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How is Artificial Intelligence (AI) changing ERP systems?

November 30th, 2018 Intech SystemIntech Systems ERP

The claims of AI-powered software solutions are popping up more often these days due to rapidly growing tech trends. The movie recommendations you get on Netflix or ‘what to buy’ recommendation on Amazon, it is all due to different AI algorithms. Artificial Intelligence (AI) is taking the hold of businesses too. Be it sensors on the products or personal assistants ready for help, AI is simplifying and accelerating the business processes. So, AI in ERP systems is nothing new now.
Here are a few instances of how AI is changing ERP.

1. Sales Management

In sales, an AI algorithm could help you in price optimization, lead scoring, and much more. Using AI, you can predict next quarter’s revenue, sales, etc. more accurately to better manage inventory, resources, and your salespeople’s performance. With AI system, you can recommend your existing clients a new product or an updated version of the product they are already using, based on their purchase history.
Here’s how Dynamics 365 AI for Sales enables you to sell smarter.

2. Customer Service

AI makes customer service quicker, cost-effective, and consistent. Chatbots are now used to instantly answer customers’ common inquiries. This reduces customer service representative’s mundane tasks and allows him/her to step in to handle complex customer queries only. Fetching real-time data from different departments, analyzing from the customer history, and turning large amounts of data into highly readable reports is all possible due to AI.
Read how Dynamics 365 AI for Customer Service will create better customer service experiences.

3. Inventory Management

Good inventory management simply means keeping enough stock to ensure both – smooth business operations and enough cash reserves. AI in inventory management must be used as a part of the system rather than replacing the system. AI and machine learning together can manage demand forecasting, stock levels, inventory optimization, user demands, etc. with great precision.

4. Financial Management

Intelligent bots are automating repetitive accounting functions and streamlining customer service. AI in financial management improves transaction-processing efficiency, verifies statements and reports for accuracy, and predicts future financial results based on trends and market data. AI, with Machine Learning, can also make better judgments from different human inputs and adapt to the behavior patterns of different accounting professionals. Thus, financial management is becoming smarter with AI.

5. Human Resources

Human Resources has been evolving significantly due to technological advancements. Today, Artificial Intelligence is reforming the way companies hire and manage their workforce. AI systems can scan and evaluate the applicants to keep only the most relevant ones. Not only hiring but also on-boarding and training procedures are customized and made more organized by AI. Using AI tools, HR managers can analyze the performance and needs of the employees for better retention rate.


Though the potential benefits of AI in ERP systems are many, businesses are quite reluctant to adopt AI into their ERP. This is due to their fear of security of sensitive data and government regulations. However, the AI infrastructure is evolving and getting better day by day. Since ERP with AI is important for improving efficiency and staying ahead of the competitors, it is here to stay.

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