Artificial intelligence (AI) has integrated itself into the business realms, reshaping how companies operate and interact with the world.
In various industries, AI serves as the backbone of numerous innovations. Its ability to learn from data, identify patterns, and make predictions has unlocked unparalleled capabilities that helped transform various businesses and processes.
One notable area of AI integration in business is in ERP systems. By integrating AI into enterprise resource planning platforms, companies can analyze vast amounts of data with speed and accuracy, extract actionable insights, optimize processes, and make smarter, data-driven decisions.
By integrating artificial intelligence in ERP systems, business owners can adapt, thrive, and innovate in an increasingly complex and dynamic global environment.
With AI a part of different ERP systems, many day-to-day operations and processes of businesses have improved through the following ways:
AI in ERP systems allows companies to access and leverage large amounts of internal and external data accumulated over many years. This technology can also process information and generate detailed reports at exceptional speeds without human intervention. Access to accurate, real-time information enables businesses to make data-driven decisions.
AI-enabled ERP systems allow businesses to use predictive analytics more efficiently, helping them forecast future events, trends, and behaviors accurately. This can apply to production demand, inventory management, and equipment repairs, among others. With this capability, businesses can find patterns and identify risks and opportunities.
ERP with AI provides users with more opportunities to be creative in interpreting and presenting data. Using the software, they can compare various data sets, generate and present graphs, and employ other inventive methods to analyze data.
AI-powered ERP software can help improve customer services through conversational AI, a feature that enables intuitive interactions with the system. Users can ask questions or request data through the system instead of navigating complex interfaces similar to ChatGPT.
Companies looking to invest in ERP digitalization can leverage these benefits when they choose an AI-enabled ERP system.
Below are some specific ways AI has enhanced ERP systems:
AI can automate routine tasks and processes, such as data entry, staff scheduling, stock replenishment and email responses, which are all often time-consuming. By allowing an AI-powered ERP system to do these tasks, companies enable their staff to focus on their more important responsibilities, which typically require creative thinking and solutions.
AI and ERP can streamline different talent and recruitment processes. These include sorting and screening applications, onboarding, monitoring staff performance, and managing employee records. This technology can even help in various aspects of payroll.
As mentioned, AI-powered ERP software has elevated various aspects of customer service because of its more advanced chatbots and virtual assistants. Its ability to engage with customers in real-time, answer questions, and provide solutions and recommendations has taken the quality of companies’ support services to another level.
AI-enabled ERP improves the efficiency of supply chains by recommending better delivery routes, managing inventory levels, and predicting disruptions. These help companies cut costs while still providing reliable and satisfactory products and services.
By harnessing the analytical power of AI algorithms, an ERP system can identify irregularities and anomalies within data, flagging potentially fraudulent activities in real time. It leverages historical transaction data, user behavior patterns, and external factors to detect suspicious activities, usually before they escalate into more problematic issues.
Through predictive analytics, AI-enhanced ERP systems can detect emerging risks, providing timely interventions to reduce their potential impact. The continuous improvement of machine learning models also ensures ERP systems remain adaptive to the constantly evolving risk landscape.
An ERP projet consultant can help companies choose an AI-powered ERP system that answers their urgent needs to avoid confusion regarding which feature to prioritize.
Many well-known companies are already leveraging the benefits of AI-powered ERP systems. Below are some ERP-AI use cases worth mentioning:
As one of the biggest names in ERP, IBM is among the first companies to integrate AI into its ERP system. Their focus was to improve customer service quality by using natural language processing (NLP) to analyze customer comments and sentiment.
This has helped businesses pinpoint areas for improvement, increase efficiency and enhance their customer experience.
Walmart Commerce Technologies partnered with Salesforce to provide retailers with technologies and services that let shoppers experience easy local pickup and delivery services.
One example is Store Assist, a buy online and pick up in-store (BOPIS) feature that allows customers to order via their website and pick up their purchases at their preferred store. This feature has helped improve efficiency and sales across Walmart’s shopping platforms.
Walmart has also used other AI-powered ERP systems, one of which has helped them process high volumes of transaction records.
Siemens uses AI-enabled ERP systems for various production processes. Their technology’s machine learning algorithms analyze production data and detect bottlenecks and inefficiencies, helping reduce downtime and improve workers’ productivity.
The company also uses this technology to automate routine and mundane tasks, enhancing efficiency and productivity in different areas, from production to management levels.
As AI continues to advance, its influence will deepen and drive further innovation and transformation across industries.
Integrating AI in ERP systems can unlock new opportunities for businesses and help them build resilience and agility in an increasingly dynamic and interconnected world.
Contact Affility Consulting if you need help with choosing a new ERP system for your business.