Phase 1 focuses on laying the groundwork for the ERP AI agent by developing a semantic, vectorized knowledge base. The deliverables include building a high-fidelity semantic index using transformer-based embeddings, metadata-rich taxonomy schemas, document ingestion pipelines, and governance protocols. This phase emphasizes extensibility, auditability, and retrieval quality, setting the stage for NLP, tool invocation, and future interaction layers in the AI agent.