SAP and AI: Why artificial intelligence takes the user experience to a new level

When you think of SAP, you probably think of complex ERP systems with which companies steer their processes. Of standards. Of stability. But do you also think of artificial intelligence in the process? If not, it's high time. Because SAP is long since more than just a provider of classic enterprise software. The company is developing into a driver of intelligent technologies – and that with a clear strategic orientation.

The integration of AI into SAP systems changes the way companies work. Decisions are made faster. Processes run automated in the background. And employees benefit from a more intuitive user experience.

But what does that mean concretely for your company? Which opportunities open up? And why should you engage with the topic of AI in the SAP environment precisely now?

In this article we show why artificial intelligence is the key to a new user experience – and why SAP offers the right platform for it.

AI as a driver of digital transformation: What's currently changing

The figures speak a clear language: According to a study by Deloitte (2023), 67% of companies already rely on AI-based tools within their ERP systems in order to shape procedures more efficiently. The effects are measurable:

• Decision processes accelerate by up to 30% through the use of predictive analytics
• Manual activities in data management are reduced by 40%
• User satisfaction rises by an average of 25%, because they get access to personalized dashboards and real-time insights

SAP takes up this development and consistently integrates AI into solutions like S/4HANA, SuccessFactors and Ariba. The goal? A user experience that no longer feels like operating software – but like an intuitive companion in everyday work.

SAP's AI roadmap: From automation to intelligent ecosystems

SAP pursues a clear strategy in integrating AI that's based on three pillars. This is how the SAP report on AI development 2024 describes it.

1. Embedded AI in the cloud

AI is no longer a separate function, but firmly integrated into SAP's cloud solutions – for example into S/4HANA Cloud or RISE with SAP. An example:

• Joule, the new AI-supported assistant, enables natural language queries: „Show me risks in the supply chain“ is more than just a search query – the AI directly delivers actionable recommendations.
• Or the automated invoice verification, in which potential errors are recognized and corrected in real time.

2. SAP Business Technology Platform (BTP) as AI hub

The BTP functions as a platform for tailored AI solutions. Companies can develop their own use cases, for example with SAP AI Core or SAP Conversational AI. The range reaches from precise demand forecasts all the way to applications in the area of employee retention.

3. Responsible AI

In developing AI solutions, SAP emphasizes ethical principles. Transparency, fairness and data protection – in particular compliance with the EU GDPR – are in focus. A specially set up AI ethics advisory board monitors the implementation of these standards.

What does that mean for the users? Three examples from practice

AI becomes relevant when it delivers a noticeable added value in everyday work. These three use cases show what's already possible today:

Supply chain management

AI forecasts supply bottlenecks early – for example through the analysis of weather data or geopolitical events – and proposes alternative routes. An example: Coca-Cola uses SAP solutions to increase the resilience of the supply chain by 20%.

HR and personnel

In SAP SuccessFactors, AI algorithms analyze the employee data and recognize turnover risks before they become acute. According to McKinsey, companies thereby lower their recruiting costs by up to 35%.

Finance and controlling

The SAP Cash Application assigns incoming payments automatically – and thereby reaches a hit rate of 95%. That not only accelerates the payment reconciliation, but also reduces the effort for manual corrections considerably.

Where are the snags still? The challenges in dealing with AI

With all the euphoria: The introduction of AI is no sure thing. Companies see themselves confronted with classic stumbling blocks:

• Data quality: Around 50% of AI projects fail, according to Gartner, due to deficient data strategies. Without clean and structured data, AI remains blind.
• Acceptance and qualification: The best technology is of little use if the employees don't understand it or can't apply it. SAP therefore relies on educational offerings – such as via openSAP – in order to build up know-how in a targeted way.
• Costs: Especially for small and medium-sized enterprises (SMEs), the investments in AI solutions are a hurdle. SAP meets this problem with scalable cloud models that are financeable for SMEs too.

Conclusion: Why SAP and AI belong together – and what that means for you

SAP is in the process of reinventing itself – away from the classic ERP provider, toward the shaper of intelligent enterprise solutions. AI is, in the process, no add-on, but an integral component of this transformation.

For companies that means:

• Real-time decisions replace static reportings
• Employees are relieved through automation of repetitive tasks
• Data-driven innovations provide competitive advantages

In short: Whoever invests in AI competence today shapes the future of work tomorrow – more efficiently, more agilely and more user-centered.

How does it stand with your SAP landscape? Are your systems ready for the next step toward intelligent automation? If you want to answer these questions with a clear „yes“, you should act now. Contact us.