The Next Tech Supercycle Is Shaping The Future Of Financial Services
The reference to Albert Einstein's famous quip on why some questions are timeless served as the opening statement at the recent SAP and SAP Fioneer Forum for Financial Services event presented by TAC Insights in Munich. It was meant to remind the audience of financial experts that AI is shaking up the world as they know it. The importance of continuous learning and adapting to new information, rather than relying heavily on past knowledge, has never been more important.
'At SAP, we see AI as the defining force of the next technology supercycle – one that will deeply transform how enterprises operate,' said Dominik Asam, CFO and member of the Executive Board, SAP SE, during his opening keynote.
'AI is a must-win area for SAP,' he emphasized. 'The transition to AI will determine success in enterprise tech, and the cloud is a prerequisite for AI to work at scale.'
Asam noted that this AI wave is bigger than any previous supercycles such as mainframes, the internet, and cloud computing. AI isn't just a product – it's a platform technology, underpinning and enhancing other innovations, including automation, robotics, analytics, personalized customer experiences and autonomous systems
Asam explained SAP's strategy to put AI first, integrating AI into every business process, transforming how people work and enhancing the productivity, profitability, and growth ambitions of its customers. This involves hundreds of AI features and agents embedded directly into SAP solutions, covering areas from supply chain management to customer experience. SAP's AI copilot Joule serves as the new user interface in the age of AI – embedded everywhere, from the SAP Business Suite to mobile devices and even integrated with third-party assistants.
Asam sees financial services as one of the sectors most impacted by AI, and SAP is aligning its solutions accordingly. That's because financial services demand accuracy and auditability. AI must improve, not compromise, control functions.
AI is already being used to detect anomalies in real time, automate reconciliation and reporting, and reduce compliance risk and audit failures.
"In finance, you can't afford hallucinations. AI must beat the assurance level of a human," said SAP's CFO, highlighting AI's role in strengthening, not replacing, human oversight.
However, Generative AI is only as strong as the data that powers it. One issue some financial institutions face is that their HR, finance, risk, and customer data are all housed in separate silos. SAP offers a seamless integration of applications, data, and AI in one ecosystem.
With Business AI, financial institutions can enhance forecasting and planning. Now, for example, banks can use HR data such as attrition and recruiting to refine cost forecasts, and automate bottom-up budget models instead of relying on subjective, top-down estimates. This leads to faster and more objective forecasting.
Joule for finance
When it comes to Business AI for finance and spend management, it's all about efficiency. AI-copilot Joule partners with SAP Document and Reporting Compliance to translate complex e-invoicing errors into natural language. This way, error misunderstandings will be a thing of the past.
Joule enhancements in SAP S/4HANA Cloud Public Edition will increase efficiency with proactive sales order fulfillment monitoring, direct fixed asset master data creation, and price adjustment suggestions. And for SAP S/4HANA Cloud Private Edition, Joule helps users with field logistics, cash management, contract analysis, and streamlines convergent invoicing processes. The first Joule agents are now available in spend management.
'Regardless of the use case, we are placing special focus on trust, explainability, and control,' said Asam. Last fall, SAP updated its Global AI Ethics Policy to ground it in the human-rights centered approach of the UNESCO Recommendation on the Ethics of Artificial Intelligence. 'We do this to deliver Business AI that drives relevant outcomes, activates reliable insights, and scales responsibly.'
The bottom line
SAP sees this supercycle as a chance to rewire the enterprise for agility, accuracy, and control. Financial services organizations that embrace AI with the right governance and integration strategy will:
'This is not optional – we work every day, day in and day out, to make sure businesses benefit from this tremendous opportunity,' Asam underlined. For SAP and its financial services clients, AI is a now-or-never moment.
Many SAP customers in the financial service industry are heeding the call.
During his keynote at the same event, Stephan Paxmann, Chief Innovation Officer, Landesbank Baden-Württemberg (LBBW), corroborated Asam's view that AI is a now-or-never-moment.
'AI in fintech is already pervasively integrated, quietly reshaping our lives,' said Paxmann, expanding on the topic in a recent article on SAP BrandVoice. 'It's transforming financial services, not with sudden disruption, but through a gradual, pragmatic shift that empowers people, augments human tasks, and requires thoughtful, responsible integration—especially around data, usability, and trust.'
In closing, both financial experts agree that AI is not just another tech trend – it's a tectonic shift. Those who understand and adapt early will be best positioned to ride the wave.
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