By Leo Marchandon
July 23 (Reuters) – SAP’s finance chief said on Thursday that artificial intelligence in enterprise software must move beyond chatbots and ācoding tools into more complex business processes, where clean data, reliability āand cost control matter more than access to the most powerful model.
Companies have poured money into āgenerative AI but are still seeking evidence of broad productivity gains, and SAP is arguing that the returns will come less from general-purpose models than from governed systems embedded in specific business processes.
CFO Dominik Asam told reporters after SAP’s āsecond-quarter results that the “lion’s share” ā of AI token consumption today was spent in “low-hanging fruits” coding assistant and chatbots, where AI’s hallucinations matter less because the ā output carries limited risk if it fails.
But applying AI to finance, supply chain or other core business processes is harder because errors carry over multiple steps, increasing ārisk against ācompliance standards, he said.
“If you have āsome hallucinations in the process, the āerrors will actually compound statistically over many steps,” Asam said, referring to finance workflows. “It requires much more excruciating assurance levels.”
The “high-hanging fruit” of AI, Asam said, is less about applying a generic plug-and-play large language model across a company than about building systems around specific businesses.
That requires companies to make their own ādata usable and governed, so AI can āoperate with the knowledge of the company. “The idea āthat AI will solve all āthese problems if they are messy, legacy data silos is ānot true,” Asam said, adding that āsuch an approach ācame with “extremely high token costs.”
The most advanced model is not always the right one, he said. In practice, he said, companies will use the ācheapest reliable tool that ācan deliver the required outcome safely, whether that is simple software, āan open-source model or an expensive frontier model.
(Reporting by Leo Marchandon āin Gdansk; Editing by Alistair Bell)
