What ERP Failures Can Teach Us About Today’s AI Hype

Just like ERP, AI is being sold as the silver bullet for everything from customer service to predicting the future.

Ah, the 1990s. A time of dial-up internet, floppy disks, and - wait for it - ERP systems that promised to revolutionize business. Spoiler alert: they didn’t. In fact, up to 60% of ERP implementations failed. Why? Because companies thought installing software would magically fix broken processes. Cute, right?

Fast forward to today, and guess what? We’re doing it again - with AI. Fortune.com’s Sheryl Estrada recently published an article discussing an MIT report that states that 95% of generative AI pilots fail.

Just like ERP, AI is being sold as the silver bullet for everything from customer service to predicting the future. And just like ERP, companies are diving in headfirst with no strategy, no training, and no clue. It’s like watching someone try to fly a plane after binge-watching Top Gun. Back then, ERP projects collapsed under the weight of customization, budget blowouts, and user resistance. Today’s AI projects? Same story, different buzzword. We’ve got data silos, talent shortages, and models that hallucinate like they’re on a Vegas bender.

And let’s not forget the ROI. ERP promised it. AI promises it. Reality? Most companies are still trying to figure out what “AI-ready” even means. Hint: it’s not just slapping ChatGPT on your website and calling it innovation.

So, what’s the lesson here? Maybe - just maybe - technology isn’t magic. Maybe success comes from planning, training, and not believing every vendor pitch that ends with “transformational.”

Did the ERP issues get “fixed”. Yeah, eventually. Sorta. But there were a lot of “former” ERP project leaders with updated resumes left in the wake. History doesn’t repeat, but it sure knows how to remix.

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