ARTIFICIAL INTELLIGENCE IN ERP AND ENTERPRISE SYSTEMS: A REVIEW OF APPLICATIONS, CHALLENGES, GOVERNANCE CONSIDERATIONS, AND FUTURE TRENDS

Abstract

Enterprise Resource Planning (ERP) systems have evolved from transaction-processing platforms into strategic enterprise systems that support decision-making, operational efciency, and business transformation. Recent advances in Articial Intelligence (AI) have accelerated this evolution by introducing capabilities such as predictive analytics, intelligent automation, machine learning, natural language processing, and decision-support mechanisms into enterprise environments. Organizations across industries are increasingly integrating AI-enabled technologies into ERP and enterprise systems to improve forecasting accuracy, optimize business processes, enhance customer experiences, and support datadriven decision-making. Despite these benets, AI adoption within enterprise systems presents challenges related to data quality, governance, integration complexity, security, explainability, and organizational readiness.This review article examines the current landscape of AI applications in ERP and enterprise systems by synthesizing ndings from existing academic and industry literature. The paper explores key application areas,
including nance, procurement, supply chain management, manufacturing, and customer operations, while highlighting the benets and challenges associated with AI adoption. The review further discusses governance considerations, human oversight requirements, and emerging trends shaping the future of intelligent enterprise systems. The ndings suggest that AI is transforming ERP systems from systems of record into systems of insight and intelligent decision support. However, successful implementation requires a balanced approach that combines technological innovation, effective governance, and human expertise. The paper concludes by identifying future research opportunities and practical considerations for organizations pursuing AI-enabled enterprise transformation.