3 Ways AI is Changing the Modern ERP System

Published May 30 2019 by Steve Reed
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You probably don’t think you use AI on a regular basis, but if you have a smart home device, check out recommended products on Amazon or use Google’s local search results, you’re using artificial intelligence. But how will AI change how you do tasks at your job?

According to Gartner, AI will be native in almost every new software product in 2020. Whether you invest in a new ERP system now or five years from now, AI will be a part of that system. So what does that mean? Here are three ways that AI will transform ERP as you know it:

  1. AI turns all the data collected by IIoT devices into meaningful analysis. Manufacturers have been hearing about Industry 4.0 and the Industrial Internet of Things (IIoT) for years, but how do you turn all the information collected by sensors tracking products into data you can make decisions from? AI takes all the data collected by your ERP system and turns it into recommendations for more efficient processes.

  2. AI in an ERP lets your employees focus on what’s important. Technology lets you automate routine performances so that your employees can focus on tasks that require creative or critical thinking. Having AI baked into your ERP takes this to the next level, allowing more tasks to be automated and serving analysis to the employee so that they can use their own knowledge to address issues or modify processes to eliminate waste or cut costs. The AI will then learn from the changes that the employee inputs into the system and can then automate even more processes and provide different results to the employee, helping the business grow faster.

  3. AI makes analysis faster so you can make impactful decisions sooner. There are limits to the amount of information that humans can comprehend in a certain time period, but AI can process years of data and see patterns to make recommendations in minutes. The AI can also take this vast amount of historical information and use it to predict future trends, allowing your businesses to be ahead of the competition. And this isn’t just limited to data that you’ve collected. AI can also combine data from multiple sources (for example, weather patterns, locations of suppliers, social media mentions, etc), add it to your own information and produce a relevant analysis quickly and efficiently.

Microsoft Dynamics 365 has AI built into many of its products to help you get the most out of your data so you can take immediate action to get results. Is your business poised to take advantage of AI, or will you be left behind?

Finding the right ERP system is the first step in getting ahead of the AI curb. Download this report to see what manufacturers are looking for when they consider new ERP systems and what top features to look for when making a purchase decision.


Steve has a broad range of experience helping application software companies successfully develop and bring manufacturing and enterprise solutions to market. He has over 20 years of experience in software, and is dedicated to the success of businesses’ digital transformation journey.

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