AI Is Booming—But Where’s the Business Value ?
Artificial intelligence (AI) is making waves in every industry. Businesses spent eight times more on AI in 2024 than the year before. Yet, most companies still ask: Where’s the payoff? SAP’s story shows how AI can actually cut costs and transform customer experience—when done right.
Why Most AI Projects Fail—And The Secret to Winning
Here’s a hard truth: Most companies waste money trying to use AI. Reports say 95% of generative AI pilots never become real products, and almost half get dropped before launch! The reason? Businesses chase shiny technology, instead of targeting real problems with clear outcomes.
SAP, a global software giant, changed this story. By focusing on a single costly pain point—customer support—they used AI to deflect 1.6 million support requests and save an impressive €186 million in one year. Their experience reveals a repeatable playbook for any organization seeking real results with AI.
SAP’s Big Challenge: Too Many Support Cases, Too Little Insight
SAP serves over 300 million cloud customers. Supporting them was expensive—each support case cost €198! Why so costly? Information was scattered, and customers couldn’t quickly find answers on their own, leading to piles of unnecessary support tickets.
- Key barrier: SAP’s knowledge base was huge but not user-friendly—no single search could find all answers.
- Result: High costs, frustrated customers, and overworked support staff.
Like SAP, many companies hit a wall because they invest in AI without first fixing their information foundation. Successful AI relies on clean, well-organized data.
Pilot First, Prove Value: How SAP Used AI to Slash Support Volume
SAP picked a focused pilot: Concur, their expense and travel division. It already had a modern AI search platform (Coveo), making it a perfect test case. With this targeted approach, SAP could measure real impact.
- In six months: 30% fewer support cases
- Annual savings: €8 million
- Actionable insight: Pick a small, measurable use case before scaling up.
What’s more, success wasn’t just about the technology. SAP’s leadership empowered employees to take smart risks. Instead of endless meetings and red tape, they encouraged action—creating a culture where teams could innovate, test, and learn fast.
Scaling Smart: Learning from Early Results and Adapting
After success in Concur, SAP expanded AI search to their main customer portal, “SAP for Me.” But things didn’t go as smoothly. Metrics initially showed too many people clicking and more cases submitted. Was something broken?
Instead of panicking, SAP dug deeper. They realized the AI was handling much tougher questions—saving even more money by solving complex, expensive support problems. This shows a crucial lesson: Be ready to adapt your metrics as you scale. Sometimes, saving money and improving customer experience means looking beyond surface numbers.
The Hybrid AI Approach: Why Blending Tech Brings Real Results
SAP didn’t build custom models from scratch—they chose a “hybrid search” approach, combining:
- Keyword search: Finds exact matches (like “invoice issue”)
- Semantic search: Understands user intent (“payment trouble” and “billing problem” mean similar things)
- Behavioral AI: Learns from what users actually click, surfacing the most helpful info
- Generative AI: Gives instant, direct answers sourced from SAP’s trusted documentation
This combo meant SAP could deliver better answers, faster—and avoid the “garbage in, garbage out” trap that sinks many other projects.
Lessons for Leaders: From Strategy to Action
SAP’s story isn’t just inspiring—it’s a clear guide for every executive. Here’s what you should do to get AI ROI:
- Start with a real, costly problem. Don’t lead with the tech—lead with the challenge.
- Build on strong knowledge and data. If your info is scattered, fix that first.
- Pilot small, measure closely. Identify one area, apply AI, and prove value before expanding.
- Empower your people. Leadership must encourage smart risk-taking—not punish failure.
- Track, analyze, improve. Use analytics not just to report, but to learn and adapt goals.
- Document everything. Compliance and clear communication prevent roadblocks later on.
- Consider solutions, not just technology. Off-the-shelf or custom, your AI has to fit your business and have governance in place.
At Silk Logic, these steps echo our proven process—helping you map out your AI journey, optimize processes, and deploy custom solutions that deliver true business value.
Look Ahead: The Early Movers’ Advantage
AI isn’t just about saving money. SAP now predicts and prevents customer issues, turning data into smarter products and proactive support. Companies slow to act could be left behind—while those who move now will lead in efficiency and better customer experience.
Start Your AI Transformation Today
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