ISG Research Predicts Full AI Integration in ERP Software by 2027
A new report from Information Services Group (ISG) III suggests that by 2027, artificial intelligence will be deeply embedded in enterprise resource planning (ERP) software, transforming how companies operate.
The ISG Buyers Guides for Enterprise Resource Planning emphasize that current tech trends will streamline ERP systems, making processes quicker and more efficient. Automation will simplify repetitive tasks, which will enable nearly all ERP software providers to utilize AI in order to reduce workloads, speed up operations, and minimize errors.
“ERP systems, long known as the backbone of organizations, are undergoing a significant transformation,” commented Robert Kugel, Executive Director of Business Research for ISG Software Research. He noted that AI is already enhancing ERP through technologies such as anomaly detection, which identifies potential errors, and various tools that expedite procedures. These advancements aim to boost productivity and help companies attract and maintain top talent.
Today’s ERP systems showcase improved depth, usability, and adaptability, thanks to their cloud-based structures. The ongoing transition from traditional on-premises systems to cloud solutions is driven by enhanced configurability, which allows for better customization across different industries.
ISG forecasts that by 2027, over 80% of ERP systems purchased by non-product companies will operate in the cloud. This shift promotes operational continuity, improves efficiency, and reduces overall costs. Additionally, tailored ERP solutions for specific industries have led to decreased implementation and maintenance expenses.
While upgrading or replacing an ERP system can be a complex and costly endeavor, ISG advises CFOs to recognize the risks posed by outdated systems. It is vital for business leaders to strategically evaluate new software options and the AI capabilities of providers rather than simply opting for a direct replacement.
In its 2024 ERP Buyers Guides, ISG analyzed software providers across six categories – ERP, ERP Financial Management, ERP Manufacturing, Midsize ERP, Midsize ERP Financial Management, and Midsize ERP Manufacturing. A total of 21 providers were assessed, including Abas, Acumatica, Aptean, Deltek, Epicor, Exact, IFS, Infor, Microsoft, Oracle, Oracle NetSuite, QAD, Ramco, Rockwell Automation, Sage Intacct, Sage X3, SAP Business One, SAP S/4HANA, TechnologyOne, Unit4, and Workday.
ISG Software Research identified the leading software providers as “Leaders” in each category. For the 2024 rankings:
ERP: SAP S/4HANA, Oracle, Infor
ERP Financial Management: Oracle, SAP S/4HANA, Workday
ERP Manufacturing: SAP S/4HANA, Oracle, Infor
Midsize ERP: Infor, IFS, Epicor
Midsize ERP Financial Management: Infor, Sage Intacct, SAP Business One
Midsize ERP Manufacturing: Infor, IFS, Sage X3
“Many software providers are revamping their ERP offerings to run on advanced, cloud-based platforms,” said Mark Smith, Partner at ISG Software Research. He cautions, however, that existing enterprise installations are often overly customized and need reevaluation to leverage the benefits of AI and other modern tools. The ISG Buyers Guides serve as a comprehensive resource for businesses to assess and select ERP software providers, ensuring quicker value realization and lower total costs.
The ISG ERP Buyers Guides compile a year’s worth of market and product research. This research, which is independent of any software provider influence, aims to help businesses optimize their software investments for both operations and IT.
For more details about the ISG ERP Buyers Guides and to read executive summaries of the reports, visit their webpage. Full reports, including detailed rankings and findings about each provider, can be obtained by contacting ISG Software Research.
About ISG Software Research
ISG Software Research offers in-depth analysis of the business and IT software industry, providing daily insights to its user community. It offers consulting, advisory, research, and educational services to enterprises, software companies, and investment firms. The ISG Buyers Guides assist businesses in selecting software providers through tailored assessments based on ISG’s proprietary methodology. More information can be found at www.isg-research.net.
About ISG
ISG (Information Services Group) III is a prominent global technology research and advisory firm. Trusted by over 900 clients, including more than 75 of the world’s top 100 enterprises, ISG focuses on helping organizations achieve operational excellence through digital transformation, AI, automation, cloud services, and strategic sourcing. Since its founding in 2006 and headquartered in Stamford, Conn., ISG employs 1,600 professionals across more than 20 countries. For additional information, visit www.isg-one.com.
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Press Contacts:
Will Thoretz, ISG
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Julianna Sheridan, Matter Communications for ISG
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