ERP in 2026: More AI, more best-of-breed add-ons

Enterprise resource planning (ERP) systems are poised for major disruption in 2026, with AI taking over some capabilities and modular, best-of-breed apps replacing some functionality in all-in-one ERP solutions, IT leaders and industry observers say.

The biggest impact will be AI, with more functionality within ERP systems becoming automated and less dependent on human interaction. Some experts see AI increasingly taking over several ERP functions, including invoicing, employee onboarding, and balancing books, as well as ERP systems using AI to drive better data insights.

“The ERP market in general is shifting from being a purely transactional system to an intelligent, data-driven platform,” says Steve Bronson, CIO at beverage distributor Southern Glazer’s Wine & Spirits. “We’re seeing AI and predictive analytics embedded into core processes, tighter integration with data lakes for real-time insights, and a strong push toward flexible and modular architectures that allow businesses to adapt quickly without full-scale replacements as in the past.”

AI will increasingly become an intelligence layer in ERP systems, Bronson adds, with agentic AI allowing more automation of workflows in finance, procurement, and supply chain management. AI will also allow users to plan for scenarios using risk profiles in real-time, he predicts.

“AI will shift from transactional systems of record to autonomous, insight-driven engines, which will propose levers for optimization to business leaders that will empower them to make faster, smarter decisions in more real-time,” he adds.

Deep AI integration

The coming year will see deep integration of AI into core ERP systems, adds Kirk Teal, a partner at IT analyst firm Information Services Group. “Embedded AI and machine learning are moving beyond analytics to actively automate routine processes, detect anomalies in real-time, forecast outcomes, and increasingly recommend — or even execute — decisions within defined guardrails,” he says.

AI agents will stop being a novelty within ERP systems in 2026, adds Lasse Kalkar, CEO and co-founder of AI-powered accounting software provider LiveFlow. At the same time, finance teams are skeptical of AI and will demand human-in-the-loop workflows, he adds.

“Finance and accounting teams are done with manual data entry, reconciliations, invoice processing, and transactional busywork,” he says.  “The shift we’re now seeing is from finance teams doing everything themselves to delegating repetitive work to AI agents and acting as the final reviewers and decision-makers.”

More modular systems

While many experts see an AI takeover of ERP systems, there’s some disagreement about the potential for ERP users to embrace modular, best-of-breed apps to squeeze out parts of standalone, all-in-one solutions.

Some observers see a move away from monolithic ERP solutions that cover financial management, supply chain management, human resources management, customer relationship management, business intelligence, and myriad other functions, and toward modular apps that may work better for specific functionality.

Other IT leaders believe all-in-one ERP systems will remain popular because of the relative ease of purchasing and deploying them.

While there’s still a market for all-in-one ERP solutions, AI has made it easier for organizations to build their own ERP-related apps, says Andy Sen, CIO and CTO at B2B software marketplace provider AppDirect. He sees a trend toward using AI-assisted vibe coding to quickly build ERP apps that meet specific needs.

AppDirect has built several ERP apps itself, he says. “We are not planning to replace any of our ERPs, but we already have successful in-house implementations of some functions that used to be either done by an ERP or were modules that ERP vendors were advertising,” he adds.

While Sen doesn’t expect an end to all-in-one ERP solutions, he does believe vendors need to rethink their pricing models.

“There are going to be more and more companies that just don’t require a monolithic ERP with thousands of functions, 90% of which my company will never use,” he says. “If that’s the way they want to build software, great, but you just can’t price software that way.”

ERP users seem to be moving toward hybrid ecosystems, with core ERP platforms paired with integrated, best-in-class solutions for specialized compliance needs, adds Chris Zangrilli, vice president of technology strategy at tax technology company Vertex. ERP vendors are responding by emphasizing ecosystem interoperability and partnerships, he adds.

“The ERPs will provide the foundation for these solutions to connect into and user experiences that help to blend the flow of work,” he says. “This approach provides the ability for innovation to be delivered faster to customers and provide deep expertise in their solutions, especially those backed by specialized data feeds.”

The convenience of all-in-one

But ISG’s Teal sees all-in-one ERP platforms to remain the primary choice for most organizations, due to the value of vendor-maintained, end-to-end integration across core functions.

“That said, organizations with specialized or differentiating requirements will continue to complement core ERP with best-of-breed solutions, particularly where functionality needs exceed core ERP capabilities,” he adds.

Southern Glazer’s Bronson also sees room for both all-in-one solutions and specialized modular add-ons. All-in-one systems will appeal to smaller organizations, while flexibility and speed matter most at scale, he says.

The momentum at large retailers and direct-to-consumer companies is shifting toward modular, best-of-breed solutions, and his organization values the ability to add tools on top of a core ERP system.

“A flexible ecosystem surrounding a core ERP lets us integrate specialized capabilities and customize close to our customers without having to reinvent standard ERP processes,” he says.