ARTICLE doi: http://dx.doi.org/10.55124/jaim.v2i2.265 Journal of Artificial intelligence and Machine Learning Journal homepage: www.sciforce.org A Smarter ERP: How Artificial Intelligence is Reshaping Enterprise Workflows Veeresh Dachepalli* Software Developer, Elemica Inc., TX, USA. ARTICLE INFO ABSTRACT Article history: Received: 20240609 Received in revised form Accepted: 20240619 Available online: 20240705 This paper explores the integration of AI-driven process automation within Enterprise Resource Planning (ERP) systems to address inefficiencies in traditional business operations. By focusing on key areas such as data extraction and validation, inventory and supply chain management, and reporting, the proposed AI solution enhances operational efficiency and decision-making. The algorithm utilizes Natural Language Processing (NLP) and Optical Character Recognition (OCR) to automate data entry and validation, reducing errors and streamlining workflows. Predictive analytics powered by machine learning optimize inventory management and supply chain operations by forecasting demand and minimizing stock outs or overstocking. Additionally, AI enables real-time, dynamic reporting, providing decision-makers with accurate, actionable insights. The implementation of these AI components results in significant improvements, including reduced manual errors, faster response times, and better resource allocation, ultimately transforming ERP systems into adaptive, intelligent platforms. The integration of AI into ERP systems not only improves day-to-day operations but also equips organizations with the tools to remain competitive and responsive in an ever-evolving business environment. © Veeresh Dachepalli. Corresponding author. e-mail: veereshD513@gmail.com Keywords: Enterprise Resource Planning (ERP); WSM method; Optical Character Recognition; Natural Language Processing; Introduction ERP systems are essential in today's business environment because they give companies a single platform to manage and optimize their core functions. These systems create a unified framework by integrating several corporate operations, including supply chain, production, finance, human resources, and customer relationship management. ERP systems are primarily designed to increase operational efficiency through data centralization, task automation, and the provision of real-time insights to aid in decision-making. Data silos are broken down, inefficiencies are decreased, and seamless communication and cooperation between the organization's many divisions are encouraged thanks to this integration. ERP systems make sure that every department has access to current and correct data by providing a shared data repository. This is essential for making timely and well-informed choices.ERP systems have their origins in the 1960s, when businesses realized they needed integrated systems to oversee their industrial processes. ERP systems have evolved over time to encompass a wider range of corporate operations, such as customer relationship management, inventory control, and finance. ERP solutions are now essential for businesses of all sizes, allowing them to increase overall production, maximize resource use, and improve operational efficiency. The complexity of global supply chains, the quick changes in market conditions, and the growing need for real-time data have all contributed to the importance of ERP systems. Despite the considerable advantages of ERP systems, traditional ERP solutions often encounter obstacles that limit their efficiency. These challenges generally include manual data entry, the absence of real-time updates, and a dependence on human intervention, all of which can lead to errors and inefficiencies. Tasks like data entry are time-consuming and prone to errors, resulting in inaccurate data that can influence decision-making and overall business performance. Furthermore, many traditional ERP systems lack real-time capabilities, meaning decision-makers may not have access to the latest information when making important business decisions. This can cause delays, missed opportunities, and inefficient use of resources. Additionally, the complexity of traditional ERP systems can make implementation and maintenance challenging, requiring substantial time and resources to ensure their effectiveness. Businesses are increasingly implementing cutting- edge technology like artificial intelligence (AI) to improve their ERP systems in order to overcome these inefficiencies. Because AI can automate tedious activities, improve data accuracy, and