UK organizations are forecast to increase their investment in Artificial Intelligence (AI) by 25% in 2025.
This anticipated rise, highlighted in the latest Freshworks AI Workplace report, reflects the growing recognition of AI as a vital tool within the workplace. According to the report, a substantial 61% of employees now consider AI a necessity, fueling the expectation that 54% of UK organizations will boost their AI spending by an average of 29% next year.
Access to AI
This increased investment underscores the pivotal role AI plays in driving business success. The Freshworks report indicates that only 4% of UK companies plan to reduce their AI expenditure. Additionally, the accessibility of AI tools, with 74% of organizations believing current IT vendor pricing is fair, further contributes to this investment appetite. As AI’s influence on work continues to expand, these increased spending levels are expected to yield greater returns, particularly in enhancing employee experience.
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The positive impact of AI on workload is a key driver behind this investment surge, with 72% of UK workers reporting a favorable experience. Recognizing the growing importance of AI proficiency, 63% of organizations surveyed by Freshworks are also willing to invest in AI upskilling courses for their employees this year. This commitment to developing AI talent further solidifies the technology’s integration into business operations.
Ian Tickle, Senior Vice President and General Manager International at Freshworks, emphasized the transformative impact of AI, noting that businesses are increasing investment to achieve even greater returns through streamlined operations, improved productivity, and enhanced customer service.
AI and its Potential
According to Freshworks, AI is becoming increasingly pervasive and accessible, with organizations witnessing its tangible effects on productivity, employee experience, and overall capabilities. The study notes that 80% of UK workers now view AI as a powerful tool, and 64% describe AI tools as being of excellent quality, demonstrating a strong vote of confidence in the technology’s potential.
This increased AI investment promises to enhance employee experience by providing readily available tools that streamline workflows and boost efficiency.
What This Means for ERP Insiders
Enhanced efficiency in data management and workflow automation. AI can automate routine data entry, validation, and reconciliation tasks within an ERP system. For example, Freddy AI, Freshworks’ AI model, can automatically categorize and route invoices based on predefined rules, reducing manual processing time and errors. Similarly, AI can streamline workflows by predicting potential bottlenecks in procurement or production processes, allowing for proactive adjustments.
AI can analyze the vast amounts of data within an ERP system. This helps organizations to identify trends, anomalies, and correlations that might be missed by human analysis. AI models like Freddy AI can generate insightful reports on sales performance, inventory levels, or supply chain efficiency. For instance, AI can predict future demand based on historical data and market trends, optimizing inventory levels and reducing carrying costs.
AI-powered assistance and self-service are gaining ground. AI-powered chatbots and virtual assistants can provide ERP users with instant access to information, guidance, and support. Freshworks’ Freddy AI can answer common queries related to order status, product information, or process guidelines directly within the ERP interface, reducing the reliance on help desks and improving user satisfaction. This can empower employees to resolve issues quickly and efficiently, leading to increased productivity.
