Integrating Artificial Intelligence with ERP is a hot topic from the past few years, but, to your surprise, very few people know about it. AI technology can extend the ERP system’s technological capabilities much further. But for the companies to gain value from the new technologies, they need to go through the current technology strategies and prepare themselves to change and adapt to the advancements.
AI within ERP Systems
Enterprise Resource Planning vendors can improve ERP systems capabilities by integrating AI, which uses machine learning and natural-language interfaces. It provides actionable data insights to allow companies to optimize operational efficiency.
According to data collected by Gartner, around 80% of emerging technologies will be AI integrated by 2021. SAP Leonardo and AI infrastructure from IBM are good examples of AI-driven ERP solutions. They include microservices integrated with there own cloud platform. Another Artificial Intelligence ERP solution example is Coleman AI from Infor. Oracle also launched several AI-based ERP solution tools, such as:
- Digital Assistants
- Smart Supply Management
- Advanced Access
- Financial Controls
Artificial Intelligence Revamping ERP Systems
By making AI as an integral part of an ERP system, the very essence of daily processes will get affected. It will take over almost every routine tasks currently done by humans. The advancements in new technology are necessary to reduce business operating costs and enhancing the organization’s operational efficiency. As a business enterprise, you have to follow the development of artificial intelligence if you want to stay competitive and efficient.
Here are seven ways artificial intelligence will improve ERP software working:
Data Input Automation
Almost 90% of the companies are practicing manual data entry into the ERP systems. It’s a heavy workload that costs a lot of working-hours. There are also chances of typing errors, which could cause problems when calculating sales/purchase data, GST-returns, etc.. By integrating Artificial Intelligence with ERP, it can learn from previous data sources and create workflows, reduce the data load time, and prevent errors in the inserted data.
The AI-enabled sales chatbot will automate most of the live sales assistants’ responsibilities. It will not only help customers but will also conduct the whole sales triangle. Chatbots can cope with segmentation to provide real-time responses. Although it can’t handle complex, novel tasks that require out-of-the-box thinking, so it’s better if smart machines and people work together.
Cloud ERP Management
Believe it or not, but the cloud ERP is replacing the traditional ERP systems at a rapid pace. It provides a way of running your business over the Internet. As a small or medium-sized business, you can save on upfront maintenance fees and IT infrastructure costs. Introducing AI and Machine Learning solutions into a cloud-based ERP system, you can boost the adoption of ERP solutions with automated billing that uses voice recognition or image processing capabilities. Using Internet-of-things technologies, it will collect additional data from the IoT devices.
The advanced analysis of AI provides real-time and accurate data insights. It involves data and machine, learning models. AI-enabled ERP will use massive data flow to analyze the buying behavior of customers, optimize price, predict demand shuffle, prevent churn, provide better marketing strategies, determine the next best action, and much more. Advanced analytics will provide insights about how long a consumer spend analyzing a particular product on your online store and will generate customized emails from your ERP or CRM system.
Better Decision Making and Workflow Enhancement
ERP systems are necessary for business enhancement and streamlining their workflow to create better decision-making capabilities from production to strategy. AI can further enhance these functionalities by analyzing large datasets and learn from earlier behavioral patterns. It will create the most effective internal work processes. By reading the pre-configured workflow, AI will automatically perform the next task and provide the information required to complete that task. It will optimize the work process and streamline the different business operations.
Warehouse and Financial Management
With AI, you can test multiple demand forecasting models with accuracy, adjust different types of variables, including supply chain disruptions, introducing new products, and change in demand. BMW is using a learning algorithm to track the item from the manufacturing stage to the moment it’s sold.
Also, artificial intelligence can automate monthly and quarterly processes and closing operations by analyzing reports for accuracy. It can compare account balances between independent systems. AI can create a category of invoice data for multiple accounts to discern the difference between a monthly phone bill and phone purchase.
Errors and Fraud Prevention
If your ERP stops, the company’s production will either completely stop or slow-down. Earlier, you have to wait for an IT specialist to resolve the problem. By integrating AI, you can utilize machine learning to identify the problem, predict potential errors, and ensure continuous uptime of the ERP system. The technology is capable of verifying operational data to predict customer orders that might be fraudulent. ERP system will work much faster to detect anomalies, reduce the number of errors, which could save your company a large sum of money.
Future of AI-Enabled ERP
For your knowledge, AI is already occupying ERP functional areas like customer service and maintenance. It is pertinent as businesses require solutions that allow them to run cost-effective and efficient operations, manage structured and unstructured data, and provide a user-friendly experience. Technology is moving at a rapid pace, and AI-enabled ERP solutions have limitless potential. You can either ignore it and suffer the risk of lacking behind or, you can adapt to these changes to scale-up your business further.