The world continues to rapidly shift towards AI and its many applications, with no signs of slowing down! Companies adopting AI are already seeing impressive results in key business areas like insights & forecasting, sales, and cost management. As AI’s influence is set to expand even further, ERP systems must evolve to keep up. Odoo stepped up by integrating generative AI, OCR, and predictive optimization in their standard processes.
In this article we explore Odoo 17’s AI capabilities, how to strategically combine ERP with AI, where the key differences lie, and how to successfully integrate AI into your ERP processes.
Table of Content
AI can enhance ERP but not replace it
Think of AI methods as metal detectors, finely tuned to uncover valuable data treasures hidden within your expansive company landscape. However, much like a metal detector can point out where the treasures are buried but can’t do the digging, AI spots opportunities that require further action.
On the other hand, ERP systems are like your reliable mining crew, equipped to efficiently dig and process materials according to instructions. However, they operate blindly and without a map or detector, they are unaware of the exact locations of the most valuable deposits.
AI can detect & predict opportunities but needs ERP to “dig” them out
If we combine the precision of the metal detector (AI) with the efficiency of the mining team (ERP), a powerful synergy can be created. This combination will empower companies to not only identify the most valuable data deposits but also to extract and utilise them strategically, while boosting profits and productivity across operations.
AI vs. ERP – how they differ from a technical POV
1. Data models
- ERP → structured, hierarchical data models with predefined schemas
- AI → utilises multiple data sources and types, including text, images, and sensor values
2. Objectives
- ERP → backbone for a company’s operational tasks
- AI → designed to support data-driven decision-making and generate novel insights
3. Processing methods
- ERP → automates business processes and transactions by adhering to predefined rules and logic
- AI → algorithm relies on data analysis and machine learning techniques, identifying patterns and relationships to make predictions, decisions, and gain insights.
4. Implementation
- ERP → configured or customised to align with a company’s unique business processes
- AI → iterative approach to machine learning and model development, systems are trained
How to integrate AI & ERP effectively
Using AI in ERP systems offers many chances for businesses to improve their processes. By combining AI with ERP software, the data from ERP can help AI identify patterns and make data-informed predictions about business operations and customer behaviour.
These AI-driven insights can then improve decision-making for a company with their ERP system. For example, AI can predict sales to help adjust production planning or manage marketing strategies based on customer data.
However, businesses have to be realistic in identifying where their operations can truly benefit from this application. It’s crucial to pinpoint which AI tools are appropriate for a company’s specific needs. Simply wanting to implement AI into your ERP is not enough – a clearly defined strategy is needed to truly leverage the potential of this integration for your company’s operations.
5 ways how AI was leveraged in Odoo 17
Odoo 17 took an interesting approach to implementing AI in ERP operations. AI in Odoo 17 stands out as it isn’t overwhelming or complex. Instead, it has practical features that actually simplify your tasks. Explore Odoo 17’s current AI features, one module at a time:
General – ChatGPT Integration
Odoo 17 integrated ChatGPT across various modules, such as the Knowledge app, Marketing apps, and communication tools like email templates, etc. This integration of generative AI with Odoo 17 can help users to write articles and generate text to make content creation easier.
An example of ChatGPT in an Odoo 17 Knowledge article
Creating Email Templates in Odoo 17 with integrated ChatGPT
No-touch invoice processing with OCR
Odoo now uses AI to make invoicing quicker and more accurate. Invoice Automation in Odoo 17 means that the system can scan documents and check them for errors, helping to sort and store everything from single emails to big batches. By using OCR to scan and process these documents, Odoo blends automatic AI-powered processes with minimal manual validation to ensure invoices from regular vendors are always right.
OCR in Odoo 17 reads the content of your physical or PDF documents, automatically fills in relevant fields and adds them to your Invoice app
AI-powered auto-reconciliation in Accounting
In previous versions, Odoo prompted users with a widget to manually complete their reconciliations in Accounting. Now, Odoo 17 made the full Reconciliation process easier with the use of AI, removing the manual widget entirely and prompting a new one for write-off entries only. Practically, Odoo’s auto-reconciliation means that all entries relevant to each financial record will be automatically selected and marked – all you have to do is press “Validade”!
Automated matching in Odoo 17 Accounting bank reconciliation
Inventory Management – stock forecasting & automated replenishment
Odoo 17 looks at historical data from your previous sales data, transactions, supplier lead times, market trends, and other external factors to create a demand forecast for your future products. By leveraging AI and predicting inventory levels, Odoo not only allows you to prevent over and understocking but can also actively combat that with its automated stock replenishment.
With AI, Odoo 17 forecasts inventory levels and enables automated replenishment
Website – AI-powered content creation, layout suggestions & chatbot
Odoo 17’s Website Builder has been hugely boosted by AI – from the ChatGPT integration for copywriting and creating web content, to automatic layout suggestions in an AI-powered website builder. A responsive chatbot powered entirely by AI was also introduced, reducing the need for live operators to immediately respond.
Odoo Chatbot in version 17, powered by ChatGPT
Odoo 17’s website builder, with an AI-powered layout creator
Learn more about an AI & ERP integration in our expert talk
Check out our Managing Partner’s talk from Odoo Experience 2023, where he explores the transformative potential of AI in ERP systems with real-life use cases in the Odoo sphere!
Want to tailor Odoo 17 and its features to your needs? Talk to our experts!
Whether you’re looking to explore Odoo 17’s AI features or if you want to automate your ERP processes for business optimization, our team can help! With dedicated in-house consultants and engineers, we can help you turn your ERP project into a success! Contact us now to discuss how we can best adapt Odoo 17 to your unique needs!