Volume 1 Issue 2 | 2024 | View PDF
Paper Id: IJMSM-V1I2P106
doi: 10.64137/30485037/V1I2P106

Enterprise AI Governance in Oracle ERP: Balancing Innovation with Risk

Partha Sarathi Reddy Pedda Muntala

Citation:
Partha Sarathi Reddy Pedda Muntala, "Enterprise AI Governance in Oracle ERP: Balancing Innovation with Risk" International Journal of Multidisciplinary on Science and Management, Vol. 1, No. 2, pp. 62-74, 2024.

Abstract:
With the current revolution being sparked by Artificial Intelligence (AI) in the operation of enterprises, its application to Enterprise Resource Planning (ERP) systems including Oracle ERP Cloud, represents an unprecedented opportunity as well as significant risk. This paper discusses why structured AI governance is necessary with relation to Oracle ERP with references to the areas of finance, procurement, and human resources (HR). When automation, predictive analytics, and natural language processing are put together in the Oracle ERP modules, several important questions are introduced into the data privacy and algorithmic transparency discussions, the compliance aspect, and ethics. Governance of AI is important in such organisations that need to develop a balance of innovation and control. The lack of strong governance structures within the enterprise ecosystem may lead to errors in operation, non-compliance to the required regulations, and reputational losses. Therefore, we suggest a complex governance approach that would focus on the stakeholder involvement, policy development, risk analysis, monitoring of the compliance and ongoing auditing. This paper is organized as follows: The first section presents a definition of the role and the effects of AI in the ERP systems. Then, we carry out a survey of the literature to describe past research and current issues of ERP governance. This is then followed by a methodology in details giving a suggestion of governance framework of Oracle ERP Cloud. Then we give results, case studies, discussions and insights of real-life owelnerp ERP implementations. The paper ends with a conclusion by the description of major findings and guidance about the future investigations.

Keywords: Enterprise AI, Oracle ERP, Governance, Finance Automation, Procurement Intelligence, HR Analytics, AI Risk Management, Policy Oversight, Compliance, Digital Transformation.

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