AI Agent Sprawl: Why AI Governance Is Now a Board-Level Issue

Enterprises are embracing agentic AI at speed, embedding autonomous AI agents into business processes and experimenting with agents in front-office activities such as marketing and customer service, as well as in operational areas such as shipment tracking, demand forecasting, and supply chain optimization.

Agentic AI builds on the economic potential of generative AI, which McKinsey has estimated could add US$2.6 to $4.4 trillion annually to the world economy. This represents the next stage of enterprise AI adoption: a shift from content generation to autonomous execution, and from isolated pilots to operational deployments.

Agent sprawl

That shift creates a new governance challenge. Agent sprawl occurs when AI agents are created, deployed, or connected across systems faster than the enterprise can inventory them, assign ownership, control permissions, monitor behavior, and optimize or retire them when they are no longer fit for purpose.

Underscoring this shift, a recently published agentic AI survey conducted by SAP LeanIX found that 98% of companies have already deployed AI agents or plan to do so. But as adoption accelerates, governance is struggling to keep pace. According to the same report, less than half of the organizations surveyed have visibility into an inventory of AI agents.

SAP LeanIX Agentic AI Survey 2026 reveals high adoption of AI agents but gaps in effective management

The mechanics of agent sprawl are familiar to any technology leader who has navigated a wave of SaaS adoption. Individual teams, motivated by genuine productivity goals, deploy agents independently. Each one is designed for a specific task—a marketing automation agent, a supply chain monitoring agent, an HR onboarding bot—and each works in isolation. Without a centralized platform or governance framework, the organization accumulates a fragmented landscape of agents that do not interoperate, cannot be audited consistently, and accumulate technical debt faster than they generate value.

Gartner estimates that by 2028, the average global Fortune 500 enterprise will have more than 150,000 AI agents in use, yet only 13% of organizations believe they have the right governance in place to manage those agents. Max Goss, senior director analyst at Gartner, told his audience at a London conference in April: “As CIOs and IT leaders see an explosion of AI agents across their organizations, many are contending with an ungoverned sprawl of agents that expose their organizations to a range of risks, including misinformation, oversharing, and data loss.”

He added: “Many organizations resort to blocking or restricting the use of AI agents, but this is not a long-term solution. If employees are unable to work in the sanctioned tools, they will likely go around the organization’s controls and start using shadow AI, which presents far greater risks. Organizations need to find a balance where they can govern agents and manage sprawl, but also safely empower employees to innovate with these tools.”

Agents typically need broad, cross-environment permissions to function, but those permissions are rarely governed with the same rigor applied to human users. The risk posed by unmanaged or rogue AI agents in the enterprise is therefore real and growing.

AI agent security concerns

Publicly reported enterprise-security examples also point to agents leaking sensitive information or acting outside their intended scope, including cases where malicious instructions caused agents to bypass guardrails, delete production records, or trigger irreversible financial transactions.

The security concern is what registers most sharply with enterprise technology leaders. With chatbots and early generative AI, a security failure typically meant bad output: an inaccurate or inappropriate response that could usually be corrected after the fact. In the agentic era however, the consequences of an agent failure or security breach can be far more damaging because agents can take action, call tools, access systems, and initiate business processes.

That is why agent governance is no longer only an IT operations issue. It increasingly touches board-level concerns: risk ownership, regulatory exposure, data protection, auditability, operational resilience, and accountability for autonomous decisions.

The emerging AI governance platform

Leading organizations are beginning to treat agent governance not as a compliance overhead but as a strategic capability that determines whether AI investments compound as advantages or liabilities. As a result,  effective AI agent governance has quickly become a boardroom topic and is contributing to the emergence of a new platform category: the AI governance platform.

The category is still forming, but its purpose is becoming clear. Enterprises need a way to discover agents, understand what they do, control what they can access, verify whether they are compliant, and monitor how they behave in production.

SAP is one of the agentic AI pioneers in this emerging category. Through its 2023 acquisition of LeanIX, SAP gained a foundation in enterprise architecture management. This has quickly become a recognized differentiator for SAP AI Agent Hub—positioning AI artifacts like agents, models, and MCP servers within the full architecture and business context of the organization.

SAP AI Agent Hub builds on this foundation as a command center for managing and governing AI agents and related AI assets across an enterprise, even when they come from different vendors and run on different systems.

As SAP CTO Philipp Herzig explained on stage at this year’s SAP Sapphire event, SAP AI Agent Hub is intended to provide a governance layer of record for the enterprise agent ecosystem. “Agents are everywhere,” he said. “Some are great, some are not, and almost no one has a consistent picture—no central governance, no clear view of what each agent does, whether it adds value or whether it adheres to your policies.”

He added: “SAP AI Agent Hub changes that. One entry point and command center to discover, manage, and govern all AI agents, LLMs, and MCP servers in your landscape—vendor-agnostic. [SAP] AI Agent Hub allows you to discover all your agents in context: your landscape, your business processes. Once you have identified the right agents, you can control their risk and define architectural decisions or compliance rules.”

A closing window

Given the pace of AI agent deployment, the window for implementing effective enterprise governance before a serious incident occurs is narrowing. For CIOs, CEOs, and company boards, the question is no longer whether to govern AI agents. It is whether governance gets designed into the architecture from the start or retrofitted after the first serious failure.

Organizations that treat agent governance as a strategic priority in 2026 will be better positioned to scale AI as a durable competitive advantage. Those that defer could spend 2027 cleaning up: in enterprise technology, the cost of speed without structure eventually gets paid. But with AI agents, the bill arrives faster—and at greater scale—than anything that has come before.

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SAP Acknowledged as a Leader in First-Ever Gartner® Magic Quadrant™ for Digital Twin of an Organization Platforms

SAP has been recognized as a Leader in the first-ever Gartner® Magic Quadrant™ for Digital Twin of an Organization. This recognition follows closely behind SAP’s acknowledgement as a Leader for Process Intelligence Platforms earlier in 2026.

In today’s dynamic business landscape, characterized by the ongoing rise of AI and the need for adaptation in the face of rapid change, companies that understand the impact of operational adjustments—before those changes actually take effect—are best-placed to make the right decisions, faster.

Build the insight and alignment needed to transform—today and tomorrow

A digital twin of an organization (DTO) mirrors and analyzes how businesses operate and adapt in order to foresee the implications of new ways of working, track realized value, and increase orchestration potential across people, AI agents, processes, applications, and data. This capability is an emerging enterprise imperative as autonomy gains a foothold, and SAP maintains an ongoing dedication to innovation and customer satisfaction in this area.

SAP offers a unique combination of AI-native DTO capabilities that span process intelligence and modelling (SAP Signavio solutions), enterprise architecture management (SAP LeanIX solutions), digital adoption (WalkMe solutions), automation (SAP Business Technology Platform), SAP’s AI solution (Joule), and more, all united within the SAP Business AI Platform. Together, these capabilities can offer businesses a dynamic DTO with continuous observability and AI-driven actionability features that help support agentic readiness, enterprise knowledge activation, transformation management, and value orchestration.

Dee Houchen, chief marketing officer at SAP Signavio, said, “Our aim is to help our customers create a repeatable, sustainable, AI-native transformation capability, rather than treating inevitable organizational adjustments as simply a series of independent projects. Driving greater enterprise observability, supporting smarter, real-time decision-making, accelerating transformation, and ensuring business outcomes are measurable are all key to this approach, which is why effective DTO is such a fundamental benefit to modern organizations.”

The Gartner® Magic Quadrant™ methodology provides a clear, research-based overview of evaluated vendors in a given market. This year’s Magic Quadrant assessed 18 vendors across a range of criteria, including market understanding, offering strategy, innovation, product and service quality, customer experience, and more, as well as a broad range of key use cases: digital twin for business operations, digital twin for customer excellence, digital twin for governance, risk, and compliance, and digital twin for strategy realization.

The Gartner report also provides useful context regarding the state of the DTO market. We feel we were recognized as a Leader in the report thanks to our capacity to:

  • Uniquely serve all four transformation dimensions (people, processes, applications, and data) in a dynamic, virtual model
  • Enable full agentic life cycle management, allowing organizations to observe, govern, and optimize AI agents as organizational actors in reaching full enterprise potential 
  • Support organizations in enterprise knowledge activation, making enterprise context actionable  

The Gartner Magic Quadrant equips businesses with valuable insights to make informed decisions. For a complimentary copy of the latest resource featuring SAP solutions (Gartner, Magic Quadrant for Digital Twins of an Organization Platforms, Marc Kerremans, David Sugden, 27 July 2026) visit https://www.signavio.com/downloads/analyst-reports/dto-2026/.


Lucas de Boer is global marketing program lead for SAP Signavio.

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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 business and technology insights 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.

Statement on the Decision of the German Federal Cartel Office Not to Initiate Antitrust Proceedings Against SAP

WALLDORF — SAP welcomes the decision of the German Federal Cartel Office (Bundeskartellamt) to conclude its preliminary inquiries and not to initiate abuse proceedings against SAP.

As the authority states, SAP customers and partners have sufficient and permissible technical options to extract data from SAP systems and use it in solutions from other providers. The SAP API Policy does not restrict these capabilities.

Regarding process mining, the Bundeskartellamt notes that SAP offers a range of competition‑compliant licensing models, including options without SAP Signavio.

The Bundeskartellamt’s assessment reinforces SAP’s commitment to providing customers with non‑discriminatory and practical access to their data, while ensuring freedom of choice in the use of both SAP and third‑party solutions.

The Humanity and AI of It All: The State of Customer Experience

The state of customer experience in 2026 can be summed up simply: customers have never had more ways to interact with your brand, and they’ve never been less tolerant about friction when engaging.

While the power of technology is at its apex, so are expectations. And the gap between the two is where revenue goes to die.

Explore features designed to improve engagement and accelerate growth through product trials and tours

Brands using AI to deepen human connection by freeing up sellers, marketers, and service agents to focus on empathy, trust, and complex problem-solving are pulling ahead. Those still bolting AI onto fragmented systems, or using it purely as a cost-cutting measure, risk falling further behind.

To help organizations address the rapidly changing factors impacting CX, we’re proud to debut our first quarterly “State of” reports. Designed to pull together the latest research and data across sales, service, marketing, and e-commerce, these thought leadership pieces are available without a gate because we know that experience and expertise matter, and we want to share ours with you. (You can find links to the reports at the end of this post.)

The key takeaways from each report demonstrate that CX is no longer a single department’s job. Rather, it’s a cross-functional discipline, and the stakes for getting it wrong are higher than ever.

The cost of bad experiences is staggering

Let’s start with the number that should be pinned at the top of every leadership deck this quarter: bad customer experiences have put $3 trillion in global sales at risk in 2026, with consumers actively cutting back $2.1 trillion in spending and walking away entirely from $865 billion worth of it, according to Forbes data cited in our State of Service report. That’s not churn. That’s customers voting with their wallets in real time.

And they’re not quiet about why. A striking 82% of consumers say a brand has disappointed them, and 60% admit they don’t pay attention to brands even when their product needs are being met. Translation: satisfying the transaction isn’t enough anymore. If the experience around it feels disorganized or impersonal, customers check out.

On the service side specifically, 75% of consumers say they’re put off by disorganized brands that pass them between multiple people or teams just to solve one problem, and 46% say service flat-out feels too impersonal.

The combustible combination of sky-high financial risk and low tolerance for friction is forcing every customer-facing function to rethink how it operates.

That’s the backdrop. Now let’s talk about what’s actually happening in each corner of the customer journey.

AI is everywhere, trust in it is not

Every function is racing to embed AI, with good reason. AI-driven traffic to U.S. retail sites is up 4,700% year over year, and almost 60% of consumers have already used AI to shop, as cited in our State of E-commerce report.

On the marketing side, our report notes that AI has moved from experiment to foundational: 33% of marketing leaders are using it for hyper-personalized engagement, and 31% say predictive insights and personalization have been a top priority all year.

Meanwhile the State of Sales and Revenue report points out that digitized suppliers leveraging AI are outperforming their peers on sales goals by a jaw-dropping 110%.

But here’s the twist that ties it all together: customers don’t actually love the AI they’re interacting with.

SAP’s State of Service report underscores that point specifically:

  • 79% of Americans say they strongly prefer human support over an AI agent
  • 63% don’t believe AI can replace humans in service roles at all
  • 89% believe brands should always offer the option to talk to a real person
  • 81% believe AI is primarily being used to save the company money, not to improve their experience.

That’s the tension every function needs to sit with. AI is delivering real, measurable business value, but if customers believe that AI was deployed to cut costs rather than serve them, you might win efficiency but lose the relationship.

Trust is the currency, and it’s getting harder to earn

Each one of the reports circles back to the same word: trust. In marketing, 61% of B2B buyers say trust and credibility are the most important thing content can deliver, ranking above lead generation. Consumers are leaning on peer and creator trust more than brand messaging, too: 76% of brands report that sponsored content with creators now outperforms traditional advertising, and in social commerce, 45% of Gen Z shoppers say they’re more likely to trust a product once it goes viral.

On the e-commerce side, trust shows up as transparency. With tariffs pushing import costs up 15-30% across major categories, brands that explain price increases rather than quietly passing them along are building goodwill that pays off in retention. And in sales, the numbers show that your existing customers–the ones who already trust you–are an underused asset: 45% of revenue leaders are now focused on improving handoffs across marketing, sales, and service, while 39% are chasing expansion and upsell revenue instead of only hunting net-new logos.

The people problem behind the technology story

There’s one more thread that doesn’t get enough attention in the AI headlines: the humans delivering these experiences are stretched thin. Call center turnover is running 40-45% in 2026, spiking to 55-60% in high-stress sectors, while replacing a single agent can cost up to $46,000 when accounting for lost productivity.

As AI absorbs the easy tickets, what lands on human agents is the hard stuff: it’s complex, is emotional with high-stakes, and burnout is quietly eating away at CSAT and first-contact resolution scores. This matters because customer experience isn’t just a technology stack or a personalization engine. It’s fundamentally delivered by people; whether that’s a service agent handling an escalation, a seller navigating a buying committee, or a marketer trying to sound human in an AI-saturated feed. Protecting the people doing that work isn’t a wellbeing initiative separate from CX strategy. It is CX strategy.

Fragmentation is the enemy of good CX

If you weave every stream together, the state of CX has one clear directive: stop treating AI, data, and channels as separate initiatives owned by separate teams, and start treating the customer experience as the single thread that runs through all of them.

That means AI-shopping agents that use clean, structured product data. It means first-party data strategies that replace the crumbling third-party targeting most marketing was built on. It means service and sales teams that know exactly when to step back and let self-service work, and exactly when to step in and be human. And it means service organizations that give their people better tools instead of just more automation.

Future success won’t be shaped by the brands with the most AI; it will favor the brands that make customers feel understood, even as the experience becomes more automated. That’s not a technology bet. That’s a trust bet, and right now, trust is in short supply.

You can find our “State of” reports here:


Jessica Keehn is chief marketing officer of SAP Customer Experience.

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Omnichannel Commerce & B2B Digital Transformation with the Advanced Success Plan for SAP Customer Experience

Modern B2B buyers expect seamless experiences across web, mobile, marketplaces, and partner portals. In fact, 84% of B2B buyers say it is important for suppliers to operate across multiple online and offline channels.*

Turn transformation strategies into action through a coordinated set of services and guidance for every stage of your journey

To meet these expectations, organizations must move beyond siloed commerce channels toward a connected autonomous CX model that integrates commerce, order sourcing, fulfilment, and customer support across the full customer journey.

The Advanced Success Plan for SAP Customer Experience supports this shift by accelerating omnichannel capability build-out through outcome-based governance. It helps organizations move from fragmented execution to coordinated operations—enabling consistent cross-channel experiences, aligning commerce with sales and service execution, and improving conversion and repeat purchase through end-to-end alignment.

Reality of B2B buying

B2B buying is rarely linear anymore. Buyers often switch between digital channels, sales teams, and service touchpoints before deciding. Research from McKinsey’s B2B Pulse highlights that buyers typically engage across multiple interaction channels before making a decision.**

This reflects how digital commerce has become a core part of the buying process, with 58% of global B2B retailers selling on at least three e-commerce platforms.†

At the same time, expectations have shifted. Consistency across channels is assumed, digital self-service is often the starting point, and speed and transparency are baseline requirements.

That creates a dual challenge for organizations: improving customer experience while also managing increasing operational complexity behind the scenes.

Convergence of commerce, sales, and service

B2B environments combine complex operations with tightly connected customer journeys. Organizations must manage customer-specific pricing and contracts, large and dynamic product catalogs, multi-step approvals, distributed fulfilment models, and integrations across commerce, ERP, sales, and service systems. Customers, however, do not see this complexity. They experience a single journey, from discovery to purchase, fulfilment, and support, and expect it to feel seamless.

A typical journey may include discovering products online, aligning pricing with sales, placing orders through self-service channels, and resolving issues via service interactions. Expectations for real-time visibility, fast issue resolution, and consistent engagement continue to rise, as highlighted in research such as DHL’s B2B E-Commerce Trends. The same DHL report also shows that 78% of B2B retailers expect website sales to grow over the next three to five years, which reinforces how central digital channels have become.†

Yet many organizations still operate in silos. The result is often inconsistent data, limited visibility across interactions, slower issue resolution, and disconnected customer experiences. This is why omnichannel transformation is not about adding channels, but about connecting commerce, sales, and service into a unified operating flow.

Process excellence as a foundation

As complexity increases, end-to-end process alignment becomes critical. Customers experience outcomes, not systems, and those outcomes depend on how well processes are connected across commerce, sales, service, and fulfilment.

Breakdowns typically occur when sales agreements are not reflected in commerce systems, fulfilment is not aligned with order promises, service teams lack customer context, or data differs across channels. These are not isolated system issues, but symptoms of disconnected processes.

In practice, that can mean a customer sees one price in the portal, a different one in the quote, and another one in the order confirmation. It can also mean service teams have to ask customers to repeat information that already exists elsewhere in the organization. Even when the underlying technology is in place, the experience still feels broken if the process is not connected.

Organizations that invest in process excellence are better positioned to deliver consistent experiences, reduce friction, improve operational efficiency, and scale complex B2B models. Process alignment also makes it easier to respond to change, because teams can adapt faster when the underlying journey is not held together by disconnected handoffs.

Why omnichannel matters

Omnichannel in B2B is not just about offering more ways to buy. It is about making those ways work together. When the customer starts on one channel and finishes on another, the handoff needs to feel natural. If not, the customer experience becomes fragmented very quickly.

That matters because B2B buyers are increasingly comparing their business purchasing experience to the consumer experiences they already know. They expect simple navigation, transparent pricing, reliable order updates, and a service team that understands the full context of the account. In other words, they want the convenience of digital commerce without losing the support and complexity that B2B purchasing often requires.

This is also where many companies struggle. They may have a strong storefront, but weak back-end coordination. Or they may have good sales support, but poor visibility once the order has been placed. Omnichannel transformation closes that gap by connecting the customer-facing experience with the operational processes behind it.

Accelerating outcomes with the Advanced Success Plan for SAP Customer Experience

The Advanced Success Plan for SAP Customer Experience helps organizations accelerate omnichannel capability build-out through outcome-based governance and alignment between strategy and execution.

Rather than focusing only on implementation, the emphasis is on measurable outcomes across the full customer journey. This includes enabling consistent omnichannel experiences, aligning SAP Commerce Cloud, SAP Sales and Service Cloud, and fulfilment processes, managing catalog and contract complexity at scale, improving order sourcing and fulfilment coordination, and strengthening end-to-end process alignment.

The goal is to ensure all capabilities operate as one connected system rather than separate functions.

That becomes especially important in B2B environments where a single transaction can involve multiple stakeholders, custom pricing rules, approval steps, and several systems working together at once. Without clear governance and alignment, even well-designed digital tools can create confusion instead of clarity.

With the right operating model, however, organizations can turn complexity into a strength. They can reduce friction for customers, improve efficiency internally, and create a more reliable buying experience across every channel.

The Advanced Success Plan for SAP Customer Experience includes access to Business Process Best Practices which helps customers understand the end-to-end process flow and best practices for executing business processes across SAP Sales and Service. This service showcases reference processes and bridges the gaps that can occur during rapid implementations of solutions in complex landscapes or when implementation of multiple solutions creates fragmented processes without taking into consideration unique end-to-end view.

Conclusion

Omnichannel commerce and B2B digital transformation are reshaping how organizations engage customers and deliver value. Success depends on connecting commerce, sales, service, and fulfilment into a unified operating model supported by strong end-to-end processes.

Organizations that focus on process excellence and outcome-based governance are better positioned to scale effectively and meet rising customer expectations. The Advanced Success Plan for SAP Customer Experience enables this by connecting strategy to execution and supporting consistent outcomes across the customer journey.

For B2B companies, the real shift is not just digital adoption. It is building a model where channels, processes, and teams work together in a way that feels simple to the customer, even when the operation behind it is complex.


Nikola Stojanovski is a 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.

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*Digital Commerce 360, 2025
**McKinsey, 2021
†DHL, 2025

Beyond the Ice: How SAP and the NHL are Investing in the Next Generation

Sport has always been a mirror of society. It reflects community values, connecting people despite boundaries that might otherwise divide them. The most forward-thinking organizations in sport are no longer content to simply reflect the world as it is. They are actively working to shape the world as it should be.

Explore San Jose Sharks’ journey with SAP

The NHL/NHLPA Hockey Innovation Competition presented by SAP is one of the ways SAP, the NHL, and the NHLPA turn that ambition into action, inviting students to design practical, community-minded solutions that grow the game in more inclusive and sustainable ways.

Since its inception in Ontario, the program has expanded into multiple markets across North America, engaging students from diverse backgrounds and disciplines. Along the way, participants gain hands-on experience solving real-world sports business challenges while collaborating with mentors from the NHL, NHLPA, SAP, and other industry organizations.

A season of innovation

As presenting sponsor throughout the 2025-2026 season, SAP has helped evolve the competition into more than a student pitch event. It has become a platform where the next generation of innovators can apply design thinking, data literacy, and purpose-driven problem-solving to the future of sport.

Earlier this season, competitions in Florida and Ontario showcased how local communities bring unique perspectives to hockey’s growth, from reimagining youth participation and community engagement to exploring new technologies that can make the sport more inclusive and accessible. Across every market, students approached the challenge as an opportunity to solve real problems for real communities. These events set the stage for the Final Pitch Day in San Jose, where students were challenged to imagine how hockey can thrive within one of the world’s leading innovation hubs.

Connecting Cargo: How Live Positioning Is Streamlining Supply Chains

Hapag-Lloyd has equipped 2 million shipping containers with tracking devices that transmit location data in real time. SAP uses this data in its ERP systems to help businesses identify potential delays and adjust their production schedules accordingly. Carriers, buyers, and production planners all over the world are benefiting.

Managing logistics operations has become increasingly challenging in recent years. The coronavirus pandemic and its repercussions caused unprecedented disruption across global supply chains, and today, hostilities in the Strait of Hormuz are severely hindering shipping traffic.

Gain supply and delivery assurance by tracking orders and shipments in real time

In situations like these, the only option many companies have to protect their manufacturing and delivery timelines from delays and uncertainties is to carry larger inventories. This inevitably leads to higher costs.

Now, a combination of container tracking technology and real-time data is revolutionizing supply chain visibility, enabling businesses to keep their inventories at efficient levels. Hapag-Lloyd, the world’s fifth-largest shipping company, provides live position data for its containers. SAP uses this information in its ERP systems and SAP Business Network Global Track and Trace cloud solution, connecting it to the shipment and material data that is stored there. Which means that, as well as being an SAP customer, Hapag-Lloyd is an SAP supplier and partner, too.

Karsten Schmidt, director and product owner of the Live Position and Track & Trace tools at Hapag-Lloyd, and Sven York Pohl, chief expert for Digital Adoption at SAP SE, discuss how the collaboration between the companies began, how it is benefiting users already, and what opportunities lie ahead.

Q: Tracking technology has advanced rapidly in recent years. What sparked the wave of innovation we’ve seen here?

Pohl: During the coronavirus pandemic, we experienced serious delays in the movement of goods and materials. And we realized that logistics processes need to be much more transparent.

Schmidt: Until recently, we could only track certain milestone events in sea shipping, such as a container arriving at a port or being loaded onto a ship. We knew when a container had been loaded onto a ship or when it left the Port of Hamburg, but if it failed to arrive in Munich as planned, we had no way of knowing what had happened to it.

Q: So how do you track containers today?

Schmidt: After the pandemic, we decided to equip all our dry containers with IoT tracking devices that continuously transmit location data. By mid-2024, we had fitted these devices to 90% of our container fleet. Since then, we have been able to track more than 2 million containers worldwide and provide position data every 15 minutes for shipments on land—and every six hours for shipments by sea. This means that our customers can check the precise location of “their” containers online in real time.

Q: How did the collaboration between Hapag-Lloyd and SAP begin?

Pohl: I was involved in an SAP transformation project at Hapag-Lloyd, which meant I had frequent meetings with Karsten. We realized early on that position data had immense potential, both for Hapag-Lloyd as a shipping company and for its customers. If you know exactly when an intermediate product will arrive, or how many days late it will be, you can plan your downstream production steps with pinpoint precision. And this obviously works best if position data is visible not only on a separate website, but also in the applications you use to manage your production and other business processes. So Karsten and I began discussing how we could feed position data into SAP ERP systems.

Q: Which SAP applications use this data?

Pohl: The SAP Business Network Global Track and Trace cloud solution offers companies transparent shipment information in real time along the entire supply chain. And it enables this data to be embedded natively in back-end systems. Which means, for example, that you can integrate automated alerts directly into SAP S/4HANA that show where a container is currently located. The data can also be leveraged in SAP’s cloud-based supply chain collaboration platform, SAP Business Network for Logistics, to seamlessly connect shippers with logistics services providers and carriers. And, aside from ensuring visibility, real-time data such as that provided by Hapag-Lloyd maximizes supply chain security and drives sustainability by enabling businesses to track materials from their source to the finished product.

Q: Who benefits most from Hapag-Lloyd’s tracking data?

Schmidt: Logistics managers, definitely. Because they need precise information about where their containers are located and when they will arrive. The tracking data also provides insights into how sustainable a transportation chain is. Warehouse planners benefit too, because they can keep inventory levels as low as possible, without them dropping too low. And as well as enabling carriers to plan their routes with maximum efficiency, tracking data can also help streamline and optimize payment processes.

Q: Would you say that the current conflict in the Middle East has highlighted the value—and necessity—of using tracking technology to plan shipping routes?

Schmidt: Absolutely. A huge number of containers have been transported from the Persian Gulf across Saudi Arabia to the Red Sea port of Jeddah to be shipped on from there. Our container tracking solution keeps me constantly updated on the land route I have chosen and on where my container is currently located.

Q: What happens if the container is held up somewhere? How does the system help?

Schmidt: That’s what we’re working on right now. Usually, when customers want to know where their container is, they call our customer service number. But with 15,000 containers held up in the Persian Gulf, we were unable to handle the sheer volume of inquiries we received by phone. So we gave all our customers access to our live positioning service, even those who had not booked it. The solution we implemented to deal with this exceptional situation showed us the potential that was there going forward to simplify our customers’ processes—and our own.

Pohl: Looking ahead, SAP users will be able to ask their software what options they have when shipments get held up, and what alternative modes of transportation are available to them.

Schmidt: If, for example, a ship is delayed and misses its scheduled rail connection, the system will provide a predictive service, telling the user whether onward transportation by truck is possible and how much longer the journey will then take.

Pohl: We will also use Joule, the flagship AI brand that is built into SAP’s cloud portfolio, for this service, so that users will be able to ask AI to suggest specific actions.

Schmidt: Obviously, when goods are transported over long distances, and especially by sea, you can never rule out delays entirely. But what we can do is remove that feeling of helplessness and of having no room to maneuver when events occur that are out of my control.

Hapag-Lloyd container tracking

  • Hapag-Lloyd has equipped 2 million standard containers with IoT tracking devices that transmit their current position in real time.
  • Customers can constantly monitor the position of their shipments online.
  • SAP integrates position data into its SAP Global Track and Trace cloud solution and embeds it in its cloud ERP back-end systems.
  • Looking ahead, when shipments are delayed, these systems will proactively suggest alternatives and recommended actions.
  • Joule will also help users make informed decisions that support efficiency in the supply chain.

Top image via Hapag-Lloyd

SAP Announces Q2 and Half-Year 2026 Results

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.”

Find all results in the Quarterly Statement

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.

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From the Factory Floor to the Data Layer: How Leading Companies Are Rewriting the Rules of Agility

The challenge business leaders face today is not any single disruption, it is the collision of all of them at once. Geopolitical volatility is redrawing supply chains faster than procurement cycles can adapt.

Regulatory frameworks are shifting across multiple jurisdictions simultaneously. Energy costs, labor markets, and customer expectations are each moving in their own direction, often in direct conflict.

Welcome to the Autonomous Enterprise

The question I am most often asked, across industries and geographies, is a version of the same thing: how do we build an organization that can absorb continuous turbulence without losing operational coherence?

My answer is increasingly the same: you cannot manage permanent disruption reactively. You build systems that can anticipate, adapt, and act—autonomously, at scale, and in real time. That is what business AI, properly embedded into an organization’s digital core, now makes possible. And the clearest evidence I can offer comes from our customers, many of whom shared their incredible AI innovation journeys at our recent flagship SAP Sapphire events.

Data is the foundation, not an afterthought

Ericsson’s journey is instructive precisely because the company confronted a truth that many organizations are still resisting. As Esra Kocatürk Norell, vice president of Customer Experience and Enterprise IT at Ericsson, put it directly: “Once you scale AI, it stops being an AI problem and becomes a data problem.”

That insight drove a deliberate investment in a unified business data fabric built with SAP Business Data Cloud, a governed architecture that allows data to remain in place while centrally managing business semantics, governance, and lifecycle policies.

More than 85,000 users are now live on the unified AI platform Joule, with Ericsson moving confidently from experimentation to enterprise-wide execution. The company is advancing on two parallel fronts: modernizing its ERP backbone through RISE with SAP while simultaneously unlocking AI-driven value in decision-making, efficiency, and new business models.

What Ericsson demonstrates is that the path to trusted, repeatable AI runs through data governance, and that building that foundation early is a strategic advantage, not a cost.

From the digital core to the physical world

If Ericsson illustrates what AI transformation looks like at the level of data architecture, Martur Fompak International, a global leader in automotive seating and interior systems, shows what it looks like on the shop floor. The company has deployed an autonomous intralogistics model enabled by Joule and embodied AI capabilities from SAP, working with robotics partner Humanoid to integrate AI-powered robots directly into live manufacturing operations.

The system connects production signals and business context to autonomous physical execution. Guided by material data, storage locations, sequencing, and production priorities, humanoid robots now execute material flows across the manufacturing environment—identifying, transporting, and delivering materials to the line while continuously confirming back into SAP systems.

The logic is about “combining cognitive autonomy with physical automation,” Özlem Altınışık, Group Intelligent Technologies director at Martur Fompak International, described it, to “transform execution, accelerate decisions, and scale intelligent enterprise capabilities across the organization.”

Early results show increased throughput and fewer errors, with a future target of up to five times greater work efficiency set for mass production. Martur Fompak International was the sole winner in the AI Excellence category at the 2026 SAP Innovation Awards, recognition not just of the technology, but of the willingness to reimagine factory environments.

Speed, scale, and the intelligent platform

Prysmian, the global cable solutions leader with €20 billion in revenue and operations spanning more than 50 countries, took a different but equally decisive path. The company completed its evolution to an AI-ready cloud platform through RISE with SAP in just four months, then used that foundation to pursue more than 100 AI use cases across its business. The results are measurable: 70% automation of repetitive activities, an 80% reduction in implementation time for new solutions, and 50% acceleration in time-to-market for new products.

What strikes me about Prysmian’s journey is how it reframes the role of enterprise technology. Giovanni Cauteruccio, group CIO and digital officer at Prysmian, described embedded AI as “a key differentiator, enabling us to accelerate solution deployment and strengthen AI skills and culture across the organization.”

In other words, the platform is not simply a system of record, but a capability-building engine that makes the organization smarter over time.

Architecture of agility

Viewed together, these three stories point toward something larger than the sum of their parts. The Autonomous Enterprise is not a distant aspiration. It is being built now, by organizations that have made a deliberate commitment to embedding AI into their operational core as a fundamental design principle instead of a feature.

What makes this possible is the convergence of a governed data foundation, an intelligent ERP platform, and AI capabilities that extend from the desktop to the production line to the supply chain. When these elements are properly integrated, organizations gain something that no amount of reactive management can provide: the ability to sense, decide, and act faster than disruption can mount.

Uncertainty is not going away. The organizations that will navigate it best are the ones building systems today that turn volatility into signal and signal into advantage.


Manos Raptopoulos is global president of Customer Success Europe, APAC, Middle East & Africa and a member of the Extended Board of SAP SE.

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São Salvador Alimentos Improves Personal Protective Equipment Management with SAP Build

Brazilian food producer São Salvador Alimentos S.A. improves its personal protective equipment (PPE) processes with SAP Build and Cloud Foundry tools, saving 150 manual signatures per day and improving warehouse management.

Humanizing business software and making innovation real

Headquartered in Itaberaí, Goiás, São Salvador Alimentos S.A. (SSA) is one of Brazil’s leading food companies. Its brands such as SuperFrango and Boua offer a wide portfolio of fresh and processed poultry as well as other meat, egg, and dairy products, fish, and frozen foods. The company’s products are exported to dozens of countries worldwide.

While SSA has built a reputation for quality and innovation in the food industry, one of its internal processes, the management of PPE delivery, still relied on manual paperwork. After successfully implementing SAP S/4HANA in 2024, the company continued its journey with SAP. The company started to collaborate with the SAP AppHaus team to explore opportunities with SAP Build and Cloud Foundry.

The point of departure was that every day around 150 physical signatures had to be collected to confirm that PPE had been delivered to employees. These signed documents were then handed over to the archive team for manual scanning and storage. There was no digital record of which equipment was delivered, to whom, or when. As a result, it was impossible to track usage or send timely reminders for mandatory PPE replacements every six months.

Innovation along the human-centered approach

In dedicated workshops, SSA stakeholders and users analyzed the situation along SAP’s human-centered approach to innovation. They explored new ways to improve and redesign this process with SAP Build and Cloud Foundry. After some iterations and testing, the new solution was implemented in January 2026.

SSA employees can now use digital signature capture linked to an automatic tracking of what was delivered and when. Via automated WhatsApp reminders, they learn when it’s time to replace their equipment, thus ensuring compliance, efficiency, and more visibility to the warehouse.

This new process has already shown the following benefits:

  • From 150 manual signatures to electronic signatures using digital authentication
  • 100% elimination of paper in the process
  • Simplified service and an easy-to-understand and intuitive app
  • Higher visibility to the warehouse
  • Reporting capabilities available
  • Better cost management
  • Regulated issuance and compliant PPE distribution

Customer voices

“With the implementation of the new PPE issuance and tracking app, our department has achieved significant benefits through a transformation focused on modernization, agility, and process efficiency. The new solution introduced electronic signatures through digital biometrics, eliminating the need for paper-based documentation and making the process more sustainable and secure. In addition, we experienced a substantial reduction in service time, providing greater agility in day-to-day operations. The new application was developed with an intuitive and user-friendly interface, making it easy for all users to adopt and utilize. The service and PPE issuance process was streamlined, reducing complexity and making each step faster and less bureaucratic. Another important enhancement is the availability of reporting capabilities, enabling more effective information management, including cost control, issuance tracking, and monitoring PPE consumption and distribution volumes.”

Paula Borges, SESMT Coordinator at SSA

“The solution implements a fully digital workflow for PPE loan management, integrating applications, biometric validation, and automated ERP posting, ensuring end-to-end traceability and data consistency. From a technical perspective, the solution leverages biometric authentication combined with validation processes and digital document generation, resulting in a secure, high-performance architecture aligned with information security best practices.”

– Danilo Ferreira Adorno, IT Development Manager at SSA

Implementation

Although the implementation also had to integrate external applications via specific application programming interfaces (APIs), the new solution went live in January 2026. Based on previous innovation projects and its experience with SAP, the customer team was able to act mostly independently. Typical questions mostly referred to best practices for integration.

Innovation journey and outlook

“What truly stood out was the SSA team’s remarkable maturity, fast learning mindset, and determination,” Mirela Viersa, customer innovation principal at SAP AppHaus, said. “Following our exploration workshop, where we identified the key challenge, we partnered closely to design their future journey—turning vision into a structured and actionable path forward.”

After this latest successful implementation project with SAP, SSA plans to use SAP Build for future developments as their single source for development, especially now with SAP Build Code. And based on this confidence and proven enablement, the SSA team plans to look into opportunities that SAP Business AI and other intelligent solutions might hold in stock for them.

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Top image via São Salvador Alimentos

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