Many firms are falling behind in SAP’s accelerating AI race

Companies are facing mounting pressure to adopt SAP’s next-generation AI technologies, but many are struggling to define a clear adoption roadmap.

At its Sapphire 2025 event, SAP unveiled a broad range of new AI functionalities, including a persistent, upgraded version of its Joule AI assistant and a dedicated AI Foundation designed to help teams build and scale custom AI solutions. While these innovations have sparked widespread interest, enterprise leaders tell us that evaluating and implementing them remains a complex undertaking.

S/4HANA migration fuels AI adoption conversations

Several attendees at the Orlando conference reported challenges in understanding how SAP’s growing AI portfolio fits into their existing technology landscape, according to senior leaders from K2 Partnering Solutions who were on site.

“SAP is facing growing competition from other ERP providers, so it’s encouraging clients not only to migrate to S/4HANA Cloud but also to start using its latest generative AI toolset,” says Bob Politi, Global Head of SAP Consulting Practice at K2.

Executive boards demand faster progress on SAP AI

The push to adopt SAP AI tools is increasingly being driven by corporate boards. “Boards are now pushing especially hard to use AI to improve internal systems, particularly after seeing the efficiencies it’s delivered externally to help drive business growth,” says Bob.

However, actual implementation timelines continue to lag behind expectations. “K2 has seen many firms taking their time with SAP AI. The sheer number of options can be overwhelming, and there’s uncertainty about which use cases offer the most value,” Bob adds. “At the same time, there are important concerns about using the technology responsibly. They don’t want to act recklessly, but they also know they need to move quickly.”

Navigating AI complexity across enterprise platforms

K2 leaders warn that the confusion many organizations are experiencing with SAP is part of a broader trend. “Every enterprise platform now comes with its own AI capabilities, and most companies are using dozens, if not hundreds, of these systems – from SAP and Salesforce to ServiceNow and Oracle,” says Abe Iruegas, Chief Revenue Officer at K2. “That’s why organizations need expert SAP consulting support to develop a cohesive, company-wide AI strategy that goes beyond individual platforms and delivers real business impact.”

Building a scalable AI strategy

Enterprises preparing for or undergoing S/4HANA migration are increasingly looking to embed AI capabilities into the transition. According to K2, CIOs are seeking strategic clarity as they plan for long-term scalability.

“CIOs are asking tough questions when they speak with K2: Where do we stand with AI today, and where do we need to be? Which AI platforms should we prioritise? How can we build a resilient, scalable, and responsible AI strategy that truly boosts productivity? And how do we integrate AI across SAP and other systems?” says Abe. “The most advanced companies are already tackling these challenges, but many are still unsure about their progress and how to govern, nurture, and secure their AI initiatives effectively.”

Conclusion: Turning SAP AI uncertainty into strategic advantage

As businesses accelerate their S/4HANA migration plans, the opportunity to integrate AI capabilities into core operations is growing. But without a clear strategy, organizations risk falling behind. For companies willing to invest in targeted expertise and cross-platform planning, SAP’s new AI tools can deliver a powerful edge, transforming today’s uncertainty into tomorrow’s competitive advantage.