How GenAI Can Make ERP Insights More Accessible
Enabling users to ask conversational questions of ERP systems can drive new insights to improve processes.
Counter to high expectations when generative AI (GenAI) debuted in 2022, companies have struggled to see strong ROI from their adoption of the technology. While there are useful applications—such as writing documents, automating code production, and brainstorming ideas—the time saved does not always translate into higher value for organizations.
“We’re hearing from a lot of CEOs and investors that they’re expecting returns now. It’s been a couple of years,” says Nate Suda, senior director and analyst at Gartner. “Why is it not delivering?”
GenAI has proven useful in certain areas, but its effectiveness depends heavily on the quality of data being used. This brings us to a critical use case: applying GenAI to ERP systems.
For organizations that effectively manage ERP data, GenAI can unlock significant benefits through conversational queries—providing faster access to insights on product performance, supply chain issues, and more.
Directing GenAI Queries at ERP Data
Traditionally, extracting insights from ERP data requires specialized tools, complex report-building, and IT support. It involves managing data through storage systems such as data lakes and warehouses, and requires trained users to operate analytics tools.
GenAI changes this model. With techniques like retrieval-augmented generation (RAG) and small language models, users can ask natural language questions and receive meaningful responses instantly.
Instead of navigating dashboards or spreadsheets, users can simply ask:
- What was our highest-margin product last quarter?
- Which suppliers have had late deliveries this month?
This simplifies access to insights, improves decision-making, and saves time.
GenAI represents a “low-hanging fruit” opportunity for organizations with mature ERP systems. It enables better operational decisions across pricing, supply chain, and capacity planning.
However, success requires:
- Understanding ERP-covered business processes
- Using the right GenAI tools
- Training teams effectively
ERP systems are among the richest sources of business data. GenAI acts like a “digital assistant” that understands this data and provides quick analysis, summaries, and decision support.
Experiments Underway
Many organizations are already exploring GenAI. According to a survey of 12,000 executives, roughly half of midsize companies are using GenAI.
These “AI optimists” are applying GenAI across multiple use cases, including:
- Customer and vendor interactions
- Forecasting, budgeting, and investment planning
- Regulatory compliance monitoring
- Supply chain and logistics optimization
Organizations that have been experimenting early are now preparing to scale and realize tangible benefits.
When ERP data becomes as easy to query as a search engine, its value increases significantly.
From Complex Queries to Natural Language
ERP data is stored in structured tables with complex relationships, making it difficult to analyze using traditional methods. Technologies like knowledge graphs help map relationships across business data, improving accuracy and insights.
Examples of GenAI applications in ERP include:
- Automating financial reports and KPI calculations
- Analyzing complex engineering data for industries like oil and mining
- Improving demand forecasting and production planning
These capabilities reduce dependency on experts and make data accessible across the organization.
Preparing Your Organization for GenAI in ERP
To unlock the full potential of GenAI in ERP systems, organizations must take a structured approach:
- Evaluate ERP AI capabilities: Understand what GenAI features your ERP vendor offers.
- Adopt the right tools: Ensure access to AI models, data grounding, privacy controls, and lifecycle management.
- Prepare your data: Move towards a unified data strategy such as a business data fabric.
- Train your teams: Equip employees to use GenAI effectively for enterprise data, not just basic tasks.
Adopting GenAI also requires a cultural shift. Employees must develop skills such as adaptability, flexibility, and innovative thinking.
Organizations that embrace change are more likely to succeed, while those resistant to transformation may struggle to realize benefits.
Conclusion
ERP systems provide the structured, high-quality data that GenAI needs to deliver meaningful insights. By enabling natural language interaction with ERP systems, organizations can unlock faster decision-making, improved efficiency, and greater strategic value.
When business users can query ERP data as easily as using a search engine, the result is better decisions, faster responses, and more effective use of resources.
Source : SAP