Artificial intelligence can do far more for public administration than answer questions or digitize individual interactions.

Its real potential emerges when AI connects with the data and processes behind public services, turning a citizen request into coordinated action across the administration.

For public institutions, there is another essential requirement: innovation must go hand in hand with transparency, accountability, and digital sovereignty. SAP combines decades of process expertise with enterprise applications, data, AI, and sovereign cloud technologies.

S.Public, the new SAP Experience Center location for the public sector, brings these capabilities to life. It officially opened in Berlin on October 12, 2026.

From a citizen request to coordinated action

Damage in a public space can be reported digitally in a matter of moments. But that is where the actual administrative process begins: determining responsibilities, planning the work, checking resources and budgets, procuring materials if needed, and closing the case. SAP solutions can connect citizen engagement, maintenance, procurement, and financial management across this end-to-end process.

At S.Public, a playground scenario makes this tangible. A citizen notices damage, such as a broken swing, and reports it by smartphone. The steps that follow show how a single report becomes coordinated action. The real innovation is not the reporting form itself, but the intelligently connected processes behind it.

When AI understands the administrative context

The same principle applies to public funding. Applications involve documents, eligibility requirements, and financial information. AI can check submitted materials for completeness and consistency, flag missing information early, and provide employees with an explained recommendation for further review. The final decision remains with the responsible public authority.

A funding application for a solar installation illustrates this approach in Berlin. The SAP capability behind it is broadly applicable: AI is embedded where employees evaluate information and manage processes. Rather than automating isolated tasks, it supports the broader administrative context.

When digital sovereignty meets AI

How can sensitive data be used with AI while remaining under an organization’s own control? SAP Sovereign Cloud addresses four dimensions of digital sovereignty: data, operational, technical, and legal sovereignty.

At S.Public, this concept becomes something visitors can actually walk through. The new Sovereign Cloud Showroom makes SAP’s security and sovereignty concept physically tangible for the first time. Visitors pass through three security zones: administration, control, and restricted zones. They experience firsthand how the operating environment for SAP Sovereign Cloud and the protection of classified information work together.

A public sector scenario at a seaport shows how this can be combined with intelligent analysis. SAP solutions and the AI assistant Joule bring together selected data from internal and external systems in a sovereign environment. Data on vessel arrivals, terminals, containers, and available inspection capacity is turned into a prioritized overview. Analysts can query it in natural language, while the responsible public officials decide which inspections to carry out.

More than a place for demonstrations

The three examples point to a common development: public services become more intelligent when applications, data, and AI work together across organizational and functional boundaries while accountability remains clear.

S.Public creates a place where customers, partners, and experts can explore and discuss these possibilities. The SAP capabilities behind them extend far beyond Berlin.

The future of public services will not be determined by how much technology public administrations adopt, but by what they enable for people and society.

Andre Bechtold is president of SAP Industries & Experiences and chief revenue officer of Industry AI at SAP.

SAP Cloud ERP Private 2025 Feature Pack Stack 02 (FPS02) delivers new capabilities that help organizations move from AI experimentation toward intelligent, governed business execution faster.

The release combines AI agents that can work directly with core business processes and adds new regulatory compliance capabilities and industry-specific innovations across asset-intensive industries, retail, and energy sectors. Together, these enhancements help strengthen the foundation for organizations that need to scale AI responsibly.

Building the foundation for enterprise AI

As organizations explore how AI can drive business outcomes, one challenge keeps surfacing: AI alone is not enough. To operate at enterprise scale, AI needs access to trusted data, process context, business rules, and governance.

This is why the conversation about AI increasingly becomes a conversation about ERP. AI agents require more than information. They need to understand what actions are permitted, which controls must be respected, and when decisions require human review. SAP Cloud ERP Private can provide this foundation through integrated business processes, harmonized data, and enterprise-grade governance. FPS02 helps extend these capabilities, bringing intelligence directly into the processes where business happens.

AI embedded within business processes

FPS02 introduces AI agents and AI-assisted capabilities across key business domains, helping organizations automate routine work while maintaining oversight and accountability.

In finance, agents and AI-assisted capabilities help support processes spanning planning and forecasting, period-close activities, working capital management, tax processes, and compliance operations. Rather than requiring employees to manually identify issues and coordinate follow-up activities, SAP Cloud ERP Private and analytical business insights can surface risks, recommend actions, and help manage exceptions.

In sales order-to-cash processes, agents enable sales teams to quickly identify fulfillment issues, receive resolutions, and create or update sales orders directly in their workflow, which helps minimize delays and improve customer satisfaction.

Joule and SAP Document AI help streamline quality management by uploading, extracting, and matching certificate data, flagging exceptions, and creating pre-filled defects from natural-language inputs and source documents to help accelerate review, accuracy, and inspection release.

By receiving key observations, recommendations, and a clear action plan directly within business processes, employees can focus on judgment and expertise rather than information gathering and exception management.

Compliance built into the core

FPS02 also delivers important regulatory capabilities directly within SAP Cloud ERP Private.

The release includes support for IFRS 18 indirect-method cash flow statement reporting, helping organizations prepare for evolving financial reporting requirements. Additional updates include support for Germany’s AUSWIB1M foreign-trade reporting requirements and Canada First Nations Tax determination with GST499-1 return generation. By incorporating these capabilities into standard business processes, organizations can address compliance obligations while maintaining consistent governance and operational efficiency.

Industry innovation across critical operations

FPS02 deepens industry-specific capabilities across asset-intensive operations, upstream oil and gas, defense and security, and retail.

For asset-intensive industries, enhancements further integrate permit-to-work processes into maintenance operations, helping ensure operational controls are embedded directly within workflows. Upstream oil and gas organizations can gain new capabilities that extend Joule into production and revenue accounting, while SAP Document AI helps interpret gas plant statements and propose accounting entries for review. Defense and security organizations can benefit from innovations supporting equipment allocation and ERP operations in limited-connectivity environments.

Retail organizations gain four new data products that help expose retail master data through SAP Business Data Cloud, working to create a stronger foundation for future AI-driven processes. FPS02 also introduces operational enhancements including support for partial order fulfillment scenarios, GS1 2D barcode enablement, and expanded product traceability through serial-number integration between point-of-sale and inventory processes.

Advancing the Autonomous Enterprise

The Autonomous Enterprise is not built through a single AI breakthrough or software release. It emerges through the combination of trusted business data, integrated processes, governance, and intelligent capabilities working together across the enterprise.

SAP Cloud ERP Private 2025 FPS02 helps advance that foundation in concrete terms: by embedding intelligence within business processes, strengthening compliance capabilities, and expanding industry-specific innovation.

To explore the full FPS02 release and its implications for your business, visit SAP Community.

Maura Hameroff is chief marketing officer for SAP Cloud ERP Private and RISE with SAP.

WALLDORF — SAP SE (NYSE: SAP) today announced its financial results for the second quarter and half year 2026.

At a glance

• Current cloud backlog of €22.9 billion, up 27% and up 26% at constant currencies
• Cloud revenue up 22% and up 24% at constant currencies
• Cloud ERP Suite revenue up 25% and up 27% at constant currencies
• Total revenue up 9% and up 11% at constant currencies
• IFRS operating profit up 8%, non-IFRS operating profit up 7% and up 9% at constant currencies
• 2026 non-IFRS operating profit outlook updated to reflect dilutive impact from Dremio and Prior Labs acquisitions

Christian Klein, CEO:

“We delivered another quarter of strong current cloud backlog growth, up 26% at constant currencies. This performance is underpinned by our Autonomous Enterprise strategy with strong momentum across our Autonomous Suite as well as our Business AI Platform. Customers are choosing SAP to enable accurate and compliant AI outcomes grounded in their most critical business processes and data.”

Dominik Asam, CFO:

“Q2 was another strong quarter, highlighted by sustained current cloud backlog and free cash flow growth against a volatile macroeconomic backdrop. These results reflect our disciplined execution and our ability to deliver against our operating objectives. As part of that execution, we aggressively drive our own transformation into an Autonomous Enterprise, leveraging AI to boost both effectiveness and efficiency at the same time.”

About SAP

As a global leader in enterprise applications and business AI, SAP (NYSE:SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.

Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels.

For more information, press only:
Marcus Winkler, +46 (6227) 7-67497, marcus.winkler@sap.com, CEST
Daniel Reinhardt, +49 (6227) 7-40201, daniel.reinhardt@sap.com, CEST

For more information, financial community only:
Alexandra Steiger, +49 (6227) 7-60437, alexandra.steiger@sap.com, CEST

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2025 Annual Report on Form 20-F.
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Customers expect brands to know them, anticipate their needs, and engage them with relevance across every channel and touchpoint. The challenge isn’t agreeing on the vision. The challenge is closing the gap between that vision and systematic, scalable execution.

For many SAP Commerce Cloud and SAP Engagement Cloud customers, this gap shows up in familiar ways: recommendation engines that surface generic results because behavioral data is not connected, e-mail campaigns timed by calendar rather than by individual habit, loyalty programs that reward transactions rather than relationships, and personalization rules that require significant manual effort to maintain at scale.

The ambition is there; the infrastructure to fulfill it, however, is often partial. Clean data is siloed, AI capabilities are underutilized, and the organizational discipline to run ongoing experimentation does not yet exist.

This is precisely the problem the Advanced Success Plan version for SAP Customer Experience solutions is designed to solve.

What hyper-personalization actually requires

True hyper-personalization is not a feature you switch on. It is a capability you build systematically across three interdependent layers: data, decisioning, and delivery.

Data is the foundation. Hyper-personalization requires unified, consent-aware, real-time customer profiles consolidated across commerce transactions, engagement history, browsing behavior, service interactions, and loyalty activity. Without this foundation, even the most sophisticated AI models are operating on incomplete signals.

Decisioning is where AI translates those signals into action—the next best product to surface, the right offer to present, or the optimal moment to reach out. This layer requires not just model accuracy but governance, knowing when to trust the algorithm and when human judgment should override it.

Delivery is where the personalized experience reaches the customer, at the storefront, in the inbox, through a mobile push, or across a loyalty interaction. This layer requires orchestration across channels, consistent with the customer’s current context.

The Advanced Success Plan for SAP Customer Experience solutions helps address all three layers simultaneously, providing the expert guidance, governance frameworks, and adoption acceleration needed to move from point capabilities to an integrated operating model.

Hyper-personalization in SAP Commerce Cloud

SAP Commerce Cloud can provide the storefront execution layer for personalization at scale. The solution’s AI-assisted product recommendations capability enables organizations to show the most relevant products to each visitor at the right point in their shopping journey, from trending products and related items to complimentary products that support cross-sell and upsell motions. This can go beyond manual merchandising rules; it can respond dynamically to real-time behavioral signals, helping to improve conversion performance and drive product discovery at a scale no merchandising team could replicate manually.

Yet many SAP Commerce Cloud customers have not yet activated the full depth of these capabilities. The blockers are predictable: data quality gaps that limit recommendation model performance, integration complexity between the commerce layer and upstream profile data, and an absence of the experimentation discipline needed to tune and improve models over time.

The Advanced Success Plan for SAP Customer Experience solutions can bring targeted guidance to help address these barriers. Data readiness assessments can establish the quality baselines and integration patterns required to feed reliable signals into SAP Commerce Cloud’s personalization engine. Adoption accelerators help teams operationalize experimentation, defining hypotheses, running A/B tests, and translating results into durable configuration changes. The outcome is a storefront that can continuously learn and improve, rather than one frozen at the point of initial configuration.

Hyper-personalization in SAP Engagement Cloud

SAP Engagement Cloud, powered by SAP Emarsys, can extend personalization beyond the storefront and into the full lifecycle of the customer relationship. This is where SAP Commerce Cloud’s transactional signals combine with engagement history to help power cross-channel personalization that is individual rather than segment-based.

The solution’s AI-assisted send time optimization capability is a direct example of this philosophy in practice. Rather than sending campaigns on a fixed schedule, the capability can analyze each contact’s behavioral patterns—independently of time zone, language, or region—and deliver messages at the precise time each individual is most likely to engage. This is not personalization as a concept; it is personalization as an automated, scalable operational process.

Paired with the SAP Emarsys, AI-assisted campaign translator capability and omnichannel orchestration, SAP Engagement Cloud enables marketing teams to move from building campaigns to orchestrating journeys where the system is continuously learning which signals should trigger which interactions and adapting those interactions based on what drives response.

The native integration between SAP Commerce Cloud and SAP Engagement Cloud is a critical accelerator here. By unifying commerce behavior and engagement data, organizations can drive increases in conversion rate, purchase frequency, and average order value in ways that neither system could achieve independently. The Advanced Success Plan for SAP Customer Experience solutions helps customers realize this joint value by aligning integration architecture, data governance, and adoption milestones across both products within a single, coordinated engagement model.

How the Advanced Success Plan enables continuous improvement

Hyper-personalization projects are often treated as one-time implementations. The Advanced Success Plan for SAP Customer Experience solutions is designed to make them repeatable, continuously improving programs. This means:

• Outcome-based governance: Co-defining the KPIs that matter, such as conversion rate lift, repeat purchase rate, engagement open rates, and average order value, and building work streams aligned to move them measurably.
• Prescriptive adoption patterns: Structured playbooks for activating AI-assisted recommendations, send time optimization, and next-best action logic, with clear milestones and measurable gates.
• Continuous enablement: Role-based coaching for the teams responsible for data, product ownership, and campaign operations, closing skills gaps that otherwise cause personalization programs to plateau or regress.
• Proactive telemetry: Regular adoption checks that surface underperforming configurations before they impact business outcomes, and AI-guided best practices that inform ongoing tuning.

Making the business case concrete

For SAP Commerce Cloud customers, the value of operationalized hyper-personalization can be seen in storefront metrics: higher conversion from AI-surfaced recommendations, increased average order value through intelligent cross-sell, and improved product discovery that reduces bounce and exit rates.

For SAP Engagement Cloud customers, the value can be seen in engagement quality: open rates and click-through rates that reflect individual relevance rather than list-wide broadcast, improved campaign ROI through AI-optimized delivery, and loyalty program engagement that reflects relationship depth rather than transaction volume.

Across both, the compounding effect of unified data and orchestrated decisioning is what transforms hyper-personalization from a POC into a sustained growth mechanism, one that gets measurably better over time.

Payal Sachdev is product manager for the Advanced Success Plan for SAP Customer Experience.
Tara Tracey is global product owner for the Advanced Success Plan for SAP Customer Experience.