Artificial intelligence (AI) is a paradigm of technology that allows smart machines to perform tasks that generally require human-level intelligence. In many cases, AI-enabled devices are smarter and quicker than humans and less prone to making errors. AI has wide-reaching implications in enterprise resource planning (ERP). In 2021, Gartner predicted that over 80% of emerging technologies would possess AI abilities, so it shouldn’t come as a surprise that as we are hurtling down towards the end of 2022 and into 2023, the importance of AI in ERP will only continue to solidify.
What is the connection between AI and ERP?
Artificial intelligence is a formidable technological component that bolsters existing and future ERP solutions. It combines machine learning, neurolinguistics programming, virtual reality (VR), and augmented reality (AR) to enhance the functionality of ERP solutions, providing actionable forecasts and insights which allow companies to improve their operational efficiency. In addition, AI features provide ERP users with advanced automation capabilities like chatbots, digital assistants, voice recognition features, and the ability to process vast amounts of data in a manageable and sustainable manner to allow businesses to constantly improve the way their internal procedures are managed and processed.
1. Smarter data processing and analytics
When it comes to artificial intelligence, it’s all about superior data processing and report generation. AI can make smarter forecasts and generate context-relevant reports compared to standard computing technologies. AI recognizes the context in which data reports and analytics are sought and generates valuable predictions and insights that regular ERPs often cannot. In addition, AI-enabled forecasting tends to be very accurate, taking multiple variables into account. As a result, you can minimize losses and maximize revenue growth.
2. Improved customer experience
ERP often combines shipping and deliveries, e-commerce functions, and Point-of-Sale (PoS) alongside customer service and CRM. AI can recognize patterns that a regular ERP can often miss and predict what customers truly want. Instead of retrieving past conversations and assessing a customer’s needs and wants, AI-enabled ERP can enhance CRM and e-commerce modules by giving the customers what they want, exactly when they need it. In addition, your contact center executives will find it a breeze to engage with customers and provide them with improved support.
3. AI-enabled inventory management is unrivaled
While a traditional ER system is a robust tool that allows inventory and stock management and provides procurement process automation capabilities, it cannot take extraneous variables into account and make predictions that might warrant reduced and increased replenishment. AI-enabled inventory management foresees demand and supply variables in ways that an ordinary computer cannot. As a result, you will have adequate control over your inventory management and will be able to eliminate wastage and lack of product availability.
4. Bring life to your ERP
Whether your ERP is engaged in frontend or backend operations, AI can breathe new life into it. Your staff will benefit from smart assistants and chatbots, answering the customers’ queries and leading them through complex business workflows. Your customers will be able to engage in a “self-service” manner to replace products or request returns. In addition, when combined with advanced Internet-of-Things (IoT) technology, AI-enabled ERP is often the gold standard for manufacturing and production lines. It simply changes how one approaches repairs, maintenance, and after-sales support.
AI-based ERP is here to stay.
Artificial intelligence is no longer a buzzword and rapidly becoming part of the mainstream. ERP is no stranger to this phenomenon as AI is gradually integrated into its modules, helping both enterprise users and their customers.
If you wonder how AI can help your existing ERP function better, contact us today. You might also want to discuss how choosing an AI-enabled ERP will help you go digital in a more future-proof manner.