In an evolving business landscape, the strategy of selecting best-of-breed software for operational functions, such as customer relationship management and human resources, is becoming outdated due to the rise of artificial intelligence (AI). Muhammad Alam, an SAP executive, emphasizes that the introduction of AI is commoditizing business applications, similar to how cloud services have transformed infrastructure. The key differentiation now lies in AI-enhanced user interactions, where applications serve more as systems of execution than primary interfaces. SAP is innovating with “app-less” experiences, allowing functionalities like expense filing via AI chat agents, minimizing user engagement with underlying platforms. Additionally, SAP’s AI-native applications, such as the supply chain intelligence tool, leverage real-time data to predict disruptions and inform decision-making. This shift aims to streamline operations and reduce integration costs, positioning SAP’s Business Suite as a comprehensive solution in a market dominated by fragmented applications.
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