Conf42 Machine Learning 2025 - Online

- premiere 5PM GMT

Transforming Business Efficiency: The Role of AI in SAP and ERP Systems

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Abstract

The integration of Artificial Intelligence (AI) within SAP and Enterprise Resource Planning (ERP) systems is reshaping business operations across multiple industries. AI capabilities are not only enhancing operational efficiency but also fostering smarter decision-making, greater cost savings, and improved user engagement. Research indicates that organizations adopting AI-powered SAP solutions see significant improvements in operational efficiency, with AI implementations reducing costs by up to 20% in the first year. Furthermore, AI-driven automation in processes such as invoice matching, order management, and compliance monitoring is slashing manual errors and processing times, leading to enhanced productivity. For example, the introduction of SAP Intelligent Robotic Process Automation (iRPA) has reduced manual processing times by up to 30% in multinational enterprises. In terms of predictive analytics, AI models have improved demand forecasting accuracy by up to 40%, optimizing inventory management and significantly reducing costs associated with excess stock. AI is significantly transforming SAP by enhancing automation, predictive analytics, and business intelligence. Here are some key ways AI is impacting SAP: 1. Business AI Integration: SAP has embedded AI across its cloud portfolio, with over 400 AI use cases improving efficiency. 2. Process Automation: AI-driven automation reduces manual work in areas like procurement, finance, and customer service. 3. Predictive Analytics: AI helps businesses forecast trends, optimize supply chains, and improve decision-making. 4. AI Agents: SAP’s AI-powered agents streamline operations by handling supplier checks, contract management, and service ticket classification. 5. Data Intelligence: AI enhances SAP’s ability to process and analyze large datasets, improving insights and business strategies. AI’s impact extends to decision-making processes, where it enables real-time data analysis and predictive capabilities, leading to quicker and more accurate business insights. Financial institutions have seen AI-driven systems reduce fraud detection times by over 50%, while AI in supply chain management has minimized disruptions by predicting bottlenecks and risks. Additionally, AI-enhanced user interfaces like SAP CoPilot are revolutionizing the user experience by simplifying complex workflows and reducing the need for extensive training. Personalized AI-driven recommendations further improve user interaction, increasing system adoption rates by over 25%. As AI continues to evolve, future implications include autonomous operations, predictive maintenance, and cross-system intelligence, promising a future where ERP systems not only support but drive business transformation. Organizations embracing AI are poised to lead in a competitive, data-driven future.

Summary

Transcript

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Hello everyone. This is Winker Karti man from SCO Texas. I'm an SAP project manager having 21 years of experience in S-A-P-I-I handled multiple clients belongs to multiple industry like manufacturing, food, and period. When I started my career in SAP Abap, I started working with R 3.3, and then later my current experiences goes with s Foura 2023. In between this many years I worked with several clients several team members and from different countries like India China, Japan Germany, and different European and Asia Pacific countries. I have experience working with the manufacturing and food processing companies as an SAP project manager. I'm also like SAP certified Project manager and PMP certified AWS certified and SCRUM certified. So this is my overall SAP experience. Today I'm going to talk about the topic of transforming business efficiency, the role of AI in SAP and ERP system. How this AI in SAP is affecting the AI ERP systems. So artificial intelligence is fundamentally transforming SAP and Enterprise Resource Planning Systems. It's like creating un unprecedented opportunities for business to enhance operational efficiency, improve decision making, and deliver. Superior user experience, which you can see on my screen, which I'm talking about SAP AI and ERP systems. This presentation explores how AI integration is recognizing enterprise systems through automation. Ate your task evaluation of breakthrough analytics and enhance user interfaces. And we'll see how technologies are reshaping and how business operates and interact with their core systems. This is the overall topic which I'm going to talk today about role of AI in SAP and ERP systems, how the AI revolution is enterprise system. Let's see different things like market growth, cost reduction, revenue growth, how market growth is affecting the AI in ERP. The global ERP market is projected to reach 97.2 billion by 2024, with 78% of oration reporting at least 25% improvement in operational efficiency following strategic AI integration. Means we can see that most of the EIP markets right now trying to move to AI revolution and also how it is affecting the cost reduction companies implementing AI and answer SAP solutions have achieved an average of 32% reduction in operational cost within the first year with automation of routine process. Eliminating up to 40% of manual workload means we can clearly see that. Manual workload is getting reduced and AI is coming into the game. That's what we can see, where we can see the cost reduction, where companies are ideally thinking about cost reduction when it comes to the budget, and also the revenue growth, how the orations are making mature integration with the RP system so that they can grow. Revenue wise. Also, we can see the revenue growth are 2.3, higher revenue growth compared to industry periods with 65% reporting significant improvements in customer satisfaction and retention rates. Let's see, automation of repetitive task invoice processing. So invoice processing is one of the most important thing where most of the companies use manual processing. Some person is going to use any like software or something like that and process the invoice. But let's see how AI is helping here, like AI systems demonstrate. Demonstrated remarkable efficiency gains with improved automated matching accuracy and decreased processing cycle times compared to traditional methods means we can see that the automated invoice processing is taken care by AI so that the workload can be reduced and manual processing can be reduced. This is one of the revolution that we can see and also we see the systems demonstrate self-learning capabilities with no error rates. Sometimes manual. We may see some errors. Person made some errors while issuing invoices, but this AI capabilities will remove the error and it's like error free invoice processing. And the next one is order management. Why AI is implementing order management. Let's see. Studies examining and manufacturing enterprise documented significant reductions in order processing time, swallowing AI implementation. Audit accuracy improved translating to substantial annual savings through the elimination of costs associated with other corrections, returns, processing, and customer service interventions. And also we see that order management is also saying that they are going to eliminate errors and all those things, and they're going to see that how the cost is associated with the order corrections, processing returns, and all those things, compliance monitoring. Compliance monitoring, ai, power monitoring solutions are identified as much higher percentage of compliance. And they say okay, as reportable incidents compared to conventional rule-based systems, okay, AI is taking care of compliance. Now it is monitoring, it's following the rules, and it's saying that, okay incidents will be reported and error free. This proactive identification capability translated to remission in compliance related to panel. Decrease audit preparation time. Okay. Like in compliance, if the auditing is not done properly, then you see some fines and regular issues will be there. But AI is saying that, okay, I'm going to reduce all these things. I'm going to decrease the ities and the preparation time too. This is how we can see how AI in ERP systems and automation, which is like the repetitive task, will be eliminated. Let's see. What we are going to talk about predictive analytics and forecasting. Okay. The most important things in any business is like demand forecasting, financial risk enhancement, supply chain optimization. Okay. Let's see. Demand forecasting A and S planning solution documented significant forecast accuracy improvements compared to traditional time series forecasting methods, decreasing cost while improving product availability. Also financial risk assessment. AI and S transaction monitoring identified a high percentage of fraud led activities before payment execution, representing a substantial improvement over rule based detection systems, supply chain optimization. Predictive AI models reduce supply chain dis disruptions by identifying potential bottlenecks, supply risk, and de demand before they impacted operations. We are seeing that AI is taking charge of predictive analytics and forecasting, and we are seeing that it is going to reduce the cost. It is going to reduce the risk, and it is going to reduce the fraud and it is making supply chain process very easy. Move to next slide, and as decision making capabilities so improve decision quality, better outcomes in dynamic environment. Advanced anm, a detection, early identification of issues, inventory optimization, reduce access while improving availability, financial intelligence, better cash forecasting and capital allocation. So these four are very important while taking any decision. So AI is also evolving now to make sure that it is enhanced decision making capability, so that improved decision quality, advance analytic detection, inventory optimization, financial intelligence for better cash forecast forecasting and capital allocation. All nations utilizing AI Argumented SAP analytics experience to improve decision quality and reduce decision latency compared to the conventional analysis approaches. These improvements were particularly pronounced in dynamic business and environments where Rapid data assimilation translated directly to, compared to advantages we see there is lots of improvement is going to happen when SAP is now integrated with ERP. Let's move the next slide. Okay. Now it is saying that how AI is going to enhance the user experience. Right now we are seeing lots of apps are coming, but again, we'll see like how AI announced the user experience for ERP systems. Conventional interfaces solution like SAP Joel and SAP Co-pilot enables users to complex workflow, more efficient and traditional menu drive interfaces. These natural languages capability reduce the technical knowledge barrier. Then historically limited, ERP adoption. Means we can see like a layman who is not into the SAP technologies, like when we do SAP implementations, the clients, some of the clients, they don't have SAP experience, but still using these particular interfaces, they can also easily use SAP capabilities. Let's see. The intelligent assistance, a power assistance transform navigation in complex ERP and NEUR environment. By providing context aware guidance, they reduce errors while accelerating processes. Through proactive suggestions, particularly complex areas like financial consolidations. In the ERP systems, it is helping, intelligent assistant is helping reducing the address, which we already discussed in our previous slides, and saying that, okay, I'll take care of everything proactively and give the suggestions. Complex areas and financial consolidations will be taken care by ai. Personalized experience. AI en enabled adaptive interfaces. Improve information processing. Decision quality research demonstrate that AI driven, ation optimized interaction path, minimizing load while maximizing inside delivery. It is also taking care of interfaces for the information processing decision quality means we can see going forward the improvement of the quality, which is really enhance the personalized experience of the users. Let's go to the next one. Generative AI integration. Right now we see like generative AI is all, all over, like LinkedIn, all over industrial area, and people also getting certified when you do a PM certification. You also suggested by PMP team to do generative ai, p and p. Why generative AI integration is coming into the picture. In a RP, let's see, the contents. Automated content creation code generation enhance chart boards. Okay, let's see what is Automated content creation significantly reduce effort for producing business communications and reports. Beyond time saving these systems improve information consistency through standardized formatting and integrating validation frameworks means. In like instead of doing manual reports, this one is to taking care of creation of reports different type of reports, like budget reports or like status reports or anything which is related to the business. And it is also standardizing the formatting, so you don't need to worry about the formatting. Okay. That is one thing. Second thing for the developers code generation. Transform application development within SAP environment means it is going to generate the code. Then we are seeing that okay, going forward, SAP developers will be reduced and this AI integration will be playing a major role to generate the code. We know, like people, we are seeing so many code generator tools for different technologies, not only for SAP, for different T net, the Java, et cetera, et cetera. But again, when it comes to SAP environment, it is saying that, okay, intelligent tool accelerated development workflows will be improved. Code quality improved to the applications. Consistent applications of architectural patterns means like it is following the standard SAP code technology. Okay, and let's see what's next. Enhance the chat bots Modern AI power system resolve most user inquiries without human intervention. These systems maintain contextual awareness across conservations and effectively address complex inquiries that previously require specialized support. See, we are seeing the modern technology is trying to make sure that it is giving like conceptual awareness to the users and also address the complex inquiries. So it is always talking about reducing the frauds, giving you, reducing the complex issues and giving you the what do you say, like the specialized support and all those things. Let's see, AI assisted information interaction, so how AI is helping us to get the interaction information. So smart summarization enhance analytics, natural language filtering. Conceptual recommendations. I'm not going deep into this all topics, but based on the headlines, we can see like how it is helping us reducing all this transformation, lengthy reports and accelerate complex workflows and also enables conversation data exploration delivers faster, comparing to traditional SQL based query interfaces and also it's a recommendation. User needs intelligent, surfacing relevant actions. Connections and insight based on current activities, historical patterns. Ordination. So most of the ordination now leveraging ai, enhanced analytical respond 40% faster to changing business conditions means if you see, if you have an SAP experience, there are bi analytical reports. Okay? Now this AI is helping us to respond 40% faster, comparing to the regular bi analytical reports. So this is like a game changer. So it means how your internet is speed based on your internet. Your computers are working similarly, this SAP reports give you faster reports. This will really improve the information accessibility and also visualization. These capabilities deliver exceptional value in data intensive environments where information, volume, and complexity would otherwise over him. Human continue capacity. Let's see. Business benefits from AI intelligence, operational efficiency, reduce, we discussed already. It'll reduce manual processing and time significantly in financial services. Next one is financial management improves cash forecasting, accuracy in manufacturing inventory management, decrease holding cost in retail operation. Customer service, that is one of the most important thing. Enhance the sort accuracy across distribution networks means if you take example of my current project where I'm working as a project manager for Levi's, like they have so many orders in the distribution centers, so this will definitely help them to enhance their distribution across the network. And also compliances accelerate regulatory issue detection, healthcare decision making, minimize response time, telecommunication. Okay, AI is taking, it is minimizing response time in telecommunication supply chain lowers disruption rate in manufacturing environments. User experience, like we discussed about the apps and all those things is boost the performance and also system adoption within professional services means it says it's easy to use. Let's move to next slide. Future implications. Okay, now using the S-A-S-A-P, AI integration, ERP, what are the future implications? Let's see. Autonomous operations 2026 to 2028. Predict maintenance, 2025 to 2027. Cross system intelligence, 2026 to 2029. Self-optimizing supply chain. 20 25, 20 27. Let's see. And autonomous operations, meaningless system, increasingly capable of executing complex business process with minimal oversight, extending beyond simple transaction to sophisticated decision process. Next, we'll see the rapid advancement as operational technology integrates with the enterprise systems, reducing downtime and maintenance costs through more precise scheduling. So it's, it is going to reduce the downtime of the systems. And also maintenance cost, which is most important for most of the organizations. Cross system intelligence, transgendering traditional application boundaries to deliver unified insights across business functions. Enhancing all national agility through faster response to market changes, self-optimizing supply chains. A orchestrated spanning multiple application, improving strategic alignment and reducing supply chain cost by 41%, which is like game changer. We'll move to the next slide. Conclusion, a paring shift in enterprise technology, operational transformation, fundamentally redefining efficiency across business functions. Decision quality enhancements, which we already discussed, the operational transformation we discussed. What is the decision making? Quality enhancement enable more informed strategic decision through data-driven insights, user experience, revolution, creating intelligent digital ecosystem that adapt to changing requirements. The integration of AI within SAP and DIP system represents the shift to that extent far beyond incremental improvement. Companies that successfully leverage these capabilities are positioned to operate with greater efficiency. Respond more effectively to market changes and make more informal strategic decisions. Organization that embrace these technological advancements are not merely as IT implementations, but as strategic capabilities will fundamentally reshape their operational models and competitive positioning in an increasing digital data. Driven in future means. We can see this AI within S-A-P-R-P systems represents extended. For beyond incremental improvements. The improvements which we already discussed about the operational transformation, decision quality, user experience reducing the errors, processing the invoice faster and also reducing the fraudulent things. So orations like most of the nationals adopt these technologies advancements not only for IT implementations, but also for other strategic fundamental business operations. Let's see. That's it. Thank you. Thank you very much. It's nice talking to you all. Thank you.
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Venkata Kalyan Chakravarthy Mandavilli

SAP Project Manager @ ITEK Software

Venkata Kalyan Chakravarthy Mandavilli's LinkedIn account



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