Mechanisms based on artificial intelligence (AI) are increasingly influencing our daily lives and work. For some time now, users of the Microsoft Dynamics 365 Business Central ERP system have been able to harness the power of AI. Let's take a closer look at the possibilities that AI offers in this tool.
Differences Between Traditional and AI-Based Forecasting
In the traditional model, forecasting relies on static data, such as sales plans or historical data. Based on this data, we can attempt to predict future inventory levels or the financial situation of a company. However, such forecasting does not take into account many variables and somewhat resembles guesswork. In contrast, artificial intelligence relies on processed data that it learns to interpret. To illustrate this better, imagine a sudden, temporary spike in sales that significantly exceeds the average. In the standard forecasting model, the ERP system would incorporate this value into the average and make a new forecast of inventory levels based on that. Meanwhile, a system using artificial intelligence mechanisms would analyze where this temporary increase came from, try to correlate it with other recorded events, and determine whether it was an isolated incident or a consistent trend. In the first case, caution should be exercised in interpreting the results, while the use of AI algorithms significantly increases the accuracy of forecasts.
Artificial Intelligence in Business Central – Examples of Applications
Let's take a closer look at various examples of utilizing artificial intelligence mechanisms in the Dynamics 365 Business Central system.
- Inventory State Prediction – Data Presentation
In the Business Central Inventory Card, you can find a section called "Forecast." By selecting a specific inventory item, you can view its predicted state on a chart. This section provides suggestions on the inventory level to maintain for the continuity of production or sales. The Forecast also displays the projected sales by the system over time. You can also generate purchase orders directly from this section.
- Cash Flow Prediction
Imagine you have issued several sales invoices, and the payment deadline for the last one falls on day X. Therefore, you can only determine the expected cash balance up to that specific date. You don't know what will happen afterward—what the next invoices will be, their payment terms, and whether all your clients will settle their dues on time. Meanwhile, artificial intelligence can predict the cash flow even beyond that date, using historical data. It's worth noting that the system can also take into account forecasted payment delays. When we issue an invoice, we can receive information about whether the system predicts a payment delay and how accurate that prediction is. The presented data can take various forms, including the presentation of forecasted cash inflow based on different factors, such as receivables or payables.
- Creating Descriptions with Copilot's Help
In Business Central, Copilot allows for quick and easy creation of product descriptions, among other functions. Simply provide the key product features and select the desired length and style for the description to receive a ready-made one. This is a significant convenience for businesses engaged in sales through physical stores and e-commerce platforms. Preparing dozens or even hundreds of unique descriptions can be time-consuming and costly, and Copilot greatly simplifies this task. You can learn more about creating descriptions with the help of artificial intelligence in the article titled "Rapid Description Creation in Business Central with the Aid of Artificial Intelligence."
If you want to learn more about how artificial intelligence mechanisms work and how they impact working with the Dynamics 365 Business Central system, please contact us by filling out the form below!