AI and S/4 as Transformation Accelerators

The digital transformation of many companies is at a turning point: integrating artificial intelligence into core business processes unlocks the potential to fundamentally change business models, processes, and decision-making. The latest study, „Unlocking Business Value – Integrating AI Into Your S/4 Hana Journey“ by PwC, shows how companies can get the most out of AI technologies in SAP S/4 Hana by taking a structured approach.

The focus here is on the realization that AI must not be an add-on module, but an integral part of ERP transformation. Only when intelligence is embedded in the DNA of processes can efficiency, quality, and speed of innovation be increased in the long term. The goal is to rethink transformations not only technologically, but also organizationally.

Part of the corporate DNA

The study recommends establishing a central AI Center of Excellence (CoE) to manage the entire lifecycle of AI solutions—from identifying suitable use cases to continuous development. This CoE creates binding standards, ensures governance, and guarantees that projects are not developed in isolation but are reusable and scalable.

A data-driven „AI heat map“ helps companies systematically prioritize AI potential based on business value and feasibility. This ensures that investments are concentrated in areas where AI generates measurable added value—for example, through automated accounting processes, optimized logistics, or predictive quality controls.

S/4 as the digital backbone

The integration of AI throughout the entire S/4 Hana journey is a central component of the framework developed by PwC. AI is not anchored at the end, but at the beginning of the transformation—in every phase of the SAP Activate methodology: from preparation and process analysis to implementation and go-live.

The focus is on a „clean core“ architecture, with SAP S/4 Hana Cloud serving as the digital core. Intelligent functions are extended via the SAP Business Technology Platform (BTP), while the SAP Business Data Cloud (BDC) ensures consistent data flows. Companies thus benefit from a flexible, expandable structure that seamlessly integrates AI applications and enables continuous innovation.

Practical example: PwC

A real-world example illustrates the potential: PwC, one of the largest users of S/4 Hana Public Cloud, faced the challenge of making financial processes such as accounts receivable and accounts payable management more efficient. By using Joule, the AI assistant integrated into SAP, complex data queries were replaced by natural language input. Employees were able to retrieve invoices, postings, or supplier data via dialogue—without any technical hurdles.

The result: efficiency gains of up to 30 percent, a significantly improved user experience, and accelerated month-end closing. PwC thus demonstrates how embedded AI makes the difference between a modern ERP system and an intelligent enterprise platform.

Scalable enterprise solution

Many companies are stuck in the pilot phase when it comes to introducing AI. The study emphasizes that the key success factor lies in scaling—in other words, in the transition from isolated projects to company-wide capabilities. This requires clear responsibilities, a binding governance structure, and an architecture that incorporates AI from the outset.

An integrated approach not only unlocks efficiency potential, but also opens up entirely new business models. AI thus becomes a strategic driver for growth, agility, and competitiveness.

Conclusion:  

„Unlocking Business Value impressively demonstrates that the combination of SAP S/4 Hana Cloud and systematically integrated AI paves the way to an intelligent, data-driven organization. Companies that adopt this approach early on gain a decisive advantage: they create processes that are self-learning, adaptable, and efficient—and turn their digital transformation into a real value driver.

The message of the study is clear: those who view AI not as an add-on but as a design principle can transform ERP modernization into a platform for sustainable business success.

Source: PwC