artificial intelligence in ERP systems

In the world of Enterprise Resource Planning (ERP), the future is now for AI. ERP vendors are increasingly incorporating AI into their standard offerings – both machine learning and generative AI – presenting real risk for your business today.

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Artificial Intelligence

Artificial Intelligence (AI) seems to be on everyone’s lips these days. Technologists and commentators regularly write about the emerging ethical issues and offer, at times, fantastical predictions as to a future shaped and controlled by AI. However, in the world of Enterprise Resource Planning (ERP), the future is now for AI.

Artificial Intelligence Has Arrived in ERP Systems

ERP vendors are increasingly incorporating AI into their standard offerings, both machine learning and generative AI. Today, AI in ERP systems is being used for a variety of functions:

  • Analyzing financial reports to identify irregularities in data entries or unusual transactions;
  • Anticipating equipment failures and recommending preventative maintenance schedules and proactive repair procedures;
  • Improving talent management and retention by analyzing employee data to identify high performers, recommend training opportunities and predict potential churn;
  • Ensuring compliance with regulations and reporting requirements by automating legal processes;
  • Enhancing customer service using intelligent chatbots that understand the context of conversations, learn from user interactions and generate personalized, human-like responses.

Oracle Corporation’s May 2024 release of Database 23ai (a timely rebranding of 23c) is only one of several harbingers of how AI — and all of its attendant risks — is coming to your company.

Protect Your Company Against the Attendant Risks AI Will Bring

Beeman & Muchmore has followed the accretion of AI into ERP systems since the founding of our law firm, maintaining a vigilant eye to assure that our clients are protected from legal risks and financial peril. For example, we have accumulated our own database on ERP licenses, how the terms and conditions of those licenses are asserted by ERP vendors, and — in light of long-standing legal terms and conditions — the exposure our clients may face with the proliferation of vendor AI into ERP systems.

Beeman & Muchmore has counseled clients on an array of legal issues generated by AI in ERP. For example, content and system evolutions generated by AI can trigger disputes as to who owns the copyright: the vendor or the licensee? With this question unanswered, licensees could be faced with previously unheard of levels of vendor “stickiness” and portability issues. Moreover, AI in ERP systems often require vast amounts of data, sparking concerns about user consent, data protection and privacy. The more sophisticated AI in ERP systems can even generate legal concerns regarding discrimination and fairness, particularly in areas like employment and lending.

The cornerstone of our practice at Beeman & Muchmore is staying ahead of the curve, anticipating legal risks for our clients, immersing ourselves in the ERP market and providing the most comprehensive counseling possible to our clients. That work ethic has enabled us to be prepared to protect our clients from the unique and serious perils of AI in ERP systems.

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