We explore why clean, unified data is crucial for AI success and how to overcome legacy system silos for seamless operation.
Get your data right, get AI results.
AI is dominating conversations, but beneath the hype, its success hinges on a concept that is far less glamorous: data integrity. This was the focus of our discussion at itSHOWCASE Leeds with Lucia Mundinano, a Pre-Sales Consultant at ERP provider Syspro.
Lucia and our host, James Marriott, explored the practical applications of AI in enterprise resource planning (ERP) and, crucially, why getting your data house in order is the non-negotiable foundation for any meaningful AI adoption.
The fundamental role of data quality: garbage in, garbage out
For many businesses, the immediate challenge is not the complexity of the AI tool, but the quality of the data they feed into it.
As Lucia pointed out, AI is an amplifier. If you have chaotic or bad data, the AI will simply amplify those issues. In the world of computing, the old adage remains true: ‘garbage in, garbage out’.
The problem is compounded by fragmented systems. Many companies still operate with silos of information spread across various legacy systems. For AI to operate effectively, it needs a uniform platform where it can work across all data sources. When essential data – such as information in inventory and finance – does not align, the AI cannot deliver reliable results.
Why ERP Systems are the engine of AI success
An ERP system is designed to manage and integrate different parts of an organisation’s operations, providing a single solution for a single version of ‘the truth,’ which eliminates the data silos that occur when multiple systems are used.
By unifying your data, ERP provides immediate benefits to the business, which are further enhanced by AI:
- Improved Efficiency and Profitability ERP allows businesses to operate more efficiently, which can result in higher profit margins or lower prices, leading to increased sales.
- Automation of Transactions AI and machine learning capabilities within modern ERP systems automate manual transactions, driving efficiency and freeing employees to focus on higher-value tasks.
- Enhanced Customer Service ERP provides greater traceability in the service experience, enabling businesses to better understand and improve the customer journey.
- Cost Reduction ERP solutions help reduce costs by optimizing inventory management and improving energy efficiency
Where AI is actually working in ERP today
AI is most powerful when it complements—not replaces—human expertise. Today, AI is making sophisticated algorithms more accessible by translating large amounts of data into meaningful insights for the average user.
Lucia highlighted several areas where AI is delivering tangible value in the ERP space right now:
- Demand Forecasting: AI can examine patterns in vast amounts of data and “will always beat human intuition” when it comes to demand forecasting.1
- Anomaly Detection and Workflow Automation: ERP systems can use AI to surface insights directly to a dashboard through anomaly detection and drive workflow automation, essentially acting as an “AI sidekick” or “digital citizen”.123
- External Data Analysis: AI extends beyond internal ERP data to look at market sentiment, competitor activity, and commodity prices—factors that would be impossible to incorporate from a confined system alone.1
- Digitalization and IoT: Syspro, for instance, harnesses sensor data (PLC data) from digitized shop floor machinery via the Internet of Things (IoT). This information can be used for preventative maintenance, quality defect detection, and optimizing scheduling based on evolving, real-time patterns.1
The non-negotiable human in the loop
While AI is transformative, the human element remains non-negotiable. AI is a tool trained on existing, published information, and it lacks accountability.
For critical tasks, Lucia emphasised, “you still need a human in the loop to make decisions and be accountable”. AI can analyse and prioritise, but it cannot invent a brand-new theory or fact-check potential misinformation in its training data.
Future-proofing your business
Ultimately, the power of AI to learn and self-sufficiently make decisions where there is no value-add manual intervention will continue to grow. To keep pace, businesses must transition away from on-premise legacy systems.
Getting on a cloud-based ERP platform is essential, as it allows businesses to leverage digital transformation, including AI, IoT, and built-in analytics, as these technologies rapidly evolve. Get your data right, get on a uniform platform, and you will be positioned to leverage AI for exceptional results.
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