SAP to Embed ChatGPT in Products as Quarterly Revenue Beats Expectations
Business software maker SAP announced that it would use artificial intelligence technologies like generative AI in its products to enhance customer experience. The company reported 10% growth in the first quarter to 7.44 billion euros ($8.2 billion), beating a company-provided consensus.
The revenue from SAP's lucrative cloud business also grew 24% year-on-year, broadly in line with expectations. Revenue beat analysts' expectations, backed by growth in its cloud business. The company had already discounted subsidiary Qualtrics' profits, which it divested last month, from the current earnings report. However, it lowered its outlook for the year due to the divestment of its Qualtrics unit.
AI Use Cases in SAP Products
SAP is working with Microsoft Corp-backed OpenAI's chatbot ChatGPT that can provide human-like responses to questions. CEO Christian Klein stated that they have built over 50 AI use cases, embedding them with their technology. The use cases will be available to customers next month after its annual Sapphire conference, Klein said.
SAP has an internal committee with customers, researchers, and analysts to check for biases in AI use cases and guard against potential misuse of the technology. Klein said, "We were studying ChatGPT for quite a while."
The company has been able to grow its revenue despite tougher economic conditions affecting big technology companies. SAP has foreseen no more restructuring this year and plans to focus on enhancing customer experience with AI technologies.
