Artificial Intelligence Transforms ERP

artificial intelligence and erp

Artificial Intelligence Transforms ERP

Like many other areas of technology, artificial intelligence and machine learning are on the verge of transforming ERP business management systems. 

Yours will see some of these innovations when existing software platforms are upgraded and others rolled out in new products.

Almost every new piece of software on the market by the end of 2020 will leverage AI technology in one way or another, according to an analysis by Gartner. And by the end of 2021, 80% of all emerging technology will use machine learning as part of its functionality.

It’s obvious, then, that the next generation of centralized ERP (enterprise resource planning) systems that manage a company’s business functions from sales to human resources will benefit from these breakthroughs

The Rise of Chatbots

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One of the areas that have seen the most progress in CRM customer management systems, where chatbots, which simulate conversations with humans, handle many customer queries and radically reduce waiting times for live personnel.

Chatbots are becoming ubiquitous in customer service scenarios, and the data they generate is forming the basis for new improvements.

Beyond the front end of your business, AI can also achieve considerable efficiencies within your overall ERP setup. Using the data available to your company from existing customer interactions, it can provide new opportunities for sales and marketing teams.

Artificial intelligence also makes inventory management more efficient. Some of the tasks supported by ERP function in the nexus between cash reserves and stock, and between overproduction and underproduction. The addition of AI, however, can deliver even more efficiencies, including an additional platform for analysis incorporating complex trends that can, in turn, provide your management with new capabilities in forecasting.

All this can – and should – be integrated into your ERP platform.

Fewer Storage Headaches

With more efficient inventory management, fewer issues will arise around storage capacity or compensating for unanticipated shortfalls.

Another area where AI is already making an impact in the ERP universe is its significant contribution to reducing costly manual errors. ERP has already seen higher levels of automation evolving into development over the last five years or so, but AI breakthroughs offer the potential for even further levels of automation.

Are we yet in a position for AI to manage much of your production processes without the need for human intervention? I have to answer…not yet.

But in some industries, such as auto manufacturing, increasing levels of automation have meant that artificial intelligence could have a quicker impact on ERP platforms than on others.

Key takeaways

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  • Artificial intelligence is poised to become a ubiquitous component in the next generation of technology applications. This includes ERP platforms.
  •  AI will be introduced in your ERP system gradually, partly by updates and partly by new product launches.
  • AI will bring significant benefits to ERP platforms, drawing strategic insights from operational and customer data and making production processes far more efficient. It will also help reduce manual errors.
  • The technology also will bring more integration benefits, linking data from the customer relations segment of your business with the product and delivery side.
Author: Cormac Bracken

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