The emerging frontier of business AI

Artificial intelligence apps for consumers – such as the digital assistants on our phones, photo editing tools or ChatGPT – are a constant source of fascination. However, the real “emerging frontier” of AI – to quote a key theme of this year’s World Governments Summit in Dubai – lies elsewhere.

It lies in embedding AI deeply into the processes of business and public administration, and in using it for the modernisation and competitiveness of our economies. At SAP, we refer to this as "Business AI."

Business AI enables companies and the public sector to cope with intense transformational pressures by automating critical processes. It can, for example, help better predict customer demand and quickly respond to disruptions in the supply chain. It can simplify and optimise visual inspection processes and support developers by making it easier and faster to find errors. And it can automatically read, capture, and review thousands of documents – be it truck delivery notes in companies or administrative forms in government – thereby unlocking great savings in terms of time and costs.

Why some organisations hesitate

It is already clear that the industrial use of AI will revolutionize all sectors, but many organisations still hesitate. Why is that? Three major impediments are often quoted – and all of them can be resolved.

First, organisations often cite concerns about data security and the quality and accuracy of AI results. After all, there is no room for error in the critical processes of business and government.

It’s important to note here that generic AI models like ChatGPT have good general knowledge but they do not by themselves understand specific business contexts.

Business AI, however, is something very different: It understands the specific data of companies and public administration in the finest detail, is highly accurate and reliable, and handles sensitive data with all the necessary care. Why? Because it was designed specifically for high-stakes environments in the private and public sectors.

The second concern often mentioned is that AI is evolving so rapidly that solutions bought today might be obsolete tomorrow. The consequence is that organisations delay or shy away from implementing major AI projects – projects that could potentially bring massive productivity gains.

This concern is also easy to dispel: When business processes run in the cloud, organizations have immediate access to the latest AI innovations. Updates can be performed quickly and at a low cost, just like a software update on a smartphone.

The third common impediment to AI adoption is directly related: Cloud adoption is a necessary foundation for strong AI solutions. This is because only in the cloud can AI work with high-quality data and operate cost-effectively and at scale.

Today, however, there are proven methodologies and powerful toolkits for bringing companies to the cloud in a swift and safe manner. And once organisations have made that transition, they gain instant and easy access to the AI solutions embedded in modern cloud software.

The role of governments

Governments and policymakers have a range of options to promote Business AI adoption and to unlock its great benefits for countries and their economies.

First, governments can prioritise investment in AI-related research, development, and public-private partnerships. They can also invest in local AI talent – for example through partnerships with universities, global tech leaders and local organisations as well as through scholarships and upskilling programmes.

Second, policymakers can design comprehensive national AI and cloud strategies, thereby driving a common understanding of priorities, timing and goals. And they can establish regulatory sandboxes with flexible data governance policies – as a smart way to encourage exponential innovation while safeguarding data protection and data residency.

Third, the digital transformation of public service, supported by public-private partnerships, can serve as a lighthouse model demonstrating the benefits of the cloud and AI to citizens and industry alike.

Finally, in Business AI, as in previous chapters of the digital revolution, the best ecosystem will prevail – and governments can facilitate their creation. An ecosystem is typically composed of leading tech and industry companies, universities, startups, and government actors.

One example of how it can work is the SAP Innovation Hub in Khobar, Saudi Arabia, which opened in 2024. The hub brings together SAP’s global and regional cloud and AI experts, nearby companies, startups and partners in a vibrant community of co-innovation where new ideas and approaches are tested and honed against practical business challenges. An innovation lab along similar lines is already well underway in the UAE.

All in all, Business AI represents perhaps the greatest economic chance of our generation – for individuals, nations, and on a global level. We can make our societies more productive, more robust, more sustainable. Let's seize this tremendous opportunity.