How to enhance ERP with AI to transform your business?

Category : ERP

Blog posted by : Admin / 02 Dec, 2022

 

ERP systems have been evolving over the years and Artificial Intelligence (AI) has played a crucial role in it. The integration of ERP with AI will not only change the way the system processes data but also how users interact with it. 

 

Artificial Intelligence has been a constantly growing trend since the past few years, making its presence felt in almost every industry. It would then be wise to invest in AI ERP to keep up with smart technologies and gain a competitive edge. 

 

 

Modern ERP Systems 

 

Application of Artificial Intelligence to ERP software no longer remains a luxury but has become a necessity. As businesses become more competitive and processes more complex, traditional ERP systems are not enough. 

 

AI in ERP systems helps perform tasks that require intelligence. It mimics human intelligence to create systems that better understand its users. AI features built into ERP helps automate tasks, provides data insights, and creates better user experiences.

 

 

 

Types of Artificial Intelligence
Narrow AI	General AI	Super AI
Specific function Supervised High performance and speed  Recommendation engines, spam filters, and expert systems "Weak AI"	Wide and versatile  Unsupervised Can think and act like humans  Learns from user interaction Vision, language processing, analysis, and contextual comprehension "Strong AI"	Final stop in AI evolution Intelligence explosion- learns from itself Intelligence keeps on building until it reaches super- intellect

 

 

Forms of Artificial Intelligence used to Enhance ERP Systems

 

Business leaders all over the world are increasingly investing in Artificial Intelligence. By the year 2025, the AI market is estimated to be worth 31,236 million U.S. dollars worldwide (Statista Research Department).

 

1. Machine Learning (ML) is a form of AI that uses data to learn from examples.

2. Deep Learning is a form of ML that works by creating an artificial neural network. It is used in speech recognition and language comprehension.

3. Natural Language Processing (NLP) uses deep learning to understand and respond to natural language. Few applications include voice assistants, data analysis and chatbots.  

 

 

ERP with AI Use Cases: What workflows can benefit from AI ERP?

 

AI based ERP offers immense benefits to small and large businesses from various sectors such as real estate, construction, infrastructure, manufacturing, and power and energy. It can be used to automate almost every process of the industry.

 

1. Customer Service 

 

Probably, one of the most adapted processes that has been transformed by AI in ERP and reduced dependency on human agents for customer interactions. 

• Social listening helps monitor social media channels and identify trending topics the target audience is interested in. 

• CRM automation helps capture leads from various sources, segregates and assigns them to different sales team members. 

• NLP allows companies to interact with their customers without any live agents by responding to simple customer queries with pre-determined replies. 

• With advances in NLP, soon chatbots will be able to comprehend and resolve complex queries round the clock.

• Artificial Intelligence in ERP systems is also capable of analyzing customer’s emotions based on visual, textual or auditory clues, helping service representatives provide better support. 

• It can also help schedule calls, reminders and meetings.

• Detect opportunities to upsell and cross-sell

• Tailor content targeted to a specific audience

 

 

2. Inventory Management 

 

The efficiency of a business can be linked to the seamless movement of raw materials and finished goods. Optimize the use of a warehouse through ERP with AI.

• Demand forecast reports can be generated by analyzing current and past data. 

• Insights can be gathered on purchasing behaviors and the weather as well.

• With better data latency rates, the accuracy of predictions will be higher. 

• Keeping the inventory flow in line with the demand, helps streamline purchase, sales, and production. 

• System alerts for low stock can be generated. 

• Some AI ERP features allow dynamic ordering, adjusting quantities in real-time. 

• Predictions for delays in delivery of materials.

 

 

3. Site Management 

 

Management of various site functions is crucial for sectors such as real estate, construction and infrastructure. AI-generated system reports empower site managers to plan better. 

• Predicting labor attrition and attendance to avoid shortage of labor on site

• Estimate how much collection will be made based on past data

• Generate reports on expected site visits

• Based on the current progress, site delays can also be predicted

• Vendors can be assigned ratings based on their performances to compare and select the best one

 

 

4. Human Resource 

 

Artificial Intelligence is commonly used to streamline HR and payroll functions, but it can be incorporated to perform advanced functions in a human resource management system, from hiring to retiring. 

• Auto-calculation of attendance, leaves, salary, compensation, incentives and more

• Analyze data to determine performance drivers

• Filter thousands of resumes to match best with the given criteria 

• Send personalized messages to candidates, schedule interviews and send reminders

• Provide virtual training and track progress 

• Predict employee churn behavior with AI in ERP 

• Maintain employee profiles, with all the information that the employee needs available at their fingertips

• Voice commands can be used to fetch information, for a hands-free experience

• Biometrics integration and face ID log in options available for ERP systems

• Generate employee leave prediction reports

 

 

5. Finance

 

Artificial Intelligence in ERP systems is widely used in financial management systems, although its use for certain finance processes needs monitoring and further development. Meanwhile, when combined with ERP, AI can help optimize certain workflows for effective financial management. 

• Automation of repetitive accounting tasks

• Instantly check the accuracy of reports

• Capture invoice details directly by scanning text

• Generate reminders to pay bills

• Automate bank reconciliation

• Scan documents to check for compliance 

• Cash flow and funds utilization reports 

• Upcoming tax liability prediction 

 

 

6. Asset Management 

 

Company assets and equipment can be monitored for better performance, whether it is plant and machinery or vehicles.

• Integration with the Internet of Things (IoT) allows data collection from connected devices

• Insights on performance and downtime help perform timely service checks

• Fuel consumption too can be monitored to avoid wastage

Some organizations have developed their proprietary Artificial Intelligence, that is constantly innovated to keep up with the prevailing needs of the industries they serve. This enables them to create new AI features that resolve specific challenges. 

 

By combining ERP with AI, users will be awarded with intelligent business automation systems that streamline tasks, eliminate human errors, reduce expenses, boost productivity and efficiency.  

---