The Future of AI in SAP: Revolutionizing Application Development and Customization

SAP, the German software major, is preparing for the age of AI. At its recent TechEd conference in Bengaluru, India, the company showcased its commitment to AI by announcing a range of tools and capabilities aimed at boosting developer productivity and enabling the creation of custom AI-powered applications. These new offerings include AI-infused pro-code tools, vector database capabilities in the HANA Cloud, and an all-inclusive AI foundation hub. This article explores SAP’s AI strategy and the potential impact of these advancements on the future of application development and customization.

One of the key pillars of SAP’s AI strategy is embedding AI inside applications. This approach allows users to seamlessly experience AI capabilities while using SAP’s software. JG Chirapurath, chief solutions and marketing officer of SAP, explained that customers will have three different ways to experience AI: embedding AI inside the application experience, using Joule (SAP’s assistive copilot), and creating their own AI use cases. By integrating AI directly into their applications, SAP aims to enhance user productivity and provide tailored solutions to meet diverse business needs.

To further streamline application development, SAP introduced Build Code, an application development solution that leverages AI-based generation. This innovative tool enables developers to produce code, data models, app logic, and test scripts for Java and JavaScript applications. Build Code eliminates the need for SAP developers to rely on external software developer toolkits, providing them with a comprehensive stack for Java and JavaScript development. Additionally, the solution offers interoperability with ABAP cloud environment, facilitating side-by-side development. SAP executives have claimed that Build Code can significantly boost developer productivity by 40-60%.

SAP recognizes the importance of enabling developers to build custom AI-powered applications tailored to their specific business scenarios and use cases. To facilitate this, SAP introduced vector database capabilities in the HANA Cloud and AI Foundations. The vector database stores contextual business data, such as PDFs, images, and documents, in vector format, allowing for easy search and discovery of relevant data for training AI models. This eliminates the need for a separate database solely dedicated to cleaning and searching data for training purposes. By leveraging the vector capabilities of HANA Cloud, enterprises can tap into SAP’s AI Foundation to create their own AI use cases using contextual data and their preferred models.

SAP offers multiple general-purpose models through its AI hub, including those from OpenAI, Anthropic, Meta, and its own cross-platform multi LLM-powered solution, Joule. However, the company has plans to launch its own foundation model to further enhance the relevance and effectiveness of AI applications. This foundation model will be highly tailored to the unique context and data held by SAP, providing enterprises with a fast start and aiming for an 80-85% accuracy rate. Despite developing its own model, SAP remains committed to its partner-first approach, actively seeking collaboration with external solutions and considering investments or acquisitions when strategically necessary.

As SAP advances its AI tooling, including the proprietary model, the company emphasizes ethical and responsible use of AI. SAP has an ethics board in place to ensure that AI developments adhere to ethical standards and comply with government regulations. The company acknowledges the importance of maintaining safety and security posture to protect its customers and avoid any potential risks associated with AI deployment. By proactively addressing these concerns, SAP aims to provide its customers with a reliable and compliant AI environment.

SAP’s relentless pursuit of AI integration and innovation has the potential to revolutionize application development and customization. The introduction of AI-infused pro-code tools, vector database capabilities, and the comprehensive AI foundation hub demonstrates SAP’s commitment to empowering developers and meeting the diverse needs of businesses across industries. By embedding AI inside applications, SAP aims to enhance user productivity, while also providing developers with the tools to create custom AI-powered applications. As SAP continues to expand its AI model ecosystem and prioritize ethics and security, the future of AI within the company looks promising. With SAP leading the way, the age of AI in enterprise software is undoubtedly upon us.


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