SAP Brings Migration and Modernization Assistants to Customers’ Cloud ERP Transformations

To help customers accelerate their move to cloud ERP, SAP is bringing to life its migration and modernization assistants for transformation projects.

Accelerate your most complex, time-intensive transformation activities

Supporting key workstreams, including data management, test management, custom code modernization, and business configuration, these assistants help organizations simplify transformation activities, accelerate project execution, improve decision-making, and increase readiness for cloud ERP adoption.

ERP transformation has become a business imperative for many organizations. Cloud modernization connects organizations to AI, automation, and analytics capabilities that legacy on-premises infrastructure could not support at scale. However, transformation programs can be complex, involving numerous stakeholders and requiring thousands of business and technical decisions.

This year at SAP Sapphire, SAP introduced new agent-led transformation tooling and outlined how migration and modernization assistants can reduce ERP migration efforts.

Today, four of these assistants are available to early adopter customers and are already supporting live cloud ERP transformation projects.

Migration and modernization assistants go live in customer transformation projects

ERP transformation projects require organizations to assess large volumes of business data, understand quality issues, evaluate migration implications, and prioritize remediation efforts across complex landscapes. The Data Management Assistant analyzes data quality metrics, identifies and prioritizes issues based on business impact, recommends remediation actions, and helps execute corrections through both automated and guided remediation approaches.

AkzoNobel, a global leader in paints and coatings, is currently on a RISE with SAP journey, consolidating its ERP landscape as part of a large-scale transformation. Participating in the SAP Early Adopter Care program, the company uses the Data Management Assistant to define data quality scope, evaluate issues across the landscape, and prioritize remediation efforts based on business impact. The assistant gives a structured, end-to-end approach to orchestrating workstreams and managing data quality throughout the company’s ongoing transformation.

“The Data Management Assistant gave us clear visibility into our most business-critical data quality issues and helped us prioritize remediation where it matters most,” said Thilak Selvam, Master Data Program Lead at AkzoNobel. “It reduced analysis effort, accelerated our planning, and provided a structured approach to maintaining data hygiene and quality controls as we prepare for future transformation initiatives.”

Defining test scope, preparing test cases, validating business processes, and ensuring representative data is available often requires substantial effort from both business and IT teams. The Test Management Assistant accelerates test preparation and improves testing effectiveness. By analyzing business processes, requirements, and user stories, it helps define test scope, identify critical business scenarios, generate test cases, and determine the test data needed to execute them.

Test cases are handed off to SAP Test Automation by Tricentis for automated execution, enabling continuous validation at scale. The result is less manual effort, improved coverage of business-critical processes, and greater confidence in deployment readiness.

The Custom Code Assistant helps organizations modernize their custom developments as part of the transition to SAP Cloud ERP Private and continues to support clean core compliance and cloud-ready transformation beyond initial migration.

It supports teams in assessing custom code, identifying migration and remediation opportunities, aligning extensions with clean core principles and SAP-recommended APIs, and adapting legacy applications for cloud-ready architectures. Acting autonomously, it classifies findings by complexity, applies available automated fixes, and generates AI-driven recommendations and code corrections for the remaining findings. The assistant helps customers determine where to adopt SAP standard processes and where custom extensions provide genuine business differentiation. This reduces technical debt, accelerates cloud adoption, and enables organizations to preserve the capabilities that set their business apart while taking full advantage of SAP innovation.

For customers adopting SAP Cloud ERP, the Business Configuration Assistant supports organizations in accelerating business design and implementation planning. It recommends and autonomously applies configurations tailored to the customer’s industry, segment, and business goals, supporting teams in defining scope, setting up organizational structures, and translating requirements into implementation-ready configurations. It also extracts source configurations, flags deviations from SAP target requirements, and maintains a full audit trail—reducing manual effort, improving consistency, and accelerating the path to a production-ready SAP Cloud ERP system.

Expanding across the full transformation life cycle

SAP plans to further expand the migration and modernization assistant portfolio across the transformation life cycle. Planned innovations include the System Analysis Assistant, which creates a customer-specific understanding of existing systems, configurations, and custom developments, providing the foundation for AI-supported guidance throughout the transformation journey and the basis for all other assistants, grounded in customer-specific system data.

In addition, the Project Management Assistant is planned to provide real-time project insights, proactively identify risks, and help orchestrate transformation activities across teams and stakeholders.

The portfolio will also be extended with the Rollout Assistant, which helps organizations align global templates with regional requirements, accelerating local rollouts while reducing effort for business and IT teams through AI-driven guidance.

Together with the Data Management, Test Management, Custom Code, and Business Configuration Assistants available today, these capabilities will offer customers a fully integrated, agent-led transformation experience that helps organizations simplify complexity, accelerate execution, and realize value from SAP Cloud ERP faster.

As SAP continues to expand its migration and modernization assistant portfolio, organizations will increasingly benefit from AI support across every phase of ERP transformation, from initial system assessment and project planning through implementation, go-live, and beyond.

Learn more at www.sap.com/MMA.

SAP Learning session: Reimagining migration and modernization with agent-led AI assistants

Maura Hameroff is chief marketing officer for SAP Cloud ERP Private and RISE with SAP.
Sonja Liénard is head of ABAP Platform at SAP SE.
Soeren Ruder is chief product officer and global head of Customer Experience & Solutions for SAP SE.

SAP and NTT to Cooperate on Delivering Trusted Sovereign Cloud and SAP Business AI Capabilities

TOKYO — SAP SE (NYSE: SAP) and NTT Inc. today announced their intention to cooperate in the areas of SAP Sovereign Cloud and SAP Business AI.

The planned collaboration aims to bring together SAP’s enterprise application portfolio, SAP Sovereign Cloud and SAP Business AI capabilities with NTT’s global infrastructure, full-stack integrated operations, deep industry AI expertise and global customer reach to help customers benefit from cloud and AI innovation while retaining control over sensitive data, operations, technology and security. The planned collaboration reflects the shared ambition of SAP and NTT to advance secure, resilient and sovereign digital transformation for regulated industries.

Supporting Sovereign Cloud Requirements 

As an initial area of cooperation, SAP and NTT plan to work together to provide a broad set ofsovereign capabilities that combine the SAP Sovereign Cloud On-Site offering with NTT-managed infrastructure and operations to customers in key markets. 

SAP Sovereign Cloud On-Site is SAP’s deployment offering for customers with stringent sovereignty, regulatory and compliance requirements. It enables SAP-managed cloud solutions to be operated in a customer-owned or customer-selected data center. This provides organizations with a high degree of sovereignty across local physical control, data residency and operational assurance, while helping customers address applicable local legal and regulatory requirements.

By combining the capabilities of SAP Sovereign Cloud with NTT’s global reach and expertise in advising, designing, delivering and operating secure infrastructure, the companies intend to support customers in geographies where strong local control is required. These capabilities are intended to help governments, defense organizations, defense industry companies, critical infrastructure operators and other regulated enterprises modernize mission-critical processes while maintaining control over sensitive data and operations and addressing compliance requirements. 

Exploring the Value of AI  

Building on this foundation, SAP and NTT intend to explore broader opportunities to help governments, critical infrastructure operators and highly regulated industries modernize mission-critical processes and adopt AI in a secure, responsible and sovereign manner.

“With this cooperation, SAP and NTT aim to give customers a practical path to cloud and AI innovation while maintaining the control, governance and trust they require,” said Dominik Asam, member of the Executive Board and Chief Financial Officer, SAP SE. “For public sector organizations and regulated industries, sovereignty is not just a compliance requirement, it is the foundation for resilience, competitiveness and the responsible adoption of AI. Together, we want to help customers innovate while meeting their sovereignty requirements.” 

“Our customers are looking for practical ways to use AI to solve real business challenges and create new value,” said Yutaka Sasaki, Representative Member of the Board, Senior Executive Vice President and Chief Financial Officer, NTT. “By combining SAP’s business applications and AI capabilities with NTT’s deep understanding of industry needs and mission-critical operations, we aim to help organizations transform how they work, make better decisions and accelerate business outcomes through AI.”

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AI Release Highlights Q3 2026

This quarter marks a major step in delivering on our promise of the Autonomous Enterprise, with 45,000 cloud customers now using SAP’s AI solutions.

Help people achieve more, respond to change, and uncover new opportunities with AI from SAP

In Q3, we expanded our portfolio of Joule Assistants and introduced dozens of specialized agents that help customers move beyond isolated tasks toward connected, end-to-end execution. The value of AI has always been about what it accomplishes for our customers. Our recent releases help them streamline processes, increase productivity, and build more resilient operations.

Joule is SAP’s portfolio-wide AI engagement layer, combining agentic capabilities with SAP business applications to help organizations become an Autonomous Enterprise. Through Joule Work, the new UI for AI, people describe what they want to achieve, get relevant insights, build app-less spaces personalized to their needs, and take action across connected business systems. When it’s time to execute, Joule Work selects the right Joule Assistant for the job. These assistants act as domain experts, bringing knowledge of roles and processes to the task at hand. They orchestrate specialized Joule Agents to execute tasks, using business context and data, respecting established authorizations, and maintaining audit trails. People set the direction, assistants coordinate agents, and agents carry out work with proper oversight and governance.

For example, billing teams can create invoices, identify anomalies, and resolve posting errors with the Billing Assistant and its agents. Supply chain planners can detect critical shortages earlier, assess trade-offs between service levels and inventory investment, and coordinate responses with the Supply Chain Planning Assistant. Maintenance teams can turn asset signals into coordinated maintenance action, helping address problems before they become larger operational disruptions. People retain oversight and control, while assistants and agents help reduce manual effort.

Customers are already putting these capabilities to work. PwC is using SAP’s Billing Assistant to help identify potential issues earlier, supporting better client outcomes. Novartis has launched a pilot of the Sourcing Assistant to help sourcing professionals focus on strategy, supplier engagement, and value creation.

“Agents bring consistency and speed to work that previously required a lot of manual effort and coordination,” said Christoph Buerki, head of Procurement at Novartis. He expects improvements of 25% faster cycle times and a 35% uplift in FTE productivity.

As organizations adopt more agents, they need a clear view of their AI landscape. SAP AI Agent Hub provides a central inventory of SAP and non-SAP agents, helping teams keep track of and govern their growing agent portfolio. With SAP Signavio agent mining and the Process Consulting Agent, we enable customers to identify their biggest opportunities for agentic AI and execute on them right away. This visibility supports a more coordinated approach to managing AI adoption across the business.

With Joule Studio, accessible through Joule Work, customers can create agents tailored to their business and extend SAP standard agents with their own instructions. Browser-based tools and pro-code development options support different levels of technical expertise, while testing, versioning, and deployment turn ideas into agents that take action. This lets customers extend SAP’s capabilities to meet their business requirements.

Now, let’s dive into recent innovation.

Please note that this article covers only AI offerings released since July 1, 2026.

Joule

Joule Work

Employees can spend less time navigating applications and more time turning information into outcomes with Joule Work, which is available on desktop, in-app, web, and mobile. Joule Work, the new UI for AI, connects local and cloud environments, bringing conversational AI closer to the files, information, and business tools employees use every day. Employees can work with local files and folders in a secure sandbox environment, access current information through integrated web search, and connect to SAP and non-SAP applications using Model Context Protocol (MCP) tools and Agent-to-Agent (a2a) integrations. Custom and corporate skills help streamline repetitive tasks, while local data and connected tools support faster creation of presentations, summaries, and other assets. And where a skill is not enough, the SAP Knowledge Graph kicks in to search the entire space of business objects available to users for deeper transactional and analytical queries. Together, these capabilities reduce manual information analysis and help employees focus on higher-value work.

Dynamic workspaces, which we refer to as spaces, bring together insights, applications, Joule Assistants, and agents to support business workflows. Employees express what they want to accomplish, and Joule Assistants coordinate specialized agents to carry out the work. This effectively initiates the journey into a world where generative UI delivers an ultimate personalized experience to any end user. Joule Studio complements this experience with capabilities to build, deploy, and govern custom agents and workflows.

Early adopter feedback shows how this experience is changing the way employees interact with business information. Reinhausen, a global technology leader in electrical grid technologies, joined the Joule Work desktop early adopter program to support its AI journey. “What once required up to an hour of manual effort across our SAP S/4HANA environment is now accessible in seconds through natural language, fundamentally changing how our teams interact with business data,” said Peter Wied, director of Complexity Management at Reinhausen.

Customers are also using custom assistants to bring expertise closer to employees. Warehouse automation company KNAPP used Joule Studio to build an assistant that helps workers identify and resolve problems without waiting for an expert, reducing issue resolution times by about 90% and time spent on documentation and training by about 80%.

Managing Risk in Chemical Manufacturing with SAP Business AI and Joule

How can chemical manufacturers respond to market disruption, protect margins, and build supply chain resilience with SAP Business AI and Joule?

Discover how SAP helps chemical enterprises connect business operations, respond to geopolitical uncertainty, and make more informed decisions across finance, sales, manufacturing, HR, and procurement.

In this end-to-end demonstration, follow a fictional global chemical company, S. Chem Enterprise, as it responds to rising trade restrictions and supply chain risks. When automated risk assessments identify threats to critical chemical markets, SAP enables leaders to evaluate the potential financial impact through profit-and-loss simulations. Sales teams use Joule to identify new opportunities in high-margin barrier coatings for the electric vehicle and battery markets, while finance teams analyze overdue accounts and explore ways to improve cash flow.

See how connected business insights and AI-assisted workflows help teams take coordinated action. When a component shortage threatens production at a North American plant, Joule helps planners assess alternative suppliers, compare procurement costs, and create an emergency purchase requisition. HR teams identify critical skills gaps and prepare targeted job requisitions to support changing production needs. Procurement leaders then evaluate supplier concentration, tariff exposure, and sourcing alternatives to strengthen long-term resilience.

This walkthrough demonstrates how SAP Business AI and integrated enterprise data can help chemical manufacturers move beyond disconnected decisions toward more proactive operations. From risk identification and financial planning to workforce readiness and supplier diversification, discover how connected processes support business continuity, operational agility, and informed decision-making.

Chapters
00:00 – Building Resilience in Chemical Manufacturing
00:28 – Identifying Geopolitical and Financial Risks
01:09 – Finding New Market Opportunities with Joule
01:29 – Improving Cash Flow and Receivables
01:54 – Managing Production Shortages and Suppliers
02:13 – Addressing Critical Workforce Skills Gaps
02:43 – Building Procurement and Sourcing Resilience
03:25 – Connecting Decisions Across the Enterprise
03:46 – Explore SAP Solutions for Chemicals

Explore SAP solutions for the chemicals industry and discover how connected business processes and AI can help your organization manage uncertainty and build resilience:
https://sap.to/6051BHwfzT

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As a global leader in enterprise applications and business AI, 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: https://sap.to/6059BHwfzb

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For the 12th Time, SAP Named a Leader in Gartner® Magic Quadrant™ for Digital Commerce Platform

SAP has been named a Leader in the 2026 Gartner® Magic Quadrant™ for Digital Commerce Platforms, making SAP the only vendor recognized as a Leader 12 times since 2014.

Build the foundation for agentic commerce

We believe the 2026 evaluation recognized SAP for strengths in areas that are increasingly important to enterprise commerce: using AI to make commerce more intelligent, supporting complexity at global scale, and connecting commerce with operational data.

For SAP, these areas come to life in how we help customers simplify complex commerce and prepare for what comes next.

Making commerce more intelligent with AI

AI is changing how customers discover products, interact with businesses, and complete purchases. It is also creating opportunities to simplify work for commerce teams.

SAP Commerce Cloud helps bring AI into customer experiences and commerce workflows while maintaining the business controls required for enterprise transactions.

Ericsson provides an example of what this can look like in practice. Generating a customer quote could once take more than two weeks. Today, after digitizing and streamlining its commerce processes with SAP Commerce Cloud, many of those requests can be completed in minutes or even seconds. With that digital foundation in place, Ericsson is now exploring how AI agents could support quote creation while employees remain responsible for oversight and decision-making.

The goal is straightforward: use AI to reduce complexity, make commerce easier for customers, and give employees more time to focus on higher-value work.

Supporting complexity at enterprise scale

For global enterprises, commerce rarely means managing a single storefront or business model. Businesses may need to operate across multiple brands, markets, sites, languages, currencies, channels, and customer types while maintaining consistency and control.

SAP Commerce Cloud helps enterprises manage that complexity and provides the flexibility to evolve as their businesses grow.

Daimler Truck North America demonstrates the value of building that foundation for the long term. Roughly 30,000 users interact with its commerce platform every day, and DTNA reports approximately 40% compound annual growth over the lifetime of the platform. Those results have been built through years of investment in platform modernization, cloud migration, dealer collaboration, and alignment between business and IT.

As businesses expand and customer expectations evolve, having a commerce platform that can grow and adapt with the organization becomes increasingly important.

Connecting commerce with your operations

A great commerce experience depends on what happens behind the storefront.

Customers expect accurate products, prices, inventory, entitlements, and order information when they need it. Businesses need commerce to work with the operational processes and enterprise data behind every interaction.

SAP Commerce Cloud connects commerce with those operations, helping businesses deliver more consistent customer experiences while simplifying execution across the enterprise.

SAP Commerce Cloud, cloud ERP edition, noted in this year’s report as a recent platform release, extends this approach to mid-sized and growing businesses running SAP Cloud ERP. Purpose-built for B2B companies looking to modernize customer engagement without adding complexity, it turns the pricing, availability, order, and invoice data already in their ERP into a direct self-service experience for customers, with faster deployment, lower total cost of ownership, and no middleware required.

That connection is also central to Autonomous Unified Commerce from SAP: connecting customer, commerce, operational, and financial processes on a common data foundation, while embedding AI into business workflows to help organizations execute more efficiently and drive profitable growth.

Looking ahead

AI is creating new ways for customers to discover products, get answers, and complete purchases through AI-powered interfaces and assistants beyond the traditional storefront. Commerce is evolving to support these new channels via the Universal Commerce Protocol (UCP) and Model Context Protocol (MCP).

The real work is getting AI into the daily operations that actually drive revenue, reduce cost, and help businesses serve their customers better. Our focus is to help customers navigate these changes by making complex commerce simpler, supporting growth at enterprise scale, and creating more connected and intelligent ways of working.

We are proud to mark SAP’s 12th recognition as a Leader and grateful to the customers, partners, and SAP teams who continue to move commerce forward.

To learn more and explore the digital commerce platforms market, access a complimentary copy of the 2026 Gartner Magic Quadrant for Digital Commerce Platforms here.


Kollen Glynn is global head of SAP Commerce Cloud for SAP Customer Experience at SAP.

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Gartner, Magic Quadrant for Digital Commerce Platforms, Aditya Vasudevan, Penny Gillespie, Sandy Shen, Jason Daigler, Mike Lowndes, 19 October 2026.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates.
SAP was recognized as SAP Hybris in 2014, 2016 and 2017.

SAP Acquires TechWolf & More | Top Autonomous HCM Announcements at Success Connect 2026

HR has a new mandate: Don’t just manage work. Redesign it.

At SAP Connect, we announced our intent to acquire TechWolf, bringing deeper skills and workforce intelligence into SAP SuccessFactors as it moves toward Autonomous HCM.

Explore the latest announcements here: https://sap.to/6059BGNZOD

#SAPConnect #SAPSuccessFactors #AutonomousHCM

Keynote: Connected Intelligence: Bringing the Autonomous Enterprise to Life | SAP Connect

Watch the full SAP Connect 2026 keynote, live from Las Vegas. SAP CEO Christian Klein and team reveal how the Autonomous Enterprise is moving from vision to reality — with live demos, customer proof points, and five major announcements.

What you’ll see:
⃗➡️ Joule Work — the new AI engagement layer rolling out to all SAP customers, built on conversations, Spaces, and Joule Studio
➡️ SAP Autonomous Suite — 200+ agents generally available across finance, spend, HCM, supply chain, and customer experience, with 400+ planned by year-end
➡️ SAP Business AI Platform — the build, context, and governance foundation for enterprise agents, including Joule Studio, Knowledge Graph, Business Data Cloud, and SAP AI Agent Hub
➡️ SAP Pay — payment execution and reconciliation embedded directly in SAP Cloud ERP
➡️ Industry AI — how industry-specific context makes agents smarter, with PwC and other customers showing real-world use

Customers featured: Novartis (procurement), Morgan Foods (supply chain), Nestlé (finance), PwC (industry AI and professional services)

Speakers: Christian Klein (CEO), Jan Gilg (President, Autonomous Suite), Muhana Albuloushi (Business AI Platform), Rebecca Schofield (SAP SuccessFactors), Marielle Ehrmann (Trust & Security), and customer guests

0:00 — Opening: The Autonomous Enterprise
2:31 — Christian Klein keynote
5:39 — Introducing Joule Work
11:48 — The SAP Autonomous Suite
14:24 — SAP Business AI Platform: Build, Context, Govern
16:33 — Live demo: Joule Work and the Business AI Platform
24:58 — The Autonomous Suite across every line of business
27:37 — Novartis: Autonomous sourcing agents
32:37 — Autonomous supply chain in action
42:00 — Morgan Foods: S/4HANA and IBP at scale
48:12 — Announcing SAP Pay
50:51 — Nestlé: Finance transformation with Joule
54:54 — PwC: Industry AI for professional services
1:01:35 — Trust, security, and AI governance

Watch SAP Connect replays: https://sap.to/6059BGF5c9
Deep dive into all announcements: https://sap.to/6050BGF5ci
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About SAP:
As a global leader in enterprise applications and business AI, 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: https://sap.to/6055BG0v3R

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When AI Moves From Answers to Action

A delayed delivery rarely stays in one part of a business. It can disrupt production, postpone a launch, affect a customer commitment, and change a financial forecast.

The signal may appear in one transaction or document, but the response depends on context from several functions. Which orders are affected? What alternatives are available? Who needs to act and what should happen next?

Why context matters

This is the role of Industry AI: applying artificial intelligence to industry-specific business data, processes, and expertise so people can move from a signal to an informed action. SAP Business AI Platform supports people in the applications they use every day. Industry AI extends that foundation across the workflows and decisions that matter in a particular industry.

The same event can mean something different in manufacturing, retail, or global trading. A change in demand can affect planning, procurement, and production. A delivery date can influence revenue forecasts and customer commitments. AI becomes more useful when it can recognize these relationships and work with the people who understand them.

People define objectives and guardrails and remain in control. AI assistants, agents, and intelligent applications can help analyze complex situations, bring together relevant information, and coordinate next steps. The value is not only faster execution of an individual task. It is the ability to connect decisions across the business.

How context turns into action

ITOCHU Corporation, a global trading company, is working with SAP to apply AI to financial processing for complex trading transactions. The initial use cases bring together information from transaction documents and related business activities so finance specialists can determine the appropriate accounting treatment more efficiently.

Building Business Resilience and Agility at ITOCHU 

One example is intelligent general ledger posting for raw-material transactions. The solution helps identify the relevant general ledger account and commission information, including the context required for different transaction models. This makes the first step concrete: use AI where a defined process contains repetitive work, complex business rules, and a clear need for context.

The approach keeps the human role clear. Finance specialists review and guide the result, while AI helps prepare information and reduce manual effort.

Beyond a single process

The opportunity extends beyond one finance process. ITOCHU and SAP are using the initial implementations to explore a broader Industry AI approach for the trading industry. Trading companies connect suppliers, customers, products, logistics, contracts, and financial outcomes across business units. An AI capability that understands one process can create a foundation for connecting the next.

SAP brings enterprise applications, business data, process knowledge, and AI together. In collaboration with customers and industry experts, SAP uses that foundation to develop capabilities around the outcomes and requirements of a specific industry. Lessons from customer projects can inform solutions that are repeatable and scalable, while the original customer context keeps the work grounded in actual business needs. That is how SAP can turn an individual customer use case into a foundation for future industry capabilities.

From use cases to Industry AI

This approach will be discussed at SAP Connect in Las Vegas from October 5-7, 2026. At the Finance Connect keynote, “Autonomous Finance: From road map to reality,” ITOCHU Corporation will share how its initial AI use cases can support an Industry AI initiative across the trading business. The session will be available in person, live online, and on demand.

AI should be measured by more than the quality of a single answer. Its real value lies in helping people understand what is happening, decide what matters, and act across the business. That is how the value of AI multiplies: insight creates clarity, and action creates impact.


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

Discover how to maximize your SAP solutions across every line of business along your journey to become an Autonomous Enterprise

Five Years of Procurement Change: From Digital Ambition to Measurable Value

This year marks the fifth consecutive edition of Economist Enterprise’s Procurement Imperative research, sponsored by SAP. The latest study, Procurement at a Crossroads: From Optimism to Realism, surveyed 2,648 C-suite executives across 23 countries and examines how procurement leaders are responding to pressures ranging from cost control and geopolitical volatility to the rapid advance of artificial intelligence.

The anniversary offers an opportunity to look beyond any single year and consider how procurement has changed since the first year of this survey in 2022. What stands out is that the function has not followed a simple path from tactical to strategic. Its mandate has broadened, but so has the expectation to prove its value: control cost, anticipate risk, strengthen supply continuity, and turn technology investment into measurable outcomes.

Read the Economist Enterprise study: “Procurement at a Crossroads: From Optimism to Realism”

Five takeaways from the research help show where procurement has been and where it may be heading next.

Takeaway 1: cost never left the job description—but it’s now more important than ever

In 2022, procurement leaders were still operating in the shadow of the pandemic. Supply chain risk ranked as the leading organizational risk, while COVID-19 disruption was the top driver of digital transformation.

As conditions changed, procurement’s agenda expanded to resilience, visibility, supplier diversification, and digitalization. But cost never disappeared. In 2022, cost savings led the areas where respondents believed procurement could deliver greater value. In the 2026 study, 54% of executives identify cost savings and optimization as procurement’s primary contribution to the organization. The line of questioning is not directly comparable year over year, but the broader pattern reveals that a more strategic mandate has not lessened the importance of financial discipline.

That is not a retreat. Modern cost management requires understanding demand, supplier economics, working capital, risk, and the operational consequences of commercial decisions. Procurement’s cost mandate has become more sophisticated, not less important.

Takeaway 2: digital transformation has moved from funding to execution

One of the clearest changes is what now stands in the way of transformation.

In 2022, budget was the leading barrier to digital transformation at 30.2%. By 2026, it dropped to fourth on the list, as ease of deployment became the primary concern of 71.7% of executives, a category that did not exist as a response option in 2022. Budget still matters, but it is no longer the defining obstacle.

Procurement spent years making the case for technology investment. The conversation has moved past “Can we afford it?” to “Can we actually implement it?” Procurement leaders are now challenged to embed technology across real processes, data environments, and organizations.

The motivation for transformation has also shifted. In 2022, pandemic disruption was driving both preparation and investment. Today’s expectation of flat-to-cautious growth is more structurally normal, but the pressure to do more with less remains a constant. The question for today’s procurement teams is whether they can deploy new technology effectively enough to generate repeatable business value.

Takeaway 3: AI has raised both the opportunity and the standard

The latest findings make the scale of the AI shift unmistakable. Sixty percent of executives name digital transformation as procurement’s top strategic priority for the next 12 to 18 months, up from 38% in 2025, with agentic AI emerging as the most sought-after near-term technology.

But enthusiasm is now accompanied by greater scrutiny. As AI enters category management, intake, sourcing, and other workflows, procurement leaders need to be clear about the business outcome being improved, the data required, and the controls governing how AI acts.

The five-year view shows how quickly expectations have advanced. In 2022, digital technology broadly led the category-management improvement agenda at 35.8%. By 2023 and 2024, priorities had grown more specific, centering on cost analysis, scenario planning, and data quality. By 2026, AI-driven and predictive insight is the dominant category-management priority, cited by 66.6% of respondents.

Technology is shifting from helping procurement professionals find information toward helping them interpret choices and execute defined tasks. As that happens, the value case must move with it—from access to information toward measurable improvements in decisions and outcomes.

Takeaway 4: strategic influence is becoming more operational

For years, procurement leaders have talked about earning a “seat at the table.” But the research suggests that where procurement sits on the organizational chart may be becoming a less useful measure of its strategic influence.

In 2022, the COO was already the largest procurement reporting line at 33.5%, with the CFO close behind at 29.3%. By 2026, the COO share has risen to 44%, while the CFO share stands at 24.4%, and reporting lines to the CEO have declined from 18.8% to 15.7%.

This suggests that procurement’s strategic relevance is increasingly expressed through operational execution. Influence comes from improving decisions across cost, supply, risk, and technology—not from where procurement appears on an organizational chart.

The results across recent years reinforce that shift. In 2023, 53% of executives agreed that procurement effectively collaborated with the rest of the organization to meet the company’s vision. That rose to 75% in 2024 and 90% in 2025, pointing to growing integration between procurement and the wider business.

That growing integration does not necessarily mean procurement has secured a permanent strategic role. In 2024, 70% of executives said procurement was actively involved in developing the wider organization’s digital transformation strategy, although only 18% strongly agreed. By 2026, executive confidence in procurement’s influence over digital transformation had fallen to 68%, down from 91% in 2025.

The contrast is telling: procurement is becoming more integrated with the business, but greater visibility does not automatically translate into sustained strategic influence. A seat at the table matters less than what procurement delivers once it is there.

Takeaway 5: the skills equation has changed

Technology is not the only thing procurement teams have had to reinvent. The capabilities required to use it effectively have changed just as quickly.

In 2022, skills gaps were relatively dispersed across technology (34.6%), category knowledge (32.0%), risk management (26.8%), and customer experience (25.6%). By 2025, AI proficiency and ethics had emerged as the leading skills priority at 68.2%, far ahead of more traditional procurement competencies at 34.1%.

But there is another part of the skills picture that deserves attention. In that same 2025 research, curiosity was prioritized by just 10% of respondents. That stands in contrast to what I continue to hear from procurement leaders, who increasingly describe curiosity as one of the skills that will separate the teams that thrive in the AI era from those that merely use the technology.

Traditional procurement expertise is not obsolete. If anything, more capable technology increases the value of professionals who understand categories, suppliers, markets, and organizational change. AI fluency on its own is not enough. As technology takes on more work, professionals need the curiosity to question outputs, challenge assumptions, explore what is changing in a market, and bring business context to the decisions technology helps inform.

The opportunity lies in combining deep commercial knowledge with greater AI fluency. The procurement professional of the next five years will need to know not only how to use new tools, but when to challenge their outputs, how to apply business context, and where human judgment still matters most.

The next chapter is about proof

Five years ago, procurement transformation was heavily shaped by external shocks. Today, organizations are making more deliberate choices about AI, analytics, talent, and operating models while being asked to deliver savings, manage volatility, and improve productivity simultaneously.

The next chapter is about forging a clear connection between strategic and cost value, and between human expertise and AI capability. Five years of research suggest procurement has earned a broader role. The next five will be about proving what it can do with it.


Gordon Donovan is global vice president of Research, Procurement, and External Workforce at SAP.

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SAP Master Data Governance in SAP S/4HANA Cloud Public Edition 2608 | Release Highlights

SAP S/4HANA Cloud Public Edition 2608 brings new SAP Master Data Governance innovations to help organizations improve product master data quality, streamline governance processes, and support compliance with structured workflows, validations, and duplicate checks.

In this release highlights video, Mirella’s digital twin explores the latest SAP Master Data Governance enhancements delivered with SAP S/4HANA Cloud Public Edition 2608. See how Central Governance now supports product master data in addition to business partner data, helping organizations manage product creation and changes through a controlled change request process.

You’ll see how Central Governance for Product Master Data helps ensure that product changes do not take effect immediately. Instead, they are captured in a change request and routed through a configurable workflow. The person submitting the request can include priority, due date, reason, and notes, giving specialists and approvers the business context they need to review and follow up efficiently.

The video also highlights how validation rules and duplicate detection help improve data quality and compliance. By applying checks throughout the change request process, SAP Master Data Governance helps organizations create and maintain high-quality, compliant product master data from day one. This provides a stronger foundation for downstream business processes such as planning and production.

Highlights include:
🎯 Central Governance for Product Master Data — Extend central governance capabilities to product master data in addition to business partner data.

📝 Structured change request process — Manage product creation and updates through controlled change requests before changes take effect.

🔄 Configurable workflows — Route product data changes through workflows with priorities, due dates, reasons, notes, and approvals.

✅ Validation rules — Apply configurable checks to help ensure product master data meets data quality and compliance requirements.

🔍 Duplicate detection — Identify potential duplicates during the governance process to support cleaner master data.

🏭 Downstream process support — Maintain high-quality master data to support planning, production, and related business processes.

Chapters:
00:00 – Introduction and welcome
00:23 – SAP Master Data Governance enhancements in release 2608
00:33 – Central Governance for Product Master Data
00:42 – Managing product creation and changes through change requests
00:53 – Workflow management with priorities, due dates, and approvals
01:02 – Validation rules and duplicate detection
01:12 – Benefits for planning and production
01:22 – SAP’s commitment to a global ERP solution
01:27 – Additional resources and SAP Community

• Read Mirella’s blog on SAP Master Data Governance release highlights in SAP S/4HANA Cloud Public Edition 2608:
https://sap.to/6056BG6tH2
• Explore SAP Community:
https://sap.to/6055CIrvT
• Learn more about SAP Cloud ERP:
https://sap.to/6056CIrvp

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About SAP:
As a global leader in enterprise applications and business AI, 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: https://sap.to/6053BG6tHh

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