AI-ENHANCED ERP SYSTEMS: DRIVING DIGITAL TRANSFORMATION IN SMES BY IMPROVING EFFICIENCY, STRENGTHENING SUPPLY CHAINS AND EMPOWERING THE WORKFORCE.

Abstract

The integration of Artificial Intelligence (AI) into Enterprise Resource Planning (ERP) systems presents a significant opportunity for Small and Medium Enterprises (SMEs) to enhance operational efficiency, decision-making, and scalability. This paper explores the role of AI in Digitally transforming traditional ERP systems into dynamic, intelligent platforms that can automate processes, optimize resource allocation, and predict trends. While AI-driven ERP systems offer numerous benefits, the adoption of these technologies by SMEs remains challenging due to resource constraints, lack of technical expertise, and the complexity of AI solutions. Through a review of recent studies, this paper examines the potential applications of AI in ERP systems, highlighting its role in improving inventory management, finance, logistics, and forecasting. The paper also discusses the synergy between AI and ERP, emphasizing the need for SMEs to develop the infrastructure and organizational readiness required for successful AI integration. This research provides valuable insights into the digital transformation of SMEs through AI and ERP integration, offering practical recommendations for overcoming the barriers to adoption and realizing the full potential of AI in driving business growth.