The impact of AI on ERP

Businesses are seeking to use smart technologies and artificial intelligence to gain a competitive advantage. Machine learning is already helping businesses to improve efficiency, for example in terms of quality control and maintenance. Let us look at more areas where AI will impact ERP systems.

Data Handling and Business Intelligence

Learning how to use and leverage your data to make better business decisions is one of the biggest benefits ERP can offer, which can give you a significant competitive advantage. Access to real-time data enables decision makers across the business to make faster and better decisions.

Through machine learning, AI can enhance the way your ERP handles and analyzes data, as AI technology will analyze larger data sets than was previously possible, meaning that its ability to work with vast amounts of data will enable better and more accurate real-time data insights.

For example, AI will analyze the buying behavior of various customers segments, allowing you to tailor your inventory directly to their needs. In addition, AI can be used to read historical data and learn from past patterns of behavior. This could be extremely useful in terms of generating bids and estimates. Building new products is a major challenge for creating bids, but by analyzing similar products you have built in the past, AI will provide more information about the true costs. This makes it easier to create an accurate quote for your customer (and helps you make better business decisions overall by having better knowledge of labor costs).

Process automation

Automating business processes helps you save time and money. When routine processes, such as invoicing and month-end closing, take hours or even days to complete, you are wasting a lot of your staff’s time. ERP already helps a lot in this area and improves productivity – especially for those who are still stuck in the world of Excel. An ERP system can help with planning, inventory management and can automate production processes, leaving your employees time to focus on other tasks such as innovation and business growth.

Automating your business processes with ERP allows you to do more with less. AI technology will enhance the performance of your ERP system in terms of process automation. Thanks to its ability to learn and make smart decisions, it makes routine tasks such as logistics and payroll management as easy as pressing a button. And, when integrated with an ERP system, AI will identify inefficient processes and propose a solution that will reduce costs and improve efficiency. AI also enables predictive diagnostics, minimizing wasted resources.