By Mariyah Saifuddin
The artificial intelligence wave is a formidable force reshaping industries, and the SAP ecosystem is at the heart of this transformation. As Mustansir Saifuddin highlighted in a recent episode of “Tech-Driven Business,” major announcements from SAP this year underscore a strategic push to leverage AI, with partnerships like the SAP and Microsoft collaboration around Copilot and Joule poised to make a significant impact. For the vast majority of SAP clients already utilizing Microsoft technologies, this synergy presents a wealth of opportunities.
However, the journey isn’t without its challenges. Saifuddin’s podcast guest, Geoff Scott, CEO of Americas SAP Users Group (ASUG), pointed out that while AI technology is evolving at a “furious pace,” the SAP space may not be “moving as quickly as we should to capture the amount of opportunity that’s out there.”
With a proliferation of tools beyond SAP’s Joule and Microsoft Copilot – including AWS Bedrock, Google Gemini and emerging LLMs like DeepSeek – staying abreast, let alone strategically integrating these, is a monumental task. Scott emphasizes that it is “mission critical” for technology practitioners to determine how best to leverage this evolving landscape.
The imperative for radical data rethink and continuous innovation
To truly unlock AI capabilities within SAP environments, Scott argues for a fundamental shift in how organizations manage their data and approach innovation. “If you really want to take your SAP data and make it AI enabled using Joule or using any other series of tools,” he said, “it’s gonna necessitate that we as technology practitioners start to do some fairly radical things with our data.”
The first radical step? De-customization. Scott advocates moving the responsibility for code back to SAP. “They are responsible for figuring out how to make the AI work, not us,” he said. This ties directly into adopting SaaS-based solutions like SAP’s Public Cloud. While many are implementing Private Cloud through RISE, recreating extensive customizations downstream means individual organizations bear the burden of making them AI-enabled, leading to “continuing amounts of stress as the business innovates faster and faster.”
This leads to the second critical shift: moving away from the traditional “stair-step model” of innovation in the SAP ecosystem – where upgrades happen infrequently. “There’s so much innovation happening… if we’re not continuously innovating, we are gonna find ourselves further and further behind,” Scott warned.
To transform SAP data into an “innovation gold mine,” organizations must de-customize, innovate faster, diligently archive old data and, crucially, focus on master data management. “Master data is gonna become a major, major opportunity for all of us,” he added. Success in these areas offers a “fighting chance at making our enterprises very savvy.”
The power of partnership: SAP and Microsoft leading the charge
The collaboration between SAP and Microsoft is not a new development but a long-standing, powerful alliance. Scott reminded listeners of the historical ties, “almost as long as SAP and Microsoft have been in business,” citing early collaborations between founders Bill Gates and Hasso Plattner, co-founder of SAP. Given that most SAP users are also deeply embedded in the Microsoft ecosystem – using Excel, PowerPoint, and Word daily – “it makes perfect sense… that a tool such as Microsoft Copilot and SAP’s Joule would be working in harmony together.”
Recent demonstrations of Retrieval Augmented Generation (RAG) technologies, where Copilot can access and retrieve SAP data, and Joule shows similar capabilities, are testaments to this synergy. However, Scott realistically notes that “as much as we’d like to have one AI tool, I just don’t think that that’s going to be the way this works.” Enterprises will likely use multiple AI tools, making the enterprise architect’s role even more challenging in terms of integration, determining best use cases, and deriving value.
Agentic AI: Potential and practicalities in complex SAP landscapes
The conversation also touched upon the burgeoning field of “Agentic AI.” While the hype is considerable, Scott perceives that within the SAP ecosystem, many are still in the “investigating and researching” phase. “I haven’t necessarily seen any specific in production, customer running, agentic AI using SAP… yet,” he observed, though he believes “it’s coming.” SAP’s AI team, led by Philip Herzig, is actively demonstrating these capabilities.
The core challenge lies in the inherent complexity of businesses running SAP. “Most of the organizations that run SAP are of a sufficient size and scale and complexity,” Scott noted. Therefore, an agent-based AI “is going to have to be fairly complicated in order to handle all of those different particulars of a business.” The key will be to “slice that down to make it so that they can demonstrate some success early days without making the agents so complicated that they basically can’t function.”
Actionable advice for SAP customers on their AI journey
So, what should SAP customers do to navigate this AI-driven future? Geoff Scott offered several key pieces of advice:
Experiment and Learn: “First and foremost, take the time to experiment… if you’re not using these AI tools every day, start.” He shared his own experience using Claude to summarize documents and generate podcast questions, emphasizing that while not perfect, it was a significant time-saver and a valuable learning experience.
Prioritize Data Integrity: Reiterating an earlier point, clean, governed data is paramount. “If we’re gonna succeed in this future AI enabled world, the data that is being accessed… has to be accurate,” Scott stressed. This means robust archiving and impeccable master data management. Inaccurate data, especially with AI’s summarization capabilities, can lead to “a lot of really bad decisions.”
Embrace the Cloud: Cloud adoption is fundamental for innovation at scale. “I don’t think you can innovate at scale if you’re not thinking about moving into the cloud,” Scott asserted. New AI functionalities will appear first in the latest software editions, typically cloud-based. Trying to run AI in an on-prem data center is a “very costly exercise” for most.
De-customize and Shift Responsibility: “We as SAP customers now more than ever, need to stop customizing and moving responsibility for code back to SAP.” This is crucial for keeping pace with AI advancements.
Retool and Relearn: For professionals like ABAP programmers and Basis personnel, this era demands adaptation. “We’re all gonna have to relearn,” Scott stated, urging them to see themselves as pivotal in this transition, helping to “get that ABAP code out, move it to SAP.”
Leverage ASUG (Americas’ SAP Users’ Group): Participate in ASUG chapter meetings, share challenges, and influence SAP’s direction. “How do we need SAP to make better business processes? How are we gonna use the tools that they have, like LeanIX and Signavio to help drive some of this?”
The journey ahead: Get off the couch
The path to fully leveraging AI within the SAP ecosystem is “long and… more important than ever,” Scott metaphorically urged. “It’s time to get off the couch and go out and start walking, and then when you can walk, you can run, then… you can sprint.” The consensus is clear: AI isn’t slowing down. As Mustansir Saifuddin concluded, “Either you go along with it or you’re gonna be left behind.”
The single most important takeaway from the discussion, as articulated by Geoff Scott, is to “Spend time experimenting and learning this stuff. Get comfortable being uncomfortable with these tools. Use them.” Think about how your business can benefit, engage with platforms like SAP BTP to access LLMs, and if you’re struggling with the business case for S/4HANA migration – a key enabler – seek help from resources like ASUG.
For SAP users, the message is to “get out of the stands and on the field.” By proactively experimenting with tools like Copilot and Joule, engaging with the community, focusing on data excellence, and pushing for cloud migration and de-customization, businesses can not only keep pace but also unlock unprecedented innovation and efficiency.
Interested in more Tech-Driven Business podcasts? You can listen here
About the podcast guest: Geoff Scott
Geoff Scott is CEO and chief community champion for Americas’ SAP User Group (ASUG). Scott believes that the connections ASUG makes for its members have the potential to become career-defining relationships that inspire innovation and success for their organizations.
His leadership prioritizes helping ASUG members make the most of their investment in SAP technologies. To that end, Scott works closely with customers, members, the SAP executive board and the extensive partner ecosystem to amplify the voice of the SAP customer.
Scott’s past positions include CIO for TOMS shoes, where he led the implementation of SAP; CIO at JBS; and senior leadership roles at Ford Motor Co. Scott also has served on several philanthropic boards and is the founding member of the Denver CIO Executive Council.
Before becoming CEO, Geoff was an ASUG member and served on the board.
About ASUG
ASUG is the world’s largest SAP user group, serving thousands of businesses and connecting more than 130,000 professionals with networking and educational resources. Its mission is to help people and organizations get the most value from their investment in SAP technology.
The group holds in-person and virtual events and makes on-demand digital resources available to its members.
