7 Ways To Improve ERP With Artificial Intelligence & Machine Learning

7 Ways To Improve ERP With Artificial Intelligence & Machine Learning

Machine learning and artificial intelligence (AI) have the potential to reshape the world as we know it. Due to the exponential advancement in these areas, the world ten years from now could be nearly unrecognizable compared to now. One of the significant impacts with AI and machine learning has been the possible improvements to ERP softwareIn this light, we spoke with Wendy Dessler, who helps businesses find their audience online through outreach, partnerships, and networking. Below, she’s provided us with some effective ways to improve ERP with AI and machine learning.

Catching problems before they occur

When a system goes down, it costs a business valuable resources, such as productivity, time, and money. Through machine learning, not only can the cause of a problem be identified quickly, but it’s also possible to predict– and thus prevent– a problem as well. Machine learning creates this kind of advance preparation for ERP. As technology advances, the ability to prevent shutdowns and wasted resources will become better; diagnostics will be used to prevent rather than diagnose.

Advanced analytics

With machine learning, you can pull tailored data that will provide detailed insights and analytics about the metrics you decide are important. For example, this could be an in-depth look at the buying behaviors of a certain demographic of customers so that you can tailor your offerings for better conversions. If you run an online store, the metrics you pull could pertain to how long a customer spent on a particular product page.

With the right technology, you could use this information to create a tripwire at checkout or send an email reminding customers of the object they desire. Your advanced analytics give you the power to create that will drive your business. It’s one thing to be able to pull data from a system; it’s game-changing to be able to analyze it effectively.


Analytics and algorithms play another significant role in ERP: forecasting capabilities. By searching through the data collected, AI integrations can make predictions that will improve your ability to forecast for upcoming periods. It will be able to detect seasonality in your business, making recommendations about increasing or decreasing production accordingly. If you drill down, it will also be able to look at customer history and identify any behavior patterns, allowing you to predict future order quantities.

Other than being convenient and cutting down on the resources used to create forecasts that may or may not be accurate, machine learning and AI in ERP streamline your business processes. By manufacturing the required amount of inventory, you’re reducing the risk of over or under production. This means fewer inventory storage issues and no costly small-scale productions to make up a difference. Ultimately, AI in ERP means lower costs and higher revenue.

Improving interdepartmental processes

Putting an ERP in place that bridges the gap between inventory, sales, and accounting can be a daunting task. Finding one that connects these different aspects of a business without flaws is near impossible. With AI and machine learning, these processes can be simplified, creating a streamlined, centralized platform for customer relationship management, reporting, product lifecycle, and sales. The more efficient a business runs, and the less reconciliation required between the various aspects of that business, the more successful that business will be.


One of the most important considerations in regards to having an ERP with machine learning capabilities is the identification of new opportunities for sales and marketing. AI and machine learning allow a business to not only identify purchasing behavior but also hone in on who is buying what. They may find that there is a viable target market that has been left in branding and marketing schemes. By identifying this group and catering marketing efforts toward them, they may be able to achieve greater market share and vastly improve the business’s revenue.

Identifying inefficient production processes

AI and machine learning help improve the manufacturing portion of a business through integration with an ERP. AI is able to identify any processes or practices that are inefficient, mechanically or otherwise, and help manufacturers come up with a viable solution that will save resources. The ability to predict a problem before it occurs will keep things running smoothly, reducing the risk of increased energy usage or damaged, unusable goods.

Furthermore, AI can identify processes that are using an unacceptable amount of energy and thus reduce the consumption during the manufacturing process. Predictive diagnostics can reduce the need for test runs that also contribute to energy usage and wasted resources. In a nutshell, AI and machine learning assist the manufacturing process from conception to shipping.

Improving customer service with virtual agents

Virtual agents are the AI and machine learning tools that were once dreamed about in science fiction. With the proper integrations, they can be used to train employees and guide them through complex processes and even provide customer service. Integrating AI into ERP systems give an extra focus on customer service, as they are able to see what their customers are asking about in real-time, while a virtual agent answers all the pertinent questions. Rather than having a customer service rep handling a queue of disgruntled customers, consumers can ask questions about their order and the AI will provide the information upon request.

When it’s all said and done, AI and machine learning can reshape a business, making it more efficient and profitable. In this modern era, it’s not whether you can afford to incorporate AI and ML into your ERP– it’s whether you can afford not to.

Looking for more? Download our ERP buyers guide for free and compare the top-24 products available on the market with full page vendor profiles. The guide includes four key capabilities to look for in an ERP solution, plus five questions to ask yourself and five questions to ask the software provider before purchasing. It’s the perfect resource for anyone looking to find right ERP for their business/organization.

And don’t forget to follow us on TwitterFacebook and LinkedIn for all the latest in the ERP space!

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Elizabeth Quirk

Liz is a leading enterprise technology writer covering Enterprise Resource Planning (ERP), Business Process Management (BPM) and Talent Management Suites (TMS) at Solutions Review. She writes to bridge the gap between consumer and technical expert to help readers understand what they're looking for. Liz attended Massachusetts College of Liberal Arts, where she obtained her Bachelor of Arts Degree in English and Communications. You can reach her at equirk@solutionsreview.com
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