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Why ERP Without AI Might Be A Setback In Future

Tuesday, 21 April 2020, 13:32 Hrs

Why ERP without AI might be a Setback in FutureSpeaking about Artificial Intelligence, Kai-Fu Lee, an American computer scientist, professionally businessman and writer known for being an expert of Artificial Intelligence who is also the Chairman and CEO of Sinovation Ventures says, “I think AI is coming about and replacing routine jobs which is pushing us to do what we should be doing anyway: the creation of more humanistic service jobs.” Also, Gartner predicts that by 2021, 80 percent of the upcoming technologies will put their faith in Artificial Intelligence – keeping at the epitome of the infrastructure. Another report by IDC Corporate predicts that 75 percent of commercial enterprise applications will use Artificial Intelligence by 2021. Indeed, Artificial Intelligence has started creating a huge impact on every business’s productivity and the fact that it has an ingenious effect on Enterprise Resource Planning (ERP) solutions is not underneath of the early morning fog.

One of the foremost features that come with Artificial Intelligence is its ability to extract users’ behavioral patterns from the early data. Thereby, Artificial Intelligence enabled ERP solutions enhance users’ experience through personalized interaction. Therefore, for delivering solutions as early as possible with zero error, ERP solutions need Artificial Intelligence. However, every solution comes with a risk attached; there are some in this as well. Let’s know about both.

Benefits of using Artificial Intelligence in an ERP solution – 

  • Finding Business Gaps – With the help of Artificial Intelligence, businesses can locate any problems beforehand and integrate automation in daily tasks. Machine Learning, a division of Artificial Intelligence has the probability of helping ERP systems to predict problems much before they will occur. This eradicates wasting of resources and helps in removing chances of shutdowns.
  • Increasing Production – In the manufacturing industry, Artificial Intelligence has the capability to find inefficient processes that take more time or utilizes unnecessary resources. Doing this, Artificial Intelligence augments productivity.
  • Automation in Daily Tasks – Accounting and Payroll Administration can be automated by using Artificial Intelligence. Through automation, business processes will have the freedom of engaging the precious human minds in other complex tasks. It also abolishes the feeling of a monotonous job routine from the workers.
  • Inventory Management – Businesses face problems in managing inventory as it involves maintaining required cash reserves and stock to make business processes successful. If Artificial Intelligence is implemented in those, the risk of not producing enough gets reduced, leading to minimizing costs and larger profit margins.
  • Branding and Marketing – ERP with Artificial Intelligence can predict sales and marketing opportunities through purchasing behavior.  

Risks Related To Implementation of Artificial Intelligence in ERP

  • No Proper Knowledge – Inadequate knowledge of Artificial Intelligence integration with ERP systems can be lethal. Understanding the true potential of Artificial Intelligence is a must, so complete research and preparation should be adopted before integration. Since Artificial Intelligence has just arrived at the platform, every business is in search of data scientists and developers that are skilled in conducting analysis and creating algorithms to nurture desired results.
  • Dealing with Undesired Consequences – Humans achieve skills by going through severe training processes and are able to control and prevent errors or malfunctioning. Artificial Intelligence might reduce error occurrence, but if any error occurs it could be larger in scale and might be difficult to control.

Before integrating an ERP solution that has Artificial Intelligence enabled to it, the industries must ask to what extent Artificial Intelligence technology has been leveraged. This will give them a basic idea about the need of the human workforce and other resources.