Artificial Intelligence (AI) is fast making headlines and affecting the world of enterprise technology in a variety of ways.AI tools are being increasingly included in ERP software for the enterprise. This article focuses on the various kinds of AI tools, the ways they are being integrated in ERP systems to improve processes for business, and the issues involved in the implementation of AI tools within ERP. AI has already proven its disruptive capabilities and generated an enthralling buzz within the software industry. According to Gartner, it is estimated that as high as 80 percent of new technologies will incorporate artificial intelligence as a major element.
What is ERP?
ERP software is a form of software that helps organizations control the daily business operations in various fields like finance (financial analysis procurement, accounting,) and operations (supply chains management, planning the management of inventory) along with human resource management (workforce management and planning).
ERP Software is used to control key business processes in relation to Human Resource Management, Order to Cash Source to Pay Report to record, lease management and Budgeting, Planning and Forecasting. The information and processes associated with these business processes are kept in ERP databases, which are managed by an enterprise-wide application team.
What is Artificial Intelligence?
Artificial Intelligence is the ability of computers to carry out jobs that demand intelligence. ERP Software refers to computer programs capable of performing tasks that would previously require an individual or a group of people to do the work. The types of artificial intelligence span in scope from systems for the vision that discern and recognize images, and deep learning systems which process huge amounts of data to discover patterns and take decisions based on the information.
What is AI? Does AI transform The ERP software?
Because of the remarkable capability, AI technologies are already improving the efficiency of models operating in systems and changing the business processes of companies and organizations across the globe. The current systems of record are being replaced with the new technology of intelligence.
Along and with the data mining capabilities of self-learning technology that is advanced AI systems, the automation of ERP software can bring significant value to the business. ERP software that is AI-enabled can impact the fundamentals of an organization’s daily business process and functions by reducing operational costs, streamlining routine tasks, and removing human mistakes.
Infographic created by Donnelley Financial Solutions, an SEC reporting software company
The application the use of AI in ERP will fundamentally alter the way that business data and processes are handled. ERP systems won’t need the effort and expertise of individuals to accurately code and input every single aspect of a transaction in order to run the process.
Let’s examine methods of changing ERP software using AI
Advanced Analytics
AI’s capability to process huge amounts of data allows for precise, real-time data-driven insight. For instance, AI can analyze the purchasing behavior of various types of consumers, allowing you to customize your products or services to meet the requirements of a particular group of customers.
Customer Service and Sales Automation
One of the main goals of firms is increasing satisfaction with their customers. Artificial Intelligence is being utilized to improve the customer experience. Chatbots are on hand 24/7 to address customer queries. Now you can apply for credit from your home. Holidays can be booked with just one click. It’s now easier to manage your life because of AI. AI is also being utilized to help employees achieve the best time management, in cases where customers require services or meetings with personal contact.
The AI-powered sales process takes everyday tasks off the hands of human beings and allows sales representatives to concentrate more upon the demands of the client and, in general, simplify their work. Consider HP and Amazon as an example. If your HP printer is running low in ink, an email is sent directly to Amazon to send you knew cartridges.
IT and Finance/Accounting
In a Harvard Business Review survey, 34%-51% of executives predicted that AI will have the biggest impact on the business in the back-office IT functions and accounting and finance. In particular, AI in financial management could have a significant impact on financial management.
- Automate the repetitive accounting tasks
- increase the efficiency of transaction-processing
- Verify the accuracy of reports and statements
Improving Productivity
An ERP Software contains the details of each process in your organization. AI can examine every process and pinpoint procedures that aren’t working. It could be any or all aspects of the process, from production to shipping or billing.
Businesses can discover what process is causing the most energy consumption, what stage has the highest number of damaged products and which phase results in the highest amount of material waste, and what stage is the most beneficial from the customer’s viewpoint.
When businesses can recognize the areas where it is limiting productivity, the team is capable of finding solutions that benefit everyone involved.
Human Resources
Another benefit of AI-powered ERP applications is the ability to be proactive. For instance, it is able to determine whether employees require an increase. Additionally, it is able to look up information on the abilities and experiences of candidates and speed up the process of recruiting. Therefore, you don’t need to incorporate HR software into your business when you are using ERP.
Warehouse Planning
AI is perfect for the right staging and moving of goods and materials within the warehouse. Warehouse managers are usually dependent on their intuition and their own reactivity on how best to set up the warehouse. AI algorithms are able to pull together information from order manufacturing, warehouse, and production systems to determine the best storage utilization, and also alter the configuration to meet demand. Warehouse management is given an entirely new meaning as AI tools aid the workers who are responsible to control these operations.
Wrapping out
Although ERP Software have been able to integrate different functions within a company, AI takes this integration to a new level. AI accomplishes this by studying massive quantities of data, making predictions, and suggesting the next steps.