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The web service provides real-time or dynamic data to the SSRS report.

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Yes, it is possible to use a web service instead of a DLL in an SSRS (SQL Server Reporting Services) report. SSRS supports integrating data from various sources, including web services, databases, and custom assemblies (DLLs). Using a web service can be particularly useful when you want to fetch dynamic or real-time data from an external API or service.
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You can't directly call a web service from the report itself.
You can define a dataset that pulls data from a web service endpoint:
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Use XML or JSON as the data source.
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Supported in SSRS 2016+ (for JSON).
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Use Query Designer to configure HTTP calls if supported.
https://yourapi.com/api/getdata