Generative AI Revolutionizing ERP Automation, Reveals PwC Expert
The introduction of generative AI technology has sent shockwaves through the enterprise resource planning (ERP) industry, prompting a reevaluation of the role of artificial intelligence (AI) in the field. ERP vendors and customers were already familiar with AI development platforms, machine-learning chatbots, and task-specific applications for routine processes. However, the arrival of generative AI, which could communicate like a human, has brought about a significant transformation.
Generative AI now has the potential to revolutionize ERP user interfaces and automate a wider range of business processes than previously thought possible. This paradigm shift has sparked numerous questions about the best practices for deploying AI in ERP systems, the availability of AI tools and applications, and the responsibility for development. To address these concerns, consulting firms such as Deloitte, EY, KPMG, and PwC have invested heavily in providing answers and solutions.
Matt Hobbs, Microsoft practice leader at PwC, has spent two decades helping clients leverage Microsoft technology for digital transformation. His current focus includes utilizing OpenAI’s GPT-4 technology and Microsoft’s Azure OpenAI Service. PwC recently announced a $1 billion investment to expand its AI capabilities, upskill its workforce, and modernize internal platforms for tax, audit, and consulting services using generative AI.
In a podcast interview, Hobbs highlighted the ERP modules that yield the quickest return on investment (ROI) when paired with AI: supply chain, inventory, predictive maintenance, and financials. The common factor among these modules is their heavy reliance on cloud-stored data. As Hobbs explained, AI is powered by data that exists outside of the walls of an ERP.
Hobbs predicts that the integration of generative AI natural-language interfaces into ERP systems will facilitate transactions across modules, leading to a significant evolution of the user interface. Rather than logging into specific screens or sections, users will be able to leverage copilots, which will assist in creating, distributing, and suggesting next-best actions within the ERP ecosystem.
Two main trends are emerging in the field of AI. The first involves embedding copilots throughout ERP systems to achieve continuous improvement in every module. The second trend challenges the traditional use of ERP systems as the primary interface, instead utilizing them solely as transactional layers and brokers while rethinking the entire process.
Microsoft offers two key AI solutions that align with these trends. Azure OpenAI aims to catalyze enterprise-wide transformations, allowing businesses to revamp core processes. On the other hand, Dynamics 365 Copilot focuses on extending applications by automating software development using GPT-4.
One concern surrounding the adoption of generative AI is the potential impact on employment. However, Hobbs remains optimistic, emphasizing that generative AI will primarily alleviate workers from mundane tasks such as documentation. He believes that humans will remain the driving force behind the end-state product, whether they employ AI tools to assist them or not.
Nevertheless, important questions persist regarding the evolution of generative AI, particularly when it comes to AI-generated content. Hobbs contemplates the balance between raw, AI-generated content and content that has been vetted, refined, and approved by humans to ensure creativity and quality.
As the ERP industry continues to explore the possibilities of generative AI, businesses must carefully navigate these emerging technologies. The transformative potential of generative AI in ERP automation is clear, but the path forward involves a balance between reimagining traditional processes and embracing updated interfaces. With ongoing development and implementation, generative AI promises to unlock new levels of efficiency and productivity across various industries.
Disclaimer: This article presents expert insights and perspectives on generative AI’s potential impact on ERP automation. The views and opinions expressed in this article belong solely to the interviewee and do not necessarily reflect the official position of OpenAI or its affiliated companies.
