AI is the new buzzword around boardrooms across the world. It is an exciting time to deep dive into the potential of AI and figure out what kind of disruption it can bring in to the technology market. AI has already entered our lives in many ways and most people are aware that in the next coming years AI will bring in a huge revolution in technology and our day to lives in general.
Having said this, the effect of AI in ERP is a very important development that the industry is witnessing currently. As we move towards the path of digital transformation, ERPs will get an AI makeover. The future of ERP with AI in focus looks extremely promising.
According to Gartner AI is “technology that appears to emulate human performance.”
AI involves machine learning and natural language processing. It skims over enormous data fields to make sense of a particular situation and eventually develops an intelligence mechanism that can take precise decisions.
With AI-enabled ERP, organizations reduce operational cost and bring efficiency. AI solutions can take over routine time-consuming tasks that are currently performed by humans and eventually boost people’s capabilities and the company’s efficiency. Most advanced AI solutions can also learn, speak, read, respond, predict and execute transactions.
AI ERP systems can recognize patterns and automate routine tasks, and they do all of it in the blink of an eye, giving businesses an unprecedented level of efficiency, functionality, and insight into their data.
Here’s how an AI can benefit an ERP software:
- Offers Advanced Data Analytics
AI’s ability to work with massive amounts of data enables real-time, accurate data insights. ERPs work with massive and extensive data sets, which sometimes becomes humanly impossible to analyze. Human eye might miss some minute correlation and patterns in the data range. This is where AI comes into rescue. With AI, companies can identify trends and patterns to make insightful inferences about specific business operations. This allows for more accurate forecasting and informed decision-making.
- Automates Routine Processes
AI can take over routine time-consuming jobs from humans and perform it efficiently, thus freeing up valuable human brainpower to focus on more high-level tasks and processes that no machine can reliably handle. Humans can devote their time to strategy and decision-making tasks, leaving the behavioral task to AIs. Using Chatbots for primary level customer service is a great example of this.
- Accurate Forecasting
ERPs with AI can process historical data and make predictions for the future. Because AIs have excellent precision over numbers and data, these forecasting turns out to be helpful in making critical business decisions like whether you should decrease or increase production. Not only does AI reduce the costs of forecasting, but it also makes forecasting much more accurate.
While ERP systems have always been able to integrate various functions within an organization, AI takes this integration to the next level. Although AI has not fully arrived, it is only a matter of time that AI will be an integral part of any ERP offering.
A 2017 Gartner Research Circle study found that only 4 percent of organizations surveyed had deployed AI, while another 46 percent were planning to implement it.
In just one year, the 2018 Gartner Annual Enterprise Survey found 20 percent of respondents planning AI-based projects, 26 percent piloting AI implementations, 31 percent with limited implementation in place and 23 percent fully implemented.