How are Artificial Intelligence and Machine learning Complementing...

How are Artificial Intelligence and Machine learning Complementing ERP?

By Manufacturing Technology Insights | Friday, December 14, 2018

Artificial Intelligence is disrupting various industries and is swiftly changing our lives over the last few years. From Siri to Amazon’s Echo, we have moved forward with accepting technologies. Enterprises are recognizing the significance of machine learning to enhance their existing enterprise resource planning tools. Let’s explore five ways of how machine learning is improving ERP.

• Forecasting

While there is an integration of ERP with machine learning, one can forecast accurate predictive analytics. It will be able to detect seasonality in business and also recommend increasing or decreasing production accordingly. Also, organizations can focus on consumers’ history and identify their behavior patterns enabling to predict future requirements. Moreover, machine learning and AI in ERP streamline business processes.

• Sensing problems beforehand

When a system goes down, it affects the business in multiple ways be it productivity, time or money. Through ML not only the root cause can be identified but it can also help in predicting and preventing that problem. ML creates this preparation exclusively for ERP, and as technology advances, the ability to prevent shutdowns and wasted resources will decrease, and diagnostics will be used to prevent rather than diagnose.

• Enhancing interdepartmental resources

It is essential to bridge the gap between inventory, sales, and accounting; therefore AI and ML are coming together to simplify and streamline this process thereby creating a centralized platform for customer relationship, logistics, product lifecycle, and sales.

• Advanced analytics

Machine learning provides tailored data that gives detailed insights and analytics that are essential.  For instance, an in-depth study of the buying behavior of a certain demographic of people can tailor offerings. Hence, advanced analytics helps in transforming the way business is done. It’s a game changer if analyzed effectively.


The essential criterions of having an ERP system with machine learning capabilities are the identification of new opportunities in the sales and marketing department. AI and ML not only identify the purchasing behavior but also on who is buying that. After this, they pitch the target audience who were left in branding and marketing schemes. By identifying this group and catering efforts towards them, enterprises can achieve greater market share and also improve the business’s revenue.

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