How is ERP embracing Artificial Intelligence?

Artificial Intelligence (AI) is going to transform every industry. It will profoundly impact every software component in the market, including Enterprise Resource Applications (ERP) software. Business applications will become faster, accurate, and precise.

Although AI is still in its infancy, the new algorithms are showing a promising future. It is automating various critical web applications and bringing superior business infrastructure. AI algorithms are inherently intelligent and don’t require prewritten rules to perform actions. Such self-written algorithms will prove to be a boon for businesses as they don’t require any human interference. Gartner predicts that by 2020, 30% of companies will use AI to power at least one of their primary sales processes.

ERP Artificial Intelligence

Role of AI in industries

AI is transforming industries across different verticals. There is virtually no industry where AI isn’t making an impact. However, AI finds more prominent applications in process-heavy and data-sensitive areas where forecasts are based on historical data.

Artificial Intelligence can find patterns in large volumes of data instantly and provide accurate predictions. Breakthroughs in AI are augmenting human capabilities in physically intensive sectors and are allowing accomplishing tasks that weren’t possible earlier. Creativity and agility are two attributes of AI that distinguish them from ordinary pieces of code. Although in its nascent stage, AI is already benefitting industries. From here on, the path will only go uphill.

Here are five ways of how ERP is embracing Artificial Intelligence

1. Sales Automation

AI is revolutionizing the field of sales. Companies need no longer depend on their workforce to fulfill sales tasks. AI can perform repetitive tasks, thereby freeing up the sales reps’ time to focus on jobs that require human ingenuity. For example, suppose you sell printers and inks. The AI algorithms check the ink levels of all your customers’ printers. Whenever any printer is low on ink, you will receive a message, and a new set of ink cartridges will be sent to the customer automatically, without any human interference.

2. Customer Service automation

Studies show that acquiring new customers is five times more expensive than retaining existing customers. Thus, the importance of providing excellent customer service is increasing. AI allows companies to deliver top-notch support services through chatbots.

Chatbots are autonomous textual robots that offer solutions to customer queries instantly. They have access to an extensive repository of FAQs that they can readily share with customers. The FAQ section is updated after each interaction to accommodate new queries. The AI algorithms also assist employees with optimal time-scheduling, such as setting reminders for personal meetings and delivering essential customer resources.

3. Interdepartmental communication

ERP breaks information silos by creating an information repository accessible by all business stakeholders — including frontline executives, C-suite managers, vendors, suppliers, and distributors. The AI-enabled ERP system will allow companies to maintain a balance between the demand and supply ratio. When the demand for a particular product goes high, the AI-enabled ERP system automatically places orders. It also checks the inventory and sends a message if the raw materials’ quantity is less than the set threshold value. Moreover, the AI-enabled ERP system also forecasts the peak period based on historical data and suggests what the management needs to do to get ready. An added advantage is that when intelligent machines handle data, it’s free of human errors.

4. Data Analysis

The famous proverb “Data is the new oil” states the importance of data in making business decisions. AI-enabled ERP systems gather and analyze customer data, such as follows:

1. Purchasing pattern

2. Geographic details

3. Demographic details

4. Psychographic details

5. Behavioral details

6. Past purchases

7. Demand change

Based on the data points above, the AI-enabled ERP system determines the next best action and suggests marketing strategies.

It also monitors what products your customers are searching for on the company’s online store, based on which it sends customized emails to different customers.

5. Employee Attrition

Studies indicate that about 31% of employees quit their jobs within six months. There is no wonder that more than 50% of organizations globally find difficulty retaining their most-valued employees. The following points suggest the reasons behind the increasing employee attrition rate:

1. No feedback from managers

2. Overwork

3, No growth in the company

4, Lack of decision-making opportunities

AI-enabled ERP software keeps a check on employee performance and sends report cards to respective managers periodically. The reports are easy to read and suggest strategies to improve the falling performance level. The AI-enabled ERP systems also create a separate employee growth track for every individual.

6. Error and Fraud elimination

Sometimes ERP systems encounter errors that slow down the functioning of all the departments in the company. In most cases, an IT specialist is needed to rectify the mistake that wastes even more time. An AI-enabled ERP system analyzes errors and troubleshoots them instantly.

Moreover, online frauds have been rising steadily over the years. Machine learning algorithms can detect fraudulent activities in a short period and raise the alarm. They can automatically freeze transactions and eliminate human errors. Their speed, accuracy, and precision can save a significant amount of money and time for companies.


AI-enabled ERP systems are the future. They will transform every industry by making them more resourceful and by significantly increasing competition. They will allow companies to focus on business-critical functions like finance, marketing, human resources, IT, support service, vendor interaction, etc. With AI-enabled ERP systems at the helm, the company’s productivity will boom, and you will notice a sharp rise in your customer base. So if you are searching or looking to upgrade your ERP software system, you should get an AI-capability integration.

Watch this space for updates in the Technology category on Running Wolf’s Rant.

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