What: Modernising ERP systems with AI integration is becoming essential for retailers to achieve operational efficiency and scale value across their enterprises.

Why it is important: The integration of AI and ERP is critical for unlocking productivity and profitability, as seen in recent industry benchmarks.

Retailers are increasingly recognising the necessity of modernising their ERP systems to fully leverage the potential of AI, as this integration is pivotal for achieving operational efficiency and unlocking value at scale. The convergence of AI agents and ERP platforms enables faster implementation, reduces manual workloads, and accelerates digital transformation, but the benefits are only realized when these technologies are embedded into core business processes. Despite significant investment, many retailers still struggle to scale AI-driven solutions due to outdated systems and insufficient change management. Only a small proportion of companies have managed to overcome these hurdles, with leadership and workforce engagement proving to be decisive factors in successful adoption. As intelligent operations and data-driven decision-making become industry standards, those retailers who prioritise both technological innovation and organisational transformation are setting new benchmarks for productivity and profitability. The evolving landscape underscores the importance of foundational modernisation and strategic leadership in driving sustainable growth and maintaining competitiveness in the retail sector.

IADS Notes: As noted in the April 2025 BCG report, generative AI is enabling retailers to implement ERP systems up to five times faster, reducing manual effort and accelerating digital transformation, especially as cloud migration becomes urgent. The October 2025 Zebra report confirms that intelligent operations powered by AI and workflow optimisation have led to measurable profitability and revenue growth, though only a minority of retailers have managed to scale these solutions due to persistent inefficiencies. The September 2025 BCG article highlights how GenAI is transforming supplier negotiations and operational processes, but emphasises that only 10% of companies have scaled these innovations. The March 2025 Forbes analysis underscores that leading retailers are achieving notable productivity growth by integrating AI, while the April 2025 BCG article stresses that CEO leadership and employee engagement are critical for successful AI adoption, with cultural transformation and upskilling being essential for overcoming adoption barriers.

Bridging the great AI agent and ERP divide to unlock value at scale