Agentic AI has a price: it's called ERP migration (www.techradar.com)

Agentic AI is emerging as a transformative force in enterprise software, enabling systems to not only suggest actions but to autonomously execute decisions within finance and supply chain processes. Unlike previous iterations of enterprise AI, which primarily offered recommendations, this technology allows organizations to leverage software agents that align with their internal approval hierarchies and permissions. Major vendors like SAP and Oracle are racing to integrate agentic AI into their cloud platforms, which poses significant implications for organizations still operating on legacy systems. SAP’s recent announcement at its Sapphire conference of the Joule interface, powered by over 200 autonomous agents, illustrates the potential to redefine operational efficiencies. However, the shift to agentic AI is tied to a pressing challenge: organizations must commit to migrating their existing systems to cloud-based platforms to access these advancements. This migration often requires substantial budget allocations that may already be stretched thin due to ongoing cloud ERP projects. As a result, companies face pressure to modernize their systems against vendor-imposed timelines and pricing structures, hindering their ability to control the sequence and financial aspects of this transition. To navigate these challenges, organizations must strategically decouple their modernization efforts from vendor dictates, enabling them to invest more effectively in AI initiatives that align with their specific business needs.