SAP Business AI Embedded AI Capabilities: What Are They?
The embedded AI capabilities in SAP are a set of AI functionalities developed by SAP, pre-integrated into SAP applications and processes.
These capabilities are a core component of the SAP Business AI strategy, providing out-of-the-box AI functionalities for existing SAP solutions.
Why Did SAP Develop Embedded AI Capabilities?
User Pain Points:
Businesses have numerous operational needs that can be empowered by AI, but these innovative scenarios often come with high uncertainty, complex processes, and challenging implementation costs.
Strategic Level:
To achieve native AI empowerment across all SAP products, driving digital transformation and intelligent upgrades for enterprises.
Functional Level:
To enhance business efficiency and decision-making quality by automating routine tasks and providing real-time insights and predictive analytics.
Core Value Proposition:
To seamlessly integrate AI into daily business operations, enabling plug-and-play intelligent business process optimization.
What Are the Core Capabilities of SAP Embedded AI Capabilities?
Embedded AI capabilities are a consistent set of functionalities, with over 200 such AI capabilities available. You can find the list of embedded AI capabilities at https://discovery-center.cloud.sap/ai-catalog/?aiType=ai_feature. Here are some examples:
SAP S/4HANA Cloud Private Edition, Master Data Governance
This refers to AI-driven master data maintenance, where users can generate master data modification requests using natural language, and approvers can also understand the summary of modification requests through AI, eliminating the need to compare changes manually.
Advantages
- Significant time savings: during both the request for master data changes and the review of those requests.
- Risk reduction: minimizing the risk of missing critical changes, thereby improving master data quality.
Business Value
- Workload for creating master data change requests reduced by 60%
- Workload for reviewing master data change requests reduced by 20%
- Revenue loss due to delays or errors in master data updates reduced by 5%
- Improved master data quality.
SAP S/4HANA Cloud Private Edition, Behavioral Insights for Contract Accounting
This refers to AI-driven customer payment risk assessment, which helps collection agents predict and explain payment risks by analyzing historical customer behavior, maximizing collection rates and minimizing bad debt write-offs.
Advantages
- Quick identification of high-risk accounts.
- Optimized collection strategies.
- Reduced outstanding debts, saving time and improving outcomes.
Business Value
- Days Sales Outstanding (DSO) reduced by 3.5%
- Uncollectible Accounts Receivable (AR) write-offs reduced by 5%
- Customer billing, credit, and collection costs reduced by 1%
SAP Field Service Management, Equipment Insights
Equipment insights functionality generates a summary based on the historical activities of the equipment, providing technicians with information about the equipment, such as used spare parts, activity duration, and a checklist of inspected items and their results. It identifies patterns and trends based on equipment history and performance data, offering asset-level intelligent service recommendations to schedulers.
Main Target Users and Value:
- Technicians: Gain historical information about the equipment, speeding up diagnostics and problem resolution (self-diagnostic capability), and receive more accurate time estimates, thus improving efficiency.
- Schedulers: Rely on historical data and trend analysis to obtain intelligent service recommendations, allowing for more accurate problem identification and the ability to match the most suitable technician for task execution.
Key Outcomes: Significantly increased field service personnel productivity (65%) and improved first-time resolution rates (5%).
SAP S/4HANA Cloud Private Edition, Maintenance Order Recommendation
Utilizing AI to recommend maintenance orders that have resolved similar incidents in the maintenance history, allowing users to select one of the orders to quickly create a new, appropriate maintenance order.
Advantages
- Simplified planning: Reducing the workload of manually creating orders through AI -driven recommendations.
- Facilitated decision-making: Helping to minimize downtime with adaptive algorithms.
- Increased resolution rates: Enhancing problem resolution rates using AI-recommended solutions based on successful historical solutions.
Business Value
- Maintenance planner productivity increased by 40%
- Unplanned downtime reduced by 1%
- First-time resolution rates for maintenance technicians increased by 5%
How Do SAP Embedded AI Capabilities Differ from Common Similar Functions on the Market?
SAP embedded AI capabilities are pre-integrated within SAP applications and are inherently embedded in user business flows, requiring no additional development costs, and are ready to use with only minimal configuration.
Moreover, these capabilities have a wide coverage and the number of functionalities is still rapidly growing.
How to Use SAP Embedded AI Capabilities?
- 1. Search for available AI functionalities in the Discovery Center based on target applications and other parameters.
- 2. Configure the system and activate functionalities based on the technical documentation of the target AI functionalities.
- 3. Conduct user training and collect feedback.
Conclusion
SAP embedded AI capabilities enable automation, intelligence, and efficiency in enterprise operations by seamlessly integrating intelligent functionalities into core business processes, serving as a key driver for digital transformation.