SAP is intensifying its efforts in what many are deeming the leading trend in artificial intelligence this year: agentic AI. Having launched Joule, its AI agent designed for specific tasks across the SAP ecosystem, the company recently announced at the SAP Sapphire conference the introduction of 40 individual agents. Each is tailored to manage particular functions such as procurement, quote management, and inventory orchestration. According to Christian Klein, CEO of SAP, the aim is clear: to enhance productivity for users by at least 30%.
Despite the promising advancements with agentic technology, adoption among companies remains slow. Many businesses appear to prefer selective, trial-and-error implementations rather than embracing comprehensive AI systems. SAP specialists pointed out that, particularly within supply chains, businesses tend to focus solely on isolated applications rather than viewing the overarching landscape. Etosha Thurman, SAP’s chief marketing officer for finance and spend management, noted a conservative approach to AI adoption among procurement leaders, who often share targeted strategies instead of embracing broader opportunities.
Concerns about the integration of AI into existing systems are prevalent. Balaji Balasubramanian, president and chief product officer for SAP customer experience, observed that the industry has largely concentrated on marketing personalization, neglecting crucial operational functions like demand forecasting and inventory management. This narrow focus, he argued, places retailers at risk of overpromising and underdelivering. The hesitation to fully adopt AI systems stems from worries about rapid technological evolution, data security issues, and the opaque nature of many AI solutions, which can leave users questioning the rationale behind decisions made by the technology.
This data siloing exacerbates the challenges retailers face. However, SAP claims its “everything, everywhere” approach to agentic AI, coupled with a partnership with Perplexity to leverage unstructured data, could help dissolve these boundaries. The goal is to streamline operations by integrating multiple data sources, enhancing responsiveness amidst global trade uncertainties. Dominik Metzger, president of SAP supply chain management, highlighted the transformative potential of generative and agentic AI in logistics functions, suggesting automating tasks such as manifest reconciliation and route optimisation could enable supply chain professionals to prioritise more critical decisions, like the choice between air or sea transport.
SAP’s commitment to user autonomy is evident in the design of Joule, which provides users visibility into the decision-making steps, allowing them to assess which actions best meet their business needs. Metzger commented on the need for improved explainability within AI systems, aiming to demystify the black box of algorithms and offer users greater understanding of how decisions are reached.
The interplay of consumer demands and competitive pressures, according to Balasubramanian, is set to drive significant changes in technology adoption among brands and retailers in the coming months. Addressing fragmented systems is crucial to avoid negative customer experiences—such as displaying a product that is out of stock after a targeted promotion. By better integrating front-end and back-end systems, SAP seeks to mitigate these risks.
Moreover, the excitement around data unification is palpable in SAP’s approach. Harmonising diverse data sets—spanning procurement, HR, customer experience, sales, marketing, and supply chain—could unveil unexpected patterns and insights. Thurman expressed her enthusiasm about this potential, indicating that the ability to analyse these datasets collectively is a game changer.
While SAP focuses on immediate technological upgrades, it is also eyeing the long-term horizon. The company has announced collaborations with Nvidia and Neura Robotics to empower humanoid robots with business intelligence. As Nvidia utilises digital twin technology to facilitate robot training in its Omniverse, SAP aims to complement this by endowing Neura’s humanoids with foundational business knowledge. Experts agree that while the full realisation of such technology remains several years away, the integration of digital systems into retail operations holds promising prospects.
In envisioning the future, Balasubramanian speculated that humanoids might not only enhance warehouse and distribution functionalities but could potentially transform retail environments as well. The prospect of humanoids assisting with inventory management and operational tasks presents a vision where human staff can focus on more complex responsibilities, thereby reshaping the retail landscape.
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Source: Noah Wire Services
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