SAP SE (NYSE:SAP) Q2 2023 Earnings Call Transcript

Christian Klein: Oh, my God. I mean, look, first of all, I don’t have a PhD in data scientists, but in my time in leading S/4HANA actually, I learned a lot about our data model, and you could almost need a PhD as we are sitting on a ton of data. But seriously spoken, look, we have actually someone with a PhD leading our AI organization. He’s one of our best engineers. And when I see what we are doing here as a team, I mean, actually almost every day, and we are going through all the use cases which are not only exist on PowerPoint, but we are looking into the prototypes. We are measuring the business value, aligning on the commercials, talking about the go-to-market, and of course, we have lined up our vision very well. . Now did we have to lift and shift some R&D capacity to AI?

Absolutely. And we really well equipped on the leadership level with great data scientists? Absolutely. I have high confidence. And look, even our line of business leaders, take Muhammad Alam, responsible for ISBN. When you take Jan Gilg responsible for S/4HANA, I mean they are deep on AI. They know their stuff. And so this is really a team effort. And again, what we did is we lifted and shifted some capacity because now we’ve generative AI, we see further powerful use cases. So we deprioritize some other things on features and functions while we put more capacity on AI. And one thing is also you learn a lot, by the way — this is also very important. You learn a lot by all these AI start-ups. And you actually — we’re exchanging a lot of knowledge and best practices.

I mean, the reason why we are doing these investments is to team up technology-wise and go to market wise, but we’re, of course, also exchanging a lot of thoughts, a lot of insights on how to build best this LLM model. So we are also gaining a lot of knowledge and insights by these investments, what we are doing, not to forget.

Anthony Coletta: All right. Thank you. And I think this will conclude our call for today. Thanks for joining. Operator, you can close the call. Thank you.

Christian Klein: Thanks a lot, everyone.

Operator: Goodbye.

Christian Klein: Thank you.

Dominik Asam: Thank you. Bye, bye.