SAP Business AI: Reinventing How Businesses Run PDF

SAP White Paper | PUBLIC SAP Business AI Reinventing How Businesses Run 1 / 11 Table of Contents 3 Reinventing How Businesses Run 5 Business AI Infused Across the SAP Product Portfolio 6 Transforming Business Applications and Platform with Generative AI 9...

SAP White Paper | PUBLIC SAP Business AI Reinventing How Businesses Run 1 / 11 Table of Contents 3 Reinventing How Businesses Run 5 Business AI Infused Across the SAP Product Portfolio 6 Transforming Business Applications and Platform with Generative AI 9 Trusted AI Foundation 10 Simple Consumption and Empowered Ecosystem 11 AI Ethics 12 Get Ready for the Future Now “ Here at SAP, we firmly believe that generative AI will fundamentally change the way people and software work together, and we are excited about the opportunities this brings. Christian Klein CEO & Member of the Executive Board of SAP SE 2 / 11 Reinventing How Businesses Run SAP sits at the nexus between technology and business. 1970s Since SAP’s invention of enterprise resource planning (ERP) in 1972, small businesses and large enterprises have trusted SAP R/1 Standard business software. SAP to guide them through the opportunities, risks, and SAP invents ERP. ­value creation that are enabled by technological disruption. Artificial intelligence (AI), and above all, generative AI, marks a paradigm shift on how computer systems learn from data, solve complex problems, and even provide creativity when it’s needed. We believe this paradigm shift 1980s will fundamentally change work, business, and society. SAP is committed to helping organizations through this transformative ­moment by creating busi- SAP R/2 ness outcomes that were unimaginable before through SAP Business AI. Personal computer. Client/server architecture. SAP Business AI is deeply embedded in our business processes and SAP pioneers enterprise-grade expert ­ nalytics. Already more than 24,000 businesses globally benefit from SAP’s a systems (“symbolic AI”). AI capabilities. No other technology company can combine the power of AI with the processes and data that run the business world. SAP will help change how people interact with business software and make work more efficient and more delightful than ever before. 1990s SAP R/3 SAP Business AI is relevant, ­reliable, and responsible. Here is how we ­define these core principles: Internet, three-tier client-server architecture. Workflow, process modeling, advanced analytics. Relevant SAP Business AI is relevant from day one since it is built in across all SAP ­ pplications that customers already use to run their most critical business a 2000s processes. SAP Business Suite Big Data, smartphones. Predictive With SAP Business AI, users are empowered to interact with SAP s ­ oftware in analytics, forecasting, optimization. the most natural way possible through Joule – SAP’s copilot available across SAP applications. Hundreds of millions of users will be more efficient and more productive through simply describing their ideas, asking analytical questions, or telling the system what to do rather than clicking through trans- 2010s actions or coding applications. SAP ­systems will understand what users mean, not just what they say. SAP S/4HANA and SaaS LoB Solutions SAP Business AI enhances the capabilities of SAP applications enabling In-memory computing, Industry 4.0, them to learn and improve business outcomes. This leads to significant digital network. Narrow AI based on ­improvements in key business processes like recruit to retire, source to pay, deep learning. design to operate, and lead to cash – giving customers access to more intel- ligent and automated solutions. With SAP Business AI, we and our partners will provide development and ­migration tools on SAP Business Technology Platform (SAP BTP) to com- press upgrade cycles and simplify IT stacks. For example, by modernizing legacy code through automated code generation, we will be able to ­ 2023+ accelerate time-to-value during cloud transformation projects, reduce ­ AI-Powered Business ­maintenance cost, and increase change agility by running a harmonized IT stack. ­Processes Generative AI, foundation models, and Read more large language models. 3 / 11 Reliable Responsible Your AI is only as good as your data – SAP has the most SAP is deeply committed to AI ethics in line with our core important data and is the only one with business data values. SAP Business AI is designed for people to get their context intact. SAP uniquely combines vast amounts of best work done, valuing human oversight and agency. We business process data, best practices across SAP, and address bias and discrimination concerns when designing AI third-party applications with the power of leading large into our applications. We work to ensure transparency and language models. SAP Business AI is grounded in the explainability on what the system does, and we engage in truth of customers’ business and leverages generative AI the societal challenges we may face in the years to come. in context with real-time information to help ensure accu- rate outputs. SAP upholds our ever-high standards with respect to data privacy, data protection, and cybersecurity to help ensure For decades, SAP customers have trusted us to run their customer data is never compromised and remains ­compliant most mission-critical processes, and AI is no different. with dynamic local regulations such as the EU AI Act. In SAP Business AI is built on the same process expertise, ­addition, our world-class business authorization concepts rigorous product standards, and enterprise-readiness can be leveraged out-of-the-box so that employees and that customers expect from SAP. business partners are protected from unwanted conse- ­ quences. Integrating business data in SAP software with the Customers can rely on the veracity, accuracy, and avail- world’s leading AI models in an ethical, privacy-preserving, ability of SAP Business AI. Customers turn to SAP thanks and s ­ ecure manner will lift generative AI to a new level. to a proven track record of high quality in this space. Read more Read more 4 / 11 Business AI Infused Across the SAP Product Portfolio AI is already a central, integrated capability of our enterprise applications and business technology, used by tens of thousands of our cloud customers. Every embedded AI scenario has gone through SAP’s rigorous AI ethics process. Accenture Chobani ZF Friedrichshafen 54% of invoices automatically 75% reduction in time 92% faster forecasting in matched with payments spent on expenses operational & demand planning AI-powered capabilities based on proprietary deep learning and machine learning algorithms drive business value in SAP’s cloud solutions. These capabilities include matching, intelligent business document processing, personalized recommendations, natural language processing, forecasting and predictions, and more. Cloud ERP One customer saves up to US$1.5 million annually by ­increasing the automated matching rate of invoices to payments with SAP Cash Application. AI empowering society Human capital management In 2021, project “4W Wizard” implemented by the SAP SuccessFactors solutions provide personalized United Nations Office for the Coordination of learning recommendations to 4.2 million learners every ­Humanitarian Affairs (OCHA) leveraged SAP month. Business AI to automate data processing and ­ ­analysis, resulting in significant time and resource Spend management and business network savings. This project has been successfully tested in AI in SAP Concur Invoice Management helped auto- various humanitarian missions across the Asia-­ mate the processing of 40 million invoices in 2022, Pacific ­region, enabling OCHA to quickly launch a ­saving our customers a combined €440 million. ­Humanitarian ­Response Plan for COVID-19 in Nepal, and simultaneously prepare for future crises such as Customer relationship management monsoons, while also empowering local NGOs and Each month, AI analyzes 1.9 billion potential cloud community-based organizations. intrusion events in the SAP Customer Data Cloud ­ ­solution, keeping personal data safe. US$83 million SAP Business Technology Platform SAP Integration Advisor uses a crowd-based AI Worth of lifesaving assistance for more than 9 million ­approach to offer integration content based on more people distributed through the solution. than 10,000 published and 5,000 scenario-based ­interfaces and messages. 5 / 11 Transforming Business Applications and Platform with Generative AI Generative AI enables completely new capabilities in business software. With generative AI, we can create new content, summarize complex information, write computer code, and more. It is a new ­generation of AI that can reason through business problems and make suggestions that were ­previously unthinkable. Customers can expect generative AI use cases that bring tangible value across the SAP portfolio. Cloud ERP Human Capital Management Reap the benefits of generative AI in core Focus on human interactions rather than areas of cloud ERP such as digital supply administrative tasks. chain. The time-consuming verification of paper-based delivery Managers’ time should not be consumed by spending hours notes during the goods receipts process at a factory gate on job postings or sourcing candidates. SAP’s generative AI- affects every SAP customer with production sites. The infused HR solutions allow managers to spend their time ­Document Information Extraction service, enhanced with with humans, not their workflow, saving up to two hours generative AI, automates processing of documents with per job description. For a 50,000-employee company post- greater accuracy and efficiency, reducing operational costs ing thousands of openings per year, this results in estimated by up to 55%. We estimate that a customer receiving 50 ­productivity savings of up to €400,000. Job descriptions are pages of delivery notes per truck and 1,000 daily deliveries only the start – generative AI offers endless potential for could save €300,000 per factory annually. streamlining the writing of annual goal plans, interview ques- tions, and more while removing bias. 6 / 11 Spend Management & Business Network Scale the category management discipline to achieve better business outcomes. Category managers strategically drive procurement by grouping similar products or services and managing them collectively. However, the effort spans the collection and structuring of diverse information sources often across hundreds of categories. With SAP Business AI, category ­ managers can be equipped with the necessary information to jump-start their category plans applying market ­dynamics and cost structure insights. Experience up to 56% ­reduced onboarding time, 70% more category cover- age, and 2.3x ­realized cost savings. Customer Relationship Management Take customer engagement to entirely new levels with generative AI. Sales teams can gain sales advantages by accessing ­ ustomer preferences and purchase history, enabling c ­personalized interactions and improved customer satis­ faction. Customers can further enhance service efficiency through tailored recommendations to inquiries. In ­internal pilots, SAP’s sales teams and solution advisors saved 16%–20% effort using generative AI for daily tasks such as preparing e-mails and account briefings. SAP Business Technology Platform Create applications by simply providing textual descriptions. Writing code is hard and requires advanced learning. Even experienced developers regularly need to consult documen- tation, slowing down the development process. Through ­AI-powered code generation, test script creation, and the like, application development effort can be reduced by 30%, enabling developers to concentrate on the more i­ntricate ­aspects of their tasks. 7 / 11 Joule Many of these exciting capabilities will be ­ ccessible using Joule, SAP’s copilot, offering a Access SAP solutions and processes an entirely new experience for interacting with our new AI-powered copilot. with SAP applications. Users will be able to easily navigate across applications, find infor- mation, execute transactions, collaborate with colleagues, and receive proactive recommenda- tions. Stop searching – just start asking and receive intelligent answers on the wealth of business data and insights available across the SAP port- folio, reducing average search and query time by up to 80%. It can be difficult to redefine and enhance SAP Signavio processes and to identify the best-suited key performance indicators (KPIs) quickly. With a ­ Generate process models and large ­language model trained on expert know­ get recommendations for process ledge and SAP best practices, process AI saves improvements. 50%–60% effort for process modeling and KPI selection and an expected €120,000 per year for eight processes. 8 / 11 Trusted AI Foundation An AI foundation, as part of SAP Business Technology Platform (SAP BTP), is how we infuse AI into our products and enable customers and partners to create AI-powered extensions and applications. SAP BTP provides an AI foundation to infuse reliable, secure, and ­scalable generative What is generative AI? AI across business applications and beyond. “Generative AI” is emerging as a We partner with the leading general-purpose AI vendors and large ­language model (LLM) catch-­all term for various foun- providers to help ensure that our customers keep up with the fast pace of innovation and dation model technologies. have the flexibility they need. To manage the new challenges that come with generative AI, we are introducing a Foundation models are neural ­Generative AI Hub on SAP AI Core as part of SAP BTP. This will provide access to large networks trained on massive language ­models and the required trust and control between SAP business processes volumes of data ­ using self-­ and ­generative AI models. Integrating these assets into SAP’s proven AI services – which supervised learning, such as are a­ lready used by thousands of organizations – gives our customers the enterprise predicting the next word in a readiness that they expect. text. They are a breakthrough in AI. They demonstrate emergent We ensure the correctness, enterprise-readiness, safety, and security of generative AI. capabilities, with a single model This deep integration allows real-time, up-to-date information to make AI relevant for your often able to write ­poems and business. We will do this through offering innovative approaches in SAP BTP to ground business documents, create and adapt generative AI to business context, such as a vector engine in SAP HANA Cloud, images, and pass reasoning fine-tuned models on specific scenarios, and “prompt engineering” tools and templates. tests. Their ability to be adapted to multiple tasks lowers adop- tion barriers. SAP Business AI approach Large language models (LLMs) are a subcategory of founda- tion models for text and com- puter code. Generative AI, based on foun- dation models such as LLMs, creates novel output such as text and code by processing ­input (called “prompts”). SAP Foundation Models To get the most value in core business areas such as finance, sales, or supply chain, our customers require foundation models de- signed for business context. SAP will fine-tune generic large language models on SAP anonymized data as well as create ­proprietary foundation models based on our vast structured business data. These models will be able to address questions we face every day in business that large language models cannot, such as predicting invoice payment dates and supplier delivery quality or proposing ­efficiency improvements to a business process. 9 / 11 Simple Consumption & Empowered Ecosystem SAP Business AI easy to consume While generative AI offers tremendous value, these massive AI models also require significant hardware resources for training and usage. Therefore, SAP introduced a single metric called “AI Units” that allows consumption of AI use cases across SAP’s SaaS ­solutions in a simple way. AI Units can be purchased separately and then used flexibly across SAP solutions. Customers and ­partners are then able to view and track their quota and consumption from the SAP for Me site. In addition, certain bundles will ­already ship with a predefined amount of AI Units to get started right away, for example the new premium plus package for RISE with SAP S/4HANA Cloud Private Edition. Unparalleled opportunity for SAP’s ecosystem A solid AI foundation empowers our large partner ecosystem to build an array of generative AI-powered solutions and extensions on SAP BTP to jointly help our customers in the following key areas: Create the most relevant AI-powered Build innovative AI use cases and Accelerate cloud transformation software partner portfolio. extensions. ­value realization. As part of SAP’s partner programs, Advisors and partners like systems We see great potential for partners to developers, start-ups, scale-ups, and ­ ­integrators, management consultancies, apply generative AI to condense cloud partners large and small can build inno- and service providers can build custom, transformation projects and maintain a vative apps by leveraging our unique AI-powered extensions, add-ons, use clean core. SAP and our partners will assets on SAP Business Technology ­ cases, and intellectual property for SAP ­offer AI-powered ­development tools and Platform and reach SAP’s large custom- cloud solutions on SAP BTP. We support content on SAP BTP to enable auto­ er base through our trusted channels. this through targeted enablement for mated code generation and harmonize They build cutting-edge generative AI our partners including a range of data silos through intelligent migration capabilities and i­nnovations that will ­AI-­focused learning journeys, coaching tools. enable our c ­ ­ustomers to accelerate services, hands-on support models ­ their AI and cloud road maps. Already including dedicated Hack2Build ini­ ­ tia­ today, ­customers can choose from tives, and new certification and free tier hundreds of AI-powered partner ­ options to test AI services on SAP BTP. ­solutions ­available on SAP Store. SAP is making bold investments in the AI ecosystem Sapphire Ventures committed more than US$1 billion to invest in the next generation of AI-powered startups, and SAP invested in leading large language model providers Aleph Alpha GmbH, Anthropic, and Cohere. These partnerships build on announcements with Microsoft, Google Cloud, and IBM. We will bring these new partnerships into the SAP ecosystem and make these AI ­innovations “ available to SAP customers. SAP Business Technology Platform (SAP BTP) is THE choice for infusing SAP and partner applications with business AI. With our strong and reliable Business Technology Platform, we are going to bring powerful generative AI capabilities to all our products and services. Our trusted partners and customers will be able to use the very same platform to build relevant, reliable, and responsible generative AI solutions in the SAP context, and beyond. Jürgen Müller CTO and Member of the Executive Board of SAP SE AI Ethics At SAP, we care deeply about the impact of AI on the well-being of people, the health of our ­customers’ businesses, and society and economies. Organizations need to ensure that their technology partners live up to the highest standards of AI ethics. Slips in privacy or a biased AI model can severely damage a company’s reputation, and many people are concerned about the impact of AI on their lives as well as the associated uncertainty and risks. We acknowledge AI’s profound impact on decisions, fairness, transparency, privacy, and human dignity. In 2018, SAP announced a robust ethical framework that guides our development and operations of AI. Ethical AI at SAP is ­grounded in human agency and oversight, addressing bias and discrimination, transparency and explainability, and fostering a free, civic ­society that empowers humans. SAP brings these principles to life through SAP’s Global Artificial Intelligence (AI) Ethics Policy, which is mandatory for all SAP employees. Principles The installation of an internal AI Ethics Steering Committee to govern SAP Business AI development and an external AI We are driven by our values Ethics Advisory Panel comprised of cross-disciplinary experts. We design for people A governance structure to operationalize our guiding princi- We enable business beyond bias ples, provide guidance for high-risk use cases, and align with governmental policies such as the upcoming EU AI Act and We strive for transparency and Blueprint for an AI Bill of Rights in the United States. integrity in all that we do SAP’s active participation in public and private AI initiatives, We uphold quality and safety such as the AI Ethics label by the Digital Trust Forum, and standards ­numerous standardization initiatives around trustworthy AI help ensure that practices are not only compliant but also We place data protection and contribute to shaping a responsible AI landscape across privacy at our core industries. We engage with the wider Ultimately, SAP’s AI ethics put the well-being of people at the societal challenges of AI center of everything we do. We lead in AI ethics because it’s the right thing to do and a core part of SAP’s culture. “ Our customers trust in our ability to build, deploy, and use AI in a responsible and ethical way. The rapid rise of generative AI has further increased the need for the highest levels of ethical standards – and that’s what we deliver. Thomas Saueressig Member of the Executive Board of SAP SE for SAP Product Engineering and Sponsor for AI Ethics Get Ready for the Future Now AI plays a pivotal role in SAP’s commitment to enable every organization to become a network of ­intelligent and sustainable enterprises. Learn how you can accelerate your journey to achieve this vision. 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