In recent years, there has been a great deal of focus on artificial intelligence in software and just about every industry. It seems like just the mere mention of AI can conjure fear and confusion, so let us dispel a common misconception: Artificial intelligence is not an evil.
While there is a fear that AI will usher in an age of robot overlords — as depicted in movies like The Terminator or Avengers: Age of Ultron —these examples paint a grossly exaggerated picture of what AI is capable of. As Kilian Weinberger of Cornell University explains, “AI reaching consciousness — there has been absolutely no progress in research in that area. I don't think that's anywhere in our near future.”
So, what truly is artificial intelligence? Put simply, systems powered by AI are those that simulate human reasoning and intelligent behavior. These systems are capable of completing tasks that typically require human intelligence.
AI is just beginning to make a wild scale appearance in ERP systems, but it has already been used in technology for some time, even just in everyday life. Built-in smart assistants in your smartphone or other smart devices, such as Siri, Alexa, and Google Assistant, speech recognition software, security services, streaming services, drone delivery services from companies like Amazon, are all examples of AI in everyday technology.
CIO magazine put it best when they wrote about how artificial intelligence making its way into business tools back in 2016: “Without a doubt, artificial intelligence (AI) will have a profound impact on the footprint of enterprise resource planning (ERP) solutions in the foreseeable future. AI will enable organizations to further optimize their operating model made up of business processes, software applications, governance structures and technology infrastructure.”
Artificial Intelligence in business applications is powerful and continues to augment the effectiveness of ERP solutions everywhere. In fact, AI-based ERP is already part of many familiar platforms:
A primary advantage of artificial intelligence in ERP is that it makes it easier to automate business processes across an organization and track key data about the resources throughout that organization. Making intelligent decisions relies upon the efficiency of your processes, after all.
Looking at legacy business logic and expert systems like Oracle and SAP, it seems clear that AI-enabled ERP was in its infancy 20-30 years ago. Today, AI in ERP systems helps so many areas of a business operation, including accounting, purchasing, and procurement.
The benefits of AI in ERP include:
So, should you develop and execute an AI strategy? Our answer: it depends. Yes, it might make sense for your company to implement an AI-based ERP, but it is not intended to be a siloed initiative. You should, however, evaluate your most pressing business issues.
Consider the key decisions you make on a regular basis and what kinds of insights and information would help you improve them. There are applications out there that embrace AI that will take you to the next level and help you make more uniform decisions across your enterprise.
We at ERP Advisors Group believe that AI should be part of the foundation upon which all ERP systems are built—and soon, it will be. Your ERP platform enables good decision-making. And what business organization doesn’t want to improve that?
The way that people use AI to solve business problems is always evolving. You might not know the details of how machine learning could play a role in your business process improvement initiatives, but rest assured, this technology is transforming ERP platforms and companies across the globe. And chances are, the ERP platform you use today or the one you’re considering implementing in 2020 might already embrace AI technology.
If you have questions about AI and how to identify and implement the right ERP system for you, call us. We’re here to answer your questions about how AI is already a part of ERP, and what to expect in the future.