What is SAP AI?

SAP AI (SAP Business AI) is a growing portfolio of AI functions for SAP systems.

For companies, these innovative features offer considerable potential for optimization in terms of processes, analyses, and user experience.

SAP's artificial intelligence (AI) does not appear under a single name. Rather, the software manufacturer has an extensive AI portfolio with several components.

• The umbrella term for SAP's AI is SAP Business AI.
• This name underscores the focus of SAP's AI initiatives: optimizing business processes and increasing value creation within the company.

Within the umbrella term SAP Business AI, there is one particularly prominent name: Joule. What exactly is Joule?

• Joule is an AI co-pilot from SAP.
• This co-pilot contains integrated AI agents for SAP end users.
• Joule is often used as a synonym for SAP AI. However, this is not correct, as the range of AI in SAP is much broader.

Artificial intelligence plays an important strategic role at SAP.

The software manufacturer is pursuing the goal of gradually integrating AI into more and more processes.

• According to SAP, there are currently around 300 AI-supported use cases (as of early November 2025).
• By the end of 2025, there should be 400 use cases.
• Further expansion is expected in the coming years.

SAP also refers to this approach as Embedded AI.

What does embedded AI mean? Artificial intelligence is to be “embedded” in business processes in such a way that users hardly notice it.

The central goals of SAP's AI strategy in terms of customers are:

• Automation of routine processes
• Improvement of the customer experience
• Optimization of user experiences
• Analysis of large amounts of data
• Support in the development of new services
• Continuous expansion of data-driven functions
   

The technical foundation of the current SAP AI strategy is the SAP Business Technology Platform (SAP BTP).

• All services for the development, training, and operation of AI models are bundled on the BTP.
• With these tools, the platform enables both the use of SAP's own AI solutions and the implementation of customer-specific AI applications.
• SAP BTP ensures seamless integration of data and processes across SAP and non-SAP applications.

The Generative AI Hub on the SAP Business Technology Platform is relatively new.

What is the Generative AI Hub? The solution provides access to large language models (LLMs) from well-known providers such as Cohere and OpenAI.

The three terms SAP Business AI, SAP AI Core, and SAP Joule all come from the SAP AI portfolio. However, they are not synonyms, but have different meanings:

• SAP Business AI: Umbrella term for all AI solutions and functionalities that SAP offers for businesses.  The three main pillars of SAP Business AI are AI assistance, embedded AI, and support for customer-specific AI scenarios.
• SAP AI Core: A service within the SAP Business Technology Platform that forms the technical basis for training, deploying, and managing AI models.
• SAP Joule: Joule is a central, context-sensitive co-pilot for end users that understands natural language.

It uses SAP Business AI functionalities and accesses models managed via SAP AI Core. (For more details, see our in-depth knowledge article on SAP Joule.)

SAP Business AI is thus the umbrella under which all AI activities run. SAP AI Core is the engine that drives and manages artificial intelligence. SAP AI Joule is the face of AI in SAP, bringing artificial intelligence directly to the user.

SAP AI agents are specialized, autonomous software units. They are designed to perform complex business tasks or processes independently or in cooperation with the user.

Unlike simple AI solutions, they can not only analyze data or make predictions, but also actively intervene in processes and make decisions.

SAP AI agents (also known as “Joule Agents”) are deeply embedded in SAP applications. They use the comprehensive knowledge of business logic stored in SAP systems.

In addition, AI agents act in a role-based and process-oriented manner. For example, an SAP AI agent in purchasing could independently convert a purchase requisition into a purchase order by selecting the best supplier, checking the terms and conditions, and triggering the ordering process – all in accordance with the company's stored guidelines.

Key features of SAP AI agents are:

• Autonomy: They can perform tasks without constant human supervision.
• Contextual understanding: They understand the business context of their task because they are directly integrated into SAP applications.
• Process knowledge: They are equipped with knowledge of specific SAP processes (e.g., order-to-cash, procure-to-pay).

Ultimately, artificial intelligence in this form aims to take automation to a new level by taking over not only repetitive but also cognitively demanding processes.

Predictive AI and generative AI are two main forms of artificial intelligence. SAP uses both variants in its solutions, where they serve different purposes:

Predictive AI (predictive AI)

Predictive artificial intelligence is the more traditional, long-established form of AI in SAP.

It uses historical data and statistical models to predict future events or outcomes. Its main purpose is to improve decision-making through informed forecasts.

Areas of application for predictive AI at SAP include:

• Finance: Predicting payment defaults or liquidity bottlenecks
• Supply chain: Forecasting demand to optimize inventory management and avoid overstocking
• Human resources: Predicting employee turnover (churn prediction) to initiate countermeasures at an early stage
• Maintenance: Predictive maintenance to prevent equipment failure

Generative AI

Generative AI is the newer form of artificial intelligence based on large language models (LLMs).

Its focus is on creating new content such as text, code, images, or structured data. It is primarily used to increase productivity and simplify complex interactions.

Areas of application for generative AI at SAP include:

• Virtual assistance: Generating business reports, summarizing processes, or creating emails based on system data.
• Development (SAP BTP): Generating code suggestions, automatically creating documentation.
• Human resources: Creation of job descriptions, personalized learning paths, or feedback summaries
• Customer service: Generation of responses to customer inquiries, summarization of service tickets

Both forms of SAP AI are closely interlinked and often work together to comprehensively optimize the company's business processes.

The use of SAP AI in business processes leads to a number of advantages that are usually directly reflected in companies' key performance indicators.

According to SAP, the measurable advantages of SAP AI solutions include:

• Reduction of search and navigation tasks by up to 95 percent (Source)
• Acceleration of transaction or navigation processes by up to 90 percent (Source)
• Reduction of steps required to gain data insights by up to 80 percent (Source)
• Reduction of financial reporting effort by 60 percent (Source)
• Acceleration of decision-making by 15 percent (Source)

There are also other general benefits of SAP AI:

• Higher productivity and efficiency
• Cost reduction
• Error reduction
• Process compliance
• Relieving employees of routine tasks (increasing motivation)
• Improving the user experience

AI is integrated into SAP cloud solutions in two ways:

• through embedded AI and
• in the form of AI applications or services provided via the SAP Business Technology Platform (BTP).

The following overview provides specific examples of AI features in SAP cloud products:

How SAP Business AI is activated and implemented depends on the type of SAP AI solution. The following overview provides information about the most important options:

• Embedded AI (standard functions): AI functions are already embedded as standard, particularly in cloud products such as SAP S/4HANA Cloud, Public Edition, and are being continuously expanded. The features can usually be activated via simple configuration settings in the SAP system.
• Joule: Implementation requires step-by-step configuration, which is mainly controlled via the SAP Business Technology Platform (BTP). Some settings must also be made in the target systems (for example, SAP S/4HANA Cloud or SAP SuccessFactors) so that the co-pilot can access the business data.
• Custom AI solutions: Individual AI applications are implemented via the SAP Business Technology Platform. The platform is used for data provision, model development, and integration into business processes.

The licensing models for SAP Business AI are subject to constant change.

Whether licensing is required also depends on the product and the AI functions. As of November 2025, SAP distinguishes between “Base AI” and “Premium AI.”

• Base AI refers to basic AI functions that are automatically included in existing SAP cloud product licenses. These include, for example, everyday automations, simple recommendations for action, and navigation aids in the user interface.
• Premium AI includes advanced SAP AI services – in particular, generative AI functions such as more complex use cases with Joule. Such features usually have to be licensed separately. This is usually done via a consumption-based model (based on so-called AI units) or “per user per month” (PUPM).

About SAP Business Technology Platform (SAP BTP) services: The use of SAP AI Core and other AI services on SAP BTP is usually based on a consumption model. Companies pay for the computing power and storage capacity required to train and operate their AI models.

From a technical perspective, SAP AI services can be integrated into business processes in various ways. The most important integration mechanisms are:

• CDS views (Core Data Services): The basis for data access in modern SAP systems, enabling the provision of structured data for AI services
• SAP Build Process Automation (formerly iRPA): A solution for automating processes, it can integrate AI services (e.g., document processing, classification) into automated workflows
• Joule Studio: A tool for developers to create their own SAP AI solutions (e.g., building skills and agents via low-code and no-code)
• APIs and service integrations: Enable the use of AI models as a service directly in customer-specific applications or in external systems; retrieval is performed via SAP AI Core or AI Launchpad

To use SAP AI functionalities, companies must meet certain technological and licensing requirements. These include, in particular:

• Operating model and system version: Advanced AI solutions from SAP are primarily designed for cloud solutions such as SAP S/4HANA Cloud (public or private edition). Older versions or highly customized on-premise instances may have limitations with regard to SAP Business AI.
• SAP BTP subscription: A BTP subscription is required to use AI Core, Generative AI Hub, or data/integration services. The services must be activated and configured.
• Data infrastructure: The quality, consistency, and accessibility of data are crucial for the meaningful use of AI. Among other things, SAP refers to the use of Knowledge Graph and Business Data Cloud to enable AI agents to work effectively.
• Integration and interface infrastructure: Interfaces to SAP applications, third-party systems, APIs, and data layers must be in place.

Ethical and legal responsibility in dealing with artificial intelligence is a key concern for SAP, particularly with regard to sensitive business data and the GDPR. This is evident in the following points:

Transparency and traceability

SAP is working to make AI decisions traceable. This is particularly important in regulated processes (such as credit decisions).

More and more SAP AI models offer an explainability (XAI) function that shows users which factors led to the AI decision. The SAP AI Ethics Handbook explicitly mentions transparency and explainability as one of its guiding principles.

SAP also communicates its “trustworthy by design” approach. An important aspect here is that AI solutions do not run in isolation, but are always embedded in a business context. This strengthens the trustworthiness of artificial intelligence.

On a technical level, SAP AI Core provides functions for lifecycle management, versioning, monitoring, and multitenancy. This also contributes to the transparency and traceability of SAP AI models.
 

GDPR compliance

SAP systems almost always process personal and business-critical data. Data protection is therefore a top priority for the software manufacturer. The following mechanisms are in place to ensure this:

• Data sovereignty: Control over business data remains with the company
• Anonymization/pseudonymization: SAP supports functions for GDPR-compliant data use for AI training
• Processing location: Data processing by AI tools usually takes place in secure cloud environments that comply with European data protection standards
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Ethical AI (Responsible AI):

SAP has established its own framework for ethical AI. The guidelines are designed to ensure that SAP AI solutions are fair, unbiased, and responsible.

This includes avoiding bias in training data and regularly checking AI models for discrimination. Artificial intelligence should improve business processes without violating ethical standards.

SAP's official communications clearly indicate that artificial intelligence is increasingly being viewed as an integral part of all current SAP solutions. This applies above all to the cloud portfolio favored and continuously developed by the software company.

• A clear and repeatedly emphasized goal is to make embedded AI the norm in SAP systems in the coming years.
• Furthermore, SAP states that by the end of 2025, more than 400 AI scenarios and over 1,600 Joule functions will be available as part of SAP Business AI. This also clearly underscores the massive expansion of AI features.

In general, it can be assumed that in the medium term, the distinction between an SAP function “with AI” and one “without AI” will become blurred. AI will thus become an invisible but indispensable layer that makes processes more efficient and decisions more informed.

SAP's AI roadmap is dynamic. The communicated priorities point to a clear direction that focuses primarily on scaling and deepening artificial intelligence in business processes.

Key points of SAP's AI roadmap for 2026 and beyond are:

• Generative AI: Expansion beyond the existing AI assistant to more business use cases (document creation, code generation, decision support)
• AI agents: Expansion of autonomous agents for independent handling of complex, cross-departmental processes
• Embedded AI: Deepening of integrated AI in core products such as SAP S/4HANA Cloud and SuccessFactors HCM for more precise analyses and more efficient processes
• Open ecosystem: Integration of external AI models (e.g., OpenAI, Google, Anthropic) via SAP AI Core for maximum flexibility

The roadmap signals that SAP considers AI to be an important enabler for the next generation of business software. Accordingly, high investments in the technology are to be expected.