The past thirty years have seen several notable (re)evolutions in enterprise software, including client-server, Web X.0, cloud computing, and everything-as-a-service. The latest ‘game-changer’ may be the biggest and most profound of them all. Generative AI has moved from hype to reality faster than ChatGPT can write your latest sales report. As the world begins to probe the implications of AI in their everyday lives, manufacturers and ERP providers are looking at how it can deliver real value from the shop floor to every corner of the supply chain.
Brief comparison of AI technologies
When discussing AI and how it applies to ERP, it’s important to understand that AI has been leveraged by ERP software providers (and users) for some time. Cognitive AI, predictive AI, and generative AI each bring unique enhancements to manufacturing ERP systems.
Cognitive AI is employed by ERP to process documents and transactions efficiently, reducing the manual workload and increasing accuracy. By understanding and automating routine tasks, cognitive AI streamlines operations and ensures that data entry and management are performed consistently, which is crucial for maintaining ERP data integrity. AI’s ability to analyze and remember large data sets and perceive its importance has been adopted in many aspects of enterprise applications. AI’s inability to be conative has made AI supersede human emotion but still unable to understand context or even intent in certain data models.
Predictive AI, on the other hand, is used for forecasting and anticipation. It analyzes historical and real-time data to predict future trends, such as maintenance needs and supply chain demands. This proactive approach allows manufacturers to address potential issues before they arise, optimizing operations and reducing downtime. Predictive AI’s ability to foresee and mitigate risks makes it an invaluable tool for maintaining the smooth functioning of ERP systems in a manufacturing environment. This is where we see the first glimpses of AI’s conative response to data by deeper understanding of context and intent.
Generative AI, the newest of the three, stands to revolutionize the user experience within ERP systems by providing intuitive, conversational interfaces. It enhances usability by summarizing data, generating insights, and offering actionable recommendations. Generative AI’s ability to create and interpret complex data sets dynamically transforms ERP systems into more user-friendly platforms. This makes it easier for non-technical users to interact with the system, thereby democratizing access to valuable insights and fostering a more inclusive approach to data-driven decision-making in manufacturing. With Generative AI we see AI combining Cognitive and Conative responses to data with more humanlike interactions.
It’s this evolution in usability that stands to elevate the ways ERP software engages users and integrates with workflows combining cognitive understanding of data and conative contextualization of data that brings AI to usability. Complexity can be replaced — or at least bypassed — by AI tools focused on delivering answers to users as quickly and completely as possible.
Generative AI and a new way to work with ERP
Generative AI will significantly enhance the user experience within ERP systems in several ways, providing specific benefits to manufacturers:
- Intuitive Interfaces
Generative AI can transform ERP systems by providing conversational and intuitive interfaces, making it accessible to all users, regardless of their technical expertise, almost providing an emotional context to data. For instance, employees can interact with the ERP system using natural language queries, similar to how they would communicate with a human colleague. This ease of use reduces the learning curve, allowing new users to become proficient quickly. Consequently, manufacturers benefit from reduced training times and costs, higher user adoption rates, and improved overall productivity as employees can focus on their core tasks without being bogged down by complex software navigation. - Automated Data Summarization
One of the key advantages of generative AI is its ability to automatically summarize vast amounts of data and generate insightful reports. AI’s cognitive and analytical processing power has proven its importance in cross functional data sources. For example, instead of sifting through numerous data points to understand sales trends, generative AI can provide a concise summary highlighting key metrics and trends. This capability enables decision-makers to access critical information swiftly, leading to faster and more informed decision-making. For manufacturers, this means being able to respond to market changes promptly, optimize inventory levels, reduce waste, and ultimately enhance operational efficiency. - Personalized User Experience
Generative AI can learn from individual user interactions, to help contextualize data, to personalize the ERP experience according to specific roles and preferences. For example, a production manager might see dashboards focused on production schedules and machine efficiency, while a finance manager might see financial performance and budget reports. This customization ensures that users have immediate access to the most relevant information and tools for their roles, increasing their efficiency and effectiveness. For manufacturers, this tailored experience leads to better resource allocation, as employees spend less time searching for information and more time on strategic tasks that drive value. - Proactive Recommendations
Generative AI’s ability to analyze data trends and understanding its intent, and offering proactive recommendations can significantly enhance decision-making processes. For instance, it can identify potential supply chain disruptions and suggest alternative suppliers or routes before issues escalate. This foresight helps manufacturers maintain smooth operations and avoid costly interruptions. Additionally, generative AI can recommend process improvements, such as optimizing production schedules to reduce downtime or energy consumption. These proactive insights allow manufacturers to operate more efficiently, reduce costs, and maintain a competitive edge in the market.
These generative AI capabilities promise to collectively lead to a future of more efficient, responsive, and user-friendly ERP systems—enabling manufacturers to drive greater value and competitiveness in their operations. And at the rate of progress we’re seeing in generative AI development, that future is right around the corner. For the first time we are seeing AI becoming more humanlike with not just Cognitive abilities but also the softer Conative traits of people.
