More than a Joule required to power up enthusiasm for SAP's AI strategy

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Customers remain cautious about adoption, while analysts warn of unforeseen costs

SAP marked its annual shindig in Orlando this week by pulling the sheets off of AI features for its popular enterprise application platform, but failed to impress analysts attending.

A joule is a unit of energy. One joule would power a one-watt bulb for one second. While it might be unfair to compare this to the enthusiasm for SAP's announcements, analysts were unimpressed. Herbert said companies were living with uncertainty and being asked to do more with less. AI might be a worthwhile investment for them, but they were assessing the returns.

"What's positive about these announcements is both that they show an open approach to offering the best AI, even if it's not always directly created by SAP, and then meeting users where they are," she said. "Joule is still in the early stages of maturity. I don't think there were very big announcements but more of the evolutionary story saying, 'AI is all around, it's going to be part of SAP users' lives,'" he said.that large user organizations would be interested in adopting AI in their business applications as SAP suggests, but there are a few"roadblocks" to overcome before executing such a strategy.

"AI usage is based on the consumption, alongside that, there is also a platform, BTP, and that is also not that cheap. How predictable is this cost? That's a big question mark. I'm not sure people are up to speed on defining it and having clarity on what are the use cases that will ," he said.

 

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