SAP announced it will soon be introducing disruptive generative AI at the company’s Q1 2023 earnings call.
The business and customer relations software specialist has had strong quarterly results with cloud revenue growing 22 percent year-over-year and total Q1 revenue growth of nine percent.
SAP sold its stake in Qualtrics to Silver Lake and CPP Investments for $12.5 billion in March this year. The sale is currently pending customary regulatory clearances, according to SAP’s new CFO, Dominik Asam.
Christian Klein, CEO of SAP, said: "Our AI is built for business, with AI capabilities built-in to deliver strong business outcomes for our customers' most critical business functions, and, with Datasphere, we laid the strongest data foundation in business.
"We are in the advanced stages to apply generative AI across our portfolio, and we are working as an early-release partner of OpenAI.
Together with other vendors, we are planning to announce new disruptive AI use cases. Stay tuned for Sapphire.
Q1 2023 Earnings Results
Other headline financial results for SAP include its cloud backlog, which is valued at more than €11 billion, reflecting a 25 percent increase this quarter.
For the enterprise resource planning software, SAP S/4HANA, cloud revenue grew 75 percent, and the cloud backlog increased 79 percent.
Non-IFRS operating profit grew by 12%, which Klein believes is evidence of its previous quarter, Q4 2022, being the “tipping point” of its transformation.
Now, the CEO sees the company in a new growth phase, with S/4HANA and BDP at the center.
This quarter, the company launched new offerings and innovations to generate new value from IT investments, including Grow with SAP, SAP Datasphere, and AI integrations across the portfolio.
Grow with SAP provides a native ERP solution that can quickly scale to enable customers to design and automate business processes without needing to write code.
SAP Datasphere collects business data from an entire customer landscape, taking data from both SAP and non-SAP sources, to help manage and guide businesses end-to-end.
