Artificial intelligence, in particular Generative AI, is the buzzword these days. Every company is trying to harness the power of Generative AI to increase efficiency, productivity and improve user experience. How can ERP systems be left behind? Although public opinions may vary, ERP systems are generally considered mundane and boring. How cool it would be if the ERP system suddenly starts to engage with the user in a meaningful way to make work more productive. Ultimately, Generative AI is that branch of Artificial Intelligence that focuses on creating new content, designs or ideas through machine learning algorithms trained over a large set of data. The goal of an ERP system is not only to capture huge amounts of data but also to derive meaningful insight from it in such a way that it can voluntarily act or suggest the next course of action. Imagine if your ERP system gets infused with life and starts to interact with users so that work becomes more fun without the mundane repetition. Maybe a day is not too far when you do not have to remember a tile or a transaction code anymore.

The bigger question is how do we leverage the power of AI? From an enterprise resource planning perspective, to create the biggest value, AI must work within the context of the organization’s business processes and understand its data. Since AI is only in the cloud, it is not possible for on-premise ERP solutions. Hence to leverage the power of AI, organizations must push their ERP systems to the cloud. In recent years, we have seen a massive push towards cloud ERP. This is a very good move towards the right direction. Artificial Intelligence can optimize business processes using cloud ERP solutions. Organizations can run their most important processes in cloud ERP, while the AI can learn, adapt and adjust to uniquely optimize the organization’s business processes.

However, migrating to the cloud is not as easy as it seems. Organization’s mission critical processes and data reside within their ERP system. Organization’s also adapt to unique processes and data to maintain their competitive advantage. Every organization is unique and we have to be very thoughtful in any evolution in the ERP system especially if you want to combine the power of cloud and generative AI and their application to the unique business processes and data of the organization. Leading ERP companies such as SAP and Oracle have introduced cloud private edition, one such tool that allows you to combine cloud and Generative AI with unique business processes and data of an organization.

Use cases of Generative AI in ERP applications are still in their early stages. Email integration with ERP to classify and prioritize work items, expedite freight management by automating processing of large volumes of goods receipts and delivery notes, writing compelling job descriptions and generating interview questions are some of the examples of Generative AI in action within ERP systems. With time, the scope will multiply manifold.

According to Larry Ellison of Oracle, not many technologies get the constant attention of heads of government, business elites and ordinary people together. Generative AI is truly different. Whether it is the most important new technology ever? Only time will tell.