Extensibility with SAP S/4HANA Cloud Public Edition 2502

Harish Mangtani from Cloud ERP Product Success Enablement introduces the groundbreaking Scalable Delivery in Extensibility SAP S/4HANA Cloud Public Edition 2502 release, revolutionizing how partners develop and distribute ABAP Cloud extensions. This new feature allows partners to deliver extensions to an unlimited number of customers, unlocking limitless possibilities for innovation and tailored solutions in SAP S/4HANA Cloud.

The key highlights shared in this video are:
00:25 Scalable Delivery in Developer Extensibility for Partners
01:10 Partner & Customer Landscape and the Landscape Portal

✔️Find Harish’s blog post further discussing the innovations mentioned above by visiting his profile at https://sap.to/6054xnq7j

✔️ Check out the SAP S/4HANA Cloud Public Edition Community: https://sap.to/6055xnq7d

✔️Hear more from Harish on Twitter at @HarryMangtani and on LinkedIn at https://sap.to/6056xnq7e

#saps4hana #erp

SAP Announces Q4 and FY 2024 Results

WALLDORF SAP SE (NYSE: SAP) announced today its financial results for the fourth quarter and fiscal year ended December 31, 2024.

  • SAP meets or exceeds all financial outlook parameters for FY2024
  • Current cloud backlog of €18.1 billion, up 32% and up 29% at constant currencies
  • Total cloud backlog of €63.3 billion, up 43% and up 40% at constant currencies
  • Cloud revenue up 25% and up 26% at constant currencies in FY2024
  • Cloud ERP Suite revenue up 33% and up 34% at constant currencies in FY2024
  • Total revenue up 10% and up 10% at constant currencies in FY2024
  • IFRS operating profit down 20%, non-IFRS operating profit up 25% and up 26% at constant currencies in FY2024
  • 2025 outlook anticipates accelerating cloud revenue growth

“Q4 was a strong finish to the year, with half of our cloud order entry including AI. Looking at the full year, we exceeded our cloud goals, accelerating cloud revenue and current cloud backlog growth against a much larger base. Total cloud backlog now stands at €63 billion, up 40%. Revenue growth has returned to double-digits. Looking ahead, our strong position in data and Business AI gives us additional confidence that we will accelerate revenue growth through 2027.”

Christian Klein, CEO

 

“We are pleased with the strong close to 2024, where we exceeded our cloud and software revenue, non-IFRS operating profit, and free cash flow outlook. With current cloud backlog growth of 29%, we’ve demonstrated the strength of our strategy and our ability to deliver on our commitments. This progress solidly aligns with the Ambition 2025 we set four years ago and positions us well for continued growth this year and beyond.”

Dominik Asam, CFO

Read the Quarterly Statement

Accelerating Impact Businesses at the 2025 World Economic Forum

The 2025 World Economic Forum’s Annual Meeting, held under the theme “Collaboration for the Intelligent Age,” brought together approximately 3,000 attendees from over 130 countries. Among the participants were more than 50 heads of state and government, alongside hundreds of top governmental leaders, private sector voices, and civil society experts. 

As the world faces pressing challenges — ranging from geopolitical tensions and climate change to a global skilling crisis –the meeting in Davos provided a vital platform to foster dialogue and catalyze lasting solutions to shared problems. It also highlighted the importance of corporate responsibility, with social innovation taking center stage as an essential driver of progress. 

Social Innovation Takes Center Stage 

SAP CEO Christian Klein on why we must overcome fragmentation to optimize AI for the benefit of all

Social innovation is emerging as a foundation for addressing global inequalities and driving systemic change. This year, discussions around social innovation took on greater prominence, with Catalyst Now hosting the first-ever dedicated house for the topic. This space became a hub for thought leaders, practitioners, and policymakers to exchange ideas and spark action.

Social innovation and collaboration go hand in hand, and the synergy between global initiatives and localized action is pivotal in creating meaningful impact. As a key partner, SAP supports Catalyst Now and its Africa Forward initiative, which empowers social enterprises through digital skills training, pro-bono consulting, and policy advocacy. With more than 1,000 members across 28 African countries, Africa Forward continues to foster job creation, sustainable funding, and advocacy efforts. 

The Annual Meeting also served as a bridge between African social entrepreneurs and decision-makers, including South Africa’s Minister of Science, Technology, and Innovation Professor Blade Nzimande, opening pathways for new partnerships and support.

The panel featured two 2025 Schwab Foundation Awardees: Christina Mawuse Gyisun, co-founder of Sommalife, who shared her work empowering women shea nut farmers in West Africa, and Muzalema Mwanza, founder of Safe Motherhood Alliance, who highlighted her mission to ensure safe childbirth for millions of women in sub-Saharan Africa. This dialogue underscored the critical role of social entrepreneurship and what role Africa Froward can play in driving sustainable development across the continent. This is essential, as over 60 percent of Africa’s population is under 25 years old and projected to account for 42 percent of the global youth demographic by 2030.

While tech investment remains concentrated in Nigeria, Egypt, Kenya, and South Africa, the continent’s potential in emerging green and digital economies is immense.   

Global Partnerships to Scale Innovation 

Addressing challenges at scale requires collaboration across sectors and geographies. The Global Alliance for Social Entrepreneurship, the largest coalition of its kind, exemplifies this collective effort. Hosted by the Schwab Foundation in collaboration with the World Economic Forum, the alliance brings together more than 110 organizations, including corporations, investors, philanthropists, and governments, to amplify the impact of social innovation. 

During the World Economic Forum Annual Meeting 2024, the Global Alliance launched the Rise Ahead Pledge. Twenty-five companies have signed the pledge since and committed themselves to increasing investments in social innovation. In 2025, they are reporting on their spending for the first time mobilized $277 million to drive meaningful change. These resources were channeled into key areas: 

  • $95 million to support social enterprises through social procurement
  • $86 million in non-financial resources like pro-bono services and technology access
  • $47 million to provide direct financial support to social innovators
  • $29 million for internal innovation, focusing on developing impact-driven products
  • $21 million to strengthen the social innovation ecosystem

We are an active partner in these efforts, demonstrating a commitment to creating sustainable pathways for social enterprises to thrive. 

Supporting Research to Shape the Future 

Research and data are critical to driving informed decisions and shaping the social innovation agenda. Several pivotal publications were launched during the meeting to provide actionable insights: 

  • Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions: This report highlights the pivotal role of the social economy, including social enterprises and cooperatives, in advancing equity during transitions. Supporting 200 million jobs and generating over $2 trillion in global turnover, the social economy drives inclusive innovation by enhancing affordability, accessibility, job creation, and empowerment for marginalized communities. 
  • State of Social Procurement 2025: This report leverages the expertise of numerous organizations to uncover new insights, present fresh data, and highlight diverse country profiles on social procurement.
  • Beyond Compliance: Embedding Impact through Innovative Finance: The report reveals how this emerging practice is already driving $185 billion by tying financial incentives to measurable social outcomes. It provides businesses with a powerful avenue to tackle societal challenges while staying competitive. 

A New Model for Procurement 

Procurement is increasingly recognized as a lever for social equity and sustainability. To accelerate this shift, SAP Executive Board Member Thomas Saueressig and Deloitte Global Chair Anna Marks announced the launch of the Social Procurement Innovation Accelerator, a joint initiative designed to reshape procurement practices and amplify social impact. 

This program combines cutting-edge supply chain technology with deep expertise in sustainability and transformation to provide organizations with a practical road map for impactful procurement strategies. It focuses on inclusive sourcing, ethical labor practices, and robust social impact measurement, enabling businesses to align procurement with broader equity and sustainability goals. 

By transforming procurement into a driver of systemic change, organizations can deliver lasting value for people, communities, and the planet. 

Empowering Tomorrow’s Changemakers  

It is essential to maintain this momentum now and into the future by empowering young social innovators, fostering connections, and encouraging intergenerational understanding. This is particularly important because major decisions made at conferences often concern youth, yet they rarely have a seat at the decision-making table.  

To address this, we supported the youth delegations of We Are Family Foundation, ChangemakerXchange, and the WEF Global Shapers, supporting them to participate in hundreds of meaningful interactions such as panel discussions, 1:1 meetings or roundtables.

Gina Vargiu-Breuer, chief people officer, labor director, and member of the Executive Board of SAP SE, hosted a roundtable on empowering young changemakers. The session brought together corporate leaders, young social entrepreneurs, and partners like UNICEF Generation Unlimited and Junior Achievement to engage directly with youth. It focused on the unique needs of the next generation, identifying key areas for collaboration and showcasing the transformative power of youth-led solutions to tackle global challenges. 

Looking Ahead 

The 2025 World Economic Forum’s Annual Meeting demonstrated the transformative potential of collaboration in accelerating social innovation. By bringing together diverse voices and perspectives, it reinforced the importance of partnerships in addressing the world’s most pressing challenges. 

For the SAP Corporate Social Responsibility team, it also served as a valuable opportunity to strengthen relationships within its ecosystem, fostering new collaborations that will help drive long-term impact. As global challenges persist, platforms like Davos provide the momentum needed to create a more equitable, sustainable future for all.


Alexandra van der Ploeg is head of Corporate Social Responsibility at SAP.

SAP powers equitable access to economic opportunity, education and employment, and the circular economy

Kearney Acquires Project Partners to Bolster SAP Transformations

Kearney’s strategic acquisition of Project Partners underscores its commitment to enhancing expertise in SAP transformations. Kearney, a global management consulting firm, has announced its acquisition of Project Partners Management GmbH, a specialized SAP partner renowned for guiding businesses through complex SAP S/4HANA transformations. This move highlights Kearney’s intent to expand its capabilities in digital and […]

The post Kearney Acquires Project Partners to Bolster SAP Transformations appeared first on InsideSAP.

Panaya and Cognizant to Enhance SAP S/4HANA Transformation

Recognizing the trend of having SAP S/4HANA transformation as a focal point for enterprises aiming to modernize their operations, Panaya and Cognizant have established a strategic collaboration to enhance the migration processes for organizations transitioning to the SAP solution. The shift to SAP S/4HANA represents a critical step for businesses aiming to optimize processes and […]

The post Panaya and Cognizant to Enhance SAP S/4HANA Transformation appeared first on InsideSAP.

Translating Performance Into Value: A New Way of Measuring Athletic Prowess

Until recently, predicting outcomes in sports was usually based on historical data compiled from player and team statistics. This approach, however, can’t guarantee outcomes; in fact, it often leads to dashed expectations and disappointing results.

Perhaps the most famous example of this predicament was the 2014 FIFA World Cup semi-final where Germany defeated Brazil 7-1. Traditional metrics favored Brazil, leaving the South American team stunned by their devastating loss and highlighting the inefficacy of existing statistical models in accurately representing team performance.

The Soccer Statistic You’ve Never Heard

Stefan Reinartz, a former midfield Bundesliga player and UEFA Champions League competitor, cited that example on a recent panel discussion hosted by Soccerex Miami. After experiencing his own “Aha!” moment, Reinartz became the founder of IMPECT, a German analytics company that revolutionized the role of statistics in the world of soccer.

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“Common soccer statistics like ball possession, winning tackles, running distance, and so on actually have no correlation to the end result,” Reinartz said. “I was quite shocked when I realized they really can’t tell you anything about a player’s or a team’s performance.”

He came to that realization when he read about the Moneyball approach, which uses advanced statistical analysis to acquire undervalued players and thus assemble a competitive team despite a limited budget.

“Some sports such as baseball may be more conducive to such a data-driven strategy, while others like soccer are more complex, making it difficult to create the right KPIs,” he explained.

Soccer is a low-scoring game involving 22 players in continuous action, requiring complex strategies and a lot of hard work to get past opponents to score. Apart from the number of goals and passes, individual statistics are almost nonexistent, making it challenging to create universally reliable metrics.

Realizing that soccer statistics did not measure the true value of individual players changed his own assumptions. Together with another midfielder, Jens Hegeler, he founded IMPECT with the goal of developing soccer data that can be used to make valuable assessments of players and teams. They invented “packing” to quantify the value of a pass or dribble.

The basic statistics in soccer, such as goals and assists, primarily reflect strikers and attacking midfielders, the players who do most of the scoring and assisting. Midfielders, who do most of the running and passing to initiate offensive moves, are seldom recognized statistically. What they do best is move the ball past opposition players. That is what packing measures.

The methodology is simple: Players earn a point for any move — a cross, a dribble, a long pass — that causes the ball to move past opposition players. Receivers also get points.

Today, IMPECT is a thriving business collecting and selling packing data to help teams scout for players, analyze their own performance, and learn key facts about opponents.

What’s SAP Got to Do With It?

During the discussion, Achim Ittner, vice president of Sports at SAP, described the company’s journey from its roots in business software to developing specialized sports applications, emphasizing user-centric design and collaboration with renowned coaches and national teams.

“Like IMPECT, we’ve been focused on developing data-driven solutions and relevant tools for sports clubs using direct feedback and a design thinking approach,” Ittner said. He explained that SAP built a unified platform to address fragmented software ecosystems in sports. The platform integrates APIs and data sources to support processes like injury prevention, training recommendations, match preparation, and player well-being.

“Sports analytics embodies the blend of data science and athletic performance, providing a blueprint to guide decisions made by coaches and trainers,” he shared. “The significance of data in today’s sports ecosystem cannot be overstated. It’s necessary for everything from strategizing game plans to refining individual skills.”

SAP’s engagement with IMPECT is just one example of how the compay collaborates with a variety of teams and experts to further shape its sports technology. New technologies — like social media, mobile, and digital capabilities, as well as sensors in player uniforms and equipment — are disrupting the sports industry. SAP is committed to helping sports organizations take advantage of these new innovations to deepen fan engagement, improve team performance, grow revenue faster, and efficiently operate their business and venues.

Besides solutions for scouting and measuring team performance, SAP also has one for customer engagement and marketing. Afterall, the fan experience is just as important as the team’s performance. The SAP Sports One solution provides a 360-degree view of each customer and fan to better target individual preferences and purchasing behaviors by offering personalized experiences over online, mobile, and social channels. Teams can grow their fan base, manage their merchandise, and increase loyalty with personalized rewards.

Delivering the Experience

“A great sports experience is about so much more than winning the game,” said Ittner. “It involves a mix of elements that includes players, spectators, and organizers.”

For the fans, food and beverage, merchandise, a good streaming experience, and clear communications on schedules and navigating the venue are critical. Having the right players for a winning team and providing them with the best care and training before and after the game is the job of team management. And finally, the venue must provide exceptional facilities, infrastructure, safety, and security.

SAP helps bring this all together, creating an intersection of sports, technology, and innovation.

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People, Organizations, Technology: Preparing for the Intelligent Age from a People Perspective

Technological innovations such as artificial intelligence (AI) are reshaping entire industries and redefining the boundaries of what is possible. These advancements significantly boost productivity and help us reach new heights as societies.

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According to the McKinsey Global Institute, AI could contribute between $17.1 and $25.6 trillion to the global economy annually, including $6.1 to $7.9 trillion from generative AI use cases alone.

Yet technology alone does not guarantee success in the Intelligent Age: People remain the true catalysts of innovation and growth. As businesses navigate rapid technological change, their ability to continually adapt, build resilience, and create sustainable growth depends on how well they interlock people, organizational development, and technological advancements. Together, this triangle forms a transformation engine that drives both individual and business growth, ensuring long-term success. It also helps organizations and individuals thrive and create a sustainable future.

Putting People and Skills First

Even in this high-tech era, people remain the driving force behind innovation and growth. In the Intelligent Age, skills are the new currency — encompassing the abilities, knowledge, and expertise that empower individuals to adapt and thrive in a rapidly changing world. Therefore, to bring out the best in their people, organizations must prioritize skills.

The skills-first approach is a paradigm shift that revolutionizes how organizations handle workforce planning, hiring, performance management, job architectures, learning and development, career pathing, as well as rewards — hyper-personalized and infused with AI. Putting skills at the center transforms people practices, products, and solutions across all stages of the employee life cycle.

In doing so, organizations create a people ecosystem centered on adaptability and growth. From skill-based job descriptions and skills assessments to prioritizing skills over experience and degrees when executing skill-based hiring, organizations can transform their people practices. This extends to skill-based learning and development, enabling cross-generational and regional development, internal mobility, recognition programmes, as well as career pathing and skill mapping from an organizational perspective.

This approach ensures that organizations attract and engage the right talent, provide individuals with personalized development opportunities aligned with organizational needs, and offer competitive rewards that recognize and incentivize skill growth and application.

A skills-led people ecosystem helps employees adapt quickly, almost in real time, to changing demands. Prioritizing skills allows organizations and employees to drive innovation and achieve sustained success. Ultimately, this approach will contribute to overall economic growth by ensuring a skilled workforce and sustaining high levels of employability.

Culture as the Organizational Foundation for Innovation and Resilience

Under the constant demand to transform, along with competition and geopolitical challenges, even the most resilient organizational cultures can be stretched. In the Intelligent Age, maintaining a strong culture requires continuous strategic attention and nurturing.

Businesses must instill a culture that encourages adaptability. An adaptive culture acts as an internal compass, guiding employees on how to work together, serve customers, and remain accountable for sustainable results. It guides decision-making through shared values and priorities, emphasizing a growth mindset for continuous learning and developing individual and organizational capability. This helps organizations adapt quickly to market changes, remain competitive, and foster innovation.

Leaders play a pivotal role here. By motivating teams, providing clarity and purpose, they create a cohesive workplace that empowers individuals and aligns their actions with the broader vision. The result is a unified effort where every team member contributes to shared goals, fuelling both performance and adaptability.

When culture is deeply rooted and intentionally nurtured, it aligns strategy execution with engagement from employees, partners, customers, and shareholders — strengthening commitment across all stakeholders and delivering consistent results.

People Technology Changing the Game

Technology helps organizations implement and amplify the impact of their people strategies. By leveraging the power of mega data and AI in the people sphere, companies foster data-driven and transparent decisions, a critical prerequisite for workforce transformation and future success.

Mega data and AI help organizations predict workforce trends, identify skill gaps, and improve talent insights and mobility, leading to more efficient team setups and equal opportunities to employees. This enables superior business outcomes based on a holistic and transparent view of employee capabilities and insights — available to all relevant decision-makers.

Technological advancements also allow unprecedented levels of personalization, making hyper-personalization a key focus in the people sphere. From targeted, skill-based learning programs to individualized career paths, AI-enabled tools can tailor experiences to each person’s needs, offering clear growth opportunities and driving engagement by making employees feel valued and supported in their development.

By using technologies like AI effectively and ethically, organizations will be more adaptive going forward — enabling quick pivots to meet external demands and build resilience.

By interlocking people, organizational development, and technological advancements, businesses create the foundation to continually innovate, adapt, build resilience, and drive lasting growth. This holistic approach helps organizations and individuals thrive in the future, ultimately contributing to a better tomorrow.

As we stand on the brink of the Intelligent Age, it is vital that businesses reimagine their strategies with people at the center. Together, we can create organizations that serve as engines of innovation and resilience — ready to lead us into a people-centered, growth-focused, and sustainable future.

Let us seize this moment to ensure that the Intelligent Age is defined not only by technological progress but also by how it uplifts humanity.


Gina Vargiu-Breuer is chief people officer and labor director, as well as a member of the Executive Board of SAP SE.

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This piece originally appeared on the World Economic Forum website.

What’s Next for the Retail Industry? Insights from the Trends Shaping 2025. #NRF2025

AI is already transforming the shopping experience for consumers, but you may not even know it. 2025 is all about delivering on the promise of AI.

#retail #nrf2025 #ai

AI in 2025: Five Defining Themes

Artificial intelligence (AI) is accelerating at an astonishing pace, quickly moving from emerging technologies to impacting how businesses run. From building AI agents to interacting with technology in ways that feel more like a natural conversation, AI technologies are poised to transform how we work.

But what exactly lies ahead? We’d like to share five key themes for AI in 2025 that undoubtedly come with challenges for businesses but also the potential to redefine what’s possible. Ready to glimpse into next year and beyond? Let’s dive in.

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1.  Agentic AI: Goodbye Agent Washing, Welcome Multi-Agent Systems

AI agents are currently in their infancy. While many software vendors are releasing and labeling the first “AI agents” based on simple conversational document search, advanced AI agents that will be able to plan, reason, use tools, collaborate with humans and other agents, and iteratively reflect on progress until they achieve their objective are on the horizon. The year 2025 will see them rapidly evolve and act more autonomously. More specifically, 2025 will see AI agents deployed more readily “under the hood,” driving complex agentic workflows.

Users will interact with a copilot for their tasks, which will deploy the request and coordinate among systems of multiple expert AI agents to complete more difficult tasks. Future AI agents, or multi-agent systems (MAS), can collaborate to understand the business user, have all the context, and structure the problem to subsequently interact with these domain-specific expert AI agents — each performing specific sub-tasks that together complete a much more complex task. In the future, users will not even need to trigger an action. Instead, AI agents will proactively respond to business events such as incoming customer inquiries, supply chain disruptions, or demand surges. They will automatically prepare a decision workflow as far as they can before pinging the human user for feedback.

If we look at a five-year horizon, AI agents will simplify significant portions of workflows, even aspects that have been resistant to automation, such as exceptions in customer service, long-tail administrative tasks, and specific programming activities like coding or debugging software. AI agents will be flexible and can plan, fail, and try something else or self-correct based on reasoning. AI agents will handle and complete routine, repetitive tasks end-to-end as effectively and often even more effectively than humans, leading to increased productivity and demonstrable cost savings. Agents will be more adaptable and robust than conventional robotic process automation (RPA) for longtail and highly extensive tasks. This means figuring out the best result out of many possible outcomes, which is almost impossible to hardcode in an RPA algorithm with classical automation methods.

Adopting AI in these domains will also shift workforce dynamics, with human roles evolving to focus on anticipating uncommon scenarios, coping with ambiguity, factoring in human behavior, making strategic decisions, and driving genuine innovation — complemented, not replaced, by AI capabilities. 

In short, AI will handle mundane, high-volume tasks while the value of human judgement, creativity, and quality outcomes will increase.

2. Models: No Context, No Value

Large language models (LLMs) will continue to become a commodity for vanilla generative AI tasks, a trend that has already started. LLMs are drawing on an increasingly tapped pool of public data scraped from the internet. This will only worsen, and companies must learn to adapt their models to unique, content-rich data sources. Model improvements in the future won’t come from brute force and more data; they will come from better data quality, more context, and the refinement of underlying techniques. Companies must spend more time innovating to make better models through fine-tuning and model adaptation rather than just training larger and larger models. Neurosymbolic AI techniques, especially knowledge graph, will see a renaissance since they can provide both learning objectives for foundation models and context to significantly improve the performance of generative AI while reducing hallucinations.

We will also see a greater variety of foundation models that fulfill different purposes. Take, for example, physics-informed neural networks (PINNs), which generate outcomes based on predictions grounded in physical reality or robotics. PINNs are set to gain more importance in the job market because they will enable autonomous robots to navigate and execute tasks in the real world, from warehouses to manufacturing plants, or models trained on tabular, structured data, like SAP Foundation Model, and can handle tasks that LLMs cannot do well, like predictions of numeric values.

Models will increasingly become more multimodal, meaning an AI system can process information from various input types. AI applications will eventually evolve into “any-to-any” modality solutions capable of understanding, processing, and reasoning across text, voice, image, video, and sensor data within a single model. In addition, smaller and more specialized LLMs with scalable finetuning techniques and the ability to work on any device will become more common, a trend that may lead to hyper-personalized models for organizations or even individuals in the future.

Enterprises will shift toward strategies utilizing multiple foundation models (not to be confounded with multimodal capabilities in a single model, described above), leveraging a diverse set of AI models and techniques tailored to specific use cases. This is backed by the trend of fine-tuning small slices of models, which requires fewer resources and much less data, resulting in full model flexibility and enabling businesses to extract more value from their unique data and gain a competitive edge. Enterprise software vendors will offer or extend integrated AI model marketplaces and platforms that support seamless model deployment, management, and updating. Benchmarking and lowering model switching costs will help deploy the same use cases in heterogeneous environments. Context equals value. Knowledge graph technology has been around for 40 years and is now seeing a revival because it can overcome key LLM challenges, such as understanding complex formats, hierarchy, and relationships between business data. Knowledge graphs offer data meaning and explain the relationship between entities, significantly supercharging the abilities of LLMs. The next step in this journey will be large graph models, allowing further advancement in generative AI.

Implicit knowledge is power, and making knowledge explicit to others is a superpower.

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3. Adoption: From Buzz to Business

While 2024 was all about introducing AI use cases and their value for organizations and individuals alike, 2025 will see the industry’s unprecedented adoption of AI specifically for businesses. More people will understand when and how to use AI, and the technology will mature to the point where it can deal with critical business issues such as managing multi-national complexities. Many companies will also gain practical experience working for the first time through issues like AI-specific legal and data privacy terms (compared to when companies started moving to the cloud 10 years ago), building the foundation for applying the technology to business processes.

From a technological perspective, while 2024 saw significant advancements in AI, 2025 will see companies focus on making these advancements more meaningful through seamless data integration, ultimately enhancing the accuracy and significance of AI-powered outcomes and boosting adoption. Lastly, in 2025, we might glimpse a shift in the software business model from building static software features and functions to an outcome-as-a-service model focused on achieving process objectives.

4. User Experience: AI Is Becoming the New UI

AI’s next frontier is seamlessly unifying people, data, and processes to amplify business outcomes. In 2025, we will see increased adoption of AI across the workforce as people discover the benefits of humans plus AI.

This means disrupting the classical user experience from system-led interactions to intent-based, people-led conversations with AI acting in the background. AI copilots will become the new UI for engaging with a system, making software more accessible and easier for people. AI won’t be limited to one app; it might even replace them one day. With AI, frontend, backend, browser, and apps are blurring. This is like giving your AI “arms, legs, and eyes.” While power users will still have singular, expert interfaces, most users will demand flexibility across multiple access patterns. At the same time, there will be a growing acceptance of longer inference times for high-quality answers to complex, previously unsolvable problems and actions in domains requiring deep analysis and research. Ultimately, users will recognize the trade-off between latency and complexity of tasks handled by AI.

Importantly, we will see organizations move beyond viewing AI as a collection of productivity tools and begin reimagining their workforce as a network of collaborative intelligence with AI agents and humans working to accelerate innovation within the enterprise. For example, combining human expertise in strategic thinking with AI’s strengths in large-scale analysis and pattern recognition will create new competitive advantages for companies that effectively orchestrate these hybrid intelligence networks to drive breakthrough discoveries and market opportunities. Next year will also mark the early stages of a significant shift in how humans and AI work together, with agents evolving into workflow partners, taking initial steps toward independently navigating software environments and automating routine tasks – from data analysis and report generation to schedule coordination and software testing. This will also start a longer journey toward transformed work processes and patterns, with forward-thinking organizations developing new roles, metrics, and training approaches for effective human-AI task collaboration.

5. Regulation: Innovate, Then Regulate

It’s fair to say that governments worldwide are struggling to keep pace with the rapid advancements in AI technology and to develop meaningful regulatory frameworks that set appropriate guardrails for AI without compromising innovation. The regulatory landscape will become even more fragmented, with the OECD AI Policy Observatory tracking hundreds of AI regulations under discussion worldwide. This requires evaluating model compliance with and technical interpretation of various regulatory frameworks.

In 2025, the discussion will shift from what we try to regulate from a technical standpoint to how we innovate and what we deem fundamentally human. This discussion will elevate the role of humans, contribute a much more positive perspective, and help shape a long-term vision for how we want humanity and AI to live and work together. 

In this environment, it will continue to be critical for companies developing and deploying AI technology to adhere to responsible principles around safety, security, and ethical use. This will also help set the stage for important precedents and compliance.

Executing on the Themes in 2025

Indeed, these are just a few of what we are sure will be many exciting advancements for AI in 2025. Overall, the biggest takeaway from the year ahead will be making existing breakthrough technology more meaningful. We will see AI much deeper and almost invisibly embedded in consumer and enterprise applications and witness more advancements in how vendors and organizations that use these applications embed their individual contexts and data into AI seamlessly.

Getting to the point of leveraging AI generally, however, will require businesses to take advantage of a modern cloud suite with unified data access and harmonized data models to overcome data silos and fully benefit from AI innovation that spans across the whole enterprise. This will drastically increase the accuracy and significance of AI-powered outcomes, ultimately boosting adoption, specifically in the enterprise space.

We can’t wait to see what the future holds.


Sean Kask is vice president and head of AI Strategy for SAP Business AI at SAP.
Walter Sun is senior vice president and global head of AI for SAP Business AI at SAP.
Jonathan von Rueden is head of AI Frontrunner Innovation for SAP Business AI at SAP.

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