- AI is limited in its ERP selection capabilities as it’s unable to assess nuances such as implementation challenges and real-world use cases.
- ChatGPT cannot conduct sufficient vendor due diligence, as it lacks access to vendor financials, customer service history, and hidden contract terms.
- ERP selection requires negotiation expertise, which AI cannot provide when securing pricing, service agreements, or implementation support.
- Automated ERP selection may be biased, potentially favoring Microsoft products due to OpenAI’s ties to Microsoft.
- Independent ERP consultants can ensure a successful selection, offering vendor-agnostic recommendations and real-world implementation insights.
What happens when businesses rely entirely on AI for their ERP selection process?
The risks of an automated ERP selection process are substantial. While ChatGPT can be a useful research tool, it lacks the nuanced judgment, vendor negotiation expertise, and real-world implementation experience that humans (certain humans) bring to the table.
More concerning, AI-driven software selection may introduce biases and overlook critical business-specific factors—ultimately leading to costly implementation failures.
Today, we’re exploring the limitations of AI in ERP selection and exposing the dangers of using ChatGPT for this critical business decision. We’ll explain why AI should be an aid—not a replacement—for a strategic ERP selection process.
The 2025 Top 10 ERP Systems Report
What vendors are you considering for your ERP implementation? This list is a helpful starting point.
The Allure of AI in ERP Selection
ERP selection is a high-stakes process, requiring rigorous evaluation of business needs, software capabilities, vendor viability, long-term scalability, and more. Given the multifaceted nature of selecting an ERP system, it’s no surprise that some companies turn to AI for guidance.
Many executives are drawn to AI’s ability to process vast amounts of data in seconds, while generating software comparisons, feature matrices, and vendor recommendations.
However, the risks of relying solely on ChatGPT for ERP selection far outweigh the perceived convenience.
The Risks of Automated ERP Selection Processes
1. Lack of Industry-Specific Context and Nuance
ERP selection is not a one-size-fits-all endeavor. Each industry has unique compliance requirements, operational workflows, and integration needs.
ChatGPT can provide general insights, but it lacks the industry-specific expertise needed to evaluate ERP solutions based on real-world use cases. In particular, AI does not have hands-on experience in implementation challenges, regulatory compliance considerations, or the intricate trade-offs between customization and standardization.
Without this critical context, AI-driven recommendations can lead decision-makers to select a system that looks like a good fit on paper but is ultimately ill-suited for their business.
2. AI Cannot Replace Vendor Due Diligence and Negotiation
One of the most dangerous assumptions executives can make is that ChatGPT can thoroughly vet ERP vendors.
Vendor viability is just as important as software functionality—organizations must assess financial stability, long-term product roadmaps, customer support quality, and contract terms.
AI lacks access to non-public data about vendor reliability, customer service effectiveness, and real-world implementation success rates. It cannot conduct reference checks, negotiate pricing, or uncover hidden contract pitfalls.
Independent ERP consultants, however, specialize in contract negotiation, ensuring businesses get the best pricing and service agreements, while holding vendors accountable throughout the process.
3. The Bias Factor: Is AI Steering You Toward Certain Vendors?
Another concern is the potential bias within AI-generated recommendations.
For example, given Microsoft’s significant investment in OpenAI, it is reasonable to question whether ChatGPT might inherently favor Microsoft products—such as Dynamics 365—over competing ERP solutions.
While OpenAI has stated that ChatGPT aims to remain neutral, there is no absolute transparency in how its training data, weighting mechanisms, and response algorithms function. This raises serious concerns about AI’s objectivity in enterprise software selection.
A CMO’s Experience
While relying entirely on AI for ERP selection is risky, using it strategically—as a research accelerator rather than a decision-maker—can be effective. We stumbled upon a recent anecdote on LinkedIn from a CMO highlighting this practice.
The executive described her experience evaluating subscription-based point solutions using multiple AI models—including ChatGPT, Claude, Gemini, and Perplexity. She used these tools to compare software options, generate pros and cons lists, and rank potential solutions based on her specific needs.
She noted how this AI-driven approach helped her quickly rule out several options, giving her a solid foundation for further evaluating a type of software she admittedly knew nothing about.
While this approach does minimize AI’s risks while leveraging its strengths, it works best when paired with experienced consultants. This is true whether you’re evaluating a point solution for a very niche purpose or an enterprise-wide system, like an ERP or SCM system.
Why Independent ERP Consultants Are Essential
Considering AI’s limitations in enterprise software selection, ERP consultants remain the most reliable resource for software evaluation. Independent ERP consultants, in particular, are essential for the following reasons:
1. Unbiased, Vendor-Agnostic Recommendations
Unlike AI models that may be built on biased training data, independent ERP consultants provide objective, vendor-agnostic recommendations.
They evaluate solutions based on your overarching IT strategy, business goals, and functional needs —not based on vendor referral fees.
In addition, independent consultants hold vendors accountable by providing realistic timelines, detailing overlooked project risks, and insisting on scripted software demonstrations.
2. Real-World Implementation Insights
AI can generate software feature lists, but it cannot predict real-world implementation scenarios.
For instance, ERP implementation consultants have firsthand knowledge of various rollout approaches and what type of solutions suit each approach. While a highly configurable, modular system may be ideal for a phased rollout, a preconfigured industry-specific solution may be better suited for a big-bang deployment.
In addition, consultants have an advantage over AI when it comes to understanding the influence of factors such as your integration needs and your information strategy. These factors should have considerable influence on the selection process as they guide consultants in choosing a system that is compatible with existing applications and is able to provide intelligent insights aligned with your goals.
3. Contract Negotiation and Vendor Accountability
ERP contracts are complex, with hidden fees, ambiguous service level agreements, and potential cost escalations.
Unbiased ERP selection consultants can enhance your negotiation power because they have no financial ties to specific ERP vendors. They can approach vendors from a position of strength to secure the best price and top-quality resources for implementation.
Using AI as a Tool, Not a Decision-Maker
AI-powered tools can be valuable in the early stages of ERP selection, offering quick market overviews, feature comparisons, and general industry insights. However, it’s dangerous to rely on AI alone for ERP selection. ChatGPT ERP selection risks range from vendor bias to poor implementation planning.
Considering that AI is not a substitute for expert human judgment, you may want to contact our ERP consultants before you dive into these dangerous waters.
