TL;DR:
- SAP Labs is integrating generative AI into business solutions to cater to a vast client base and plans to double its AI talent pool by 2024.
- Collaboration with Microsoft and Google Cloud to create innovative AI ecosystems.
- Investments in generative AI companies, Aleph Alpha, Anthropic, and Cohere, for strategic growth.
- Emphasis on upskilling and ethical AI principles.
- Introduction of generative AI-based solutions for various domains.
- SAP aims to enhance data security and decision-making processes through AI integration.
- SAP’s dedication to responsible AI development and deployment.
Main AI News:
SAP Labs recently hosted the event “Unlocking Business AI with SAP Labs India” in Bengaluru, where the ERP software giant unveiled its ambitious roadmap for integrating generative AI into its business solutions. This initiative aims to cater to its extensive client base while simultaneously doubling its AI talent pool by 2024. As the largest R&D center within SAP’s global network, this expansion seeks to infuse cutting-edge AI capabilities into its product lineup, adapting to the evolving corporate landscape and global clientele demands.
SAP’s current focus lies in AI innovation and collaboration, as articulated by Sindhu Gangadharan, Senior VP and MD of SAP Labs. They have also entered into a strategic partnership with Microsoft to co-create an AI ecosystem for the future. To bridge the talent gap, Sapphire Ventures, backed by SAP, has committed a substantial $1 billion USD investment to support startups specializing in AI-powered enterprise technology.
In July, SAP made strategic investments in three key generative AI companies: Aleph Alpha, Anthropic, and Cohere. Additionally, the company plans to introduce new AI-based solutions and capabilities to its portfolio in the near future.
SAP is committed to increasing its investments in India, where Bengaluru hosts 40% of its research and development operations. The company envisions a significant boost in its cloud revenue resulting from strategic investments in generative AI.
The event revolved around three core themes: addressing the AI talent shortage through upskilling, introducing innovative generative AI solutions for customers, and outlining their ethical approach to AI.
Empowering Through Upskilling
Gangadharan underscored the significance of upskilling within SAP. While 34% of their workforce comprises fresh talent, including individuals pursuing master’s degrees at BITS Pilani, the company is equally dedicated to enhancing the skills of its mid-senior staff. Currently, they are implementing a 16-month program called “AI for Manager” in collaboration with IIM Bangalore, with the first batch recently completing the course.
“We organize global learning days and training programs to keep pace with the rapidly evolving AI landscape. Our focus is on building a strong foundational understanding of technology, problem-solving, and scalability through training,” Gangadharan emphasized.
Pioneering Generative AI Offerings
SAP already boasts a portfolio comprising 350+ applications, addressing various use cases such as cash management and document scanning. The company is now incorporating a generative AI layer into its Business Technology Platform (BTP) to address data protection concerns and enhance data security. Although they are not developing their own large language model, SAP aims to augment existing models. Their focus remains on improving business processes while ensuring that decisions remain under human control.
SAP is introducing generative AI-based solutions across various domains. In collaboration with Microsoft, SAP has streamlined recruiting and employee development processes through the Azure OpenAI Service API. This collaboration has resulted in the Human Capital Management tool, which utilizes the ChatGPT-based interface in SAP SuccessFactors to combat biases in job descriptions and promote diversity in hiring.
Additionally, SAP’s new Business Analytics tool, built on in-house models, offers faster access to insights within SAP Analytics Cloud through the “Just Ask” feature.
On the other hand, “Gen AI for Customer Innovations” presents applications like the “Smart CO2 Converter” to drive sustainability initiatives. Furthermore, SAP’s “Gen AI for Developer Productivity” integrates GPT-4 into SAP BTP Business Application Studio, streamlining software development and reducing data model and service generation time by 30% for improved efficiency. These solutions, designed to empower businesses across diverse sectors, are set to launch in November 2023.
In addition to its collaboration with Microsoft, SAP has also partnered with Google Cloud to create a comprehensive data cloud powered by SAPDatasphere. This innovative solution, enhancing the RISE with SAP offering, enables businesses to access crucial data in real-time, eliminating the need for extensive investments in complex data integrations, custom analytics systems, and AI/NLP models to extract value from their data investments.
SAP’s recent investments in three major generative AI players, Anthropic, Cohere, and Aleph Alpha, represent a strategic move aimed at harnessing the best of all worlds.
Prioritizing Responsible AI
Recognizing the societal impact of AI, SAP established guiding principles for AI software development and deployment back in 2018. This guidebook was introduced at a time when AI was just beginning to take shape.
Highlighting the European influence on their approach to responsible data usage, Gangadharan emphasized, “Ethical AI is in our DNA.” She elaborated on SAP’s philosophy, encapsulated in the three R’s: Relevant, Reliable, and Responsible.
Firstly, SAP places significant emphasis on aligning AI with core business processes to ensure its relevance to business requirements. Secondly, they underscore the importance of reliable data as the foundation for informed decision-making, emphasizing the necessity to authenticate data used for AI model training. Lastly, they prioritize responsible AI, encompassing compliance with legal standards, transparent decision-making, and the establishment of a harmonious human-machine interaction balance.
Conclusion:
SAP Labs’ commitment to integrating generative AI into its business solutions, strategic partnerships, and investments in generative AI companies reflect a forward-looking approach. This positions SAP as a key player in the evolving AI market, with a strong emphasis on ethical practices and upskilling, enabling businesses to harness the power of AI for enhanced efficiency and innovation.
