From streamlining repetitive data tasks to providing strategic insights that drive proactive decision-making, AI is now a standard ERP functionality. But with so many AI capabilities available, how can organisations pinpoint the most impactful features and make them work for their specific needs?
This article explores how AI enhances core ERP capabilities – from automation and forecasting to personalised recommendations and data storytelling – offering a practical guide to help businesses assess and adopt cloud ERP solutions with AI that delivers real results.
The role of automation in core ERP capabilities
Any modern cloud ERP worth its salt will have automation built in. For finance teams, this can be a game changer. Mundane activities like data entry, transaction reconciliation, and document classification, can easily be handed over to AI, significantly lightening the load on finance teams.
For example, a Beanworks’ 2021 survey of 600 AP employees, found that invoice automation is estimated to save businesses $35,000 per year. AI-driven automations follow business rules precisely too. This means data is more accurately entered and categorised, and financial records are kept clean and compliant.
Robotic process automation (RPA) can also be found the heart of many AI-enabled ERP systems, focusing specifically on structured, rule-based tasks. Unlike broader automation, which might handle tasks requiring some adaptive logic, RPA excels at mimicking human actions in a set process, making it ideal for tasks like invoicing, expense classification, and compliance checks.
For example, let’s look at accounts payable and receivable, two areas where RPA has delivered great value. Solutions that use RPA automatically scan incoming invoices, extract relevant information, match it with purchase orders, and route it for approval. Once approved, RPA can even trigger payments or reminders, reducing processing times and eliminating the errors of manual data entry.
Demand and cash flow forecasting
AI-driven predictive analytics helps finance teams look beyond the present to see what’s ahead. They can, for example, anticipate cash flow needs and optimise liquidity, and use those insights to make proactive decisions – whether that’s preparing for seasonal expenses, managing sudden demand spikes, or adjusting for economic shifts.
NetSuite’s Enterprise Performance Management suite, for example, uses advanced algorithms to fine-tune financial planning and budgeting, allowing finance teams to monitor trends in real time, forecast demand, and adapt to variances. With capabilities like these, budgeting becomes a far more forward-looking process that helps finance teams respond to whatever comes next.
Anomaly detection and fraud prevention
When it comes to protecting finances, AI has a keen eye for detail. By continuously scanning for unusual patterns or outliers in financial activities, AI-powered ERPs help prevent fraud and enforce compliance. AI can detect subtle trends and anomalies – potential red flags – that might go unnoticed by human teams. With this capability, finance teams gain not only an extra layer of security but also real-time insights that support them to act quickly and maintain data integrity.
Real-time analytics and data visualisation
Cloud ERPs platforms harness AI to simplify data analysis with intuitive dashboards and self-service analytics, making it easier for teams to track performance and spot trends as they happen. With advanced visualisation tools, finance professionals can identify customer trends or operational bottlenecks, translating all that raw data into meaningful, decision-ready insights.
Take customer trend analysis, for example. Using AI, finance teams can visualise purchasing patterns across different periods or customer segments, then hand them over to sales and operations to adjust strategies, optimise stock, or tailor promotions – all based on up-to-the-minute insights. This kind of real-time visibility keeps teams agile and better prepared to act on emerging opportunities or address issues before they escalate.
Data and storytelling
Data is one thing, understanding the story behind them is another. The emergence of data storytelling as a key competency for finance professionals underscores the growing importance of transforming complex data into engaging narratives that resonate with stakeholders. The goal is to present information clearly and compellingly to help stakeholders understand the underlying reasons behind the numbers.
NetSuite’s AI-driven narrative generation is a powerful example of this:
- NetSuite’s AI automatically analyses key data points to generate contextual summaries in plain language.
- It identifies trends, anomalies, and performance insights, making them easy to digest in text format.
- These text summaries work alongside visual data, providing a richer understanding of the numbers.
- Finance professionals can then add layers of context, like linking the data to specific business objectives or incorporating upcoming market shifts.
Strategic AI use cases for cross-functional impact
Supply chain and inventory management
AI is being embedded in supply chain and inventory management processes to predict inventory needs and pre-empt disruptions. Using historical patterns, demand data, and real-time updates, these types of AI capabilities help businesses maintain optimal stock levels, reducing costly stockouts or overstock scenarios. For example, an ERP with predictive AI in supply chain management can detect potential inventory shortfalls well in advance so adjustments can be made to minimise operational delays and ensure continuity.
Sales and customer service
For sales and customer-facing teams, AI-enhanced ERPs can support the delivery of targeted, personalised recommendations that support upselling and cross-selling. Taking insights from customer purchase history, for example, AI tools can highlight relevant products or services, offering a tailored experience that increases the likelihood of purchase.
Take NetSuite’s Intelligent Item Recommendations, for example – this feature analyses previous buying patterns to suggest items that are likely to interest a customer based on similar purchases or related products. Strategic application can boost sales potential by increasing order size and frequency, while improving the overall customer experience by making it more tailored and relevant.
Key AI capabilities to look for in an ERP
We talked about automation earlier, but to fully harness AI within an ERP, companies need both process-driven and data-driven automation capabilities. Here’s how each contributes:
- Process-Driven Automation (RPA) manages repetitive, structured tasks efficiently, such as invoicing or transaction matching.
- Data-Driven Automation goes beyond simple automation by leveraging AI to analyse large datasets and identify trends or anomalies that might otherwise go unnoticed.
Together, these types of automation will allow finance and operational teams to handle both routine tasks and strategic insights. Establishing a strong base with RPA will ensure high-quality, structured data, creating a solid foundation for AI applications that rely on accurate data to deliver actionable insights across the business.
Next, consider the adaptability of the AI models in your ERP:
- Adaptable AI Models can be fine-tuned with a company’s specific data give a competitive edge by providing customised, relevant insights.
- For industry-specific insights choose systems that allow algorithms to be fine-tuned for specific needs, such as forecasting, customer insights, or inventory optimisation. This ensures AI recommendations align with your organisation’s unique operational goals.
Lastly, don’t overlook the importance of vendor support:
- Choose a vendor committed to regular updates and robust support to keep your platform secure and compliant with industry standards.
- The vendor should demonstrate a commitment to meaningful AI enhancements, not just the latest trends, to ensure continuous, valuable improvements.
At Annexa, we believe AI should be a fundamental layer within every ERP system – and soon, if not already, it will be. Just make sure your preferred solution has the AI capabilities needed to take your business to the next level.
EBOOK: Building an AI in finance strategy
A business leader’s guide to unlocking AI’s potential in finance
Curious about what AI can do for finance? Download our free eBook to discover practical strategies and real-world insights on finance-led AI initiatives that will transform the finance function into a true powerhouse of data-driven insight and efficiency.
Learn more:
- Why AI skills will be essential for your finance team in 2025 >
- The AI capabilities hidden in cloud ERP >
- The newest and most powerful NetSuite AI capabilities >
- All the biggest NetSuite AI enhancements announced at SuiteWorld >
- The practical guide to AI-driven finance strategies >
- NetSuite EPM and the stellar rise of AI in finance >
- Infographic: What AI really means for the finance function in Australia >