Summarizing Commercial SAP Business AI Solutions aspects

The uniqueness of SAP’s approach to AI is in how we provide immense value to our customers on top of existing solutions in the market – including hyperscalers. Our SAP Business AI is relevant – reliable – responsible. We bring AI to where the work is already happening today: within all enterprise applications in Cloud ERP, HCM, Supply Chain, Customer Experience and more.

It is available within and alongside your end-to-end business processes and applications, to create efficiency and productivity gains. And we are reinventing the entire user experience of SAP with Joule – our generative AI copilot. Our ecosystem of partnerships and investments bring our AI use cases to the forefront of what our customers need with unique AI capabilities for each use case.

A crucial element of SAP's AI strategy is the foundation built on SAP BTP. The quality of AI depends on the data foundation and integration. This is particularly important when custom AI solutions are needed to meet specific business requirements. Using generative AI Hub, customers and partners can leverage the same applications that SAP uses to build applications and extend capabilities.

While the value that SAP provides with its innovative AI solutions is expansive, it is compounded by what our partners also provide. Partner use cases can be implemented at any time with more than 450 partner AI apps currently available.

How can you make these capabilities available to your users in your business? We differentiate between AI capabilities embedded in SAP Cloud Solutions, Joule, and AI Services in SAP BTP. Let’s get started with explaining the embedded AI capabilities that are unlocked via SAP AI Units

Customers purchase AI Units and can consume AI capabilities across our portfolio, for example in SAP S/4HANA Cloud, SAP SuccessFactors, and so on. As a customer, you can use AI capabilities across all the SAP applications for which you have an entitlement, and you pay for the consumption in AI Units. That means you need to have a license for the underlying cloud solution or purchase a baseline package including cloud solutions & AI Units.

In addition, certain bundles, such as RISE premium plus, already come with a predefined amount of AI Units, so you can get started right away. For simplicity, all services are white-labeled and contracted on SAP paper.

How are SAP AI Units Measured

• AI Units are measured using a business metric and an AI Unit conversion rate.
• A business metric is pre-defined for every AI feature or capability and can be different across solutions (like pages, users, and additional criteria based on how the solution works). Conversion rates are determined based on the pre-defined business metrics for each AI enabled feature or capability, resulting in an easy calculation like X transactions = y AI Units. You can find specific conversion rated on the SAP AI Services List.
• A metering and billing engine is available to track usage and is metered based on the pre-defined business metrics, and automatically converted to AI Units for billing.
• Units are based on annual consumption based on the contract start date. Unused AI Units at the end of the year are not carried over.

Estimate and Track

SAP provides customers with a convenient way to estimate and track AI Units using the AI Unit Estimator and SAP for Me.

With the AI Unit Estimator, customers can determine the number of AI Units required to run their chosen AI capabilities and request a quote immediately.

We plan to enhance the AI Unit Estimator by adding an AI feature catalog and value calculator capabilities.

Here is an overview of SAP Business AI Feature Catalog and Estimator.

Through SAP for Me, customers can access financial information, including contracts, AI Unit consumption, Balance Statements, and other details in the "Finance and Legal" section. They can also activate capabilities in the "Portfolio and Products" area."

Here is an overview of SAP Business AI in SAP for Me.

Note

This demonstration uses a test environment and some features shown may not be part of SAP for Me or immediately available in the live solution. All SAP Business AI capabilities shown are currently available.

So how do AI Unit Bundles work?

• When there are AI Units included in a bundle like the 500 available in ISBN Category Management, and a customer also purchases additional blocks of AI Units, they all go into an AI Unit "pool".
• Any cloud enabled AI solution that consumes AI Units can then deduct from that pool based on usage.

Business Metric to AI Unit conversion areaccording to AI Services list.

Now that we have explained how you can unlock embedded AI capabilities via SAP AI Units, let’s show you how you can leverage Joule unlocked via product licensing.

As we discussed, Joule is unlocked with product licensing that include Joule messages. A message comprises a request to Joule and a response. Once the included messages are used, overages are charged in AI Units at 7 AI Units per 10,000 messages.

There are generative AI features that can be consumed through Joule messages that will trigger billable messages in the form of AI Units as well, according to SAP AI Service list. Document grounding is an example that can consume AI Units.

Custom AI solutions with SAP BTP can be unlocked via BTP Enterprise credits (BTPEA).

SAP BTP requires a BTP Enterprise Agreement or BTPEA to consume AI Services across SAP BTP and pricing information is available in the SAP Discovery Center. Moving forward, additional options will be available.

SAP’s commercial model is extremely competitive and more advanced than most in the market as we have heard from analysts and customers.

• Many of our use cases allow for a fair usage policy and include some usage up to a limit dependent upon the solution.
• SAP offers value-based consumption where consumption metrics are linked directly to business value which scales according to usage.

Value-Based Consumption examples:

• SAP SuccessFactors by consuming SAP Business AI for job description assistance the customer is automating the job description generation process and improving output quality, allowing managers to focus on final enhancements. This leads to 80% reduction in time & cost for job description creation and a 5% reduction in cost of bad hires.
• In S/4HANA Public Cloud, SAP Business AI in Production Operations allows quick retrieval of production order details through natural language queries streamlining the process & enhancing operational efficiency. This leads to 50% improvement in production supervisor productivity & 2% reduction in loss due to production down-time.
• In SAP BTP, SAP pro-code offerings generate context specific CAP CDS data models, services, code frames, samples, test cases, data & much more based on natural language prompts integrated into the development environment. This leads to 30% reduction in application development costs and 30% faster speed of application development.
• SAP also offers purchasing flexibility in its AI commercial model with a hybrid approach including direct product licensing, pooled AI Units, and BTPEA for SAP BTP AI Service use cases.
• We also simplify managing many different industry leading providers with pre-negotiated contracts or 20+ LLMs and including all leading frontier models in the market (and the list is growing!).