Embedded vs GenAI (ERP’s Next Big Shift)

In enterprise world two AI approaches are shaping

• Embedded AI lives inside ERP systems, automating processes, delivering insights, and enhancing workflows without leaving the platform.
• Generative AI creates new outputs such as content, analysis, or code using large language models (available or custom) and context.

SAP is aiming for 400+ embedded AI use cases by 2025, powered by Joule and SAP AI Foundation, while also offering a Generative AI Hub that connects to models from OpenAI, Anthropic, Cohere, and NVIDIA.

Microsoft is embedding AI agents into Dynamics 365 that proactively suggest actions, automate repetitive work, and integrate with Teams and Power Platform.

Oracle, Salesforce, and others are pushing AI copilots and industry specific GenAI assistants to accelerate decision making, with a growing shift toward AI “agents” rather than isolated features.

Enterprises to consider

1. AI governance gaps including risk management must keep pace with adoption.
2. Process depth. AI should be embedded deeply, not just surface level.
3. Ecosystem shifts, external GenAI providers could challenge ERP vendor lock-in.

Embedded AI delivers consistent, contextual value. Generative AI adds creativity and adaptability. The future belongs to those who blend both with strong governance, interoperability and a human-AI partnership mindset.

#ArtificialIntelligence #GenerativeAI #EmbeddedAI #SAP #ERPTransformation #DigitalTransformation #AIAgents #Innovation #BusinessTechnology #FutureOfWork

Interesting reading…

• How SAP Aims to Deliver 400 Embedded AI Use Cases in 2025
• A new era in business processes: AI agents for ERP – Microsoft
• 2025 ERP Trends: Innovations & Strategic Shifts from Top 3 Vendors
• AI in ERP: Examples, Top Software, and What to Watch in 2025