How ERP Systems are using AI

Enterprise resource planning (ERP) systems are software applications that help organizations manage and connect daily business processes in various fields such as finance, operations, and human resources. ERP systems can improve efficiency, accuracy, and productivity by automating tasks, integrating data, and providing insights.

However, as business operations become more complex and dynamic, conventional ERP systems may be unable to keep up with the changing needs and expectations of customers, employees, and stakeholders. This is where artificial intelligence (AI) comes in. AI is the ability of machines to perform tasks that normally require human intelligence, such as learning, reasoning, and decision-making. AI can enhance ERP systems by adding new capabilities, such as:

• Advanced analytics and forecasting: AI can use historical data and current conditions to make predictions and recommendations for various operations activities, such as production planning, inventory management, demand forecasting, and sales performance. AI can also help identify patterns, trends, and anomalies in data, and provide explanations and suggestions for improvement.

• Human resources: AI can help automate and optimize HR functions, such as recruitment, performance management, compensation management, and employee engagement. AI can also help personalize and tailor HR services to individual employees’ needs and preferences, such as career development, learning opportunities, and feedback.

• Finance/accounting: AI can help automate and streamline accounting functions, such as transaction processing, statement verification, report generation, and audit compliance. AI can also help improve financial management by providing insights into cash flow, working capital, profitability, and risk.

• Customer service: AI can help provide faster, cheaper, and more consistent service to customers by using chatbots, voice assistants, or other conversational AI systems to answer common inquiries, resolve issues, or provide information. AI can also help personalize and customize customer interactions by using data analysis, natural language processing (NLP), and sentiment analysis.

There are many ERP systems that use AI to offer these benefits to their users. Here are some examples of AI-enabled ERP solutions:

• Oracle AI Apps for Oracle Financials: This suite of AI-powered apps helps finance and procurement teams improve performance, optimize working capital, and increase automation across payables, receivables, procurement, and supplier management. For example, the Dynamic Discounting feature uses AI to create a discounting program that is tailored to each individual supplier based on their profile, spend data, and payment behavior.

• SAP Leonardo: This is a collection of microservices that integrate with SAP’s cloud platform to enable users to leverage AI technologies such as machine learning (ML), NLP, and computer vision in their ERP processes. For example, the Demand Driven Replenishment feature uses ML to optimize inventory levels based on actual customer demand.

• Infor: This is a cloud-based ERP system that caters to a wide range of industries, such as manufacturing, healthcare, and retail. It uses AI to provide industry-specific solutions and insights. For example, the Infor Coleman AI Platform uses NLP, image recognition, and ML to automate tasks, provide recommendations, and generate reports.

In today’s fast-paced and competitive market, businesses need to leverage the power of AI to enhance their ERP systems and gain an edge over their rivals. AI can help businesses streamline their processes, cut down their expenses, boost their revenues, and delight their customers with customized and personalized solutions. AI can also help businesses stay ahead of the curve by enabling them to innovate and adapt to the changing needs and preferences of their customers, as well as the emerging trends and opportunities in the market. AI can also help businesses make the most of their data by transforming it into valuable insights that can guide their strategic decision-making and business growth. However, AI is not a magic bullet that can solve all the problems of businesses. AI also comes with its own set of challenges and risks, such as data quality, security, ethics, and human-machine collaboration. Therefore, businesses should not rush into adopting or implementing AI in their ERP systems without carefully evaluating their needs and goals and weighing the pros and cons of AI.

Until Next Time…