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SAP CFO: AI must evolve beyond chatbots for real business returns

Created at 23 Jul · 9:55 PM1 source↑ Market-relevant
IN SHORT

SAP CFO Dominik Asam stated that artificial intelligence in enterprise software needs to move beyond basic applications like chatbots and coding tools into more complex business processes. He emphasized that reliable data and cost control are crucial for realizing significant productivity gains from AI.

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Who's Involved

Dominik Asam
SAP Chief Financial Officer
SAP
Enterprise software company

↳ Why This Matters

SAP's perspective highlights a critical challenge for businesses integrating AI: moving beyond superficial applications to harness AI for core operational improvements requires significant investment in data governance and process refinement, suggesting that the path to substantial AI-driven productivity gains will be more complex and costly than initially anticipated.

Key facts

  • SAP CFO Dominik Asam believes AI must move beyond chatbots and coding tools to deliver substantial business returns.
  • He stated that current AI applications are largely 'low-hanging fruit' with limited risk from errors.
  • Applying AI to core business processes like finance and supply chain is more complex due to higher risk and compliance requirements.
  • Asam emphasized the importance of clean, governed data for AI to function effectively in specific business functions.
  • He advised that companies should use the most cost-effective and reliable AI tool for a given task.

SAP's Chief Financial Officer, Dominik Asam, has stated that the widespread adoption of artificial intelligence in enterprise software needs to progress beyond current applications like chatbots and coding assistants to achieve meaningful business returns. Speaking after SAP's second-quarter results, Asam explained that while companies are investing heavily in generative AI, the evidence of broad productivity gains is still emerging.

Asam characterized the current use of AI, particularly in chatbots and coding tools, as 'low-hanging fruit' where the risk associated with AI 'hallucinations' is minimal due to limited consequences if errors occur. However, he stressed that applying AI to more critical business functions, such as finance or supply chain management, presents greater challenges. In these areas, errors can compound across multiple steps, increasing risks and potentially violating compliance standards.

He further elaborated that the true value of AI, or the 'high-hanging fruit,' lies not in generic, plug-and-play large language models, but in building systems tailored to specific business needs. This approach requires companies to ensure their data is usable and well-governed, enabling AI to operate with company-specific knowledge. Asam cautioned against the notion that AI can solve problems stemming from messy, legacy data silos, noting that such implementations can incur 'extremely high token costs.'

Ultimately, Asam suggested that the most advanced AI model is not always the most appropriate. In practice, he believes companies will opt for the most reliable and cost-effective tool that can safely achieve the desired outcome, whether that involves simple software, an open-source model, or a cutting-edge frontier model.

Frequently asked questions

SAP's CFO Dominik Asam uses 'low-hanging fruit' to describe current AI applications like chatbots and coding assistants, where errors have limited consequences and are less risky.

Applying AI to core processes like finance or supply chain is more difficult because errors can compound over multiple steps, increasing risk and posing challenges to compliance standards.

For AI to be effective in specific business functions, companies need usable and well-governed data that allows the AI to operate with company-specific knowledge.

According to SAP's CFO, the most advanced model is not always the right one; companies should prioritize the cheapest reliable tool that can safely deliver the required outcome.

What Happens Next

01Companies will need to focus on data governance for AI implementation.
02Businesses will seek cost-effective and reliable AI tools for specific processes.

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How It Developed

SAP CFO Dominik Asam stated that AI in enterprise software must advance beyond chatbots and coding tools.
Asam noted that current AI applications, like chatbots, represent 'low-hanging fruit' with limited risk from errors.
He explained that applying AI to core business processes like finance and supply chain is more challenging due to higher risk and compliance standards.
Asam highlighted the need for usable and governed data for AI to operate effectively within specific business contexts.
He suggested that companies should prioritize the cheapest reliable tool for AI implementation, rather than always opting for the most advanced model.
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Sources

T1
SAP CFO says AI must move beyond chatbot 'low-hanging fruit' before seeing returnsReuters

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