Great need for discussion on artificial intelligence

According to a joint survey by the German-speaking SAP User Group e. V. (DSAG), the Americas' SAP Users' Group and the UK & Ireland SAP User Group (UKISUG), artificial intelligence (AI) is becoming increasingly important in companies. Nevertheless, only a few respondents consider themselves to be experts in this field. While many companies are in the process of learning and implementing their first AI pilot projects, the survey also shows that there are concerns about security, data quality and governance.

DSAG-ASUG-UKISUG survey 2024: Areas of application for artificial intelligence. (Image: www.dsag-ev.ch)

The recently conducted DSAG-ASUG-UKISUG survey shows that AI is gaining importance in companies. However, only 7% of the DSAG members surveyed consider themselves experts in AI and 8% in generative AI. In addition, 52% of respondents are currently in the process of learning about AI, and 46% are expanding their knowledge of Generative AI. The results make it clear that the development of expertise is in full swing. There is a great need for information, and there is still a lot to do - on the part of users, partners and software manufacturers alike. "We as DSAG will support our members with the necessary information via the relevant committees," says Jens Hungershausen, DSAG Chairman of the Board.

Potential for AI implementation

Overall, the survey participants find the current technological, social and economic change challenging. Only 11% of DSAG participants can easily keep up with the pace of change. 59% can keep up to some extent, while 24% cannot.

From DSAG's point of view, it is therefore not surprising that there is still room for improvement with regard to the implementation of AI. For example, only 6% of respondents stated that they use AI in many areas. 24% use AI in some areas. 11% of those surveyed by DSAG stated that they do not use AI. "The survey results show an interesting tension between reluctance and progress in the implementation of AI in companies," says Hungershausen. "The rapid development of AI technologies can be overwhelming for companies. In addition, many, especially in the SME sector, may not have the necessary financial resources, technical infrastructure or specialists to implement AI comprehensively," he adds.

AI pilot projects maintain competitiveness

According to the survey, 32% of DSAG members surveyed are currently running AI pilot projects and 23% are considering AI pilot projects. "Pilot projects allow companies to test AI in a controlled environment without making an immediate, comprehensive commitment. This reduces financial and operational risks. Pilot projects are a way of not losing touch," Hungershausen is convinced. At the same time, they allow companies to gain valuable experience, build up internal expertise and better understand the technology. This helps in the decision-making process for future, more extensive AI implementations.

AI for process optimization and data analysis

The companies that say they use or plan to use AI primarily rely on the technology to make internal processes more efficient and gain valuable insights from data. For example, 61% of those surveyed by DSAG stated that they use AI to optimize business processes, while 60% use AI-supported analyses of data to gain insights. "With AI, processes such as production, logistics or HR management can be automated and optimized, leading to immediate cost savings and an improvement in competitiveness. In addition, AI-supported data analysis enables sound, data-based decisions to be made. This is an advantage that many companies clearly recognize," explains Hungershausen.

Interestingly, the use of AI to support strategic business decisions only plays a role for 21% of respondents. To develop new generative AI products and services, 31% use AI technology, while the use of paid AI subscription services is also mentioned by 31% of the companies surveyed. "As can be seen here, companies are initially focusing on proven use cases, for example by optimizing existing processes in order to generate quick and clearly measurable added value. This is not surprising in economically challenging times. In addition, the development of new products or creative services with AI requires additional expertise, which, as already mentioned, is currently still lacking in many companies," says Hungershausen.

DSAG-ASUG-UKISUG Survey 2024: Valuable AI use cases for companies. (Source: www.dsag-ev.ch)

65% of the DSAG members surveyed consider AI to be useful when it comes to recognizing anomalies in integration processes. 62% see a benefit in AI when it comes to creating integration flows or logic between SAP and non-SAP applications. 57% see a benefit in AI when it comes to summarizing financial analyses.

Transparency, clarity and data are crucial

According to the DSAG-ASUG-UKISUG study, several factors are elementary for companies and organizations considering an AI project. For 95% of those surveyed by DSAG, transparency and clarity about the location and database of the AI are of great importance. 89% also attach great importance to fair pricing models. 89% of the participants consider it essential that AI solutions can be seamlessly integrated into existing systems. With regard to SAP, 71% consider the ability to operate AI independently of the operating model to be crucial. "The flexibility to operate independently of the SAP operating model is crucial in light of the fact that SAP has guaranteed the provision of innovations for S/4HANA in the long term until 2040," explains Jens Hungershausen. What applies to the S/4HANA Private Cloud should also be available for S/4HANA On-Premises with the same scope of services.

High demand for knowledge development in AI

DSAG-ASUG-UKISUG survey 2024: Experiences with AI technologies in the professional environment. (Source: www.dsag-ev.ch)

"It is astonishing that almost a third of companies still have no official plans regarding the use of AI. Given the hype that has been going on for some time now, I expected more companies to be beyond the discussion stage," says the DSAG CEO. According to the survey, the reason why this is not the case could be that, for example, selecting the right AI tools for existing needs is seen as challenging. This was stated by half of those surveyed. In turn, 27% think they lack the necessary skills to fully utilize AI tools, while 24% complain that there are not enough high-quality AI tools.

Security, data quality and governance as obstacles

Overall, the increasing use of AI technology appears to be causing mixed feelings among respondents. For example, 61% stated that they were equally enthusiastic and concerned. Enthusiasm is triggered above all by the possibility of saving time. Respondents in the DACH region are particularly concerned about security, data quality and governance. "Especially in the DACH region, companies have high expectations in terms of data protection and transparency. It is up to us to ensure that the introduction of AI is accompanied by clear guidelines and a strong focus on the quality of the data in order to build trust in these technologies in the long term," says Hungershausen.

Potential of AI

The survey also shows that opinions on the potential of AI are divided: 57% of the DSAG members surveyed see benefits, but feel that AI is overrated. Two percent are of the opinion that the potential of AI is greatly overestimated, while 37% believe that AI will revolutionize industries. Four percent of respondents are unsure how to assess the potential of AI.

The survey makes it clear that AI technologies are becoming increasingly important, but there is still a lot of catching up to do in terms of expertise and implementation. While many companies are in the learning phase and are carrying out initial pilot projects, challenges such as a lack of specialists, financial resources and technical infrastructure appear to be major obstacles, particularly in SMEs. The respondents see AI primarily as a tool for process optimization and data analysis, but security concerns and data quality and governance requirements are dampening the euphoria.

Source: www.dsag-ev.ch

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