Think Tank

The Influence of Artificial Intelligence on ERP Systems

Artificial Intelligence (AI) is the science of developing computers that can accomplish tasks that require human cognizance. Since its inception, artificial intelligence has gathered as many critics as admirers. But even though it is a relatively new technology, AI has made a difference in the way we create and use software. Experts at Aarav Solutions say that in the immediate future, AI will be involved in the development of all new technology, including ERP.

Enterprise Resource Planning (ERP) software has been leveraging AI to build systems that are efficient and sustainable. However, experts opine that the possibilities of using AI to improve ERP are endless. As mentioned above, artificial intelligence is in its nascent stage. As the technology matures and gains traction globally, it is bound to change the way we look at ERP. In fact, businesses that hesitate to leverage AI for ERP may be making the wrong decision.

Artificial Intelligence in ERP Software: Benefits

  1. Anticipating issues beforehand – Machine learning through artificial intelligence can help ERP systems anticipate problems before they occur. Such advance preparation is only possible with ERP software that uses artificial intelligence. With time ERP systems with AI will be able to avoid wastage of resources and prevent shutdowns as well.
  2. Smart Analytics – ERP software with AI can collect and analyze business data with ease. For important metrics machine learning can provide insights and customized analytics. Although ERP systems may pull data without the use of AI also, but a detailed analysis may not be done without AI. Especially when dealing with large amounts of customer data in businesses like e-commerce, it is always better to employ an AI enabled ERP system.
  3. Manufacturing – ERP systems with AI are especially useful for manufacturing plants and industries. Artificial Intelligence can help identify inefficient processes which take longer time or consume more resources than needed. Such processes maybe streamlined and improved as needed.
  4. Business Process Automation – Routine jobs such as accounting, payroll administration etc. may be easily automated using Artificial Intelligence. This automation of routine business processes can help to free up valuable human brain power and improve efficiency. Business process automation with AI enabled ERP systems help human beings focus on tasks at higher levels that need more cognizance rather than monotonous routine work. This is hardly possible in a non-AI ERP software.
  5. Customer Experience – ERP software that is powered by artificial intelligence enables end-users or customers to interact with the system they are using. Not only that, the system makes decisions based on human input. This makes the application faster and more useful due to the personalization of the experience. Experts at Aarav Solutions believe that customer experience can significantly be improved with the use of AI in ERP.

Artificial Intelligence in ERP Software: Risks

  1. Research and know-how – Businesses are integrating artificial intelligence with the ERP systems without understanding the true potential of AI. AI must not be integrated unless sufficient research and preparation are complete. As AI is a technology in a nascent stage, businesses need data scientists ad developers who can conduct analysis and create algorithms which yield the desired results. This involves significant investments of time and money. However, most businesses who insist on incorporating AI without complete research find automated tasks yielding unintended consequences.
  2. Escalation of minor mishaps – Tasks carried out by human beings require control and training processes which help prevent errors and mishaps. By automating certain tasks with the help of AI the frequency of error may be reduced, however if an error occurs the scale and consequences of the same will be that much larger and difficult to deal with.


Recent studies by eminent bodies like Gartner have shown that most business organizations around the world are still planning or are in the process of implementing artificial intelligence in ERP software. In future, we may expect to see the extinction of non-AI ERP systems completely. However, experts at Aarav Solutions say that though AI implementation may not weigh heavily in the short term goals of business organizations – it is an important part of their future plans. 

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