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Sage All In for Artificial Intelligence in ERP

If we learned anything from the recent Sage Transform conference, it is that Sage is going all in with Artificial Intelligence in ERP systems. Sage Transform 2024 was held in February for Sage Intacct partners and customers. During the conference major announcements on Artificial Intelligence in ERP included:

  • Sage Copilot
  • Sage Ai
  • Collaboration Agreement with AWS

Sage Collaboration with AWS

Through strategic collaboration agreement with Amazon Web Services (AWS) in the area of generative artificial intelligence (AI), Sage is developing a domain-specific Large Language Model (LLM) for accounting and compliance. Generative AI is a predictive form of artificial intelligence which uses an LLM to identify patterns in data to suggest probable outcomes. The Sage Transform Keynote Presentation by Sage’s CEO Steve Hare broke the rule; “What Happens in Vegas Stays in Vegas.” Mr. Hare explains how the use of an LLM designed specifically for finance and regulatory compliance will provide Sage customers insight and foresight to better run their business.

Artificial Intelligence in Sage ERP

At Transform Sage’s CTO Aaron Harris eloquently described how AI is developed and incorporated into the Sage application stack to meet the needs of its customers. Sage has built 24 special purpose machine language models to for AI to perform the accounting and finance specific predictions.

Sage Ai to Power Innovation

Knowing that trust is key to the adoption of AI, Sage published a code of ethics to guide operations. Sage’s “Ai Factory” is a center of excellence whose work is becoming real product. For example, the new Sage Copilot is an AI-powered productivity assistant.

The Sage Network

Artificial Intelligence in ERP is powered by data. Large Language Models need huge amounts of data and massive computing power. This is where the collaboration with AWS is helping Sage. The content specific to accounting, finance and regulatory compliance is where Sage excels. Accordingly, Sage is using its knowledge to build very specific machine learning models with information from the Sage Network. The Sage Network is the cumulative data from customers and suppliers who use Sage Software.

For example, Sage defined 7 machine learning models specifically designed to improve accuracy of automated accounts payable invoice capture. The Sage Network has been analyzing data from over 60 million vendor relationships and with AI has optimized data from over 40,000 vendors to the point they can capture the data with 97.7% accuracy for AP invoices.

Continuous Close

The goal of Sage Ai is the creation of a continuous closing process. Sage indicated that accountants spend 25% of their time and CFO magazine reports closing times of 5-10 business days. The question is why do we have to close the books at all? Many systems now have soft closes and tools to protect data from change. However, Sage is driving accounting towards a continuous close.

Accounting

The core of finance is the classification of data for financial reporting. Continuous closing requies accounting with three basic principles:

  • Capture – Automate the recording of data
  • Account – Help code the transactions
  • Allocate – Use the data for management reporting

Sage Ai will reduce the time and increase the accuracy of accounting processes.

Assurance

Accounting and finance professionals provide more than data. Users must trust the information incorporated in reports as accurate.

  • Detect – monitor data for anomalies from “normal” transaction patterns.
  • Reconcile – across ledgers within the Sage Network to improve accuracy.
  • Review – information to help people analyze data to make better decisions.

Ai will increase the trust users have in data and reports from Sage ERP software.

Insights

Aaron Harris’s keynote ended with examples of how Sage Copilot will help managers understand the impacts of data in the ERP. For example, next level real-time reporting continuously analyzes data and notifies management as metrics or patterns change.

Sage Putting Artificial Intelligence in all Products

Sage announced its desire to incorporate Ai in all products. Demonstrations of Sage Intelligent Time, Sage Intacct Planning and more. Through partnering with AWS for large language models, Microsoft for Office integration and others Sage will drive Ai adoption faster and more efficiently and effectively. Sage’s approach demonstrates their leadership in modern cloud accounting.

Digital Transformation for Your Business

Digital Transformation is modern process improvement using technology and the cloud as driving forces. Artificial Intelligence in your ERP system will become a driving force for continuous improvement and productivity gains.

  • If you are satisfied with your core business management systems, digital transformation can be accomplished through integration, automation or cloud migration. We can help you with a no-obligation Digital Transformation Assessment.
  • If you are not satisfied with your core business management system, we recommend looking at a modern ERP with cloud capabilities for collaboration and integration. Our System Selection Services page explains our business outcome driven approach. Feel free to schedule a System Selection Explore call with one of our executives for advice on next steps.

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