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Although Enterprise Resource Planning systems have always been a beneficial tool for businesses, traditional systems are evolving with new technologies such as Artificial Intelligence (AI), Machine Learning (ML) and Internet of Things (IoT).

Understanding how these technologies can improve your business and what you need to consider will help you plan your next investment.

Let’s look at the top ERP trends.

1. AI Makes ERP More Intelligent

Traditionally, ERP systems will offer transactional and reporting functions. This means staff will still need to interpret this data to gain insights and make decisions.

AI can help ERP systems become smarter.

Benefits include:

Automation – AI can help classify transactions, process invoices and identify any unusual activity.
Forecasting – AI can help you understand future demand by analysing past sales and operational data.
Customer Support – AI can answer simple queries regarding orders, invoices and account information.
Automation – Repetitive tasks can be automated.
Better decision making – Recommendations can be made.

AI can help identify unusual orders, potential mistakes and recommend what you need to focus on with your ERP system. For example, instead of having to manually look through hundreds of orders AI can help you identify what is unusual.

However, you should not fully rely on AI recommendations for approval, especially when it comes to financial, legal or other impactful decisions.

2. Machine Learning Improves Predictions

AI can provide a wide range of smart capabilities. Whereas Machine learning helps systems learn from historical data to improve predictions.

This is especially useful for businesses that deal with a lot of data.

If you are a manufacturing business frequently experiencing unexpected breakdowns with your machinery, your traditional ERP system will just record the maintenance.

However, if you use Machine Learning with your ERP platform, you can use the historical data to understand what might cause issues with your equipment.

Other benefits include:

Understanding what inventory you need based on past sales.
Identify unusual spend.
Understand potential customer demand.
Predict cashflow and financials.
Identify potential issues with the supply chain.
Improve planning.

The main benefit is that you can transform from a reactive business to a proactive one.
You can start to identify what could go wrong next month, rather than what went wrong last month.

3. IoT Can Help You Understand Your Business in Real Time

The Internet of Things can connect physical devices, machines, sensors and equipment.

By connecting IoT devices to ERP systems you can get a better insight into your physical business.

For example, you can place sensors on your manufacturing equipment to obtain data on the temperature, conditions, performance and activity.

This can be integrated with your ERP systems to give you:

Real time insights into your equipment.
Predictive maintenance.
Better control of inventory and warehouse.
Monitoring manufacturing performance.
Tracking shipments and logistics.
Controlling energy usage.

If you have sensors connected in your warehouse you can monitor your stock levels and conditions. If your stock reaches a set point your ERP system can alert your procurement team or trigger an approved process.
This reduces the need for manual updates and helps you react to changes quicker.

4. Cloud ERP and Integrations Will Be More Important

Most modern businesses use a range of software including CRM, payments, HR, analytics, e-commerce and third party services.

This means integration will be key to your ERP modernisation.

Cloud ERP systems will provide you with more flexibility, remote access and can easily integrate with other business applications.

Benefits include:

Central access to your business data.
Integrate with CRM.
Automate communications between applications.
Scalable infrastructure.
Better access for remote teams.
Integrate with AI.

However, you should think about the security, compatibility, vendor lock-in, back up and ongoing costs of using a cloud ERP system.

5. Key Dates to Consider

Technology is not always the driving factor for change, regulation, reporting and compliance can also impact when you need to modernise your systems.
International businesses should take note of the following dates.

2 August 2026 – AI Act
The AI Act entered its main phase on 2 August 2026 with different obligations for some requirements. If you are using ERP functions enabled by AI you should consider the transparency, governance, accountability and risk management requirements of your use case.

2 December 2027 – High Risk AI Systems

Obligations relating to some high risk AI systems listed in Annex III will apply from 2 December 2027 under the new EU timeline. If you are using AI in areas such as employment, critical infrastructure or other regulated roles you should consider if you fall into these categories.

1 July 2028 – VAT and Platform Economy

The VAT in the Digital Age (ViDA) reforms will impact the platform economy and Single VAT Registration from 1 July 2028. This may impact how you invoice, account and tax.

1 July 2030 – Reporting

The ViDA framework will require intra-EU cross-border B2B transactions to be reported digitally from 1 July 2030. If you operate within European markets you should consider if your ERP and financial systems can provide the required data and reporting.

Not every organisation will need to upgrade their ERP system but if you are located in a specific area, use certain services and are under certain regulations these dates can help you plan.

6. What to Consider Before Upgrading

Not every new technology should be adopted. You should consider what issues you are facing within your operations.

Things to consider include:

Limitations

Are there any issues with reporting, inventory, finances, integration or data access?

AI & Machine Learning

Are you able to make use of predictions, automation and intelligent reporting?

IoT
If you have a manufacturing, logistics or warehouse business you should consider if you need IoT devices to improve monitoring.

Data Quality

As AI and Machine Learning rely on accurate information, you should consider the quality of your data. If you have inconsistent, incomplete or duplicate data this can impact predictions.

Cyber Security

Your ERP systems will contain sensitive information such as financials, staff, customers and operations. You should ensure you have controls in place such as access, encryption, monitoring and back up.

Phased Roll Out

By rolling out your upgrades in phases you can trial new functions, train staff and reduce disruption.

7. ERP Systems Will Be More Connected, Predictive & Intelligent

While the future of ERP systems will involve AI, it will also mean having a more connected business.

AI will help staff understand the data, whilst Machine Learning will improve forecasting and identify patterns. IoT will help you connect physical elements of your business and make them easier to manage.

This can help improve productivity and reduce inefficiencies, whilst also making informed decisions.

To ensure a successful ERP modernisation you should have clear goals, accurate data, integration, security and realistic planning.

Conclusion

AI, Machine Learning and IoT are helping make ERP systems more predictive, automated and real time. Understanding what features will help you overcome your current issues and what regulation dates will impact your business will help you plan your future investments.

By considering your ERP infrastructure early you can help manage the transition, increase efficiency and adapt to new requirements.