AI-embedded SAP ERPs May Be Here Sooner Than You Think


AI-embedded SAP ERP’s May Be Here Sooner Than You Think

SAP has announced that it has signed new partnerships and working on new products with a focus on artificial intelligence, as well as blockchain technology and analytics. The company has been making progress towards its aim to automate their ERP solutions by updating their SAP S/4HANA cloud, which adds a number of new processes. These processes are optimized using reliable machine learning algorithm.

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This AI-embedded ERP will greatly benefit various business owners and organizations, making business management much easier and efficient at the same time. For instance, thanks to the machine learning algorithm, businesses can now optimize the refill of any raw material they may require by not just recording, but real-time analysis of their data. According to senior VP Sven Denecken, who also heads the co-innovation and product management at SAP Cloud ERP, their 1808 release of SAP S/4 HANA Cloud plays an important role in enabling the power of artificial intelligence to enhance ERPs.

He also added that an AI-embedded module has been added to the system, which is capable of ensuring that all staffing requests in the future will be fulfilled without any delays, and following a specific budget as well.

High ambitions for SAP

This move is just the start of a very ambitious project that SAP has for its business management tools. The company is working on embedding AI in at least half of all processes, thus automating them in the next two years. However, the company will not be building their own artificial intelligence models. Instead, it will be partnering with various vendors, through the agreements they have signed, who will build and train the AI models. Customers will then be able to access these through packaged applications.

Denecken said that businesses who use the newly AI-embedded processes may not even be able to tell or understand how a certain process in the system has been automated using AI. Steps involved to get a specific task done will simply be minimized, enabling businesses to be more efficient and highly productive.

Since most companies in the industry such as SAP are partnering with third parties rather than investing in the creation of their very own AI models, it appears that for now, in most cases, AI will be available in a packaged application. At the same time, in the next two years, there may also be a good number of organizations who choose to create their own AI to gain an advantage over competitors.

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