The Future of ERP: Are They Still the Right Tool for Large Corporations?

Enterprise Resource Planning (ERP) systems have served as the digital core of large organisations for decades. But as AI matures and new technologies redefine what’s possible, we are being asked a question: Are traditional ERP systems still the right fit for our business? 

Here we explore how ERP systems are evolving, the real impact of AI, and what large corporations must do to future-proof their digital foundations. 

1] ERP at Scale: Still Essential, but in Urgent Need of Modernisation

ERP systems are still vital for unifying business operations; finance, supply chain, HR, manufacturing, and customer service. However, legacy ERPs often struggle to keep pace with today’s speed of change. Modern ERP needs to be: 

• Cloud-native or hybrid, reducing technical debt and maintenance overhead 

• Standardised and scalable, enforcing consistent processes across global entities 

• Composable and extensible, enabling integration with emerging technologies like AI, IoT, and advanced analytics 

To stay relevant, your ERP must be more than your system of record, it must become a flexible, intelligent platform that evolves continuously. 

2] AI and ERP: From Promise to Practice

AI is no longer a buzzword in enterprise software; it’s rapidly becoming a core functionality in ERP ecosystems. Across industries, AI is being applied to: 

• Predict demand and optimise supply chains 

• Automate routine finance processes, including invoicing and reconciliation 

• Detect anomalies such as fraud or operational bottlenecks 

• Enable natural language interfaces so users can “chat with” their data 

These use cases improve decision-making, reduce manual effort, and unlock proactive operations. But success depends not on AI alone, but critically on data readiness, user trust, and thoughtful implementation. 

3] AI Integration: Embedded, Standalone, or Hybrid?

• Embedded AI (within ERP platforms) offers speed and ease of use 

• Standalone AI tools offer greater customisation and flexibility, but require solid integration and governance 

• Hybrid approaches combine the strengths of both, layering AI insights over core ERP workflows 

The key is to align your AI strategy with business outcomes, not vendor roadmaps. 

4] Building AI-Ready Foundations: It Starts With Data

As with any business system, an ERP system can’t be intelligent without quality data. Before adding AI layers, organisations must ensure: 

• Clean, de-duplicated datasets 

• Real-time access to data across functions 

• Defined ownership and governance structures 

• Strong integration frameworks 

Without these, AI will amplify inefficiencies rather than solve them. A successful AI-enabled ERP strategy starts with investing in robust data infrastructure and governance. 

At Positive8, we help businesses ensure that their data is fit for purpose as we believe that clean, accurate data is the foundation for any solution that uses it. 

5] Risk Factors: People, Contracts, and Control

AI in ERP introduces powerful capabilities, but also potential risks: 

• Organisational impact: Teams may fear job disruption or decision displacement 

• Governance concerns: Autonomous AI agents can create misalignment if not carefully managed 

• Vendor lock-in or IP issues: Using proprietary AI tools within ERP systems may pose legal or operational risks 

To navigate these challenges, leaders must implement clear policies, ensure human oversight, and manage change proactively. 

6] New Alternatives: Composable ERP and Agile Digital Cores

While traditional ERP still has value, many large organisations are exploring alternative strategies: 

• Composable ERP architectures, where smaller, best-of-breed tools are integrated via APIs 

• AI platforms layered on top of legacy systems, adding intelligence without a full ERP replacement 

• Two-tier ERP, where smaller divisions or regions use lightweight systems integrated with a global core 

These approaches offer flexibility, faster ROI, and reduced reliance on single-vendor ecosystems. 

7] What This Means for Large Corporations

ERP isn’t obsolete but it has to evolve. The future of ERP lies in: 

• Strategic alignment: Technology must serve clear business outcomes 

• Data-driven foundations: Clean, integrated data is the backbone of effective AI 

• AI augmentation, not automation: AI should assist, not replace, human judgment 

• Modular, scalable design: ERP should grow with your organisation, not limit it 

Modern ERP isn’t a one-size-fits-all solution, it’s a tailored digital platform designed to accelerate transformation. 

Why Positive8? 

At Positive8, we help large organisations with turnaround and transformation projects by bridging the gap between Finance and IT to ensure that any implementation is built on the solid foundation of clean, accurate data and robust, scalable system design. 

Summary 

ERP is not dead, but it is being redefined. In the age of AI and composable systems, it’s no longer just about centralisation, it’s about orchestration, intelligence, and adaptability. The future belongs to those who approach ERP as a living platform, designed for change and powered by insight. 

Is your organisation ready to transform its future? Let Positive8 help lead the way.