AI in cloud ERP to speed finance close by 30% by 2028

Gartner forecasts that finance teams using cloud-based ERP applications with embedded AI assistants will achieve a 30% faster financial close by 2028, as vendors add more automation and AI features to core finance software.

The prediction is part of five themes Gartner expects to shape cloud ERP finance applications. The themes reflect how suppliers are redesigning products, and how finance leaders may need to manage risk, skills and data as AI becomes more common in day-to-day processes.

Cloud ERP systems manage finance data and workflows such as accounting, procurement, invoicing and reporting. Many organisations are shifting these systems from on-premises deployments to subscription-based cloud services. Vendors are also embedding AI features, including machine learning, generative AI and so-called AI agents, into finance modules.

Mike Helsel, Senior Director, Research in Gartner's finance practice, said the next phase of product development will focus on adding automation and insight inside cloud ERP finance applications. "Cloud ERP finance applications will deliver additional automation, insight, and efficiency to finance functions in the near future by integrating machine learning, GenAI, and AI agents," he said.

He added that finance leaders face challenges when investing in AI functions. "However, realizing these benefits requires CFOs to navigate vendor hype, organizational change, and the evolving economics of AI in the enterprise," Helsel said.

Composable systems

One theme is the rise of "composable" ecosystems, which break large ERP suites into modular components that organisations can swap or extend, often with low-code tools and integration layers. Gartner described this as a shift away from the rigid designs that defined older ERP generations.

"Many ERP systems of the past earned the descriptor 'monolithic' due to their infamous inflexibility," Helsel said. "In contrast, modern cloud ERP ecosystems embrace low-code flexibility and modular composability. This will enable finance functions to combine and operationalize new capabilities much faster, moving in lockstep with shifting market environments."

Process automation

A second theme is intelligent process automation built around AI agents, machine learning and workflow orchestration. Gartner highlighted areas such as reconciliation and collections as targets for increased automation within cloud ERP.

"Cloud ERP providers are redefining mature intelligent process automation solutions to handle everything from autonomous transaction processing to AI-driven accounts receivable (AR) collections that predict payment behavior and optimize working capital, freeing finance teams to focus on strategic priorities instead of routine tasks," Helsel said.

Risk and trust

The third theme is managing trust, risk and security for AI, often described by Gartner as AI TRiSM. This includes controls for model behaviour, auditability, data access and monitoring. Gartner expects it to become more important as finance systems add AI-driven features and rely on a growing number of integrated services.

"AI TRiSM in cloud ERP finance promises AI-driven anomaly detection, continuous controls monitoring, and real-time audit logging to strengthen financial integrity, with both emerging and established capabilities available in the marketplace," Helsel said.

Adaptive analytics

Adaptive analytics is the fourth theme. It centres on natural-language interfaces and dashboards that respond to a user's context, such as their role or a specific finance process. Gartner pointed to generative AI features that produce narrative outputs and support plain-language queries.

"We are seeing developments in the market, such as GenAI ESG disclosures and conversational analytics, that allow CFOs and finance teams to interact with cloud ERP finance applications using plain language," Helsel said.

Planning and forecasting

The fifth theme is AI-driven planning and forecasting. Vendors are adding scenario modelling, predictive analytics and tailored dashboards to planning tools. These capabilities often sit alongside the general ledger and reporting features in a cloud ERP suite, or connect through integrations.

"These tools have the potential to deliver more accurate forecasts and enhance strategic agility by enabling faster responses to market changes," Helsel said.

Adoption outlook

Gartner expects spending on AI-enabled cloud ERP solutions to rise sharply over the next few years. It forecasts that 62% of cloud ERP spending will be on AI-enabled solutions by 2027, up from 14% in 2024.

It also identified barriers that may slow progress in some organisations, including data quality issues, integration complexity, skills gaps and uneven support for multi-entity requirements. Finance teams often manage multiple legal entities, currencies and reporting structures, which can complicate standardisation during ERP programmes.

Gartner advised finance leaders to scrutinise product claims and assess whether AI functions perform reliably in production. It recommended looking for independently validated machine learning, generative AI and agentic AI capabilities, with particular attention to automation, conversational analytics and autonomous operations.

Helsel also urged CFOs to examine product fit, pricing and proof of adoption. "CFOs should insist on industry-specific features, transparent pricing, and referenceable customer adoption for AI tools, while investing in data governance and upskilling finance teams to maximize ROI and mitigate adoption risks," he said.