again because I had chickens for a long period of time.
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But I was thinking of you with the farming and how chickens would be great in your backyard there.
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I would love to and we definitely want to Maybe not this year, but I'm thinking next year we'll do it and see how it goes.
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Oh, that's excellent.
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That's one.
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That's probably one of the things that I can point back in my life that I say I enjoyed the most was when I had the chicken, so I think you'll enjoy it.
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It's, um, and I even raised some uh the chickens uh fertilize the rooster fertilized, uh, some of the eggs and one of the chickens decided to sit on them, so I was able to raise chicks, a a few chicks, which was interesting to watch, but I don't think we got together to talk about farming.
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We'll save that for another conversation.
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But before we jump into the conversation, would you mind telling us a little bit about yourself?
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Yeah, so great to speak to you guys again.
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So my name is Soren, I'm a product manager in the Business Central engineering team and the resource development team, if you will, based out of Copenhagen, denmark, or just north of Copenhagen, a small town called Lingby, and I've been with Microsoft for nine years and some months now, almost all of them minus one and a half years in the Business Central team, almost all of them minus one and a half years in the business team Before that in Microsoft Denmark in the sales organization as an account technology strategist.
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So I have sort of a broad IT background.
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I've been in IT the last 28 years, so quite a few ER, you know P systems under my belt started with Concord, xal, c5, then the whole Navision Damguard thing happened and, yeah, through, my first meeting with Nav was with Nav 5, or that was no 4, sorry my introduction.
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Then I had a few touch points with some early versions, but then everything from Nav 5 and upwards I've been working with end customers.
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I was self-employed, had a small partner business before joining Microsoft where I was sort of 80% engineer, 20% everything else.
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As you are, you're self-employed.
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Oh yeah, yes, speaking of time to do everything, mostly doing back then when I was self-employed, mostly doing web services integration from NAV to and from something else on the other side, joined Microsoft part of the sales organization one and a half years and then, yeah, eight years now-ish in the BC team, first doing localizations, rolling out BC to many countries and then switching to some onboarding five years ago now and did that until almost a year ago and then since about a year ago, everything now says AI, so taking over the finance area of BC since last fall and working on the payables agent.
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The payables agent.
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That opens up a whole conversation for me.
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With the payables agent we were all at directions.
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We had the opportunity to speak, we saw the keynote presentations on the sales order agent and there were other discussions on the agents and you also had a session on the payables agent.
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If you would, before I jump into it, I remember some of those names.
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Over at Microsoft, do they have a shrine to all the old versions of Navision where you go back from Navision 1?
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Like an install kit or something on the wall where you have all of the installed media?
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I don't know.
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We have the physical media like the DVDs and stuff and discs, but we probably have all the artifacts on some shared drive somewhere.
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But you could say that so many people in the BC team have been here for so long that the shrine is sort of made up of real people that have just been with the team since back in the day, right.
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So we have people who have been with the team like plus 20 years, like who remember you know stuff way back from the you know terminal-based client, even stuff like that.
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I mean, you'd be amazed, yeah.
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No, definitely it's amazing and as you're talking through it, it just it's, it's.
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It spans quite a bit of time, but it doesn't feel like a long time.
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It feels like a lot of this was just yesterday it's.
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I just had that discussion.
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It does feel like yesterday and it does.
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It's also amazing that you can like imagine bc now running in the cloud in this super complex infrastructure and services, global scale, hyperscale cloud, on a system that was, or at least inherited from a system that was basically built like 30, 40 years ago almost, but at least from a functionality perspective there's still remnants from that time and it just goes to show that some business processes don't change that much.
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Like core finance is still sort of core finance to a large degree.
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Of course there's some stuff you want to do and stuff you want to improve in your businesses, but to the core, we've been moving products around like as businesses more, or to the core, we've been moving products around like as businesses more or less the same way, uh, for the last I don't know many decades.
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Uh, it is, and I think that when I think a gl.
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when I think a gl entry, sales and receivable setup, purchase and payable setup, inventory setup, posting groups, like a lot of that stuff has been there, to me it feels like the beginning, but I can't wait to speak to you.
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We'll walk down memory lane the next time we have a conversation.
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The Pables agent, if you would.
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The whole world is talking about agents every day.
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I don't think I can go without shutting everything off.
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I don't think in the world that you can go an hour without hearing about something AI or agent related and the payables agents you have been working with.
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Would you mind telling us a little bit about the payables agent?
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Yeah, no sure.
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So, speaking of things that haven't changed in decades, companies have received invoices from vendors, like since you know or like all the time, and that process, like receiving and processing vendor invoices, has always been sort of prone to automation.
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We've been, you know, companies have been trying to automate that for decades, all the way back to the 60s with EDI started and, you know, as internet connectivity got better and various ways to get data into systems, out of systems, improved integrations, access points, what have you.
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So there's been sort of a push to automate that process for many decades, but it's always hit a roadblock when it hit that last thing where now someone needs to actually process this invoice and recognize what it is.
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It's been very mechanical and if you received an invoice that was based on, you had mapped up some of the information or the invoice to your GL accounts or to your items or things of that nature.
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Of course you've had OCR, optical character recognition, for quite some time, but still that helped you with getting the data into a sort of machine-readable format.
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But after that, what was actually on the invoice?
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Like having a system that could recognize.
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What is this even all about?
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What is this invoice about, without having to map anything and set anything up.
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That's been the hard thing.
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That's really where the Payables agent brings something new, which is we believe that not only can the agent get all the data in from your invoices and we'll be starting with normal PDF invoices but the agent will be able to recognize, from an accounting perspective, what's going on on the invoice.
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Is this a subscription that we've prepaid and thereby you need to defer the expense, or is this some other expense that we have?
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Something that's in our policy that says we need to post a certain way or so all that accounting knowledge, if you will, we imagine the ABLE will be able to acquire and utilize.
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So basically helping the accounting professional with doing that last mile registration of the invoice, if you will, and in time, also purchase order matching and sort of, in a sort of next phase.
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But that accounting knowledge piece has been the missing thing, the hard thing to do until now, until now with LLMs, basically.
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So we think we can make that work.
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That's what we're trying to do right now as we speak.
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So we're building the agent right now and focusing first on getting the PDF sourced, so from an email account or from a SharePoint or OneDrive folder where you might want to place your invoices, or from a SharePoint or OneDrive folder where you might want to place your invoices, or from an email account.
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Like a trip scenario.
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You forward or you get an email with an invoice from a vendor, or an employee forwards an invoice.
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We import that into what we call e-documents in BC and then the agent takes over and starts looking at the invoice and sees, based on a handful of different ways of processing this invoice, it tries to look at how did we previously handle this invoice?
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What does my purchase history say in terms of how to post it, how to register it, basically how to code up the lines for the invoices?
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Do we have a policy in place?
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Maybe you have a Word document, pdf document, that describes your accounting policy.
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When we post rent for the warehouse, how should that line look like?
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Is there a certain dimension that should be added?
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If you buy software licenses, does that need an allocation account to be split up against, you know, based on multiple deal accounts or dimensions or things of that nature.
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All of these things we're trying to look at in sort of combination and figure out sort of what is the best predictor for how should this invoice be handled.
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So that's really the idea and hopefully that will work out so smooth that you can be basically hands-off.
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Of course there'll be some corner cases that are that are hard for the agent to sort of say.
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You know, for example, let's say you've been doing it a certain way, posting rent for the warehouse a certain way for the last 10 months, but now suddenly last month you did it differently.
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Now what's the right answer?
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Is it what you did last month or does the 10 preceding months weigh more heavily?
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And so probably that's a human-in-the-loop moment where you want to say okay and you know.
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So probably that's a human in the loop moment where you want to say okay, the agent can't do a confident enough, uh, can't see confidence enough decision, so probably we need to involve a human.
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So human in the loop is a sort of a core concept.
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Um, and everything that is agents, it's built around human intervention, if you it is.
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I think of this when I hear the agents and get more familiar with agents.
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It's not just.
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It seems like it's the agentification I always stumble when I say that Agentification of the world, because everyone talks about agents to do specific tasks and listening to your explanation, it almost you start to equate to how people work in a sense, because if you have an agent that's responsible for receiving an invoice, taking that invoice or a document invoice of some sort, taking that invoice and then creating a purchase invoice within Business Central and then processing it according to some rules, you're in a scenario where, well, now we have a difference.
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What do we happen in a difference?
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It could even be the same case when you have a person doing that same or a human doing that same task that they may need to go speak to their supervisor, or they may need to speak to someone else to ensure accuracy of it, or there may be limits that you can put into place.
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Where you say the human and loop, I'm glad you explained that because that's also another term that I've been hearing quite frequently in conversations, I think more so in the business central community versus outside.
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But what the human and loop means is, in essence where humans get involved.
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If I'm'm correct, humans get involved into the operation to validate, confirm or be involved in a process or a transaction.
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Yes, and when it comes to human in the loop, it's it's super important that there's a it's very clear to the user or users or team or company when is an agent expected to do something and when is a human expected to do something.
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So there needs to be a very clear handoff, if you will, between well, the agent is now running with the ball, but gets stuck, and now it needs to involve a human.
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So we've designed with the ball but gets stuck, and now it needs to involve a human.
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So we've designed, as you've maybe seen, we've designed this agent sidecar on the right side, where there's this timeline, but the agent will describe anything that it's done in the process and the end-to-end flow, basically, and then the human will be brought in and will have a task to do if something is uncertain, if the agent cannot continue, or if you've opted in to be in the loop in a certain place.
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So human in the loop will definitely be like there will be configurable human in the loop moments where you can decide oh, I always want to be in the loop when the vendor is not a good match for what we have in our system, or the bank account doesn't match, or whatever, or there's an anomaly with the amount.
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It's suddenly twice as high as it used to be, things of that nature.
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But you want to maybe configure that yourself, or maybe you want to in the beginning to have low autonomy or be brought into the loop more until you feel comfortable with the agent taking some of those decisions by itself, and then you dial up the autonomy as you sort of go forward.
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But there will also be other human-in-the-loop moments where we will decide well, there will be human-in-the-loop when X happens, for example.
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That might be if it's sort of more risk situations or where the agent simply cannot just make a decision.
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And how will the agent know when to make a good decision and I think that's a concept that we're working on is what is that confidence level?
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So, as I mentioned before, let's say you had the purchase history, you had the policy you had.
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What if the agent suggests something?
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It suggests a GL account to post this rent for the warehouse, but for some reason the user doesn't agree and changes that to something else.
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That signal that the user changed it.
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It's also a signal for the agent to say, aha, my suggestion wasn't good enough.
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I can remember this scenario next time for this vendor for this specific type of expense.
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Correlate that with what does the policy say?
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What does the policy say?
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What does the history say?
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Are you also using recurring purchase lines?
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Maybe that's also something that should be taken into account of how to weigh all these things together.
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So how we weigh these things.
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That's then maybe the tricky part.
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Should policy have priority over history, or the other way around?
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And what about just pure LLM guesswork?
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So if you don't have any of these things, you don't have any history, you don't have any policy.
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Just let the LLM guess.
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Here's my chart of accounts.
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Which one is the best for posting rent to my warehouse?
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Probably the agent will have some kind of idea about that, because it does have some basic domain knowledge, if you will.
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I was just going to ask you about that, about the confidence level.
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You know clearly the human aspect of it, where you're interacting with it and it's interacting with your business.
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When do you have the authority?
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Or maybe changing that confidence is like okay, well, I'm not.
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You know, it tells me that it's 99% confident or 90% confident.
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Maybe I'm not, I'm not confident enough for that to just make a decision.
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Do you have control over that?
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I think that becomes a uh, maybe, a need, uh from a business aspect, like uh, maybe, maybe, when it maybe, when it's only 90%, I don't want it to do anything, I want it to ask me, right?
00:22:29.641 --> 00:22:37.069
That's an excellent question, Chris, and I think I totally agree, and that control first starts with transparency.
00:22:37.069 --> 00:22:41.489
So what we're looking at first is to so normally, a purchase invoice.
00:22:41.489 --> 00:22:43.673
So right now, what we do with these invoices we take them in and we create purchase invoice.
00:22:43.673 --> 00:22:51.328
So right now, what we do with these invoices we take them in and we create purchase invoice documents from the MNPC, and later we'll do PO matching and so on.
00:22:51.328 --> 00:22:55.727
But and right now a purchase order sort of a purchase invoice document is.
00:22:55.727 --> 00:23:11.594
You could say it's already a kind of a draft because it's not posted yet, but we needed a stage before that, a sort of a draft stage before that, before it becomes a purchase invoice, because someone might stumble upon it and wouldn't know if this invoice is ready for whatever the next step is.
00:23:11.594 --> 00:23:40.990
So we introduced a new purchase document draft stage, if you will, where we create the invoice based on all the information we have, as we talked about before, all the input and signals to how do we think this invoice should look like as a draft and there the user would look at it, and here we plan to incorporate some UI that says oh, we suggested this GL account because you have this in your policy.
00:23:40.990 --> 00:23:47.425
Or we suggested this yield account because that's the most frequently used for this type of expense on this vendor.
00:23:47.425 --> 00:23:50.861
So similar to what you see with.
00:23:50.861 --> 00:23:57.945
You've seen the new auto fill feature where it explains, with small icons beside fields, why was this predicted.
00:23:57.945 --> 00:24:01.905
Imagine the same thing happening here for all of the information on invoice.
00:24:01.905 --> 00:24:11.991
You could say, oh, it suggested this because it came from our policy document and it's to some degree certain about that.
00:24:12.539 --> 00:24:17.507
Of course, when it comes to actual percentages, that's going to be the tricky part.
00:24:17.507 --> 00:24:26.031
We need to figure out how do we like if something comes from a policy, are we then 95% certain or are we 85% certain?
00:24:26.031 --> 00:24:32.886
That's something we'll have to experiment with and build out some models for certainty or confidence.
00:24:32.886 --> 00:24:38.326
That is not an easy feat, so that's something we'll need to figure out.
00:24:38.326 --> 00:24:43.770
But we'll need to start with at least explaining to the user why these suggestions.
00:24:43.770 --> 00:24:52.709
Why does this invoice look like this on as detailed as level as possible, and then you can take a decision on great, that's fine.
00:24:52.709 --> 00:25:12.458
You might also be able to say in your configuration of the agent that the policy should have preference over history, for example, because you might have done a certain thing for posting rent the last 12 months, but now it's new fiscal year, Now you change your policy for some reason.
00:25:12.458 --> 00:25:18.219
So now it shouldn't rely on history, it shouldn't be the predominant signal.
00:25:18.219 --> 00:25:25.044
So we imagine you can sort of configure the hierarchy of how much should they weigh these factors.
00:25:25.044 --> 00:25:31.863
So it's not yeah, it's something we need to get some experimentation done with and get some feedback on.
00:25:32.730 --> 00:25:47.931
We have this private preview program where we want to let you guys and other people you know lose on the agent and try it out and see how does it work, Because you also have some obviously you have a lot of experience with from from from real customer scenarios how these things work.
00:25:47.931 --> 00:25:52.720
So, uh, so we're super excited and we think we can make this work.
00:25:52.720 --> 00:25:56.113
Uh, but it's all about trust.
00:25:56.113 --> 00:25:59.319
You need to be able to trust the agent.
00:25:59.319 --> 00:26:14.315
Definitely, you want to be able to trust it before you dial up the autonomy, and you also want to be able to trust it before you dial up the autonomy, and you also want to be able to trust it to just use it in the first place, like to get the value from it, and I think that's going to be the.
00:26:15.057 --> 00:26:29.025
So, knowing accountants, of course, you could say well, you've been automating this space for years, but those systems have been more sort of fixed and based on mapping, so you always knew what was going to happen.
00:26:29.025 --> 00:26:46.258
This is different, and our main challenge is to whenever AI is in place, is to say, however we posted rent for the warehouse yesterday, we need to suggest the same way tomorrow.
00:26:46.258 --> 00:26:47.836
It needs to be some consistency.
00:26:47.836 --> 00:26:53.310
We can't live with the normal co-pilot creativity, if you will.
00:26:53.310 --> 00:26:56.901
That won't do in accounting right.
00:26:56.901 --> 00:27:01.289
So that's what we're trying to do.
00:27:01.289 --> 00:27:12.096
We're trying to tame the wild tiger of LLMs here in Incense and get to some consistent results, and that's probably the hardest part of all of this.
00:27:12.858 --> 00:27:23.259
For sure, and I think there's a requirement for businesses to really document quite a bit, because we talk about agents and grounding them to.
00:27:23.259 --> 00:27:40.852
You know, with with some policies, as you had mentioned and I chuckle internally a little bit because any time that I've done implementations and I know in the past there a lot of businesses don't have actually written policies, right, it's, it's all like tribal knowledge.
00:27:40.852 --> 00:28:11.462
And so you know, as we go towards the agentic world, I think it's more important now for organizations to really write down and create those documentations or create those policies, so that when these things come out, you want to be able to ground them based upon those documentation, because there's so many tribal knowledge and you know we've all gone through implementations or, like God, that person knows about everything.
00:28:11.462 --> 00:28:12.554
It's like how come you don't know?
00:28:12.554 --> 00:28:13.478
Isn't it written?
00:28:13.478 --> 00:28:14.554
No, they just know.
00:28:14.554 --> 00:28:16.490
Right, it's tribal knowledge.
00:28:16.490 --> 00:28:27.933
So I think it's a lot more important now for businesses to really take the time now for businesses to really take the time.
00:28:27.953 --> 00:28:28.335
It is important.
00:28:28.335 --> 00:28:40.604
It lessens the risk, because the knowledge that you're talking about could be standard knowledge and the policies could be governmental restriction policies that you may have on top of organizational policies.
00:28:40.604 --> 00:28:46.961
So it's not like you have to draft everything, but you need to have those sources that you can reference, which are handy.
00:28:46.961 --> 00:28:56.421
And, chris, I completely agree with your point on so many times a lot of policies, a lot of procedures and a lot of why things are done are based upon.