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The Role of AI Agents in SAP Products

No one is unaware of AI's powerful role in business. The challenge is not imagining the use of AI in business; it is actually putting these use cases into widespread practice.

Thankfully, businesses that run on SAP Cloud ERP have a natural advantage; AI is baked into SAP applications and the overall ERP at the foundational level.

There are two basic types of AI within SAP products: AI agents and AI co-pilots. An AI agent is a digital co-worker, automating tasks, making decisions, and improving performance without human intervention. AI co-pilots, on the other hand, are chat-based AI assistants similar to commercial AI services such as ChatGPT but informed by a company’s operational data.

SAP S/4HANA Cloud ERP comes with an AI co-pilot in for form of SAP Joule, a flexible agenic AI platform that allows a business to connect its ERP data to various large language models such as ChatGPT, Google Gemini or Anthropic’s Claude LLM, then interface with this agent through the ERP system. Good stuff.

You’re probably already familiar with AI co-pilots, so we’re going to focus on the other type of AI that helps a business: AI agents.

SAP Cloud ERP is loaded with AI agents that help businesses automate routine tasks and streamline operations without requiring a chat conversation. Let’s explore AI agents in the context of SAP.

 

How AI Agents Can Help

AI agents are artificial intelligence-based applications that perform tasks independently with minimal human oversight. They decide a course of action based on pre-defined rules and carry out this action using multiple software tools and data within a company’s ERP system. AI agents replace rule-based automation logic because these AI-powered applications can reason, plan, and act where rule-based logic might be limited or impractical.

There are several different ways that AI agents can help with operations.

1. Workflow Creation and Planning

AI agents can identify the steps necessary for completing an assigned task, creating workflows that employees or an AI agent can then follow.

A real-world example is using an AI agent to choose a third-party supplier that best matches company priorities, such as cost-effectiveness. The AI agents within SAP Cloud ERP will build a custom workflow for finding the best supplier. These steps might include researching company selection criteria, identifying qualified suppliers, and soliciting and evaluating bids to make a recommendation.

2. Operating ERP Software Applications 

AI agents within SAP Cloud ERP can access all applications within the system, allowing an it to carry out plans it has been authorized to act upon. Through the use of APIs, AI agents can interact with both SAP applications and third-party systems, and generative AI capabilities allow an AI agent to explain what it has done or interact with people as part of an authorized action.

A real-world example is having an AI agent within SAP Cloud ERP use document and web search tools to scan supplier information scattered through company e-mails, PDF files, databases, and websites. The agent can take this information and use coding and calculator tools within the system to compare and choose between different supplier quotations and payment terms. The AI agent then can generate a detailed written report recommending a third-party supplier.

3. Process Improvement Analysis

AI agents within SAP Cloud ERP can tap into an LLM reasoning engine to self-evaluate and correct output, and also learn from feedback mechanisms. Ample memory means that AI agents can store past scenarios and learn from outcomes for improved future performance.

A real-world example is an AI agent improving procurement selection quality and accuracy based on the results of past selections. AI agents within SAP Cloud ERP also can add additional decision factors later such as environmental sustainability that might have been overlooked in earlier assessments.

4. Collaboration with Humans and Other Agents

Specialized AI agents within SAP Cloud ERP can be combined into multi-agent systems where needed or helpful. They also can collaborate with employees for greater effectiveness through the natural language processing built into generative AI.

Real-world examples include an AI agent asking an employee to review a procurement workflow before carrying it out, or a procurement AI agent partnering with a purchasing clerk agent or a contract management agent for complex orders.

 

Real-World Use Cases

With SAP Cloud ERP, the future is now. There are innumerable ways that AI agents can be used by the typical business. Some common scenarios for AI agents include:

Financial services. AI agents within SAP Cloud ERP can streamline cash flow management by automating ledger reports, billing, invoicing, receipts, and tax and compliance records. Real-time accounting can be augmented by documenting, processing, and retrieving transactions, reducing the need for manual entry. Invoice disputes can be flagged automatically by an AI agent, and either recommendations given or resolution attempted automatically.

Human resources. AI agents in SAP Cloud ERP can simplify the hiring process by generating job requisitions and descriptions, screening candidates, and automating onboarding processes. Agents can automatically process employee time-off requests by consulting leave balances and policy compliance, determining if prerequisites are met, and submitting requests for managerial approval.

Sales and service. SAP Cloud ERP AI agents can qualify sales leads and draft customized emails or call scripts, manage call scheduling, and recommend company products. AI agents can proactively detect disputes, validate issues, and select and execute solutions. Customer requests can be classified by AI agents, and service tickets created and routed with recommendations already attached.

Supply chain. Managers can use AI agents to forecast demand in real time, evaluate inventory, and delivery logistics to make proactive recommendations. AI agents can automatically adjust deliveries to minimize disruptions, choosing alternative routes that meet specific company goals like lower transportation costs and environmental footprints. Agents can simplify inspection processes and identify errors in manufacturing, transportation, and storage. AI agents within SAP Cloud ERP also can be tasked with troubleshooting production outages and ordering repair parts, requesting maintenance services, and redirecting production to alternative equipment.

These are just a few of the many real-world use cases for businesses that use the AI agent functionality within SAP Cloud ERP.

 

How Will You Use AI Agents?

AI is a new but rapidly expanding technology, and AI within ERP is where the hype meets reality.

Discover how the AI capabilities within SAP Cloud ERP can help your business take a lead in functional AI use. Contact us for more information about the current state of AI within SAP products and how you can use these advancements for greater efficiency and increased competitive advantage.

 

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