Power Apps MCP Server: Agentic Automation with Human-in-the-Loop

MCP is an open protocol that standardizes how LLM applications connect to external tools and data sources — the "USB-C of the AI world".

It has three pieces:

• MCP Server — exposes tools and data through typed tools.
• MCP Client — the AI agent (Claude, Copilot…) consumes the tools.
• MCP Protocol — standardized transport over JSON-RPC 2.0 on SSE/stdio.

MCP + Power Apps

• MCP PowerApps lets you create canvas apps in natural language from VS Code.
• It enables an unattended agent that runs tasks while you focus on what matters.
• It's another piece in the AI code generation tools set.

At Microsoft Ignite 2025 the coordinated launch of MCP servers across the platform was announced:

• Power Apps MCP
• Dataverse MCP
• Dynamics 365 MCP
• Power BI Modeling MCP
• Power Platform CLI MCP

MCP becomes the universal interface layer between AI agents and Microsoft's business applications stack.

invoke_data_entry

Extracts structured data from unstructured sources (emails, PDFs, documents) and creates records in Dataverse with human review in the Agent Feed.

request_assistance

The agent pauses execution and escalates to a human when it needs judgment or approval in the face of ambiguity, conflict, or critical decisions.

log_for_review

Logs high-confidence autonomous actions for audit without blocking the agent's execution.

1. Trigger — an email lands in a mailbox or a file is uploaded to SharePoint.
2. Extraction — the agent analyzes the document and extracts Dataverse fields.
3. Agent Feed — a task is posted with a side-by-side comparison view.
4. Human review — the user approves, corrects or rejects the data.
5. Record created — it's inserted into Dataverse with a confirmed GUID.

Supported input formats: .pdf, .xlsx, .docx, .jpeg, .jpg, .png, .gif, .bmp.

Supported Dataverse column types: Single line of text (None), Whole number, Decimal.

Completely redesigned in Public Preview — the definitive replacement for the activity-based agent feed.

Mandatory from 2026-05-01 — the agent feed only works with agents that use the Power Apps MCP Server.

• Comparison view — side-by-side of extracted data vs. original values for review and approval.
• Granular control — makers decide which tasks get posted to the feed and when there's a handoff.
• Direct navigation — contextual access to the Dataverse record from the feed task.
• Performance metrics — visibility into agent behavior with aggregated insights.

Tools exposed:

• list_tables — lists all tables in the environment.
• get_schema — gets the T-SQL schema for a table.
• run_query — runs SELECT to read data.
• get_record — retrieves a record by entity and ID.
• search — keyword search across Dataverse.
• insert_row — inserts a row, returns GUID.
• update_row — updates an existing row.
• delete_row — deletes a row by ID.
• create_table — creates a table with a defined schema.
• modify_table — modifies table schema/metadata.
• delete_table — removes a table from the environment.

Billing: from 2025-12-15, Dataverse MCP tools are billed in Copilot Credits when the agent is external to Copilot Studio (unless licensed via D365 Premium or M365 Copilot USL).

pac CLI v1.44+ · 20+ commands exposed as MCP tools · compatible with VS Code, GitHub Copilot, Claude.

It covers:

• Environment management — list, create and administer Power Platform environments.
• Solutions operations — import, export and packaging.
• Authentication — auth profile management and tenant connections.
• Dataverse operations — tables, data and configurations via CLI.
• Power Pages — site deployment and configuration.
• PCF components — controls and other component management.

Configuration: pac mcp start → add it to .vscode/mcp.json → use natural language as the interface.

• Automate data entry into Model-Driven apps from emails, PDFs and documents.
• Human-in-the-loop: the agent escalates to a human on ambiguous or critical decisions.
• Audit log of high-confidence autonomous actions without blocking.
• Connect any MCP-compatible agent to the Power Apps / Dataverse ecosystem.
• Full CRUD operations on Dataverse: read, insert, update and delete.
• Semantic search and SQL (SELECT) queries on Dataverse data.
• Power Platform environment and solution management via natural language (CLI MCP).
• Integrate with Claude Desktop, Claude Code, VS Code, GitHub Copilot and Copilot Studio.

• Scope — Model-Driven apps only. Canvas Apps are not supported.
• Data — Choice, Lookup, Date/Time and other complex types not supported by invoke_data_entry.
• Maturity — not production-ready: Preview with restricted functionality and breaking changes.
• Coverage — partial Dataverse coverage: no batch, no long transactions.
• Identity — authentication restricted to the tenant; no cross-tenant federation.
• Cost — Dataverse MCP charged in Copilot Credits from 2025-12-15 (external agents).

Thanks to everyone who came to Power Platform Madrid 2026 and thanks to Ivan Font for co-piloting this session with me.