As you read this, an invisible assistant could already influence important company decisions. We show you how artificial intelligence (AI) is changing the ERP landscape and what impact this will have on your company.

A silent revolution is taking place in the modern business world. AI integrates into enterprise resource planning (ERP) systems and influences strategic decisions. But who is this new player and how can companies exploit it?

The AI revolution in the ERP market

The leading ERP providers are equipping their systems with a steadily growing number of AI functions. The digital assistant can continuously learn, and analyze large data volumes, and thus support decision-making.

From supply chain optimization to personnel management, AI is a decisive factor for efficiency and competitive advantage. The latest quarterly results from leading ERP providers show a similar trend. SAP, Europe’s largest software group, recorded considerable growth in its cloud business in the third quarter of 2024. Cloud revenue increased by 27% to 4.35 billion euros.

The competition in the race for digital assistants

Various ERP providers have developed their own AI solutions:

• SAP: over 100 new AI functions have been integrated. The SAP Cash Application, for example, automatically assigns incoming payments, thereby accelerating financial processes. It is noteworthy that around 30% of SAP’s cloud contracts in the third quarter of 2024 included AI application scenarios that enable decision-making.
• Microsoft Dynamics 365: Integration with Azure services enables companies to save up to 40% on costs for virtual Windows servers. Dynamics 365 AI for Sales supports sales employees in better understanding the needs of their customers.
• Oracle NetSuite: As a cloud-native solution, NetSuite offers advanced AI analysis functions. This optimizes business processes and enables well-founded decisions.
• Infor CloudSuite: The focus is on industry-specific solutions that use AI-supported functions to ensure individual adaptation to the respective industries.

Industry-specific applications

The use of our digital assistant shows positive results in various industries.

Manufacturing

• Here, the AI assistant takes on the function of a vigilant watchdog.
• Predictive maintenance: Continuous monitoring of machines can significantly reduce unplanned downtime. By detecting anomalies at an early stage, maintenance can be planned.
• AI-supported quality control: image processing software identifies production errors in real-time, which increases efficiency and minimizes waste.

Retail

• The assistant acts as a personal shopping advisor.
• Personalized customer experiences: The analysis of customer behavior enables the creation of tailored offers, which leads to an increase in customer satisfaction.
• Optimized inventory management: AI-supported forecasts for demand management reduce storage costs and prevent bottlenecks through automatic reordering.

Financial sector

• The assistant acts as a digital detective.
• Fraud detection: AI uses pattern recognition in transactions to identify suspicious activities and minimize risks.
• Automated compliance: AI analyzes regulatory requirements and ensures that they are met efficiently. To do this, it creates reports and uncovers discrepancies.

Healthcare

• In the healthcare sector, the assistant provides support as a reliable advisor.
• Analyzing patient data is an essential part of the digital transformation in the healthcare sector. Early detection of risks with the help of data analysis can reduce complication rates.
• Resource planning: Predicting patient flows increases bed utilization and improves care.

Ethics and data protection: the responsible assistant

Responsible handling of data is essential for us. Leading providers are setting standards.

• AI ethics teams: Companies such as Microsoft are establishing special teams to ensure fair and transparent AI applications.
• International guidelines: Compliance with standards such as the EU Ethical Guidelines for Trustworthy AI ensures that AI systems act in a human-centered way.
• Transparent decisions: “Explainable AI” allows AI decisions to be understood, which strengthens trust in the relevant systems.

Challenges during familiarization

The introduction of AI in ERP systems poses a number of challenges.

• Data quality and integrity: High-quality data is the foundation. Using poor quality data leads to incorrect results.
• Training requirements: Employees must be trained in the use of AI systems in order to fully exploit their potential.
• Integration into existing systems: In many cases, technical adjustments are required to ensure smooth integration and compatibility.

Visions of the future: The assistant gets creative

The development continues:

• Generative AI: Automated report generation and creative solution finding through AI open up new possibilities.
• IoT integration: The connection of IoT devices and ERP systems makes it possible to carry out real-time data analyses in order to make better decisions.
• Autonomous ERP systems: In the future, AI could proactively make decisions and control workflows autonomously.

The current successes of leading ERP providers underpin this vision of the future. SAP has raised its annual forecast after a strong third quarter and expects cloud and software revenues of €29.5 billion to €29.8 billion for 2024. The company is confident of achieving its 2025 targets and forecasts double-digit growth rates and rising profits for the coming years.

The IDC’s warning

The International Data Corporation (IDC) predicts that by 2026, 65% of companies will not realize the full potential of their AI investments. The reasons for this are:

1. Lack of organizational preparation: without clear strategies, success is not guaranteed.
2. Inadequate employee training: without appropriate employee training, effective use of AI systems is not possible.

Best practices for successful AI integration

To get the most out of AI-powered ERP, consider the following:

• It is recommended to provide training. Comprehensive employee training is essential.
• It is crucial to communicate the strategy. A clear vision promotes employee acceptance and commitment.
• Gradual implementation in the form of small pilot projects reduces risks and enables learning processes.
• Regular evaluation is essential to continuously optimize and adapt the application.

Conclusion

Integrating AI into ERP systems is an inevitable development to remain competitive in the future.

The use of this digital assistant is changing the way companies make decisions and manage processes.

With the right approach, AI will become an invaluable partner in day-to-day business.

How is AI already impacting your business?

What opportunities do you see for the use of AI in your business processes?

Are you ready to take the next step towards digitalization?

Share your experiences with us so that together we can unleash the potential of AI and prepare your company for the future.