What if you could peer into the future of business, where AI isn’t just a tool but the heartbeat of every decision, transaction, and customer experience? In a recent episode of CLARITY.SHOW, Sergey Yermakov, Senior Partner at CLARITY, sits down with Axel Vetter, Head of Quote-to-Cash Product Marketing at SAP, to explore exactly that. Their conversation goes beyond surface-level trends, diving into SAP’s innovative use of AI to transform enterprise operations from the ground up.
The Evolution of AI in SAP
SAP, a leader in enterprise resource planning (ERP) systems, has been quick to adopt AI, using it to enhance business processes, streamline workflows, and improve decision-making. Initially, SAP’s focus was on automating routine tasks, like finance processes and supply chain management, through machine learning. Now, AI allows businesses to communicate directly with their ERP systems in natural language, enabling real-time access to data and insights without needing specialized knowledge of the software. SAP’s latest product, Joule, embodies this shift by transforming how users interact with their systems.
Yet, as powerful as these technologies are, they still rely on pre-existing data and knowledge. True innovation, the act of pushing beyond what’s already known, remains uniquely human.
“However, every generative AI technology can only operate with existing knowledge, existing data, something that has been invented already. Creating something on top of that, taking the next step, thinking in new directions – I think that still remains a domain of humans.”
— Axel Vetter
SAP’s AI Strategy and Integration with S/4HANA Cloud
Leveraging Large Language Models
One of the key innovations discussed in the podcast is SAP’s use of Large Language Models (LLMs) in conjunction with its S/4HANA Cloud system. These LLMs enable intuitive, human-like interactions with ERP systems, allowing users to ask questions and receive answers in real time. This simplifies user interaction and democratizes access to complex data, ensuring that decision-makers at all levels can easily retrieve the information they need.
Data Security and Privacy in AI Applications
With great power comes great responsibility. As Axel noted, one of SAP’s top priorities is ensuring that its AI solutions protect customer data. They achieve this by ensuring that individual company data is used exclusively within the context of the customer’s environment. By isolating company-specific information from public AI models, SAP guarantees that proprietary data remains private and secure, addressing one of the most pressing concerns businesses have when adopting AI solutions.
Transforming Business Efficiency with AI
Real-Time Decision-Making
Sergey Jermakov underscores how real-time access to data can drastically improve decision-making. With immediate insights into company operations, business leaders no longer have to wait for reports or data analyses, greatly accelerating efficiency. As he pointed out during the podcast, traditional decision-making often involves waiting for reports to be generated or for data to be analyzed. With AI, this lag is virtually eliminated, as data can be accessed and processed instantaneously.
Enhancing Quote-to-Cash
In the context of quote-to-cash processes, AI offers several tangible benefits. For instance, by analyzing customer payment behavior, AI can help businesses predict when payments are likely to be delayed, allowing them to implement strategies – such as nudging – to encourage timely payments. This not only improves cash flow but also strengthens customer relationships by ensuring smoother financial interactions.
Personalized Customer Interactions
One of the most interesting applications of AI is in enhancing the customer experience. By analyzing customer data, AI can create personalized interactions, offering tailored solutions that meet individual needs. AI solutions make it possible for businesses to leverage customer insights in real time, enabling more engaging and intuitive interactions.
Enhancing User Interaction
Another feature of SAP’s AI strategy is its focus on enhancing user interaction with ERP systems. Joule, SAP’s generative AI tool, allows users to interact with their ERP systems in a conversational manner. This use of natural language processing (NLP) simplifies communication with complex systems, making them more accessible to non-technical users. By removing the need for specialized knowledge, Joule empowers employees at all levels to access critical data and insights, improving overall business efficiency.
The Future of AI and Enterprise Applications
AI solutions can be applied across a wide range of industries. Sergey and Axel envision a future where AI seamlessly integrates into every facet of business, creating intelligent machines that handle routine tasks while allowing humans to focus on creativity and strategic thinking. The goal isn’t just about operational efficiency but about unlocking exponential innovation.
As technology advances, the ability to assemble various AI components will enable organizations to automate repetitive tasks, streamline analytical processes, and enhance decision-making. The collaboration with partners will significantly accelerate the pace of innovation, providing vendors with new avenues for development. Sergey recalls a time, just four years ago, when ideas such as template-agnostic, self-learning systems seemed unattainable. However, rapid technological evolution has transformed those ideas into reality, demonstrating that what once appeared impossible can quickly become feasible.
While AI can automate processes and generate insights, it’s human creativity and vision that will drive businesses forward, fostering an environment where both technology and innovation work hand in hand to fuel growth.
“It requires us to think the unthinkable and believe that everything we dream of is within reach.”
— Axel Vetter
The Bottom Line
AI’s ability to automate routine tasks, process real-time data, and support strategic decision-making is transforming how businesses operate. But the true power of AI lies in its partnership with human creativity and innovation. While AI can streamline efficiency and enhance customer experiences, it is up to humans to take those insights further, driving innovation.
As the pace of technological advancement continues to accelerate, the message from Axel and Sergey is clear: implementing AI is no longer just an option; it is a cost of doing business. Companies that fail to embrace AI now risk being left behind, while those that do will stay competitive and unlock new growth opportunities.