GenAI is Here. If You Aren’t Using It Yet, You’re Too Late…

I recently returned from the SAP Sapphire conferences in Orlando and Barcelona.

To sum it up: A whirlwind of innovation, strategy, and big-picture thinking.

I was chosen to be part of the media analyst and influencer program — a great role through which I got the latest scoop on discussions shaping current hype cycles.

During both events, I had some exclusive sit-downs with top SAP executives like Christian Klein (SAP CEO & Board Member), Dr. Philipp Herzig (Chief AI Officer), Scott Russell (Chief Revenue Officer & Board Member for Customer Success), Julia White (Chief Marketing & Solutions Officer), Muhammad Alam (Board Member of Product Engineering), and Thomas Saueressig (Board Member of Customer Services & Delivery).

Not to mention other leaders and partners who do business with the software multinational.

Now I'm here to share what I learned and saw...

(from two continents, two events, and on one major topic)

The AI revolution isn’t coming… it’s here.

For any business still debating whether it’s a fit for their goals, whether they have the right data, whether they’re “ready”, or whether they have the inroad and investment to adopt it…

Your time is up. Sorry.

While many have been rearranging the deckchairs on the Titanic (i.e. focusing on age-old problems like supply chain visibility), a tremendous iceberg has been coming our way (i.e. the change GenAI brings to the way people do business, consume or manage their operations).

At the conferences, SAP made announcements of key partnerships with big players like Microsoft, Amazon, Apple, Google and NVIDIA (at the time announced as the most valuable company in the world). In the upcoming months, they’ll be merging their understanding of GenAI and pooling their resources (like AI co-pilots) to accelerate growth in the field.

We’re talking data from 300 million+ users and 40,000+ GenAI developers.

Just a year ago (at the same conference), company leaders were only starting to envision the possibilities of GenAI in their businesses.

Very few are talking about possibilities these days. Today they’re sharing results.

Here are the highlights you should know about (and implement fast)...

The Potential for Organisational Transformation

The message from SAP Sapphire was clear: Transformation is no longer a choice; it’s a necessity. 

Generative AI is not just a tool. Rather, it’s a catalyst for change. The moment organisations start embracing these technologies, they’ll start seeing improvements in efficiency, decision-making and overall competitiveness. 

Those that cling to old ways will simply struggle to keep up. 

There are a multitude of opportunities where GenAI can transform businesses for the better.

Supply chain leaders, this one’s for you…

1. Demand Forecasting and Inventory Management

• Improved Accuracy: Generative AI can analyse vast amounts of historical data to predict future demand more accurately, which reduces overstock and stockouts.

• Dynamic Adjustments: AI models can dynamically adjust inventory levels based on real-time data to improve efficiency.

2. Supply Chain Optimisation

• Route Optimisation: Through AI, businesses can generate optimal transportation routes and consider factors like traffic, weather, or delivery windows.

• Resource Allocation: With the use of AI, resources can be allocated better (such as labour and machinery to improve overall productivity).

3. Risk Management

• Scenario Planning: AI can simulate various scenarios and their potential impacts on the supply chain, helping businesses prepare for disruptions.

• Fraud Detection: Anomalies and potential fraud in supply chain transactions can be detected by generating patterns that signify normal and abnormal behaviours.

4. Sustainability

• Waste Reduction: By optimising inventory and production processes, AI can help reduce waste and promote sustainable practices.

• Energy Efficiency: By optimising energy use in manufacturing and logistics, AI is the perfect tool to help build greener supply chains.

5. Personalisation

• Customised Products: Generative AI can create customised product designs based on consumer preferences to enhance overall customer satisfaction.

• Tailored Supply Chains: Through AI, supply chain designs can be tailored to specific market needs or product lines.

The Real-World Impact is Being Felt

In my sessions with members of the executive board, it became clear that SAP’s focus is on real-world applications (many mentioned above). From optimising supply chain operations with AI-driven demand forecasting to enhancing procurement with intelligent supplier recommendations, the impact is tangible. 

Scott Russell highlighted how customers are already seeing significant ROI by adopting these AI-enhanced solutions.

As generative AI technology continues to advance, its applications in supply chain management are expected to grow, offering even more innovative solutions. 

Over the course of the last few months, I've come to see examples of how GenAI is being adopted by leading companies across different industries to enhance their supply chain operations. These case studies, along with those showcased at Sapphire only strengthen the argument that GenAI is being used today to drive significant value. 

The first movers are pulling away fast and leaving those still debating the merits of GenAI in the dust! The gap between them is and will continue to be significant.

SAP’s Approach: Seeing GenAI as the Game-Changer

SAP is not just dipping its toes into generative AI. As leaders in developing enterprise software to manage business operations and improve customer relations, they are diving in headfirst.

Christian Klein’s keynote was a clarion call for the future: Generative AI is the cornerstone of SAP’s strategy to revolutionise business processes. With Joule, their AI copilot, SAP is embedding AI capabilities across their entire application portfolio. 

This isn’t about incremental improvements—this is about transforming how we work.

Opening Up Collaborations

One of the most impressive aspects of SAP’s strategy is how they are using generative AI to break down corporate silos. They have demonstrated this through seamless integrations across finance, supply chain, procurement, and customer experience—all powered by AI. 

This unified approach means better data flow, more informed decision-making, and ultimately, a more agile and resilient organisation.

Could GenAI finally crack the problem with silos?

Cloud and AI Synergy

SAP’s partnerships with AWS, Google Cloud, and NVIDIA are not just about leveraging cutting-edge technology; they are about creating an ecosystem that drives innovation. By integrating AI models from these tech giants, SAP ensures that its solutions are always at the forefront of technological advancements. This synergy between cloud infrastructure and AI capabilities means that SAP can offer scalable, secure, and highly efficient solutions for a number of its partners.

Addressing the Cynicism

There’s a lot of scepticism out there about Generative AI. 

Concerns about data privacy, job displacement, and the infamous “black box” nature of AI are valid. But here’s the reality: Inaction is NOT an option. 

Risk will always be evident. There is no changing that.

But the pace of technological advancement means that companies that fail to adapt will be left behind. SAP’s commitment to responsible AI, as evidenced by its adherence to UNESCO’s AI principles, is a step in the right direction. It’s proof that any challenges can be circumnavigated when the right rules are in place.

SAP isn’t just throwing technology at problems. They are ensuring that AI is used ethically and transparently. 

So What Are the Implications for Best-of-Breed Solution Providers?

SAP’s announcements spell an interesting future. The comprehensive integration of AI across SAP’s platform means that these niche players need to up their game. 

The writing has been on the wall for some time.

SAP has an opportunity to corner the entire market if it manages to pull off its vision. They are making a loud entry into many spaces currently occupied by best-of-breed solution providers. The question is: Will this spell a move to one overarching end-to-end system to rule them all? 

In theory, that sounds easier and more cohesive than having various disparate systems trying to run multiple functions in fragmented silos. But can it happen in practice? 

SAP is confident that by leveraging its enormous partner ecosystem and the data from its 300million+ users, it can achieve this quickly. 

I, for one, am certainly keeping an eye on this.

These are interesting times, to say the least.

The Way Ahead…

SAP Sapphire was a clear demonstration that the future of supply chain management is here, and it’s powered by AI. There is no escaping it.

(In reality, there never was. Adaptation was inevitable).

The insights and innovations presented at the event underscore the importance of staying ahead of the curve and embracing these technologies. SAP remains a forerunner to help companies gain that headway… if they are open to change.

Wherever you are in the world right now, you can still catch some of the fantastic discussions that took place at #SAPSapphire Orlando with the virtual event: https://lnkd.in/e9fV6vhw

For those of us in the supply chain space, the takeaway is this: 

Adapt...

Innovate…

And Lead.

Instead of waiting for the revolution to lead us into the dust, our challenge should be: How do we become a part of the charge?

Let’s navigate this exciting journey together. The discussion is FAR from over.

(even though your action is needed sooner than later)

Curious about more updates?

Stay tuned!