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AI in ERP and Its Potential

  • AI in ERP has streamlined business processes, increased productivity, reduced chances of error, and marginal cost reduction. Various businesses are benefiting from this integration and are helping others as well

“AI is the new electricity”, said Andrew Ng, the co-founder of Coursera. As the invention of electric power revolutionized the functioning of industries, likewise the introduction of Artificial Intelligence to various industries transformed how they operate and carry out their processes. Its integration into areas, mainly data security, process automation, and customer care which are an integral part of all businesses helped them understand unstructured data, perform targeted marketing, detect fraud, make business processes more efficient, and do a lot more. 

When we talk about Artificial Intelligence Systems Integration, it is not the first time we are witnessing the integration of artificial intelligence into another technological system and its reorientation. The evolution of intelligent technologies has led to collaborations and integrations that have given rise to innovations that are not just taking the technology industry but many other industries to another level. Businesses are looking for more straightforward and automated solutions that will help make data management easy and operations more organized and prolific. Nevertheless, AI-integrated ERP offers that and more. 

What Do We Understand by Integration of AI in ERP?

AI (Artificial Intelligence) is a flexible technology that has several use cases and over time its applications have come in use with ERP (Enterprise Resource Planning) as well. Some of its many applications in ERP have been seen in Interactive chatbots, AI-based ERP for the finance industry, Intelligent process automation, and others. While AI has individually been doing great for itself, its collaboration with ERP has streamlined business processes, increased productivity, reduced chances of error, and marginal cost reduction. Various departments in a company are benefitting from the integration of AI into ERP solutions. 

How Does Integration of AI in ERP Improve Business Processes? 

AI integration into ERP systems drives innovation and provides businesses with a competitive edge in today's dynamic marketplace. It helps a business enhance its efficiency, accuracy, and decision-making capabilities. Let’s learn how.

Data management 

A business has already generated tons of data over time and is producing every day. Nevertheless, it is a tedious task to categorize, manage, and process that kind of data and information. The integration of AI into ERP can help a business do all of that and more. You can use AI algorithms to use such data effectively and make improved decisions that can add to the growth of the company.

Business Automation

If a business understands the importance of time, it surely knows the Time To Revenue (TTR) is one metric that is used to calculate its profits. Most experienced Sales Ops understand this standard and so they prioritize their time and try ways to reduce the TTR to increase productivity. Thus, automating business processes using AI and ML (Machine Learning) allows businesses to let their human resources focus on high-priority tasks and boost efficiency.

Enhanced Marketing Solutions

There were marketing tools before but with AI and ERP, marketing has become intelligent. This powerful solution can produce volumes of data and customer insights that can be leveraged to know your customers better and enhance their experience. As customer satisfaction gives you an idea of a customer’s purchase intentions, their loyalty to the brand, and whether or not they are contributing to the company’s growth.

Improved User Experience (UX)

A good UX is essential to a business’s growth as it creates an outsized impact on the customer’s experience. Having said that, ERM systems and artificial intelligence learn and understand users’ language so that the system can respond to them better. AI makes navigating through complex software and applications easier by making the software intelligent and the experience interactive.

Business Intelligence

To get a better understanding of the business’s current standing by pulling data from a centralized repository. It produces comprehensive, detailed analyses that help users improve operations in both their front and back offices. For instance, if a retailer is experiencing supply chain issues, analysis from BI can pinpoint operational bottlenecks and devise a plan to reroute shipments through a more reliable route.

Use Cases of AI in ERP

Conversational AI Bots

An ERP system-integrated chatbot not only processes a user’s query but enquires about it with the ERP system and then delivers the information received from the ERP to the user in the common language. These conversational ERP-integrated AI bots improve the experience for the users and the efficiency of the business processes. The tedious yet crucial tasks of an organization are taken care of by such bots so that the employees can get involved in other productive tasks. The chatbots also help improve supply chain management by automating the data and saving time by reducing the manual tracking of data, especially in the case of bulk shipments. Other major uses of ERP-integrated AI bots are -

  1. Improved User Adoption
  2. Personalized Alerts 
  3. Better and Quick Decisions
  4. Mobile access to ERP data   

AI-enhanced Financial Planning 

Financial Automation and AI in ERP have effectively automated repetitive and manual financial processes giving professionals the time to attend to value-adding tasks. The incorporation of automation in the ERP systems also allowed companies to centralize and standardize their financial operations. This technology-induced strategy increased accuracy, reduced risks, enhanced productivity, and added value to businesses. 

Demand Forecasting

Although AI Forecasting engines promote automation of the workforce planning team, it also encourages aspects of performance management. It drives cost saving for a business by creating more business opportunities, operating more efficiently, and targeting performance management. All these aspects of business growth are backed by real-time data and the actionable strategies that are built from it. Nonetheless, it is the right AI model, abundant quality data, augmentation technique, incorporation of external data APIs, and such strategies that can really contribute towards creating reliable outputs. 

Intelligent Procurement

Better calculations and rules automate certain behaviors and smart procurement helps companies move farther away from the traditional methods of doing tasks and closer to strategy and automation. It provides strategic insight and foresight to make better and more precise decisions and overcome complex value chains. Intelligent procurement with artificial intelligence positively impacts the company’s profitability which not only includes the rationalized spending but also the value generated. 

Personalized Customer Experience

The personalized experiences and solutions with AI-integrated ERP systems promote a good customer experience. Based on customer data, AI algorithms identify trends and preferences so that businesses can offer their individual customers customized products and services. The AI-powered chatbots also improve customer satisfaction and loyalty with real-time customer support. AI and ML support all operations within a system by automating individual tasks and also the whole process. 

In the coming times, AI and ERP will play a major role in the development of systems that will change the way businesses function. They are together breaking new ground, time and again, and it is still hard to believe the way AI and ERP solutions have paved paths of innovation. Our team of people at Evon Technologies has an overarching vision to share their innovations with the world and watch other businesses of different industries grow as we grow with them. If the topic interests you and you would like to know more about how this and other related technologies can help your business, get in touch with us at This email address is being protected from spambots. You need JavaScript enabled to view it.


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