Welcome to this AI Agent & Copilot Podcast, where we analyze the opportunities, impact, and outcomes that are possible with AI.
In this episode, I speak with Brad Niedzielski, Audit & Assurance Partner and Business Controls Leader at Deloitte, on the impact of AI on ERP systems, particularly in the context of cloud transformations.
Highlights
Modern Controls and Risk Coverage (00:55)
Niedzielski explains that he advises clients on modernizing controls and risk coverage for emerging technologies including AI and GenAI while helping clients transform their operations through people, process, and technology. He notes that organizations are incorporating AI into their cloud ERP environments, focusing on finance, procurement, HR, and supply chain. Deloitte’s customers are using ERP platforms from SAP, Oracle/NetSuite, Microsoft, and Workday.
Current State of AI in ERP (03:14)
Most organizations are still in the transition phase, having experimented with AI over the past year, and are now moving into the scaling phase. Niedzielski emphasizes the importance of building out the right control environment early on, rather than waiting until after the ERP transformation is underway. Many companies have already gone through this implementation process, providing a foundation for others to learn from.
Benefits of AI in ERP (06:22)
AI capabilities are built into ERP systems, allowing organizations to start utilizing AI without immediately purchasing new licenses or building in-house tools. Top benefits of AI in ERP include reduced manual effort, improved consistency, faster access to information, and stronger monitoring, along with improved audit and SOX financial regulation readiness. Risks of AI in ERP include data security, compliance oversight, and complexity.
AI can assist with documenting and writing code, making ERP cloud transformations faster and less laborious. Key factors for AI to function effectively include clean, complete, and accurate data.
Governance and Looking Forward (10:24)
Governance and human oversight are crucial, even as AI takes on more routine work. Niedzielski introduces the concept of Direction, Supervision, Review, or DSR, over AI, similar to how oversight is practiced over human staff. He notes DSR is relevant for any technology, including AI, and emphasizes the need for proper oversight to maintain accountability.
Niedzielski compares AI to general-purpose technologies like electricity and the internet, predicting that AI will become a fundamental part of business operations. advises clients to embrace AI as a co-worker and to practice proper DSR to ensure the control environment is robust.
Additional AI Insights:
- Microsoft Framework Supports Diverse Models, Agents to Drive Complex Workflows
- AI Moves Beyond Experimentation
- Security Leaders Ramp Up Agentic Use Cases, While Protecting Against Shadow AI
