What is Artificial Intelligence (AI)?

Artificial Intelligence has become an integral part of many people’s everyday digital lives. Read on to find out what you need to know about AI.

AI at a glance

AI at a glance

The most important facts in brief

The most important facts in brief

  • Artificial Intelligence (AI) refers to methods in which machines are trained to solve tasks independently.
  • The German term for Artificial Intelligence (AI) is Künstliche Intelligenz (KI).
  • Key sub-disciplines of AI include machine learning and deep learning.
  • SAP is increasingly integrating AI into its software to support users, automate processes and improve analytics.
  • Artificial Intelligence offers significant opportunities, but also poses risks in terms of ethics and loss of control.

Artificial Intelligence - Basic knowledge, application areas and trends

Artificial Intelligence - Basic knowledge, application areas and trends

The initial hype has passed: artificial intelligence has become an integral part of many people’s digital daily lives.

With generative AI applications such as ChatGPT, the technology experienced a new surge in development at the end of 2022. Today, AI has finally reached the mass market. Users no longer access it solely via individual websites. Instead, they use AI directly within search engines, office applications or ERP software.

This development is being driven in particular by the major technology providers:

  • Microsoft is comprehensively integrating artificial intelligence into products such as Microsoft 365, based on OpenAI’s models.
  • Google is continuously developing its AI platform and has established powerful alternatives on the market with solutions such as Gemini.
  • Apple is stepping up its work on its own AI features and is increasingly integrating artificial intelligence into its own ecosystem.

However, artificial intelligence is no longer just a topic for end users. More and more companies are making targeted use of AI to optimise processes and gain a competitive edge.  This is also the case with ERP systems such as SAP S/4HANA.

But what exactly does the term ‘artificial intelligence’ mean? Since when have AI applications been available, and why are they becoming increasingly popular? What can AI already achieve today, and where are its limitations?

What do terms such as ‘machine learning’ and ‘deep learning’ mean? How is artificial intelligence changing both businesses and society in general? And how is SAP approaching AI?

On this page, you will find answers to these and many other questions relating to the field of artificial intelligence.

Let's talk about SAP AI

Artificial Intelligence: Definition

Artificial Intelligence: Definition

Artificial Intelligence (AI) is a discipline within computer science. In Germany, the synonym ‘Künstliche Intelligenz’ (KI) is also used.

AI deals with methods that enable machines (computers) to solve tasks in the same way that a human would using their intelligence.

Artificial Intelligence therefore encompasses not only aspects of information technology, but also those of psychology, neuroscience, linguistics, communication studies, mathematics and philosophy.

Computer science is therefore more of a means to an end. It brings the various disciplines together and enables their implementation.

In order for AI to solve tasks independently, it must be trained. To this end, experts use special algorithms and provide the AI with training data. Through continuous training, the AI improves steadily – until it can solve the tasks set for it on its own.

There are essentially two or three types of Artificial Intelligence:

1. Autonomous and automatic task completion (weak AI)

The most widely used form of AI today is ‘weak AI’, or weak artificial intelligence.

Solutions such as intelligent software assistants, internet search engines, self-driving cars and speech recognition systems already utilise AI. As a result, they are becoming an increasingly common part of our everyday lives.

Although such systems have already achieved an enormous level of performance, they are referred to in technical terminology as weak AI.

The reason for this is that weak AI solutions operate at a relatively superficial level of intelligence. They do not develop a deep understanding of problem-solving.

2. Mimicking human thought and behaviour (strong AI)

Strong AI aims to attain or surpass human intellectual capabilities.

Systems with strong AI can recognise patterns and learn. Above all, they can apply the knowledge they have acquired to many new tasks. This works even when these tasks are not covered by existing algorithms.

Strong AI acts actively and flexibly, on an equal footing with humans. However, systems with strong AI do not yet exist.

3. Artificial superintelligence

Systems with ‘artificial superintelligence’ theoretically possess consciousness and human characteristics such as emotions.

To date, it has not yet been possible to develop such superintelligence. There is heated debate amongst researchers as to whether the development of such AI is even feasible.

Difference between Artificial Intelligence, Machine Learning and Deep Learning

Difference between Artificial Intelligence, Machine Learning and Deep Learning

Artificial Intelligence, Machine Learning and Deep Learning are distinct concepts.

  • Artificial Intelligence is an umbrella term that encompasses technologies and methods enabling machines to mimic human thinking.
  • Machine learning is a subfield of AI that enables machines to continuously improve through pattern recognition and training data.
  • Deep learning, in turn, is a subfield of machine learning. Here, machines train themselves using multi-layered neural networks and are able to solve highly complex tasks.

Let’s take a closer look at these approaches below to further highlight the differences.

Machine Learning

Machine Learning

Machine learning refers to mathematical methods that enable a machine to generate knowledge independently from empirical data.

Or, to put it more simply: machine learning allows computers to perform useful tasks without having to be programmed to do so beforehand. Only the algorithm is programmed.

From a technical perspective, machine learning therefore involves the use of algorithms (computational rules) that can independently recognise patterns and regularities in data. To do this, they must first be fed extensive data and trained.

During the development phase, a programmer ensures that the machine learning model is continuously adapted and optimised.

In this way, the algorithm becomes ‘smarter’ from one dataset to the next through pattern recognition. Ultimately, it can perform its task independently using new and unknown data.

The main objectives of machine learning are to

  • identify correlations,
  • link data intelligently,
  • draw conclusions and
  • make accurate predictions.

In the business environment, machine learning applications have the potential to relieve staff of tedious, unproductive tasks. This frees up resources for new areas and makes work more efficient and cost-effective.

For example, machine learning software can independently scan paper documents, recognise the text, initiate further steps and organise archiving.

A more complex scenario in which machine learning is already being used today is predictive maintenance. The algorithms employed are capable of detecting potential damage to technical equipment and fault patterns at an early stage. If necessary, they can then request maintenance as the next step.

Speech recognition on mobile phones, spam filters in email inboxes and even facial recognition in photo management are largely controlled by machine learning algorithms.

Even before the AI hype triggered by chatbots such as ChatGPT, many people had already come into contact with machine learning without realising it – for example, when they were shown personalised adverts.

Deep Learning

Deep Learning

Deep learning is a subfield of machine learning. It is a specialised method that utilises so-called ‘deep’ artificial neural networks (DNNs) and vast amounts of data to learn particularly efficiently.

The way it works is modelled on learning processes in the human brain. Based on available information, such systems can repeatedly link what they have learnt with new content, thereby continuously improving their knowledge.

At a certain point, the machine is then able to make predictions, take decisions independently and question these decisions. If the outcome of the decision is unsatisfactory, it is adjusted in a new attempt.

Humans do not normally intervene in this learning process. This is also the key difference from machine learning.

Deep learning is particularly well-suited to scenarios in which large volumes of data need to be analysed for models and patterns. Examples of applications here include speech, object and facial recognition.

In speech recognition, for example, deep learning enables systems to independently expand their vocabulary with new words and word variants. Other areas of application include autonomous vehicles and robots, AI in computer games, and predicting customer behaviour within CRM solutions.

Development and use of Artificial Intelligence

Development and use of Artificial Intelligence

Since its inception, artificial intelligence has made enormous strides. This is particularly true of recent years.

Many corporations are currently trialling applications of AI. The use of AI opens up opportunities to optimise their own business operations and even to reshape entire industries. But how did artificial intelligence come about, and what level of sophistication have such systems actually reached to date?

History: The beginning of Artificial Intelligence

History: The beginning of Artificial Intelligence

The origins of artificial intelligence date back to the 1950s. The term was first used as early as that decade at a scientific conference in the USA. The scientist Marvin Minsky is regarded as one of the founding fathers of AI.

In 1966, Minsky defined AI as follows: “Artificial intelligence is the science of making machines do things that would require intelligence if done by men.” Put simply, this means that artificial intelligence exists when machines perform tasks that would require human intelligence to carry out.

Another early milestone in AI was the Turing Test. It was developed in the 1950s by the British mathematician Alan Turing. The test was designed to enable a human to communicate via chat software in real time with other humans and a machine.

In the 1960s, the so-called ‘General Problem Solver’ was unveiled. This was an AI system capable of solving simple problems. In the same decade, the ELIZA software caused a stir. At the time, this chat system made it possible to simulate therapeutic conversations.

In 1996, a computer defeated the then reigning world chess champion, Garry Kasparov. In the decades that followed, the capabilities of artificial intelligence improved continuously. This was largely due to ever-improving storage capacity and computing power.

In 2011, IBM unveiled its Watson software. It was able to win the quiz show Jeopardy! against human opponents. AlphaGo is another AI programme that achieved what was previously considered virtually impossible: defeating the world’s best professional Go player in 2016.

Today's use of Artificial Intelligence

Today's use of Artificial Intelligence

Artificial intelligence is now firmly established in both our private and professional lives.

A key area of application is AI-powered assistance systems. Applications such as Siri and Alexa have played a major role in making AI accessible to a broad user base. At the same time, the latest AI technologies are increasingly enabling real-time translation, thereby facilitating communication across language barriers.

Furthermore, generative AI applications and chatbots are rapidly gaining in importance. Companies are using them specifically to create content and make communication with customers more efficient. These are systems based on large language models. They are capable of understanding and processing natural language and generating content independently.

Compared to earlier chatbots, these AI solutions can conduct significantly more complex dialogues. Areas of application include customer service, internal knowledge platforms and even initial medical consultations.

Another key area of application for artificial intelligence is predictive analytics. AI algorithms analyse large volumes of data from various sources to produce well-founded forecasts. This enables early identification of trends in customer behaviour, business figures or operational processes. In the financial sector in particular, AI is used for fraud detection, risk assessment and claims management.

Artificial intelligence is also playing an increasingly important role in the field of marketing. AI enables data-driven planning and optimisation of campaigns. Companies can predict more accurately which customers are most likely to respond to an offer, when and via which channel.

AI is also well established in service management. Here, for example, artificial intelligence handles the automatic classification of service requests. Furthermore, it assists with support interactions and provides relevant information to help resolve issues.

Artificial Intelligence is also driving significant progress in IT security. Modern AI systems detect attack patterns at an early stage, identify anomalies and prioritise security incidents. Through machine learning, they continuously improve by analysing new threats and learning from them.

Let's talk about SAP AI

What does Artificial Intelligence mean for SAP?

What does Artificial Intelligence mean for SAP?

SAP’s strategic direction clearly shows that the company is increasingly evolving into a platform provider for AI-powered business processes. SAP is pursuing what is known as an ‘AI-native’ approach, in which AI is no longer used only in isolated instances, but is an integral part of all applications.

SAP aims to use artificial intelligence not only to automate business processes, but also to optimise them in a context-based manner. The focus is on seamless end-to-end processes.

Since 2023, SAP has been consistently driving forward the integration of AI. The company has grouped the relevant functions under the term SAP Business AI. At the same time, the portfolio is being systematically expanded to make AI usable across as many business areas as possible.

As part of this development, SAP is increasingly focusing on generative artificial intelligence and so-called ‘Agentic AI’. These AI systems are capable not only of generating content, but also of independently taking on tasks within business processes and coordinating multiple steps.

An important milestone in this development was presented at SAP Sapphire Orlando 2026: the vision of the Autonomous Enterprise:

  • SAP uses this term to describe a company in which artificial intelligence increasingly controls, coordinates and optimises processes autonomously.
  • AI agents analyse data in real time, make preparatory decisions and carry out operational tasks automatically.
  • This specifically reduces the workload on employees, who receive context-based recommendations for action.

The AI assistant Joule plays a central role here, serving as a unified user interface for SAP applications. Users interact with the systems using natural language to retrieve information, initiate processes or carry out analyses. In doing so, Joule utilises the business context to deliver precise and relevant results.

Behind the scenes, specialised AI agents are deployed to support or automatically execute entire business processes – for example, in finance, the supply chain or human resources. The aim is to achieve seamless end-to-end automation across all areas of the organisation. 

What is SAP AI or SAP Business AI? Find out here what it’s all about and how the technology is shaping the future of businesses.

Ethical principles relating to AI

Ethical principles relating to AI

Artificial intelligence brings with it enormous societal changes and challenges relating to data protection. SAP has already examined these ‘downsides’ of AI in depth.

The software group has therefore developed guidelines designed to govern the introduction and development of AI components. The overarching aim here is to ‘improve the functioning of the global economy and people’s lives’.

The principles cover the following aspects:

  • Value-driven conduct (respect for human rights and UN Guiding Principles)
  • Putting people and the user experience at the centre
  • Unbiased conduct for businesses
  • Transparency and integrity
  • Quality and security
  • Data protection and privacy

SAP also aims to address the societal challenges arising from AI. Aspects such as economic redistribution, economic development, social security and normative issues play a role here.

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If the buyer commissions the due diligence examination, this is referred to as a "buy-side due diligence".

Accounting-based SAP CO-PA is on the advance and is regarded as SAP's strategic solution. But is it really the market segment calculation of the future?

Corporate finance is embedded in every corporate strategy. Every activity must be financed, capital must be used optimally, the value of the company must be increased and risks must be averted.

With the help of live demo systems, companies can experience SAP S/4HANA immediately - and thus, among other things, test and evaluate whether the SAP best practice standard is sufficient for their processes.

Artificial Intelligence has become an integral part of many people’s everyday digital lives. Read on to find out what you need to know about AI.

Adobe Forms for SAP lets you develop forms - a technology that surpasses its two predecessors, SAPscript and SmartForms.

Companies that buy companies have several options. One variant: the asset deal. What does the term mean? What are the advantages of this procedure? What are the practical implications?

What cloud solutions does SAP offer? What does RISE with SAP have to do with the SAP S/4HANA Cloud? And what are the advantages of the SAP Cloud? Here are the answers!

There are different ways to SAP S/4HANA: Greenfield, Brownfield or even a selective migration. To find out where the differences lie and the advantages and disadvantages of the respective strategies, read here.

GROW with SAP is SAP's new offering for new customers and midsize companies to get started quickly and easily with SAP S/4HANA.

The number of M&A transactions worldwide has recently declined – but the total value of deals is rising significantly again due to megadeals. But what exactly are M&A deals, and what motives drive companies to engage in M&A transactions?

SAP SuccessFactors is an HR cloud solution. It supports companies in controlling and transforming their HR management processes. In this article, we provide an overview of the solution.

New offering for SAP customers: In Q2 2025, SAP will introduce a "transition option" to support the move from SAP ECC to SAP Cloud by 2033 (instead of 2030).

The SAP Business Data Cloud (BDC) is a fully managed SaaS solution for standardizing and managing SAP data. Read here what you need to know about BDC.

SAP has relaunched the name Business Suite - for all of the Group's cloud applications. Read here what you need to know about the new Business Suite.

E-invoicing between domestic companies has been mandatory since January 1, 2025. Here you will find answers to the most important questions about electronic invoicing.

SAP Document and Reporting Compliance (SAP DRC) is the SAP solution. Companies can use it to meet compliance requirements. Read here what you need to know about SAP DRC.

What is SAP S/4HANA? What are the advantages of SAP S/4HANA? Or how to make the switch to the new ERP suite from SAP? Questions over questions. Here you will find the answers.

The ETL process is a fundamental concept in computer science. It enables the transformation of data from various sources into valuable knowledge. On this page, you can learn more about the details!

SAP Credit Management is a software solution that helps companies to manage credit risk when dealing with customers. Get to know the solution here.

SAP Cash Management helps companies to manage cash flows, liquidity planning and cash flow monitoring. Find out here what you need to know about this product.

Efficient receivables management and rapid dispute resolution: SAP Collections and Dispute Management automates processes, improves liquidity and strengthens customer relationships - integrated in SAP S/4HANA.

SAP SCM is an independent product with various functions for supply chain management under SAP ECC. Read here what you need to know about SAP SCM.

With the help of the Digital Adoption Platform, users can get to know and use software more easily and companies can optimize applications. WalkMe has been part of SAP since 2024. Get to know the solution here.

SAP Central Finance is an SAP platform for finance and controlling, reporting and consolidation. Read the answers to 11 key questions about Central Finance here.

With SAP Central Finance, processes in Finance can be centralized. Find out here what these processes are and what advantages they have in detail.

What is RISE with SAP? What are the advantages of SAP's cloud methodology, and how does RISE relate to the new SAP Business Suite? We answer your questions about RISE with SAP.

Since January 1, 2021, the negotiated partnership agreement between the EU and the United Kingdom has provisionally applied. Many companies still have to make necessary adjustments now.

Ethical and moral issues in the field of artificial intelligence.

Ethical and moral issues in the field of artificial intelligence.

Artificial intelligence gives rise to a number of ethical dilemmas.

  • It is therefore important to critically examine whether decisions made by autonomous machines might pose a threat to free will and the assumption of responsibility.
  • Furthermore, developers may programme AI software with biases that lead, for example, to the exclusion of individuals or to discrimination. This is particularly problematic when such biases arise unintentionally in the context of machine learning.
  • Furthermore, there is a risk that people may be identified, categorised and assessed through profiling by algorithms. This profiling is based on their activities, preferences, opinions or other information that they share or generate online. This could jeopardise cultural and political pluralism.
  • Moreover, AI systems require vast amounts of data to carry out learning processes effectively. This also includes personal data. Current data protection laws are in stark contrast to this.
  • However, the sheer volume of information poses further challenges. For instance, it is sometimes difficult to filter out accurate and error-free information. If the quality of the data is not beyond doubt, software results and decisions cannot be trusted to a high degree.

Artificial intelligence has long since made its way into the SAP world—and is already transforming processes, decision-making, and business models. But how can companies move from experimentation to scalable, productive AI scenarios?

Outlook: Where is the trend for Artificial Intelligence heading?

Outlook: Where is the trend for Artificial Intelligence heading?

Artificial Intelligence is undoubtedly a highly emotional topic. Extreme positions often dominate the discussion.

One camp sees AI as a threat to all of humanity, while the other often sees the technology as a panacea for all of our problems.

No one can yet judge whether one of these scenarios will come to pass. The fact is, however, that AI will become significantly more important in the coming years and decades. Experts agree that Artificial Intelligence is a key technology of the digital revolution.

For companies that want to make progress in terms of digitization, there is therefore hardly any way around using the possibilities of Artificial Intelligence for themselves and driving forward automation via AI. SAP already offers a wealth of opportunities for this.

  • It is very likely that employees will be relieved of routine activities by AI in the future. In particular, standard processes that are repeated with high frequency are the potential area of application.
  • However, machines will not only automate processes in the coming years. There is also enormous potential in the analysis of big data. In contrast to classic approaches, which are based purely on the evaluation of past values, AI enables a look into the future.
  • On this basis, precise decisions can be made and new business models and smart services (such as predictive maintenance of machines) can be realized.
  • The optimization of goods flows and logistics chains is another area of application in which AI is likely to become established.

And where does that leave humans? Will they soon be completely replaced in the working world by robots with Artificial Intelligence? Certain job profiles could indeed disappear as a result of AI, but at the same time new jobs will be created.

Human skills such as creativity and empathy could once again come to the fore. There will be freedom to concentrate on one's own strengths again and to develop innovations. This also has a positive effect on employee satisfaction.

The intuition factor will also continue to be in demand. Decisions will be based much more on data from intelligent analyses. However, if the decision-making scope is high, the human being will still have the last word for the time being.

Conclusion: Opportunity and risk at the same time

Conclusion: Opportunity and risk at the same time

There is a chance that AI will develop in a positive way, empowering people to better solve the problems of modern society and achieve more.

One risk is allowing AI to operate beyond the bounds of sensible control. For businesses, such an approach would be disastrous, not only in terms of reputation and ethics. The level of security and control in the use of artificial intelligence could therefore determine whether intelligent machines become a curse or a blessing for us.

Are you interested in our AI solutions for SAP? Then feel free to drop me a message!

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