AI in ERP Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 5.82 Bn

Forecast Year, 2035

USD 58.7 Bn

CAGR, 2026 - 2035

26.00%

Report Coverage

Global

What is the AI in ERP Market Size?

The global AI in ERP market size was calculated at USD 5.82 billion in 2025 and is predicted to increase from USD 7.33 billion in 2026 to approximately USD 58.7 billion by 2035, expanding at a CAGR of 26.00% from 2026 to 2035.The market is driven by the increasing demand for intelligent automation, real-time analytics, and enhanced decision-making across enterprises.

Key Takeaways

• North America led the AI in ERP market with a major share of 39% in 2025.
• Asia Pacific is expected to grow at the highest CAGR during the forecast period.
• By deployment, the cloud-based (SaaS) segment held the largest market share of 82% in 2025.
• By deployment, the on-premise/hybrid segment is expected to expand at the highest CAGR during the forecast period.
• By technology, the machine learning (ML) segment held the largest market share of 63% in 2025.
• By technology, the natural language processing (NLP) segment is expected to grow at the highest CAGR between 2026 and 2035.
• By enterprise size, the large enterprises segment held the highest share of 59% in the market in 2025.
• By enterprise size, the small & medium enterprises (SMEs) segment is expected to expand at the fastest CAGR during the forecast period.
• By function, the financial management segment dominated the market with a share of 26% in 2025.
• By function, the supply chain management segment is expected to expand at the highest CAGR during the forecast period.

Market Overview

The AI in ERP market is a prominent branch of the ICT industry. This market deals with the design and distribution of AI-enabled ERP solutions across the world. AI in ERP integrates several technologies such as machine learning, NLP, and predictive analytics into traditional ERP systems to transform them from mere data repositories into intelligent platforms for automating tasks, providing predictive insights, and proactively guiding organizations. The increasing adoption of automated solutions in the telecom sector to reduce the dependency on the manual workforce, along with the surging popularity of Industry 4.0, is driving the market.

What are the Technological Advancements in the AI in ERP Industry?

The AI in ERP industry has undergone numerous technological advancements over the past few years. Key technological advancements in this industry include the proliferation of AI co-pilots, AI-driven robotic process automation, AI-based predictive analytics, and Generative AI. These technologies enable real-time forecasting, intelligent automation of workflows, and data-driven decision-making across finance, supply chain, and operations. Additionally, advancements in conversational AI and hyper-personalized dashboards are improving user experience, while AI-driven security and compliance tools strengthen data protection and regulatory adherence.

AI in ERP Market Trends

• Autonomous AI Agents & Hyperautomation: AI agents are being embedded to automate end to end workflows with minimal human intervention.
• Product Launches: Market players are engaged in developing AI-enabled ERP solutions to cater to the needs of the end-users. For instance, in December 2025, Rimini Street launched Rimini Agentic UX. Rimini Agentic UX is an AI-enabled ERP software designed for small and medium enterprises globally.
• Deeper Industry Specific AI Use Cases: Manufacturing, logistics, retail, and financial functions benefit from tailored AI capabilities such as predictive maintenance, intelligent planning, and anomaly detection.
• Partnerships: Numerous MNCs are partnering with tech providers to deploy AI-based ERP solutions to enhance operational efficiency. For instance, in October 2025, PwC partnered with Oracle. This partnership aims at deploying Oracle's AI-based ERP system in PWC offices to increase productivity, reduce costs, and improve financial controls.
• Deployment of AI-enabled ERP Solutions in the Retail Sector: Nowadays, retail companies are deploying AI-based ERP solutions to manage supply chains and streamline inventory management operations. For instance, in January 2026, Zoho launched an AI-based ERP platform. This AI-enabled platform is designed for the retail enterprises of India.

Market Scope

Segmental Insights

Deployment Insights

Why Did the Cloud-Based (SaaS) Segment Dominate the AI in ERP Market?

The cloud-based (SaaS) segment dominated the market with the highest share of 82% in 2025. This is due to the increased deployment of cloud-based ERP solutions in IT companies to accelerate their workflow efficiency, as well as the surging focus of the ERP providers to launch their products on cloud platforms. Moreover, numerous advantages of cloud-based ERP solutions, including cost efficiency, enhanced scalability, high accessibility, and superior performance, have boosted their adoption across numerous industries.

The on-premise/hybrid segment is expected to grow at the highest CAGR during the forecast period. The growth of the segment is driven by the surging adoption of on-premises ERP software by finance companies to enable financial automation and deliver real-time reporting to make proper decisions. There is an increasing deployment of on-premises solutions in the logistics industry to enhance supply chain management. Also, several benefits of on-premises ERP systems, such as improved data privacy, high security, and less maintenance, are driving their adoption.
Technology Insights

What Made Machine Learning (ML) the Leading Segment in the AI in ERP Market?

The machine learning (ML) segment led the market with the largest share of 63% in 2025. This is because ML transforms important data into actionable insights by driving automation and enhancing efficiency for performing repetitive tasks, including invoice matching, data entry, and manual reconciliations. ML also helps in optimizing operations by providing real-time information and predicting failures before they occur, thus driving its adoption. Moreover, the constant research and development activities performed by the AI engineers to enhance the capabilities of the ML framework have driven the growth of this segment.

The natural language processing (NLP) segment is expected to expand at the highest CAGR between 2026 and 2035. This is because NLP enables ERP software to understand and process human language for boosting the overall productivity of the business organizations. Also, NLP has the capability of analyzing unstructured documents, such as scanned PDFs, supplier invoices, and emails, for enhancing workflow management in the retail sector. Additionally, the surging emphasis of the ERP companies on developing NLP-based customer management solutions for the corporate sector is expected to propel the growth of this segment in the future.

Enterprise Size Insights

Why Did the Large Enterprises Segment Dominate the AI in ERP Market?

The large enterprises segment dominated the market with a major share of 59% in 2025. This is due to their greater resources, complex operations, and higher digital maturity. Large organizations handle vast volumes of data across multiple functions, such as finance, supply chain, HR, and production, which creates a strong need for AI-driven insights and automation to improve efficiency and reduce costs. They also have the budget and infrastructure to invest in advanced AI-enabled ERP solutions, cloud integration, and IoT connectivity, enabling faster adoption of cutting-edge technologies.

The small & medium enterprises (SMEs) segment is expected to grow at the fastest CAGR during the forecast period due to increasing accessibility and affordability of cloud-based and modular ERP solutions. Unlike traditional on-premise systems, modern AI-enabled ERP platforms offer scalable, subscription-based models that lower upfront costs, making them feasible for small and medium enterprises. SMEs are also seeking to improve efficiency, streamline operations, and gain data-driven insights to compete with larger organizations, driving the adoption of AI features like predictive analytics, workflow automation, and intelligent reporting.

The growing awareness of digital transformation and the availability of user-friendly AI tools are accelerating ERP adoption among SMEs. Moreover, collaborations among AI developers and small retailers to deploy AI-based ERP solutions in their outlets to lessen their dependency on human workers are expected to propel the growth of this segment.

Function Insights

What Made Financial Management the Dominant Segment in the AI in ERP Market?

The financial management segment dominated the market with a share of 26% in 2025. This is mainly due to the increased adoption of AI-enabled financial management solutions by BFSI companies to ensure strict regulatory compliance, automate core operations, and mitigate risks. Moreover, collaborations among financial institutions and software companies to develop a wide range of AI-based ERP solutions for streamlining accounting records have driven the segmental expansion.

The supply chain management segment is expected to grow at the highest CAGR during the forecast period. The growth of the segment is driven by the growing deployment of AI-based ERP solutions in e-commerce warehouses to enhance supply chain capabilities. Additionally, the increasing focus of software developers on designing high-end supply chain management solutions for end-users is expected to boost the growth of this segment.

Regional Insights

How Big is the North America AI in ERP Market Size?

The North America AI in ERP market size is estimated at USD 2.27 billion in 2025 and is projected to reach approximately USD 23.19 billion by 2035, with a 26.16% CAGR from 2026 to 2035.

Why Did North America Dominate the AI in ERP Market?

North America dominated the AI in ERP market in 2025, accounting for 39% share. This is due to the increased deployment of ERP solutions in the logistics sector across numerous countries, including the U.S., Canada, and Mexico. There is a strong focus of governmental organizations on deploying ERP solutions to enhance operational efficiency, along with the rise in the number of ERP solutions startups, which played a prominent role in shaping the market's landscape in the region. Moreover, innovations and product launches by several market players such as Oracle Corporation, Microsoft Corporation, IBM Corporation, and Deltek have supported the region's dominance in the market.

• In November 2025, Deltek launched an AI-enabled platform. This AI-based platform is designed to streamline workflows, provide actionable insights, and support organizations across the U.S.

What is the Size of the U.S. AI in ERP Market?

The U.S. AI in ERP market size is calculated at USD 1.70 billion in 2025 and is expected to reach nearly USD 17.51 billion in 2035, accelerating at a strong CAGR of 26.27% between 2026 and 2035.

U.S. AI In ERP Market Trends

The U.S. is a major contributor to the market within North America. This is due to the rapid adoption of AI-based ERP solutions in the manufacturing industry to manage supply chain operations, as well as technological advancements in the e-commerce sector. Moreover, the rising emphasis of the aerospace and defense companies to deploy cloud-based ERP solutions in the MRO centers is playing a prominent role in shaping the industrial landscape.

Why is Asia Pacific Expanding in the Market?

Asia Pacific is expected to expand at the highest CAGR during the forecast period. This is mainly due to the increasing demand for advanced ERP tools from the healthcare sector across various nations, including China, India, South Korea, Singapore, Australia, and Japan. Also, numerous government initiatives aimed at digitalizing the transportation sector, coupled with the surging adoption of subscription-based ERP services from the SMEs is positively contributing to the industry. Moreover, regional market players such as Hashmicro, Miroku Info Services, Tally Solutions, and Erpisto are focusing on delivering sophisticated ERP solutions, which in turn is expected to propel the growth of the market in this region.

• In September 2025, Miroku Info Services acquired Synergix Technologies. Through this acquisition, Miroku will expand its ERP services in Singapore.

Japan AI in ERP Market Analysis

Japan leads the AI in ERP market in Asia Pacific. This is mainly due to the rapid deployment of on-premises ERP solutions in the automotive sector, as well as technological advancements in the IT industry. Moreover, partnerships among electronics companies and ERP providers to deploy AI-enabled workflow solutions are contributing significantly to industrial development.

AI in ERP Market Companies

• SAP SE
• Oracle Corporation
• Microsoft Corporation
• Infor
• Workday, Inc.
• Sage Group plc
• SYSPRO
• IBM Corporation
• QAD Inc.
• Epicor Software Corporation
• Acumatica
• IFS
• ServiceNow
• Unit4
• Odoo

Segments Covered in the Report

By Deployment

• Cloud-based (SaaS)
• On-Premise/Hybrid

By Technology

• Machine Learning (ML)
• Natural Language Processing (NLP)
• Computer Vision & Others

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By Function

• Financial Management
• Supply Chain Management
• Human Capital Management (HCM)
• Sales & Customer Mgmt
• Others (Manufacturing/Procurement)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa