Last week, I had the privilege of joining a panel discussion moderated by Kiran Hebbar, CFO of Alloy, with panelists Dave Wieseneck, Ramp, Will Ziesing, Anrok. The discussion centered around the "Great Unbundling of the ERP," as we’ve seen businesses move away from relying on all-encompassing ERP systems for every aspect of finance. Instead, companies are adopting specialized, AI-driven tools that integrate seamlessly with their ERPs, offering a more flexible and efficient approach to finance automation.
Here are my key insights from the conversation:
The group agreed that while ERPs have been the cornerstone of financial operations for decades, their role is evolving. The “Great Unbundling” refers to the idea that ERPs, which traditionally handled everything from accounting to invoicing, revenue recognition, accounts payable and so on are no longer the only tool finance teams need.
In my opinion, the ERP will still play a central role, particularly for financial record-keeping and core functions. Dave proposed the idea of the “Headless ERP” - a concept that an ERP will eventually be just where data goes to live as the source of truth. As technology advances and in order to drive efficiency and adopt advanced new capabilities, finance teams are increasingly turning to specialized tools that integrate with the ERP. These "best-in-breed" solutions focus on specific aspects of finance while the ERP system handles its core tasks and receives the data from these tools.
The key takeaway: ERPs will remain, but they won’t do everything. Companies will adopt specialized tools to complement and enhance their ERP’s capabilities, offering better flexibility, speed, and automation.
While automation has been part of the finance function for years, AI is taking it a step further. Instead of merely automating repetitive tasks, AI is enabling predictive decision-making, allowing finance teams to move from reactive to proactive workflows.
With the sheer amount of data these tools will accumulate, finance leaders will be able to predict trends and optimize strategies before issues arise. There will be more insight into customer behavior, financial trends, and overall finance leaders will spend less time looking for analytics. The shift to predictive finance means teams no longer rely on static reports but instead get real-time, actionable insights that empower better decision-making. This is a key part of the Great Unbundling, as specialized AI tools are now taking on the heavy lifting of predictive finance.
For years, finance teams debated whether to build custom automation in-house or buy third-party solutions. With AI’s rise, the focus is shifting toward “best-in-breed” tools that specialize in a single area, such as AR, taxes, AP and so on.
It was emphasized that AI-driven platforms now offer deep customization and flexibility without requiring large engineering teams or long implementation timelines. This brings up an interesting conversation on what the future of company breakdowns look like. CFOs are aware that there are high costs associated with the need to customize in-house solutions that have the potential to be less flexible as new technology advances. The concept of these best-in-breed tools is that they can plug directly into existing ERPs, without requiring businesses to overhaul their entire system.
Instead of relying on the ERP to handle everything, finance teams are now leveraging specialized solutions that offer advanced automation in specific areas. This is leading to more efficient workflows and faster time-to-value.
A major concern surrounding AI is whether it will replace human jobs. Panelists agreed that AI won’t eliminate finance roles but will redefine them. By automating repetitive tasks like data entry, reconciliations, and processing, AI will allow finance professionals to focus on higher-value activities like strategic planning, financial analysis, and advising the business.
AI isn’t here to take our jobs - it’s here to take our tedious tasks. As finance teams shift from manual processes to more strategic, impactful work, AI becomes a tool for empowerment rather than displacement. It’s important to note that this concept goes beyond the finance team. All departments and teams will be relying on new tools to help make their work more efficient. This will ultimately cut costs across the organization as there are tools that cost a few hundred dollars a year and enhance output by significantly more than that.
For example at Tabs, our engineers utilize Cursor, a tool that incorporates AI to help with writing, navigating and understanding code. This helps with efficiency and accuracy and overall costs for our organization. The same idea applies to tools for finance teams. There is an opportunity to do more with less across the board - especially when it comes to tools that will get more done in less time for various parts of the team.
Looking ahead, the future of ERPs is shifting away from trying to do everything. As AI-driven tools become more integrated into the finance function, ERPs will focus on their core responsibilities, minimizing manual work, while specialized tools will handle tasks like forecasting, invoicing, and revenue recognition. This modular, integrated approach allows for enhancing the ERP’s capabilities without complicating workflows.
The key takeaway: the future of finance isn’t about choosing between an ERP or AI—it’s about integrating the two. For finance leaders, the challenge lies in selecting the right specialized tools to enhance, not replace, the core functions of the ERP, resulting in a more agile and efficient finance operation.