AI Unleashes Transformative New ERP Capabilities, ISG Says

Enterprise resource planning (ERP) software has evolved to serve the needs of a wide range of industries and company sizes and continues to gain new capabilities through AI and cloud computing, according to new research from global AI-centered technology research and advisory firm Information Services Group (ISG) (Nasdaq: III).

The ISG Buyers Guides for Enterprise Resource Planning, produced by ISG Software Research, provide the rankings and ratings of 20 software providers and their products to support the core processes of large and midsize enterprises. The research finds that migration to the cloud and integration of AI, generative AI, natural language processing (NLP) and agentic systems are making ERP systems more usable, adaptable and extensible.

“AI is redefining how organizations interact with software, including the ERP systems at the core of enterprise operations,” said Robert Kugel, executive director, Business Research, ISG Software Research. “By 2028, almost all ERP software providers will have incorporated AI to reduce errors, lighten workloads and speed up processes.”

ERP platforms improve enterprise efficiency and decision-making by integrating data, processes and reporting across departments. Beginning as on-premises software, they have gradually migrated to the cloud since the early 2000s, which has increased scalability, continuity and performance and enabled faster implementation and continuous upgrades. By 2028, ISG expects more than 80 percent of ERP systems purchased by non-product companies to be deployed in the cloud.

AI is already increasing ERP productivity with early capabilities such as anomaly detection and automated data entry, ISG finds. It makes repetitive accounting and administrative functions more efficient and allows staff to focus on more valuable analytical tasks. Intelligent agents are managing operations such as expense accounting and reconciliation with limited human intervention.

Connecting ERP with other software, such as human capital and supply chain management systems, has become increasingly important, the research finds. Application programming interfaces (APIs) form the basis of reliable integration among systems, which improve transparency and accuracy for more unified, data-driven decision-making.

Providers of ERP software are designing systems to address the distinct needs of specific industries and sectors, such as healthcare, pharmaceuticals and logistics, the research finds. They embed relevant processes and regulatory frameworks into these products, allowing enterprises to implement the software more quickly, with less need for external customization.