How to Choose the Best ERP for an AI Future

ERP systems have long served as the operational backbone for commerce businesses, handling critical functions like finance, inventory, and supply chain management.

But as the pace of commerce accelerates (especially with generative AI) and customer expectations grow, businesses need technology that’s more flexible, adaptable, and responsive. In this rapidly changing landscape, some ERPs are adapting to fit the needs of modern businesses better than others.

These are the “ERPs that get it”—the ones that recognize the need for an open, collaborative approach that supports agility and innovation.

So, what sets these ERPs apart, and why do they matter for commerce companies today? Let’s explore the defining qualities of ERPs that “get it” and why they’re better suited for today’s AI-first architecture.

Open APIs and Seamless Integrations

One of the most defining characteristics of forward-thinking ERPs is their commitment to open APIs.

Traditional ERP systems often function within closed ecosystems, requiring customers to pay extra to access APIs or relying on vendor-specific tools to connect with other systems. This approach creates high costs and friction for businesses that need to integrate new applications quickly.

On the other hand, ERPs that understand the need for agility embrace an open API approach. They make it easy to integrate with a variety of third-party applications, reducing the dependency on proprietary integrations. Open APIs offer several benefits:

Reduced Costs: With open APIs, businesses don’t have to pay extra fees or rely on vendor services just to integrate with other systems. This freedom allows them to allocate resources toward growth-focused initiatives.

Enhanced Flexibility: Open APIs make it easy to bring in new tools and technologies as the market changes, enabling companies to adapt faster without costly reconfigurations.‍

Faster Time-to-Market: Open APIs empower commerce businesses to roll out new integrations quickly, helping them stay responsive to shifting customer demands and competitive pressures.

In an AI-first architecture, where agility and data fluidity are paramount, ERPs that prioritize open APIs make a much better fit than closed systems that limit data access options.

Modular and Scalable Architecture

Modern commerce businesses need systems that can scale and evolve as the business grows. Rather than being monolithic and rigid, ERPs that get it adopt a modular architecture, allowing companies to integrate the pieces they need while leaving room to expand or swap out components as needs change.

With a modular approach, businesses can choose best-in-class applications for specific functions, integrating them with their ERP as needed rather than relying on an all-in-one suite. This modularity also helps businesses gradually transition toward more flexible architectures without overhauling everything at once. Here’s how it works in practice:

Choose What You Need: Modular architecture lets companies select specific ERP components, such as finance or inventory management, and integrate them with specialized tools like AI-driven customer engagement or predictive analytics.‍

Easily Scale with Growth: As business needs evolve, modular ERP systems allow companies to add new capabilities, connect to additional platforms, or scale up specific functions without needing an expensive, full-scale system overhaul.

Adapt to AI-First Systems: Modular architecture enables ERPs to work alongside AI-first tools that support real-time decision-making, personalization, and automation. For example, a modular ERP can seamlessly connect with AI-driven supply chain management tools, creating a flexible and scalable environment.

ERPs with a modular architecture are built to adapt, which is essential for companies looking to future-proof their tech stack.

Collaboration with AI-Driven Systems

In an AI-first architecture, ERP is no longer the “command center” for every business decision—it’s a valuable component that works alongside AI-driven systems to provide more agility and intelligence. Forward-thinking ERPs recognize this shift and are designed to collaborate with AI-first systems rather than compete with them for dominance in the tech stack.

This collaborative design offers several advantages:

Enhanced Data Flow: AI-first systems rely on real-time data to automate tasks, drive personalization, and support decision-making. ERPs that “get it” support this by offering real-time data integration, feeding structured data into AI-driven applications to create a seamless flow of information.

Complementary Capabilities: While ERPs are ideal for structured, back-office functions like finance and order management, AI-driven tools excel at handling dynamic, customer-facing processes like marketing personalization and automated customer service. ERPs that are designed to work in tandem with AI-first systems allow businesses to leverage the strengths of both, creating a balanced, high-performance tech stack.

Agility and Innovation: ERPs that collaborate well with AI systems reduce the friction that often accompanies traditional ERP-first setups. Instead of limiting the business to a rigid structure, these ERPs create a more agile ecosystem where AI can automate, analyze, and adapt without being held back.

ERPs that recognize the value of collaboration with AI-first systems provide a foundation that supports, rather than constrains, a company’s ability to innovate.

Reduced Vendor Lock-In

For too long, ERP vendors have created dependencies by keeping their systems closed, requiring customers to rely on the vendor’s professional services or partner networks for even simple integrations. This vendor lock-in creates additional costs, slows down implementation, and restricts a company’s ability to adapt.

However, ERPs that get it have moved away from this restrictive model. They’re moving toward open, partner-friendly ecosystems that allow businesses to manage their own integrations and customizations, ultimately reducing vendor dependency. This shift offers significant benefits:

Cost Savings: Businesses aren’t required to pay for the ERP vendor’s services for every customization or integration, allowing them to redirect those savings to more impactful initiatives.‍

Control Over the Tech Roadmap: By reducing dependency on vendor services, commerce companies can chart their own course, choosing and integrating tools that align with their strategic goals without waiting for vendor support.

Easier Access to Cutting-Edge Tools: Without the constraints of vendor lock-in, companies can experiment with new technologies to improve efficiency and customer experience.

By embracing an open ecosystem and reducing lock-in, ERPs that get it help businesses remain nimble and responsive to new opportunities.

Focus on Core Strengths, Not Overextension

The best ERPs understand their strengths and don’t try to do everything. Instead of expanding to cover every possible function, they focus on being exceptional at core functions like finance, supply chain, and inventory management, allowing AI-first systems to take the lead in customer-facing and dynamic processes.

This approach keeps ERP systems effective while allowing companies to adopt best-in-class tools for more specialized functions. When ERP vendors understand the need to avoid overextension, companies benefit in several ways:

Optimized Performance: By focusing on their core capabilities, ERPs perform better, with fewer resources dedicated to functions they weren’t built to handle.

Enhanced Interoperability: ERPs that focus on their strengths make better nodes in the web of IT needed to run a modern commerce business. They expect other nodes to handle other core functions of the business and work seamlessly with them.

Scalability: When ERPs focus on core capabilities, they’re able to scale effectively as the business grows, supporting structured functions while allowing AI-driven systems to handle more complex, high-touch areas.

ERPs that focus on their strengths provide stability and reliability while enabling businesses to embrace a more flexible, AI-first approach.

Finding the Right ERP Partner for the Future

In a market that demands agility, ERPs that “get it” offer the perfect balance of structure and flexibility. They support open APIs, work alongside AI-driven systems, reduce vendor lock-in, and focus on their strengths, allowing companies to build a more responsive and adaptable tech stack.

If you’re looking to modernize your tech stack, consider an ERP partner that embraces openness, collaboration, and modularity. This way, you’ll have a foundation built for growth—without the rigid constraints of traditional ERP-first architectures.