Download this article in PDF format.
Enterprise resource planning systems (ERPs) anchor many supply chain operations. Organizations use these platforms to connect finance, procurement, inventory, production and transportation. The software keeps data consistent, links teams and gives leaders a clear view of daily activity. Even with new tools in the mix, ERP remains the core system that holds operations together.
That core is shifting, however. The push for real-time visibility, automation and faster decisions is raising the bar on what ERPs have to deliver. Older systems tracked transactions and stored records, for example, while modern platforms coordinate processes, feed automation and integrate with cloud applications. As artificial intelligence continues to gain traction, ERP is moving from “static record keeper” to a system that supports ongoing planning and execution.
This should be music to the ears of chief supply chain officers (CSCOs) who are being asked to do more with less while managing tighter timelines and grappling with ongoing volatility.
“For decades, enterprise software has been focused on aiding humans. But the growth of AI means shifting from a user-centric design philosophy to a worker- and process-centric one,” Forrester points out in Predictions 2026: AI Agents, Changing Business Models, And Workplace Culture Impact Enterprise Software. “In 2026, enterprise applications will move beyond the traditional role of enabling employees with digital tools to accommodate a digital workforce of AI agents.”
Breaking Free of Rigid, Monolithic Systems
Forrester goes on to say that modernizing tech stacks, breaking free from rigid legacy systems and building integrated, AI-powered workflows will all become table stakes for companies next year (if they aren’t already). The research firm also predicts that half of enterprise ERP vendors will launch autonomous governance modules in 2026.
By definition, an autonomous governance module is a built-in set of ERP features that rely on AI to monitor compliance, track activity, and flag or prevent problems without the need for human intervention. Built into the ERP, this bundle of AI-driven controls “watches” transactions in real time, checks them against policies and regulations, and creates an automatic audit trail.
“These modules combine explainable AI, automated audit trails, and real-time compliance monitoring,” Forrester explains. “The convergence of autonomous business processes handling mission-critical transactions, high-profile AI failures in financial services, and increasing AI regulation creates pressure that vendors can’t ignore.”
The Race is On
According to Forrester, SAP, Microsoft and Oracle are already “investing heavily” in governance infrastructure. The process isn’t easy or cheap: Retrofitting governance into existing AI-integrated systems while maintaining performance and user experience creates significant development costs and timeline pressure for vendors.
“Early movers will capture competitive advantage through compliance-ready platforms, while laggards will face customer defection,” Forrester predicts. It goes on to say that tech leaders should evaluate vendors’ governance roadmaps immediately, prioritizing those with autonomous compliance modules in development over traditional functional capabilities.
“Watch out for governance module licensing costs, integration complexity and staff training requirements,” says Forrester, which stresses the importance of distinguishing between “genuine showstoppers and hurdles that the industry has overcome in the past.” For supply chain leaders, the impact of this ERP shift shows up in several practical ways:
- More automation inside the ERP means fewer blind spots and less manual effort spent chasing data across disconnected systems.
- A stronger governance layer reduces compliance risk in global operations and gives teams cleaner, more reliable information to work with.
- As ERPs grow more autonomous, CSCOs can spend less time validating transactions and more time planning, forecasting and solving operational problems that directly affect service levels and cost.
- Through it all, the goal is not to remove humans from the loop but to instead let the system handle routine oversight so managers can focus on more important decisions.