What: Retailers can achieve five times faster ERP implementations through GenAI, transforming traditional system deployment approaches while enhancing business outcomes.

Why it is important: As retailers face the urgent need to modernise their systems, with only 37% of SAP customers having licensed its cloud-ready platform by mid-2024, GenAI offers a timely solution to accelerate digital transformation.

Generative AI is emerging as a transformative force in ERP implementations, promising to reduce implementation effort by 20-40% while enabling organisations to build more advanced solutions five times faster than traditional methods. The technology's impact is particularly significant in resource-intensive processes such as testing, training, and documentation, where it can substantially reduce manual effort. This efficiency gain allows organisations to redirect resources to critical early stages of implementation, including discovery and preparation phases, which are crucial for successful business outcomes. The timing is particularly relevant as major vendors like SAP plan to reduce support for legacy systems by 2027, pushing retailers toward cloud-ready platforms. GenAI's ability to automate key tasks, enhance decision-making, and redistribute effort across the transformation lifecycle addresses traditional implementation challenges while delivering better value creation opportunities. The technology's impact extends beyond immediate implementation benefits, serving as a catalyst for broader organizational change in how large-scale technology projects are designed and executed.

IADS Notes: Recent retail industry developments strongly validate the article's findings. In March 2025, research showed that while all retailers plan to implement AI initiatives, only 32% effectively keep pace with customer behaviour. However, early AI adopters are achieving significant results, with 87% experiencing revenue increases of 6% or more. The transformation potential is particularly evident in cases like Etam's strategic partnership in January 2025, which prioritised data foundation development before expanding AI applications, and El Palacio de Hierro's successful digital transformation, which demonstrated how technological innovation could be effectively combined with operational excellence.

How Gen AI can revolutionise ERP transformations