Published on November 30, 2023, 5:12 pm

Generative AI has moved beyond the hype and flashy sales pitches. Business leaders are now demanding concrete results from this technology. They want tech vendors to demonstrate the actual business value that generative AI can deliver.

At a larger scale, generative AI has the potential to significantly enhance productivity and contribute trillions of dollars to the global economy. According to McKinsey’s latest research, generative AI could add anywhere between $2.6 trillion to $4.4 trillion annually across various use cases. To put this into perspective, the entire GDP of the United Kingdom in 2021 was $3.1 trillion.

SAP is uniquely positioned to fulfill the promise of generative AI due to its extensive suite of enterprise applications that handle critical customer data. When combined with the power of AI, these applications have the potential to revolutionize business processes.

The impact of generative AI is already being seen in several areas, demonstrating its ability to deliver tangible benefits for customers. For example, SAP has integrated generative AI into its Transportation Management solution, streamlining freight verification and documentation for manufacturing clients. By automating what was previously a time-consuming paper-based process, businesses can save significant amounts of money. One warehouse facility alone witnessed annual savings of nearly $1 million through expedited freight processing time. Companies with multiple facilities could multiply these savings many times over.

Delta Airlines is another company leveraging SAP’s generative AI capabilities. Delta has been an early adopter of SAP SuccessFactors’ talent intelligence hub and developed a tool powered by generative AI that transforms generic job descriptions into accurate requirements based on real-world employee and customer data. This program aims to align employee skills with career goals and business needs. Delta has already surpassed its objectives for this initiative by filling a quarter of corporate and management positions from within the organization itself, such as customer service roles. With more accurate skills descriptions, they also eliminated college degree requirements for jobs where they weren’t necessary. As a result, 90% of non-executive management roles at Delta Air Lines no longer require a college degree.

Generative AI is also making its mark in finance, specifically in collections management. SAP’s Collection Management for SAP S/4HANA uses AI to analyze historical data and identify customers and invoices at higher risk of late payment. This solution reduces customer billing, credit, and collections costs. In one study, it enabled a consumer products producer with 30,000 employees to generate up to an additional $2.9 million in earnings annually.

Saving time is crucial in today’s fast-paced business environment, and generative AI can help achieve that goal. SAP’s generative AI copilot called Joule acts as a smart assistant that provides instant and accurate insights. Users can ask plain-language questions, and Joule retrieves reliable information from across SAP’s cloud portfolio instead of manually searching through various systems. In a test, Joule was able to provide information and insights about transactional data an average of 10 minutes faster compared to manual searching and analysis. This means users have more time available for high-level tasks while businesses enjoy real resource and cost savings across the enterprise.

Looking ahead, we can expect generative AI solutions to create even more value for customers worldwide by 2024. SAP has recently launched several AI innovations that empower developers to transform the way businesses operate. From AI-infused coding tools to a comprehensive platform for creating generative AI extensions and applications, these offerings give developers the necessary tools for success.

Who knows? In the near future, Joule might be the one reaching out to say, “Help me help you!” The possibilities with generative AI continue to evolve rapidly as businesses strive for increased efficiency and productivity while driving innovation forward.

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