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The integration of Artificial Intelligence (AI) with Enterprise Resource Planning (ERP) systems has
fundamentally changed how businesses automate processes, increasingly in the area of spend classification. Where spend
classification has traditionally relied on manual or rule-based systems for classification, leading to inefficiencies, errors,
and scalability challenges, AI technologies, including machine learning, natural language processing, and deep learning,
provide organizations with the opportunity to automate tasks, and enable deep insights and real-time capabilities on
classification tasks. This review paper highlights the strategic and technology aspects of AI-facilitated spend classification
in ERP systems. We begin by discussing the architecture of ERP platforms with AI capabilities, then various algorithmic
approaches to achieve automated spend classification, potential implementation issues using AI and where we see
operational and financial value by automating processes. We examine a variety of classification methods and highlight the
role of AI in improving visibility, compliance and decision-making practices. We also highlight broad trends and strategic
issues related to future integration of AI in ERP systems, and delineate how automated spend classification is the critical
foundation for digital transformation.
Keywords:
AI in ERP, spend classification, machine learning, procurement automation
Cite Article:
"The Role of AI in Automating Spend Classification for Enterprise Resource Planning", International Journal of Science & Engineering Development Research (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 8, page no.b298-b304, August-2025, Available :http://www.ijrti.org/papers/IJRTI2508140.pdf
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ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator