SAP is developing a new metric to demonstrate the impact of artificial intelligence on its operations, aiming to provide investors with clearer insights into AI adoption and monetization. CFO Dominik Asam noted that the metric would also enable investors to better compare SAP with its U.S. competitors. Over recent years, investors have focused on SAP's cloud backlog as a key performance indicator. The company plans to wait until the metric is mature before introducing it. In its third-quarter results, SAP reported total revenue of 10.27 billion euros, up 12%, while cloud business sales grew 25% to 6.67 billion euros.
The move reflects growing pressure on enterprise software companies to quantify the financial benefits of AI integration. By introducing a dedicated AI-focused KPI, SAP hopes to align with investor expectations and highlight its competitive positioning in an evolving market landscape.
SAP's initiative underscores the broader industry trend of translating technological advancements into measurable business outcomes, particularly as AI becomes a central driver of value creation in the software sector.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing