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As we prepare to say goodbye to 2022 and usher in a new year, it’s time to look at artificial intelligence (AI) and how it will affect ERPs.
What is artificial intelligence?
As we know, AI is the technology that simulates human intelligence. Call it what you want: machine learning or natural language processing, where technology can learn from data or learn to understand human voice commands.
But how does AI affect ERP? AI technology built directly into ERP systems can learn and help automate routine processes or create better user experiences.
Although AI is still “in its infancy, ” Gartner predicted before 2020 that such technology would be in almost all new software products.
It is a good idea to optimize our ERP systems and their data for the practical applications that AI offers and take advantage of future opportunities as the technology matures.
How will AI affect ERP systems?
ERP software manufacturers should already be implementing artificial intelligence to give competitive advantages to their products. In that context, let’s look at three areas in which AI will affect, hopefully positively, ERP systems:
1. Data management and business intelligence
Learning to use and take advantage of data to make better business decisions is one of the greatest advantages an ERP can offer and can give us an important competitive advantage.
An ERP, being connected to the entire operation of your company and whatever the market niche, can provide data on every facet of the business. And it is clear: access to data in real-time and personalized reports allows better and faster decisions to be made.
For example, AI can analyze the buying behaviour of different categories of customers, allowing you to tailor inventories directly to their needs.
Furthermore, artificial intelligence can also read historical data and learn from past behaviour patterns. This could be extremely useful for manufacturers of custom products in terms of creating quotes and estimates.
2. Automation of processes
Automating business processes helps save time and money.
When routine processes like billing and month-end closing take hours or days to complete, much time and money are well-spent.
That being the case, AI technology can boost our ERPs’ performance in process automation, making routine responsibilities, such as advanced accounting, treasury and payroll administration, as simple as pressing a button.
Additionally, when integrated with an ERP system, AI can detect inefficient processes and suggest a solution that reduces costs and improves efficiency. AI also enables predictive diagnostics, minimizing the waste of resources.
3. User experience
We’re not going to lie: learning to navigate a complex system like an ERP can be a huge hurdle for some businesses. ERPs are only sometimes the most intuitive and easy to use, especially when learning a new system from scratch.
Of course, this is an important area where integrating AI into an ERP system can help. Like AI technology can learn from us and make our smartphones easier, AI can also help with complex software systems like ERPs. AI technology enhances the user experience through interaction.
For example, when searching in a data-rich system like an ERP, AI can tailor search results based on user history, making information more relevant to the user and the system faster. And easy to use.
While one of the main advantages of ERP systems is their ability to integrate the entire company, AI technology will soon take this integration to the next level while helping it be more efficient and productive.
Also, as AI technology develops and matures, we will likely see it take hold in ERP.
Also Read: Process Automation In An ERP Environment