PUPM Terminology and Basics
Before diving into the new pricing model and examples, let’s clarify a few key terms:
| Term | As Defined As: |
|---|---|
| AI Units | AI Units are the currency for accessing advanced AI services within SAP's ecosystem. They allow customers to use Premium AI capabilities based on usage. |
| PUPM Packages | AI Units are integrated into predictable per-user-per-month packages, charged monthly per assigned user. |
| Consumption-Based Capabilities | Some Premium AI services consume AI Units per request or record, ensuring payment only for consumed services. |
| Record | A record is an individual data object of supported file types ingested by the Cloud Service and/or available for retrieval. |
| Request | A request is a response or action that uses AI to retrieve information or perform tasks. The number of requests consumed is a measure of the time and effort per use of the AI feature. |
| User | A user is an individual authorized to use the AI feature |
| Usage Tracking | Centralized tracking deducts AI Units based on actual consumption, ensuring transparency and control over AI investments. |
PUPM Package Details
Per-user-per-month (PUPM) packages are tied to specific product areas such as Finance, Spend Management, Customer Experience, or Human Capital Management. For every user assigned to a package, a fixed number of AI Units is deducted monthly, and each assigned user receives an allocation of requests.
Requests are aggregated at the customer level within each package, meaning unused requests from one user can be used by another. However, pooling does not apply across different packages. If the total number of requests across all users in a package exceeds the included volume for that month, the additional consumption is charged through AI Units. Some features may consume more than one request per use — details can be found in the footnotes of the AI Feature Guide price list.
Building on this structure, tiered pricing has been introduced for PUPM packages. The tiers are designed to align with volumes that customers already know from the Business Suite, making the approach logical and consistent across Finance, Spend, HCM, and CX solutions. The steps between tiers are deliberately even and transparent, so customers can easily understand how pricing adjusts as usage grows.
The tiering model applies consistently across all SAP customers to ensure fairness, with any specific concessions handled separately. It was also designed with the broader market in mind, reflecting how other vendors bundle AI features, so SAP’s approach remains competitive while being straightforward for customers.
Customers automatically move into the appropriate tier based on the number of users assigned to each package, and charges will adjust accordingly.
Lesson Summary
The SAP AI commercial model provides both clarity and flexibility for customers adopting and scaling AI. At its foundation is Base AI, which delivers unlimited, free access to essential capabilities — making intelligent support available by default in every cloud subscription.
For more advanced scenarios, Premium AI adds value through a mix of per-user-per-month and consumption-based pricing. It includes agents, along with embedded and generative AI capabilities, enabling customers to scale by user or by capacity as needed while unlocking powerful, high-value use cases.
Finally, the AI Foundation supports custom AI development and partner innovation, with monetization continuing through SAP BTP Enterprise Agreement (BTPEA) credits. Together, these elements create a customer-centric model that makes AI adoption more transparent, predictable, and scalable.