AI Enabled ERPs: How Businesses Can Benefit

Imagine operating a company where teams are unable to collaborate efficiently, valuable data is trapped within separate business units, and decisions are made with limited clarity. This not only frustrates employees and negatively impacts operations, but also leaves customers dissatisfied. To avoid these issues, businesses implement Enterprise Resource Planning (ERP) systems to unify various departments into a centralized platform removing communication barriers to minimize errors and improve decision-making. Furthermore, the integration of Artificial Intelligence (AI) into ERP systems has the potential to enhances their effectiveness, providing leaders with powerful tools to make more informed decisions.
AI automates ERP functions like invoicing, order processing, and managing production schedules which are enabled by machine learning (ML) and Natural Language Processing (NLP). ML allows ERP systems to recognize workflow patterns and automate tasks accurately without human intervention. Additionally, meaningful insights are provided to users from ingested data and have the ability to create predictive forecasts to support effective planning. NLP enables ERP systems to process unstructured data from emails and documents while interpreting user commands to create new and update existing workflows. Typically, companies rely on consultants to update their ERPs, but leveraging NLP reduces the need for external services and users are given the power to make necessary updates on their own. An ERP leveraging AI not only enhances the efficiency of day-to-day operations and specific tasks but also proves invaluable during unforeseen events, demonstrating its adaptability and problem-solving capabilities.
Consider the scenario where a manufacturer encounters a last-minute order change request from a customer. This change must be immediately communicated to the correct business units and suppliers to accurately update this order. Given the multiple parties involved and steps that need to be taken, this process is complex and the risk of critical information getting lost or inaccurately represented is high. AI reduces these risks by automatically updating internal systems with the latest order details and notifying each business unit and supplier involved. AI-enablement automates actions that support task execution without delay, and the time it takes to update an order is reduced while limiting potential revenue loss from employee mistakes.
The integration of AI into ERP systems enables businesses to transcend the limitations of traditional capabilities and unlock a new era of efficiency, collaboration, and data-driven decision-making. Businesses can stay agile while navigating unforeseen events and remain proactive in serving their customers. The continued development and adoption of AI-enhanced ERP systems will result in increased visibility across business operations, creating a competitive advantage for businesses in an increasingly changing environment.