Can Generative AI for Automation Breathe New Life Into ERPs?

ERP's have been a fundamental backbone of businesses for years, though their decision to remain monolithic and single-vendor has resulted in not only lengthier release cycles but also difficulty adapting to the requirements of certain organizations. However, there is an opportunity here: by reimagining ERPs as central systems that can connect with new technologies while integrating composable business capabilities; those same essential solutions could experience a much needed resurgence. Complexity may still be present--as will risk when it comes time for leadership turnover--but the true potential lies within finding ways to maximize efficiency.

Can Generative AI for Automation Breathe New Life Into ERPs?

As businesses continue to enter the digital age, Gartner’s recent blog posts have indicated an impending shift from Enterprise Resource Planning (ERP) Platforms to Enterprise Run-Time Platforms as a necessary piece of agility and scalability. This major change will require companies looking towards ERP strategies they can tailor towards faster & more adaptive models that keep up with their ever changing needs – such as Digital Core/Lean Core/Agile Core options. It is clear this new era in business operations has just gotten underway!


The era of big, expensive on-premise ERP systems has been rapidly replaced by cloud and SaaS solutions. These applications offer businesses access to new types of enterprise software with faster implementation times at minimal cost due to subscription models. In the HCM space, this shift is almost complete with cloud being an industry norm for many companies such as Salesforce and Workday who pioneered the technology; even legacy vendors like Oracle and SAP have adopted a “cloud first” development strategy in order to stay competitive within their field. This architectural shift makes it easier to open their core systems via APIs. AI can then be able to interact with these systems in a much more natural, reliable and robust way. 

ERP software has historically had a steep learning curve. Not only that, but the maintenance cost of this software has been a pain for almost all businesses relying on them. This means that new age businesses are increasingly looking to move away from the traditional offerings and adopt a leaner and more agile solution. This is where Generative AI comes in. With its ability to understand natural language based business domains, and its ability to natively talk to machines, it can help bridge the gap between domain experts and software. Businesses would only need to train their employees in how the business works – not how software works.

Thus by utilizing ERP systems and Generative AI automation, businesses can achieve efficiencies that lead to increased profitability. By leveraging the power of technology in this way, companies create an optimized workflow for data management with greater accuracy and scalability – ultimately enabling them to make more informed decisions backed by reliable intelligence! This combination is enabling organizations to become more agile and responsive, allowing them to rapidly adapt as necessary in this ever-changing business climate. 

Business users now have access to smarter, more user-friendly enterprise software through the integration of generative AI tools. No longer do they need to spend hours learning a new application – instead, domain knowledge and AI will collaborate in order for businesses to get the most out of their ERP solutions. This opens up an exciting opportunity where Enterprise Generative AI enablers & ERP vendors can join forces and provide cutting edge products that promote success within enterprises all over the world!

At Kognitos, we are already walking the walk for Norco – one of our esteemed clients. We believe in showing results not just talking about them; so let’s explore how this vision could become a reality with concrete examples.

Gartner Article: https://blogs.gartner.com/tonnie-van-der-horst/erp-is-dead-part-1/

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