During a recent SAP webcast, IDC—the global market intelligence firm—shared insights on topics and trends the organization believes will define 2025.
Mickey North Rizza, Group Vice President for Enterprise Software at IDC, walked attendees through trends the firm uncovered via its IDC FutureScape: Worldwide Intelligent ERP 2025 Predictions research.
Artificial intelligence, and the transformational impact it can have on enterprises, took center stage as Rizza shared statistics and insights into how AI can both enable and change businesses. Here are four key takeaways from the webcast.
Takeaway 1: By late 2026, 65% of organizations will leverage AI to bring immediate value to employees and the business.
AI-driven technology is intended to help individuals see more deeply into their business data, to assist with decision-making. Insights gleaned from this data spur innovation. This is a two-way street, where AI solutions and users can learn from one another.
For example, Joule, SAP’s generative-AI copilot, works across the SAP cloud enterprise portfolio, helping to contextualize data for the end-user and provide insights into business performance. Employees receive information from this kind of technology, and they use their skills to apply the information to their work. Over time, the AI and the individual both learn from each other, asking better questions and sharing more relevant information.
Takeaway 2: By 2026, 40% of the Global 2000 companies will utilize tools provided by enterprise application vendors to create their own highly customized generative-AI capabilities.
These organizations are tapping into low-code/no-code additions from their technology vendors, or they’re adding extensibility capabilities to the platform. These capabilities bring a foundation to their data, maximizing value and boosting KPIs. According to Rizza, in order for companies to implement these new additions effectively, they must examine the overall value proposition, stepping back and looking from a high level to understand what the organization needs.
To effectively use these tools, both employees and companies must deviate from old norms. Starting with a standard way of leveraging the technology, then reshaping processes around that, will go far in helping workers understand how to use the solutions to their advantage.
Takeaway 3: By mid 2026, 60% of Global 2000 companies will have new KPIs focused on aligning AI-infused processes with their employees’ workflows.
This will drive 45% improvements in overall operational efficiency and employee productivity, according to IDC. Exploring AI capabilities will only accelerate positive change; the more a company brings AI into its workstreams, the more informed and helpful its insights become.
Using the example of payment processing, manual processing would require matching up invoices up to proceed to payment. An AI assistant shares which invoices are matched and which aren’t, reducing the workload for the employee involved and accelerating the overall process. The initial result is improved productivity, but eventually the operation can be iterated upon to further improve processes and gain even greater efficiency.
When one process reaps the benefits of AI-enabled workflows, it creates a ripple effect, improving other parts of the business. Employees start to see the benefits of the manual work getting done behind the scenes, freeing up time to be more strategic and nimble.
Enterprise application providers often have AI-enabled workflows already built out, so consider leveraging AI within enterprise applications right away, Rizza said. These vendors have already experimented with AI and have seen what it can do when tied to a data set; let such providers help you start automating as soon as possible.
This will help employees quickly see how the tools enable their productivity, and that only creates buy-in to then begin expanding automation capabilities throughout the organization.
Takeaway 4: Because of generative AI, 80% of today’s organizational workflows will be automated by 2029. Plus, 50% of the Global 2000 will have embraced a new business resource structure by this time.
Organizations will be relying more and more on AI technology to handle basic business functions, Rizza noted. Previously manual workflows will be so effectively managed by AI that there will be little heavy lifting required. Vendors are examining those workflows and aligning their solutions with AI, creating more opportunities for companies to embed AI into their platforms and allow technology to better-run their businesses.
Advice on Change Management
Rizza also shared that, in her firm’s research, many digital transformation initiatives fail due to misalignment between IT departments and the business side of an organization, as well as fear of how the technology will change the company.
Employees often fear for their jobs. Leaders fear how the organization will fundamentally shift. Historically, applications have acted as anchors that are difficult to part with, but new technology has the power to bring previously unimaginable intelligence to the company. With all the data it collects will come substantial opportunity.
It’s time to face the fear and get to the next level, Rizza said. Embrace AI, understand what it can do to streamline work processes, and look for the areas where these business tools can help most with decision-making and performance.