Business software maker SAP recently reported quarterly revenue that beat estimates, driven particularly by the growth of its cloud business. In order to make the best of their products, SAP announced plans to embed ChatGPT -Microsoft Corp-backed OpenAI’s chatbot- in them. This chatbot provides human-like responses to questions, always taking into account the use of AI generative models. Therefore, it has an internal committee with customers, researchers and analysts to ensure that any AI use cases are checked for biases in order to minimize the potential of misuse.
With this in mind, SAP lowered its outlook for the year due to the divestment of its Qualtrics unit. Furthermore, to reduce their costs, SAP announced plans to cut 3,000 jobs in January. Despite the tougher economic conditions their revenue grew 10% in the first quarter, reaching 7.44 billion euros ($8.2 billion). Moreover, cloud revenue is expected to range from 14 to 14.4 billion euros while non-IFRS operating profit is estimated to lie between 8.6-8.9 billion euros.
Christian Klein is SAP CEO and he is a strong believer of the usage of AI technologies. He is clear about the fact that these use cases will be available to customers after the annual Sapphire conference next month.
Overall, SAP has had a successful first quarter, managing to beat analyst estimations despite a difficult economic context. With the introduction of AI technologies, they are looking to add value to their products and offer the best service out there.
