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Embedding Gen AI In ERP Applications: What Could Go Wrong?

Nov 09, 2023 - forbes.com
The article discusses the potential risks and rewards of generative AI (gen AI) in ERP applications. It emphasizes that while gen AI can enhance productivity and business results by producing new content and summarizing unstructured data, it also presents unique risks such as low-quality output from poor data training, privacy and compliance issues, and unintended bias. To mitigate these risks, organizations are advised to use responsible AI practices, train employees for quality AI input, and develop enterprise-wide gen AI risk management strategies and governance policies.

The article also highlights the importance of incorporating ethical considerations in gen AI models to avoid discriminatory or unfair outputs. It suggests that the future of ERP lies in harnessing the power of gen AI for improved decision-making, customization, and simplification of the user experience. However, it also warns of the potential for gen AI to produce hallucinations or erroneous conclusions, underscoring the need for users to critically evaluate the information produced by gen AI.

Key takeaways:

  • Generative AI (gen AI) can significantly enhance business results by producing new content and summarizing unstructured data, but it also brings unique risks that need to be addressed.
  • Low quality data training can result in low quality output from gen AI models, and privacy and compliance risks can multiply with proprietary gen AI models.
  • Organizations are advised to work with diversity, equity, and inclusion (DEI) specialists when developing their gen AI models to avoid unintended bias and discriminatory outputs.
  • Gen AI is seen as the future of ERP, and organizations need to create enterprise-wide generative AI risk management strategies and governance policies to harness its potential for improved decision-making and business reinvention.
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