SAP launched Joule, a generative AI copilot that will be embedded throughout SAP's cloud applications to deliver insights based on the company's platform data and third-party sources. SAP is trying to move its customers to S/4HANA Cloud and dangling innovations such as Joule to prod enterprises off of on-premises deployments.

In addition, SAP said it is moving to a two-year major S/4HANA release cycle with enhancements via feature packs every six months with 7-year maintenance. S/4HANA 2023 will be released Oct. 11. SAP also said it will make new innovations available for the SAP S/4HANA Private Edition. 

The Joule launch, delivered at SAP's Rise Into the Future event, kicks off what will be a series of generative AI announcements at SAP conferences such as SuccessConnect, SAP Spend Connect Live, SAP Customer Experience Live and SAP TechEd throughout October and November.

Joule will be available in SAP SuccessFactors and SAP Start later this year with SAP S/4HANA Cloud public edition in early 2024. Further updates on Joule's integration with SAP's platform will happen during its conferences in the weeks ahead. Pricing remains to be seen. Enterprises will have to start budgeting for Microsoft's Co-pilot add-ons as well as other monetization models from core vendors including ServiceNow, Salesforce, Adobe and Google.

The idea of generative AI across cloud ERP platforms isn't exactly new. For instance, Oracle at its Cloud World conference outlined generative AI additions across its cloud platform, multiple services and apps covering customer service, analytics and marketing and sales. Salesforce also has a broad generative AI push.

SAP's bet is that Joule will stand out amid the copilot sprawl in enterprise software due to the ability to tap data in mission critical systems, knowledge of multiple processes and the ability to learn from nearly 300 million enterprise uses using SAP cloud applications.

Constellation Research analyst Holger Mueller said:

"SAP keeps innovating around the fringes of ERP core, with key innovations in the core being limited to the green ledger – which is still out. SAP needs to realize two things: It needs to have compelling innovation in the core to make the upgrade to S/4 HANA a ‘no brainer’ business case – and at the same time offer a migration of the strategic extensions that customers will need. And as a planning tool – SAP needs to offer a roadmap for the next 3-5 years – so customers can plan their upgrade strategy."

According to SAP, Joule will be embedded in applications across human resources, finance, supply chain, procurement, and customer experience. Employees will be able to use natural language and get contextual insights. SAP said Joule will be able to flag supply chain issues, underperforming regions and content generation.

Here are a few screens illustrating how Joule will be integrated into ERP processes. 

At Sapphire in May, SAP outlined its generative AI ecosystem and partnerships with Microsoft, Google Cloud and IBM as well as investments in Aleph Alpha, Anthropic and Cohere.

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