The SAP Business AI commercial model allows customers to unlock AI capability in three primary ways:
1. Direct Product Licensing
- Some AI capabilities, like Joule (SAP’s generative AI copilot), are included directly within certain SAP product licenses.
2. AI Units
- Think of AI Units as credits for accessing AI functionalities. These units are pooled and used based on consumption across any AI-enabled SAP solution.
3. BTPEA Credits (BTP Enterprise Agreement)
- These credits apply when building custom AI solutions on the SAP Business Technology Platform (BTP). They support services like document extraction, personalized recommendations, and integration with AI models.
How is consumption measured and billed?
Each AI capability has a predefined business metric (e.g., number of transactions, pages, users) and a conversion rate to AI Units. Below are important aspects of how AI Unit consumption is managed:
- Consumption is tracked annually.
- Unused AI Units do not roll over into the next year.
- SAP offers tools like the AI Estimator to help forecast consumption and manage budgets effectively.
How does SAP Business AI integrate with solutions like SAP S/4HANA Cloud and SAP SuccessFactors?
SAP embeds AI functionalities directly into its enterprise solutions such as SAP S/4HANA and SAP SuccessFactors. To access these capabilities, systems must run on supported versions. For example, SAP S/4HANA Cloud, Public Edition (release 2023 or later) is recommended for native SAP Business AI integration with minimal technical setup. Similarly, SAP SuccessFactors supports embedded AI features starting with the H2 2023 release, with expanded capabilities like generative AI and Joule rolling out in 2024 and beyond.
Here are two examples of AI-powered features within SAP solutions:
- SAP S/4HANA Cloud – AI-powered natural language queries improve production order retrieval, boosting productivity by 50% and reducing downtime losses by 2%.
- SAP SuccessFactors – Embedded AI generates interview questions directly in Microsoft Teams, cutting interview preparation costs by 87% and enhancing hiring decisions.
What are the primary benefits of the SAP AI licensing model?
SAP’s model is designed to provide flexibility, scalability, and measurable value. Key benefits include:
- Value-based consumption – AI usage is tied to direct business outcomes.
- Fair usage policies – Many features include an allowance of free usage before costs apply.
- Flexibility in licensing options – Choose between direct licensing, pooled AI Units, or BTP credits based on your requirements.
- Custom solutions – Build scalable AI capabilities tailored to specific needs using SAP BTP.
- Native integration – AI is embedded naturally into processes, ensuring a seamless and less disruptive user experience.
How do I manage my SAP licenses effectively?
Effective management involves regular monitoring and proactive planning:
- Review license allocations annually to ensure they align with actual business needs.
- Centralize SAP license management to maintain compliance and optimize usage across different teams.
Need more guidance?
If you have specific questions or need personalized guidance, we’re here to help. Don’t hesitate to contact us directly with any inquiries about our AI solutions and services – we’re always happy to support you.
