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  • Lucy Robson

How will AI influence ERP systems in the future?

Enterprise resource planning (ERP) systems are essential for managing and connecting daily business processes in various fields such as finance, operations, and human resources. However, as business operations become more complex and dynamic, conventional ERP software may not be able to keep up with the changing needs and expectations of customers, employees, and stakeholders. That's why AI is becoming a key factor in enhancing ERP capabilities, predicting future scenarios, and customizing experiences.

AI will potentially improve ERP systems in many ways in the future, including:

- Data augmentation and enhancement: AI can generate synthetic data, fill in gaps, and correct errors in the existing data to improve the quality and accuracy of the information used for analytics and decision-making.

- Demand forecasting: AI can analyse historical data and market trends to generate potential future scenarios and predict product or service demands more accurately and efficiently.

- Predictive maintenance: AI can simulate various operational conditions and anticipate when parts or equipment may fail, enabling proactive maintenance and reducing downtime and costs.

- Human resources: AI can automate repetitive tasks such as recruitment, performance management, and compensation management, and provide insights and recommendations to improve employee engagement, retention, and productivity.

- Finance/accounting: AI can automate transaction processing, verify statements and reports, detect fraud and anomalies, and optimize cash flow and budgeting.

- Customer service: AI can provide instant and consistent service through chatbots or voice assistants that can answer common inquiries, resolve issues, or escalate complex cases to human agents.


One example of an ERP system that leverages AI is Sage X3, a cloud-based solution that helps businesses manage their finances, supply chain, manufacturing, distribution, and customer service. Sage X3 uses AI to:

- Provide intelligent insights: Sage X3 uses natural language processing (NLP) to understand user queries and provide relevant answers or suggestions. Users can ask questions such as "What is my cash flow forecast for next month?" or "How can I reduce my inventory costs?" and get instant responses from the system.

- Automate workflows: Sage X3 uses machine learning (ML) to automate tasks such as invoice processing, expense reporting, order fulfillment, and quality control. The system learns from user behaviour and data patterns to optimize processes and improve efficiency.

- Enhance user experience: Sage X3 uses conversational AI to provide a natural language user interface that allows users to interact with the system using voice or text. Users can access the system from any device or channel and get personalized assistance from the system.


Sage has also announced its plans to further integrate AI into its ERP solutions in the next 6- 12 months. For example, Sage plans to use generative AI to create synthetic datasets from actual business data for improved analytics. Sage also plans to use AI for demand forecasting, predictive maintenance, human resources, finance/accounting, and customer service.

For example:

Sage X3’s AI automation capabilities will improve decision-making thereby reducing overhead.  A 360 degree customer view, powered by AI interaction, will allow users to ask questions related to the customer through a chatbox in the customer record. 

Sage are also adding a new widget / dashboard creation to X3 through a simple AI prompt (instead of the existing wizard) to build the dashboards.  This will make it easier to analyse the data which, in turn, will make decision-making simpler

AI is transforming ERP systems by making them more intelligent, agile, and user-friendly. By integrating AI into ERP systems, businesses can gain a competitive edge in the market, improve their performance and profitability, and enhance their customer satisfaction and loyalty.

If you would like to discuss how Vallestra can answer any questions or guide your organisation through the transition to a new ERP system such as Sage X3, please click here to get in touch with our team.



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