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Skip to ContentMIT Technology ReviewFeaturedTopicsNewslettersEventsAudioMIT Technology ReviewFeaturedTopicsNewslettersEventsAudioSponsoredComputingReimagining ERP for the agentic AI eraAfter decades of vendor-dictated upgrades and monolithic gridlock, agentic AI is ushering in a new era of enterprise autonomy.
By MIT Technology Review Insightsarchive pageJanuary 20, 2026In partnership withRimini Street The story of enterprise resource planning (ERP) is really a story of businesses learning to organize themselves around the latest, greatest technology of the times. In the 1960s through the ’80s, mainframes, material requirements planning (MRP), and manufacturing resource planning (MRP II) brought core business data from file cabinets to centralized systems. Client-server architectures defined the ’80s and ’90s, taking digitization mainstream during the internet’s infancy. And in the 21st century, as work moved beyond the desktop, SaaS and cloud ushered in flexible access and elastic infrastructure. The rise of composability and agentic AI marks yet another dawn—and an apt one for the nascent intelligence age. Composable architectures let organizations assemble capabilities from multiple systems in a mix-and-match fashion, so they can swap vendor gridlock for an à la carte portfolio of fit-for-purpose modules. On top of that architectural shift, agentic AI enables coordination across systems that weren’t originally designed to talk to one another. DOWNLOAD THE REPORT Early indicators suggest that AI-enabled ERP will yield meaningful performance gains: One 2024 study found that organizations implementing AI-driven ERP solutions stand to gain around a 30% boost in user satisfaction and a 25% lift in productivity; another suggested that AI-driven ERP can lead to processing time savings of up to 45%, as well as improvements in decision accuracy to the tune of 60%. These dual advancements address long-standing gaps that previous ERP eras fell short of delivering: freedom to innovate outside of vendor roadmaps, capacity for rapid iteration, and true interoperability across all critical functions. This shift signals the end of monolithic dependency as well as a once-in-a-generation opportunity for early movers to gain a competitive edge.
Key takeaways include: Enterprises are moving away from monolithic ERP vendor upgrades in favor of modular architectures that allow them to change or modernize components independently while keeping a stable core for essential transactions. Agentic AI is a timely complement to composability, functioning as a UX and orchestration layer that can coordinate workflows across disparate systems and turn multi-step processes into automated, cross-platform operations. These dual shifts are finally enabling technology architecture to organize around the business, instead of the business around the ERP. Companies can modernize by reconfiguring and extending what they already have, rather than relying on ERP-centric upgrades. Download the report. This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff. It was researched, designed, and written by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review. by MIT Technology Review InsightsShareShare story on linkedinShare story on facebookShare story on emailPopular10 Breakthrough Technologies 2026Amy NordrumThe great AI hype correction of 2025Will Douglas HeavenChina figured out how to sell EVs. Now it has to deal with their aging batteries.Caiwei ChenThe 8 worst technology flops of 2025Antonio RegaladoKeep ReadingMost Popular10 Breakthrough Technologies 2026Here are our picks for the advances to watch in the years ahead—and why we think they matter right now.
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The evolving landscape of enterprise resource planning (ERP) is undergoing a fundamental shift, primarily driven by the convergence of composable architectures and agentic artificial intelligence. For decades, organizations have operated under a model where ERP systems, often dictated by single vendors, necessitated lengthy, rigid upgrade cycles and frequently resulted in gridlock. However, the rise of composability – the ability to assemble capabilities from diverse systems – coupled with agentic AI, is fostering a new era of enterprise autonomy. This shift represents a significant departure from traditional ERP approaches, offering businesses the capacity to adapt and innovate with unprecedented speed and flexibility.

Early indicators demonstrate the potential advantages of this transition. Studies have revealed that organizations implementing AI-driven ERP solutions can achieve approximately a 30% increase in user satisfaction, alongside a 25% uplift in productivity. Furthermore, AI-driven ERP processes can reduce processing times by up to 45% and enhance decision accuracy by 60%. These gains directly address historical limitations of previous ERP eras, specifically regarding the freedom to innovate, rapid iteration capabilities, and true interoperability across all critical business functions.

A key element of this transformation is the move away from monolithic ERP vendor upgrades. Instead, businesses are adopting modular architectures that enable independent reconfiguration and modernization of components while maintaining a stable core for essential transactions. Agentic AI acts as a crucial complement to composability, functioning as a user experience and orchestration layer. This layer facilitates the coordination of workflows across disparate systems, converting multi-step processes into automated, cross-platform operations. This architecture prioritizes organizing technology around the business needs, rather than the business adapting to the demands of a single ERP system.

The ability to modernize by reconfiguring and extending existing infrastructure, rather than undertaking costly and disruptive ERP-centric upgrades, is a cornerstone of this new approach. This represents a once-in-a-generation opportunity for early movers to gain a competitive edge. The insights highlight that organizations are finally realizing the potential of truly integrated systems, facilitated by the power of AI and the flexibility of composable architectures.