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The use of artificial intelligence and various machine learning models in ERP systems is no longer unusual today. Such solutions significantly improve a company’s market position and enhance the quality of its daily operations.
The role of artificial intelligence in ERP systems
It is undeniable that artificial intelligence, neural networks, and machine learning are revolutionizing our daily lives. They significantly help in completing tasks faster and better, which also reflects on ERP systems. AI is a useful tool in optimizing the operation of such systems. AI in these platforms accelerates business and production processes. This is best seen in the example of tedious tasks like data entry. Automation and entrusting neural networks with monotonous duties increases process efficiency (machines work faster and do not get tired) and improves employee well-being. Artificial intelligence can also learn based on data or previously completed tasks, so it can increase its efficiency over time. It also provides access to measurable and verifiable information about the entire company’s operations. This influences the decision-making process – thanks to data, the enterprise knows exactly how long a change will take, how much it will cost, and what profits it might bring. This eliminates intuition-based decisions and increases the effectiveness of actions.
Standard ERP system vs. an AI-powered system
The fundamental difference between a “regular” ERP system and one using AI is the way it operates. A standard platform is based on a set of pre-programmed commands, so it is only capable of performing specific types of tasks. Such a system will not be able to go beyond the commands assigned during its creation. Many of the currently most popular ERP systems operate this way. In contrast, an ERP platform using AI or machine learning (ML) can operate beyond pre-programmed commands. While it starts with a certain set of commands and tools, over time and with an influx of data, an ERP system with AI can learn new things. It is worth noting the difference between AI and IA (intelligent assistance). ERPs with AI can learn and act similarly to their users, but without the need for human control. In contrast, those with IA use advanced algorithms to assist employees, but require their supervision.
Examples of AI applications in ERP systems
Artificial intelligence is already being used in many areas of the economy. In the case of ERP systems, its most obvious use is production planning. Once the appropriate amount of data is entered, AI can independently create production plans tailored to the material and financial capabilities of the enterprise. This allows planners to focus, for example, on improving the planning process. Artificial intelligence can also be used to shorten delivery times and improve their organization. Artificial intelligence is also used in data collection and analysis. Working with large amounts of data can be mentally taxing, so AI can support analysts in their daily work. Combining the analytical capabilities of AI with production planning allows, for example, for assessing the risk of errors during the production process. The use of artificial intelligence also improves, for example, customer service quality by reducing waiting times. It is also used in marketing, where it can analyze demographic data, helping marketers better tailor content to specific target groups.
AI-supported ERP system – benefits for the company
The most visible benefit of using AI-supported ERP systems is the automation of business and production processes. This not only accelerates the entire company’s operations but, above all, leads to significant cost reductions. The saved money can be allocated to investments, for example. ERP systems integrate various types of data into a single platform, which allows for faster and more accurate analysis and more effective identification of correlations between specific types of information. AI can also detect trends in data and better predict future customer behaviors and needs. AI in ERP systems also works well in controlling. For example, AI can analyze a company’s financial data in a short time to detect, among other things, irregularities in invoicing. Its application allows for better control of data security and improves the overall level of protection for company processes, acting as a defensive wall against cyber threats. The use of artificial intelligence also has a positive impact on people, both employees and customers. AI often takes over the execution of boring processes. People who previously performed the most tedious work can be directed to more demanding and creative processes, which will improve their morale and job satisfaction. For customers, the advantage may be, for example, the implementation of chatbots that are able to answer queries 24/7.
When will artificial intelligence in ERP systems become a market standard?
The experience of the pandemic showed that there is a bright future for ERP systems, but it also changed the approach to such platforms. Economic changes and the remodeling of existing ways of thinking about economics and work also had an impact. Customer habits have also changed, which has influenced the design, construction, and implementation of ERP systems. Many companies use ERP systems today, and they are slowly becoming a market standard. This is mainly due to the current specifics of the market and rapid technological development. The widespread adoption of artificial intelligence has changed the approach to, for example, production planning or data analysis, and it can be expected that with the further development of this technology, it will affect more and more areas of life. It is safe to assume that company management systems using artificial intelligence will become more widespread. They not only allow for faster and more efficient operation but also open up new opportunities for companies that can use the saved time and money for investments. AI in ERP systems is very advanced, but they are still just tools that take over the most tedious duties of employees and allow them to be directed to more creative tasks, which improves their morale and the company’s business potential. The aforementioned reasons clearly suggest that artificial intelligence in ERP systems will be a standard very soon. Just as ERP systems are already in almost every company, in the near future they will use artificial intelligence, and their success will depend on the advancement and capabilities of the AI used.
