SAP expands open source AI support, turns Joule into collaborative agent

SAP’s AI evolution: Joule and open-source LLM integration: SAP has announced significant advancements in its generative AI capabilities, expanding the functionality of its AI copilot Joule and introducing new open-source large language model (LLM) support.

• Joule, SAP’s generative AI copilot, can now support up to 80% of customers’ most common business tasks, transforming it into a collaborative agent capable of handling complex workflows.
• The company is accelerating product innovation on the cloud to attract more customers to its RISE with SAP initiative, which aims to guide customers’ transition from on-premises ERP systems to the cloud.
• SAP reported a 25% increase in cloud revenue in Q2 2024, with the Cloud ERP Suite growing by 33%, indicating the effectiveness of the RISE program.

Joule’s enhanced capabilities and cloud strategy: SAP is leveraging Joule’s expanded features to drive its cloud-first approach, emphasizing the benefits of cloud adoption for customers.

• While on-premises customers can still use Joule, they will need to utilize the SAP Integration Suite to connect their existing infrastructure to SAP’s cloud services for full functionality.
• Joule is designed as a cloud-native AI assistant core to SAP’s Business Technology Platform (BTP), integrating with all current and future apps, modules, and platform environments.
• SAP is betting that Joule’s advanced capabilities will encourage more customers to join RISE and move to the cloud, reversing the company’s previously proprietary approach in favor of a more open, cloud-based architecture.

Collaborative AI agents and use cases: SAP demonstrated the power of its AI agents through specific use cases at TechEd 2024, showcasing their potential to streamline business processes.

• Dispute Management: AI agents can autonomously resolve disputes related to invoices, credits, and payments, significantly reducing manual intervention.
• Financial Accounting: Specialized agents streamline billing, ledger updates, and invoice processing, ensuring accuracy and efficiency.
• Philipp Herzig, Chief Artificial Intelligence Officer at SAP, emphasized that these collaborative AI agents represent a new era in enterprise productivity, allowing businesses to automate intricate workflows.

Expansion of open-source LLM support: SAP is broadening its generative AI capabilities by incorporating additional open-source models into its SAP Generative AI Hub.

• New open-source models added to the SAP Generative AI Hub include Meta’s Llama 3.1 70B model, Mistral Large 2 (available by the end of 2024), and Mistral Codestral.
• The SAP Generative AI Hub acts as a central node within the Business Technology Platform, connecting both proprietary and open-source models.
• Developer tools like the Extensibility Wizard and SAP Build enhancements are designed to streamline the integration of these models, reflecting SAP’s push towards a more developer-friendly environment.

Strategic shift towards open-source and AI innovation: SAP’s recent announcements at TechEd 2024 demonstrate the company’s commitment to embracing open-source technologies and accelerating AI innovation.

• The company aims to enable enterprise-level standards for customers to adopt open-source LLMs while ensuring reliability, scalability, security, and performance within the SAP AI Core.
• This strategic shift reflects SAP’s recognition that customers need the flexibility to incorporate open-source solutions into their technology stacks.
• SAP’s Business Technology Platform with an AI Core represents a more forward-thinking approach, acknowledging the value of open-source integration in delivering customer value.

Implications for SAP’s future trajectory: SAP’s embrace of AI and open-source technologies signals a significant evolution in the company’s strategy and market positioning.

• The company is leveraging its strengths in ERP while adapting to the demands of the AI era, focusing on usability, open system architecture, and data flexibility.
• By integrating open-source LLMs and enhancing its AI capabilities, SAP is positioning itself to remain competitive in a rapidly evolving technology landscape.
• This transformation may help SAP attract new customers and retain existing ones by offering a more modern, flexible, and AI-driven enterprise solution ecosystem.