18 hours ago
Exclusive: Enterprise Wide discusses how SAP's AI is transforming retail
Artificial intelligence is very quickly becoming a game-changer in retail, by delivering efficiency gains, better customer experiences and even sustainability benefits.
Speaking during an interview at the SAP NOW AI Tour in Melbourne, Evan Mantis, Managing Director of Enterprise Wide, explained that while AI has "surged in popularity" in recent years, SAP has been deploying AI and machine learning in retail for decades.
"A major grocery retailer is leveraging AI for demand forecasting to reduce out-of-stocks and shrinkage, which not only helps sustainability but prevents frustration when customers can't find products," he said.
For Mantis, the power lies not just in the algorithms but in the infrastructure behind them.
"When you're processing 25,000 products across 2,000 stores in a short daily window, it takes real enterprise technology to make it work and continuously improve," he said.
The technology extends to product recommendations in both B2B and B2C contexts, driving cross-selling across sectors from hardware to fashion.
But the future, Mantis said, will be defined by AI's ability to act instantly.
He painted a scenario in which a store's sales fall short of forecasts and AI traces the cause - whether it's goods stuck in the back office or a competitor's promotion - and then recommends a counter-strategy in real time.
"One really interesting stat when it comes to out-of-stocks is that more than 50% of items not on the shelves are actually sitting in the back office," Mantis said. "The opportunity cost to improve that is enormous."
He sees these rapid, automated insights as a competitive differentiator.
"If it brings SAP's capabilities to life in a tangible way, anyone can understand that AI use case. It's a productive, competitive advantage."
Speed of results is another selling point. One recent project tackled missing product information across a retailer's sales channels - a serious issue if allergy or sustainability data is absent online.
"They were quoted $2 million for the project, but we built it in two weeks for less than 30k using AI models," Mantis said. "AI is bringing productivity and real outcomes incredibly quickly."
However, he warned of a common misstep: fragmented AI strategies.
"I don't think one AI company will dominate everything. Most businesses will have various AI systems across departments. But if enterprise architects and AI teams aren't joined at the hip, you get pockets of activity without a coherent long-term strategy," he said.
Transformation success, Mantis emphasised, starts at the top.
"The hard work is done upfront - aligning the business and technology teams and making sure business outcomes are embedded in design and testing. Without CEO and CFO sponsorship, change management becomes the biggest stumbling block," he explained.
Data quality is equally critical. "You can have the best system in the world, but if the information you put in is shoddy or inaccurate, it destroys the benefits. Change management and data quality are the two biggest obstacles in any transformation," he said.
He pointed out that SAP is deeply embedded in daily life, from grocery checkouts to financial transactions.
"It's so prevalent in society that for customers running SAP, managing data is critical - not just for them, but for broader society."
Retailers, Mantis acknowledged, face a tough environment with rising costs, labour pressures and price competition. Yet he sees AI as part of the solution. "AI can help them become more productive and efficient, alleviating many of the pressures they face today. If they can leverage it in the right way, the future is bright," he said.
In the future, Mantis envisions AI providing instant, voice-activated answers to operational questions.
"Why am I not selling as much as forecast? What are my competitors doing that I'm not? If you can get those answers immediately and act before anyone else, you can imagine the competitive advantage," he said.
Australia and New Zealand, he added, are already at the forefront of retail innovation, with ideas here often adopted later in Europe and the US.
"We punch above our weight in this region," Mantis said.
For Mantis, AI's potential in retail is far from theoretical - it's delivering tangible results today, from better-stocked shelves to faster, cheaper technology rollouts. "It takes a very long time to build a positive reputation, but it's very quick to destroy it," he said.
"If you can align everyone in a company to the importance of transformation and change, you line yourself up for success."
