A new SAP study reveals enterprises are achieving stronger AI returns by focusing on business value rather than mere deployment. Over 80% are rethinking their cloud strategies to support this shift, according to an ISG report.
TL;DR
- Enterprises are moving beyond AI deployment to focus on measurable business value and workflow redesign.
- SAP study shows AI is being used to uncover business insights and improve customer engagement.
- ISG report indicates 80% of enterprises are rethinking cloud strategies to support AI workloads.
What happened
A recent SAP study highlights that enterprises are seeing stronger returns from AI by focusing on business value rather than just deployment. AI is now being used to uncover business insights and improve customer engagement, rather than simply reducing costs or eliminating work.
Walmart is an example of this shift in action, using AI agents and digital twins to optimize its supply chain. The retailer is applying AI to improve operational decision-making, helping its supply chain teams optimize inventory, transportation, and logistics while responding more quickly to disruptions.
The shift in focus is also influencing infrastructure decisions. A new Information Services Group (ISG) report found that more than 80% of enterprises are rethinking their cloud strategies as AI deployments expand. Organizations are investing in hybrid cloud environments, GPU-enabled architectures, distributed data platforms, and hybrid AI operating models to better support production AI workloads.
Why it matters
This shift in focus from deployment to business value is significant for AI/ML developers and startup founders. It emphasizes the need for AI solutions that can demonstrate tangible business outcomes and integrate seamlessly into existing workflows.
For tech investors, this trend highlights the importance of investing in AI startups that not only have innovative technology but also a clear path to measurable business value. The focus on governance, infrastructure, and accountability is crucial for scaling AI responsibly and achieving long-term success.
The competitive angle here is that companies like Walmart, which are successfully integrating AI into their operations, are setting a new standard. This could pressure other enterprises to follow suit, driving demand for AI solutions that can deliver on business value.
Key facts
- SAP study shows enterprises are achieving stronger AI returns by focusing on business value.
- ISG report indicates 80% of enterprises are rethinking cloud strategies for AI workloads.
- Walmart uses AI agents and digital twins to optimize its supply chain.
- Enterprises are investing in hybrid cloud environments and GPU-enabled architectures to support AI.
- Deloitte's Jim Rowan notes that success is measured by moving AI initiatives into production and generating measurable returns.
- The focus is shifting from AI deployment to measurable business value and governance.
Context
This shift in focus from AI deployment to business value is part of a broader trend in the AI industry. As AI technology matures, organizations are increasingly looking for ways to integrate AI into their operations in a meaningful way. This trend is driven by the need to demonstrate the ROI of AI investments and the growing importance of data governance and accountability.
The trend is also reflective of the evolving AI landscape, where the emphasis is on practical applications and real-world impact. This is a departure from the early days of AI, when the focus was more on experimentation and proof-of-concept projects.
For AI startups, this trend presents both a challenge and an opportunity. The challenge lies in developing AI solutions that can deliver on business value and integrate seamlessly into existing workflows. The opportunity lies in the growing demand for AI solutions that can help enterprises achieve their business goals.