Leveraging Artificial Intelligence to Optimize ERP

With the dawn of the digital age, businesses of all sizes are adopting new enterprise technology to manage business operations as well as automate many back office functions. The enterprise resource planning (ERP) software streamlines processes like product planning and development, manufacturing, and sales and marketing. As a start-up grows into an SME and then to a big corporation, it needs to automate several of its functions as manual operations can become unwieldy. Also, with the GST kicking in, enterprises need to digitize operations to take care of tax compliances and other accounting needs. In all this, Artificial Intelligence can play a significant role in making the software more productive and efficient. Due to its powerful capabilities, AI technologies are optimizing system-operating models as well as transforming business processes for organizations globally.

How ERP–AI Integration Leads to Better Synergies

AI applications in ERP software is radically transforming the way businesses function. Together with the data mining capability of advanced self-learning enabled AI systems, integrated ERP systems can add value to a business. For example, AI-enabled ERPs employ a digital assistant (DA) in order to help technicians perform the root cause analysis for maintenance issues. The provisions can record information and details of performance, maintenance history of a device, and technical structure. The DA tool can extract as well as source information from core ERP systems. Thus, AI-enabled ERP tools can impact an organization’s day-to-day functions by cutting down on operating expenses, streamlining tasks that are routine and removing the element of human error.

Moreover, AI tools can be customized so that they can learn processes needed for improved competencies to enhance the effectiveness of overall business processes. Advanced ERP is already helping organizations discover colossal amounts of structured data. With every passing day, they are getting smarter at learning new patterns and quicker at converting the data deluge into insights. The software integrates all operations in a single database, application and user interface, removing the hassle from the everyday running of a business.

Optimizing Human Resources Through AI Applications

Workforce expertise and skill can be optimized through AI tools, increasing the overall effectiveness as the focus shifts in favour of non-routine, analytical, logical, and creative tasks. There is another positive aspect to it as well: AI can liberate workers from manual and monotonous interactions with the ERP software by triggering an evolution of self-driving and semi-intelligent business solutions. AI tools can also be used for ERP software maintenance.

Massive Boom Predicted for AI Tools

Most research organizations such as Gartner predict a massive increase in the scope of AI technologies. According to the research company Markets and Markets report “Artificial Intelligence Market by Technology,” it is expected that the AI market would be worth USD 16.06 billion by 2022, growing at a stupendous CAGR of 62.9% from 2016 to 2022.

AI Has a Pivotal Role in the Future of ERP Systems

AI tools can mimic functionalities of a human mind, such as behavioural changes as well as learning and can apply emulated tactics to unstructured data in the ERP. Though there may be apprehension in the adoption of AI tools, there are varied and extensive benefits that can be drawn out of it. It will eventually help organizations improve the primary focus of their businesses, which is to serve customers well. Moreover, in this age of stiff competition and profit maximization, it’s imperative for enterprises and businesses to stay up-to-date with the latest in technological innovations to retain competitive advantage.

(Image Courtesy: Pixabay.com)

Categories: Digital

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Muqbil Ahmar

Muqbil Ahmar is Executive Editor at Grey Head Media, spearheading the digital presence of the websites DynamicCIO.com and ...

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