Exploring The Future of AI in ERP Systems

Early investments in generative AI have largely centered on the adoption of standalone tools like Claude and ChatGPT. But as adoption matures, the next phase will demand solutions that allow artificial intelligence to work seamlessly alongside existing tools. In fact, McKinsey reports 60% of companies view integration as the most valuable enabler of AI progress.

It’s no surprise that the shift toward AI-powered enterprise resource planning (ERP) systems is moving fast, with major players leading the charge. In the past year, we’ve seen developments such as:

• Workday Adaptive Planning integrating Illuminate for real-time assistance and process orchestration.
• Oracle enabling AI-driven predictive forecasting and narrative reporting within its ERP software.
• Epicor leveraging AI to transform its ERP “system of record to a system of action” with supply chain-specific use cases.

As new innovations continue to move beyond simple automations and efficiencies, here’s what you can expect from the future of AI in ERP software.

Shifting Focus from Data Analysis to Strategic Planning

The integration of AI in ERP software is rapidly changing the role of knowledge workers. Professionals who once dug deep into data—manually forming thorough analyses from the key metrics—are now simply reviewing AI-generated insights to make strategic decisions.

This shift is expected to persist in the coming years, transforming workflows in areas such as:

• Financial Forecasting: AI algorithms now analyze ERP data to generate financial projections with unprecedented accuracy. CFOs and financial teams spend less time compiling reports and more time developing pricing strategies, implementing cost-reduction plans, and guiding long-term investment decisions.
• Workforce Planning: AI-powered HR modules can predict talent needs, identify potential retention issues, and recommend development opportunities, allowing HR professionals to focus on culture-building and strategic talent acquisition.

The shift toward explainable AI (XAI) will support this continued strategic pivot. As ERP systems showcase the logic behind their intelligent recommendations, decision-makers can more confidently act on generated insights—or find more creative solutions beyond AI suggestions.

Advancing Automation

The next frontier for AI in ERP software goes beyond isolated task automation, unlocking end-to-end process intelligence. With the rise of autonomous decision-making, AI will be able to take on more advanced tasks—for example, instantly adjusting production schedules based on real-time demand signals, materials availability, and equipment status.

Conversational AI, which lets people interact with ERP systems using natural language, will further empower employees at all levels to automate processes across integrated platforms.

Particularly intriguing is the development of AI agents. These semi-autonomous programs will handle complex multi-step ERP processes with minimal human intervention—for example, managing restocks and checking budgets while identifying and adjusting schedules based on potential supply issues.

Already, we’ve seen SAP partner with Nvidia to develop Joule agents, which use their business context to optimize their utilization of over 1,300 available skills across departments. More capabilities are certain to come.

Strengthening Risk Management

The acceleration of risks across industries—from regulatory changes to surging cybersecurity threats—is driving some innovations in a different direction. While AI in ERP software is incredibly valuable for driving immediate ROI, it can also provide long-term protection for your company’s bottom line.

Moving forward, artificial intelligent will steadily transform how organizations manage risk through their ERP systems:

• Fraud Detection: Advanced machine learning models can identify potentially fraudulent transactions with greater accuracy than rule-based systems, reducing false positives while catching sophisticated fraud attempts.
• Compliance Automation: AI-powered ERP systems can continuously monitor data and processes against a dynamic regulatory framework, flagging potential compliance issues before they become problems. In the next stage, these systems may proactively suggest modifications to align with new regulations as they emerge.
• Predictive security: Beyond reactive security measures, AI-enhanced ERP systems can predict potential security vulnerabilities based on usage patterns and external threat intelligence, enabling preemptive action.

In addition to improving security and compliance, intelligent ERP tools may also advance their ability to alert companies to business-specific risks—for instance, the likelihood of claims for insurance providers.

The Persistent Value of Human Oversight

Even as AI in ERP software advances, human oversight will remain a critical component of governance. Keeping a human in the loop ensures AI initiatives continue to support key business objectives, all while ensuring accuracy, performance, and alignment with ethical standards.

Human expertise will also be crucial for handling edge cases—the scenarios that require creative problem-solving or contextual understanding of market dynamics that even AI agents have yet to support.

Additionally, decision-makers will be key in selecting the right AI investments moving forward. If businesses choose to leverage external AI integrations—or migrate to a new ERP for better AI capabilities—organizational leaders are needed to ensure genuine business value, rather than implementations for the sake of AI.

Entering the Future of AI in ERP Software

As we look ahead, we expect to see the ERP landscape continue to evolve with tailored AI capabilities and low-code/no-code tools for custom, democratized AI solutions. These future innovations are certain to shape how businesses operate—but gaining a competitive edge will always begin with an optimized ERP system.

TEKLEIGH, a leading technology consulting partner, can help organizations prepare for the future of AI in ERP software no matter where you’re at in your journey. We can support your IT strategy with end-to-end ERP solutions such as:

• Technology Assessment: Guidance for selecting the right ERP system for your strategic objectives.
• Technology Implementation: Ensuring the seamless integration and optimal performance of systems such as SAP, Oracle, Workday, and Microsoft Dynamics—with your data migration and security in mind.
• Application Managed Services: System configuration, business process optimization, and testing to keep your ERP software in optimal shape.

Prepare for the future of AI in ERP software with comprehensive support from TEKLEIGH.