ERP systems are changing. Within the next few years, the way SMEs interact with their ERP will look very different. The screens, tabs, and manual forms most users rely on today will fade out. In their place? Conversational agents and automation.
The logic layer of ERP remains, but the way we engage with it is evolving. AI will increasingly handle the admin, so instead of keying in invoices or navigating screens, users will give instructions such as “invoice this order for 5 units at 10% off.”
...But it's not going to change overnight. It will be an incremental journey that will start with the key points where it makes sense to have AI do the heavy lifting.
It’s about cutting repetitive work, freeing up your team, and getting quicker insights. According to Decidr’s 2025 National AI readiness index report, the top reasons Australian SMEs have for exploring AI are:
But how are SMEs going to use AI? What's the limitation and what's the realistic part of it?
AI is already transforming parts of how SMEs use ERP. These wins are setting the stage for bigger shifts.
1. Automated invoices and Accounts Payable (AP)
Supplier invoices emailed as PDFs are scanned via OCR (optical character recognition) and fed directly into ERP systems like SAP Business One. It skips the typing so that approvals can happen faster.
It’s a small win, but it signals how AI is already replacing repetitive tasks.
2. Conversational and context‑aware AI agents
Instead of navigating screens, users interact with ERP via intelligent prompts and agents.
For example, in a distribution business, AI can help with supply chain planning and ordering decisions.
It can also help you stay on top of margins across your product mix, with insights feeding back into your ERP daily or weekly. This is where intelligent reporting, supported by LLMs (large language models) in the background, becomes genuinely useful.
The result is better-quality information than most SMEs have had access to before, helping teams move faster and reduce unnecessary spend.
3. Image recognition in service
AI isn’t just text anymore – it can “see” images. For example, a picture of a broken part can trigger orders, updates, and even customer replies without waiting for a human to retype information.
AI in ERP isn’t just about saving time on admin, it’s about raising the bar on how you operate.
But perhaps the biggest opportunity is in strengthening customer and supplier relationships.
AI helps SMEs do more with less and in business, nothing happens until you make a sale. That means customer retention and trust are more important than ever. If your systems are reliable, responsive, and easy to deal with, you build loyalty. You get recommended. You stand out.
The same applies to suppliers. If they know you order regularly, pay on time, and communicate well, you move to the top of their list, especially when demand is tight. AI can help streamline these touchpoints and build a more professional, less reactive business.
This shift isn’t just about efficiency. It’s about lifting your reputation, reliability, and readiness to grow.
Automation isn’t a magic wand. Outcomes depend on how well agents are designed and trained. There will always be cases where a human review is essential.
But you can still get a lot more productivity out of it. If you had to do it manually with a human in the loop, it might take a full day, but with AI handling the heavy lifting and a person just reviewing, the same task could take as little as 15 minutes.
It’s also worth asking how much resource you should put into it. The way users prefer to interact matters, and some might still prefer phone calls. It’s important to review the insights on these topics before making any big decisions about automation and AI. Because it’s not free – token consumption and cloud costs can add up.
And speaking of costs, not all automation pays off. Some features (for example, bank feed imports) are expensive without enough ROI. Businesses need to weigh up automation value carefully.
The ERP you use today isn’t going anywhere. It’s just becoming easier and smarter to work with. By embracing small changes now, like automation and AI-driven prompts, you can stay ahead, save time, and make more informed business decisions.
Want to explore how AI can work alongside your ERP – or see what’s possible with SAP Business One? Start a conversation with the Key Business Solutions team today.