Enterprise Resource Planning systems (ERP) have long been crucial for scaling business operations, but with rapid AI advancements, their necessity is now being questioned. While AI may not completely replace ERP systems, it will undoubtedly reduce their importance, as well as the time and cost associated with implementation, maintenance, and development.

How Big is the ERP Problem?

ERP implementations are notorious for going over budget. According to a survey published by Statista, 50% of ERP implementation projects in the last decade went over budget. In industries like digital, e-commerce, and multichannel retail, the percentage is likely even higher because of the very complex technology stacks needed to scale. ERP systems are often blamed for high costs, long implementation times, and ongoing customizations that never seem to deliver on initial promises.

What’s the Opportunity with AI?

AI offers a major opportunity to reduce inefficiencies in ERP environments by automating and decoupling processes from rigid, hardcoded integrations. However, legacy systems are deeply embedded in business operations and cannot be replaced overnight. AI helps companies transition gradually, optimizing each layer of their ERP systems—bit by bit, process by process.

For example, AI-powered support systems like Millentic can assist with transaction data processing, accounting integrations, and more. These tools improve efficiency and help companies avoid the budget overruns that have traditionally plagued ERP projects. However, before diving into solutions, it’s important to understand the root causes behind ERP failures.

Root Causes of ERP Issues

ERP systems are often overly complex and rigid, trying to handle everything from finance to HR and inventory. This "one-size-fits-all" approach makes them difficult to customize and scale, leading to frequent delays and the need for expensive consultants. Additionally, traditional ERP solutions struggle to keep up with modern business demands, often leaving companies with inefficient, manual processes that are prone to errors.

Nipping ERP Issues in the Bud(get) with AI

One of the most costly and time-consuming aspects of ERP implementation has always been systems integration—traditionally managed by external consultants. AI is now transforming this process, automating tasks that previously required expensive, manual effort. Here’s how AI is streamlining ERP integration:

• AI Speeds Up Systems Integration: AI-driven platforms automatically map data flows and connect ERP systems to other enterprise software (CRM, finance, supply chain) without needing manual intervention from consultants.

• Reduced Custom (Human) Coding: AI tools analyze business systems, identify integration points, and configure data connections automatically, significantly reducing the need for custom coding and troubleshooting.

• Faster & More Efficient: What used to take weeks or months now happens faster, as AI manages integrations in real time, ensuring smooth data exchange across platforms.

• Continuous Monitoring & Adaptation: AI continuously monitors and adjusts integrations to keep systems synced and data accurate, eliminating the need for constant human intervention.

• Cost Savings & Reduced Consultant Dependency: By automating large parts of the integration process, AI significantly reduces reliance on costly consultants, accelerating the time-to-value for ERP projects.

Don't be scared of AI. Be bold and experiment.

It's daunting to take on AI if you're a complete novice. And the very same systems integrations consultants that have been notoriously overriding ERP implementation budgets, are now mining AI gold with consulting their customers on how to implement generative AI. Read about a well written example here.

Luckily you don't have to turn to your ERP implementation consultants to discuss AI. You can actually talk directly to AIs such as ChatGPT or Claude and in a longform discussion work out a strategy for your future ERP implementation. If you're not happy with the results you are more than welcome to contact us free of charge and discuss how we could potentially be of help to help you gradually adopt AI in your financial operations.

It's worth it. AI could help you lower the overall cost of ERP implementation projects and help you stay within budget and timeline, avoiding the overruns that have historically plagued ERP implementations.

Will AI Make Your ERP Redundant?

Probably not entirely, but AI will fundamentally reshape the role and scope of ERP systems. Instead of being the central operational hub, ERPs will likely evolve into a system of record—a place where data is stored and retrieved, while AI-powered applications take over day-to-day functions and decision-making. AI-powered tools are simply more adaptable, allowing businesses to evolve, grow, and scale more easily.

AI-driven tools can integrate more flexibly with business processes and automate tasks that typically require manual input or expensive customization. As AI gradually makes its entry into technology stacks, the all-encompassing nature of ERP as the "do-everything" system will diminish, shifting to a more supportive role for AI-powered operations.

In this new landscape, businesses that embrace AI will see their ERPs become more efficient, reducing costs and implementation timelines. While ERP may no longer be the powerhouse it once was, it will remain valuable, ensuring compliance and reliability of core IT infrastructure.

Curious to learn how Millentic can help you leverage AI?

Request early access to our Beta product or talk to us to learn more.