With AI, traditional ERP systems can transform into intelligent platforms that learn from data, adapt to changing conditions, and optimize business intelligence in real-time, increasing overall efficiency and reducing costs. According to a recent report from the IBM Institute for Business Value, organizations applying generative AI solutions to their SAP data are already experiencing greater profitability.
ERP vendors typically design their systems as a series of modular apps. Which together have the capacity to manage every part of a business from an organization’s finance department to procurement and supply chain logistics. Since the introduction of the term “ERP” in the 90s, the ERP software industry has grown into a USD 44 billion-a-year market.1 Today, many leading global corporations use some form of ERP solution to access a “single source of truth” across the entire business.
As ERP software became more popular—and its capabilities more robust—organizations adopted these systems as part of a cohesive business strategy. Rather than acting as another piece of software, ERPs have the potential to uncover new insights and significantly impact business processes, as well as provide new avenues for business intelligence. And through the 2010s, ERP systems became critical for the management and analysis of big data as modern organizations generated and collected more information than an individual might possibly process.
Over the last decade, AI-enabled ERP systems have automated select tasks like data entry and analysis. But more recent advancements, such as generative AI, have begun to dramatically transform the ERP landscape. Cloud ERP systems benefit from more computing power, supporting more robust AI applications.
Advanced machine learning models and natural language processing capabilities have made ERP systems more user-friendly and precise, ushering in a new era of sophisticated business software. The promise of today’s AI-enabled ERP systems has been reflected in a handful of recent business deals. Including Microsoft’s USD13 billion partnership with OpenAI and the introduction of its AI-assisted ERP software, Microsoft Dynamics 365.2 SAP, another leading ERP vendor, announced its “Joulie” generative AI assistant in 2023.3