While artificial intelligence (AI) is a relatively new technology, it has already demonstrated its disruptive potential and created a buzz in the software market. In fact, according to Gartner, as much as 80% of emerging technologies will have artificial intelligence as a key component by 2021.
Artificial Intelligence Within ERP Systems
AI allows ERP vendors to improve ERP systems using machine learning and natural-language interfaces. The AI in ERP systems provides actionable data insights enabling companies to improve their operational efficiency.
A good example of an AI-driven ERP solution is SAP Leonardo, which includes a number of microservices integrated with a cloud platform. Oracle also has introduced a number of AI-based tools for its ERP solutions, including digital assistants, advanced access and financial controls, and smart supply management.
SAP vs. Oracle Case Study
SAP and Oracle both invest heavily in cloud technology. However, our client was skeptical about cloud scalability and unsure if the products were mature and proven.
Another example of an AI ERP solution is Coleman AI from Infor. You can ask this bot to suggest the next offer for a certain customer, create a requisition for a particular item and help you with many other tasks.
9 Ways AI Improves ERP Software
1. Advanced Analytics
AI’s ability to work with massive amounts of data enables real-time, accurate data insights. For example, AI can analyze the buying behavior of different categories of customers, enabling you to tailor your products or services to the needs of a certain audience.
2. Warehouse Management
Artificial intelligence can test countless demand forecasting models with precision, adjusting to different types of variables, including changes in demand, supply chain disruptions and new product introductions.
For instance, BMW uses learning algorithms to track an item from the manufacturing stage until the moment it’s sold, monitoring 31 assembly lines in different countries.
3. Forecasting
AI-driven solutions can process historical data and make predictions for the future. These tools identify seasonal patterns in your business, offering suggestions on whether you should decrease or increase production.
Not only does AI reduce the costs of forecasting, but it also makes forecasting much more accurate. You can significantly reduce the risk of underproduction or overproduction, when you manufacture the right amount of inventory.
4. Financial Management
AI can automate quarterly and monthly processes and closing operations by verifying reports for accuracy and comparing account balances between independent systems.
For example, AI can categorize invoice data into different accounts and discern the difference between a phone purchase and a monthly phone bill.
5. Interdepartmental Processes
Connecting sales, inventory and accounting is not an easy task. However, AI is not afraid of massive amounts and various types of data, making it the perfect solution for creating a centralized platform.
6. Customer Service
If your company does field service, AI can use information about performance evaluations and employee qualifications to schedule service calls and assist with planning.
7. Production Processes
When integrated with an ERP system, AI can detect inefficient processes and suggest a solution that will cut costs.
AI also can identify processes that use too much energy. It enables predictive diagnostics, minimizing the waste of resources.
8. Human Resources
Another advantage of AI-enabled ERP software is that it can be proactive. For example, it can detect what employees need a raise. In addition, it can analyze data on the skills and experience of applicants, expediating the recruiting process.
9. Sales Automation
Chatbots powered by AI not only help customers but also conduct the whole sales triangle. Now, bots can cope with segmentation and provide responses in real time.
Should You Select an ERP System With AI Capabilities?
While ERP systems have always been able to integrate various functions within an organization, AI takes this integration to the next level. It does this by analyzing large amounts of data, making predictions and suggesting next steps.
Panorama’s ERP consultants can help your company select an AI-enabled ERP system that increases your operational efficiency and improves your customer experience.
About the Author
Ester Brierley is a competent QA Engineer in a software outsourcing company. Also, she is a virtual assistant and a seasoned content creator for College-Writers, and knows the secret for balancing freelancing and her full-time job.
Note: The inclusion of guest posts on the Panorama website does not imply endorsement of any specific product or service. Panorama is, and always will remain, completely independent and vendor-neutral.
