Will AI and ERP Replace Me?

Many employees fallaciously believe that once their business implements an ERP system with AI capabilities, their days are numbered. While ERP automation and AI can often replace jobs that require repetitive and/or mundane tasks, they cannot replace roles/jobs requiring critical-thinking, and they cannot replace creative tasks or tasks that require complex activities.

Fortunately, ERPs and employees can coexist without replacing each other. More importantly, automation and AI works in tandem with ERP to conserve resources and take the mundane and repetitive tasks out of the picture, allowing the human component of businesses to assume more logical, critical thinking-oriented tasks. This adds value to the business by strengthening the quality-of-care customers receive and nurtures the satisfaction employees receive when they occupy more critical and appreciated roles in their careers. When employees have the opportunity to specialize, create and innovate, their daily routine becomes so much more rewarding. This blog will cover the top areas that will be the most impacted by ERP automation and AI, and will break down exactly what AI-enhanced ERP systems can and cannot do in these fields?

Automation of Routine Tasks:
Can: ERP/AI systems can automate tasks such as inventory management, order processing, accounting, and HR functions, reducing the need for manual intervention.

Cannot: While the automation of routine tasks can lead to fewer administrative jobs, the demand will increase for jobs that require human oversight, strategic decision-making, and innovation. Also, AI in combination with Cloud capabilities can enhance user experience for employees who struggle when interfacing with their ERP system. Through low and no-code tools, as well as smart assistants, employees without coding ability or training can become “citizen developers” and use natural language commands to extend or enhance their ERP system with bespoke solutions.*

Human Decision-Making and Judgement:
Can:  ERP systems with AI capabilities can support decision-making by providing data and insights both predictive and/or preventative. For example, in Human Resources (HR), AI has significant potential to automate the recruiting of high-volume jobs, especially those that don’t require an interview. General Motors, for instance, believes that “automation can reduce the hiring of some hourly workers from 60 days to 60 minutes.”** That reduction sounds astounding, unless your job is hiring hourly workers. So, what happens to you?

Cannot: This is what happens to you: Sure, AI can hire but what’s to be done with all that information? Humans must interpret this data, address exceptions, and make final decisions based on broader company goals and values.

Customization and Change Management:
Can: AI systems can expedite your ROI journey by providing intuitive solutions to cut down on both costs and time. They will identify the value and ensure alignment with strategic business goals without being overly tech centric.

Cannot: Humans, however, must determine the strategy and goals for the company and priorities to then implement, configure, and personalize or customize ERP systems. Additionally, as businesses grow and change, so too will their strategies and requirements for their ERP systems. Humans are still necessary for managing the change process, ensuring that the ERP/AI system remains aligned with evolving business needs and ultimately remains in compliance.

 Data Analysis:
Can: An AI-equipped ERP system is a data analyst’s best friend. It collects and sorts vast amounts of information and can even provide insights at a fundamental level. Many financial and accounting personnel find themselves mired down in manual processes including spreadsheet manipulation, repetitively clicking through multiple systems, and performing time-consuming data entry to complete basic tasks.

Cannot: However, a data analysist (or any employee that relies on data analytics) must analyze, interpret and act on that data as well as evaluate those insights within the context of business objectives and external factors. We aren’t ready for the machines to take over and make all decisions.

A recent McKinsey report offers promising news: “that despite automating 60% of activities, less than 5% of jobs will be replaced.”* Overall, and ERP/AI system will be underqualified for any job that requires emotional intelligence, negotiation, innovation, advanced problem-solving and creativity. But let’s face it, if companies don’t migrate to AI-enhanced, cloud-based ERP systems, they risk becoming extinct, and that’s the biggest threat to employee welfare.

*Why AI and automation will liberate employees, not replace them
**Gartner: AI isn’t replacing HR workers