The recent appointment of Walter Sun as SAP’s Global Head of Artificial Intelligence demonstrates SAP’s commitment to spearheading AI innovation. Walter Sun’s background in technology and finance suggests a keen understanding of the unique challenges finance departments face. Before joining SAP, Walter Sun’s experience included Microsoft, Apple, and leading financial institutions such as BlackRock Financial Management. His expertise encompasses machine learning, deep learning, and operations research. Sun’s academic accolades, including a PhD from MIT, reinforce his proficiency in harnessing technology to solve complex business challenges. As Sun himself states, “My applied research includes work in stochastic processes, signal processing, machine learning and deep learning, operations research, and large language models.” Sun’s Strategic Vision for SAP AI in Finance For organisations heavily invested in SAP ERP financial systems, understanding the implications of this leadership change and SAP’s AI vision is crucial. In a recent SAP blog post, Sun provided insight into his vision for AI at SAP. It’s a vision that aligns with business leaders’ need for AI-driven efficiencies across finance functions while being mindful of inherent risks, as highlighted by SAPinsider’s Intelligent Finance in the Cloud research. Sun’s comments to-date on SAP’s AI direction indicates a sophisticated approach to AI integration in finance. Advocating a gradual “crawl, walk, run” approach, Sun emphasises building trust in AI technologies. This methodology starts with smaller, manageable implementations and gradually expands, reflecting a balance between the urgency of innovation and the necessity for reliability in financial applications. “First of all, business leaders want to see it work. So, they’re going to try it out with close supervision and in smaller, more cautious ways to start,” Sun explains. This strategy is particularly relevant for finance leaders who need to balance innovation with risk management. Insights from Anurag Barua on SAP’s AI Path We spoke to Anurag Barua, a leader in SAP’s S/4HANA Centre of Excellence for North America and an SAP AI aficionado, to gain more insight into SAP’s AI initiatives. Barua clarified a common misconception: “SAP is often thought to have arrived at the AI party recently. Instead, we have been embedding AI into many of our business processes across our solution portfolio, for years. Finance has been the recipient of a lot of these. Intelligent invoice matching, business integrity screening (to minimise risk of fraud and financial losses by proactive detection, predictive (financial) planning including predictive liquidity and predictive profitability, and intelligent and automated detection of erroneous tax postings to attain superior tax compliance etc. are a few examples of how we enable finance organisations to streamline their finance processes in SAP. Here are additional use-cases where SAP leverages AI to enable finance leaders with enhanced finance processes:

• Enhanced Decision-Making with AI: Integrating AI into SAP systems promises to revolutionise how financial data is processed and interpreted. Finance leaders can expect more sophisticated analytics tools that offer deeper insights into financial performance, risk assessment, and market trends.
• Operational Efficiency: AI’s automation capabilities can streamline various financial processes, from accounts payable to financial reporting, reducing manual efforts and increasing accuracy.
• Risk Management and Compliance: With AI’s predictive analytics, finance leaders can proactively manage risks and ensure compliance with evolving regulations. SAP’s focus on responsible AI aligns with the need for stringent compliance in finance.

Sun’s focus on AI extends to democratising the technology, making it accessible to businesses of all sizes. This democratisation levels the playing field in the global market, ensuring that smaller enterprises can also benefit from advanced AI capabilities. Sun’s strategy of collaborating with academia and industry ensures that SAP’s AI solutions remain at the forefront of technological innovation, benefiting finance leaders seeking cutting-edge solutions for their finance functions, regardless of company size. The potential for collaborative efforts between academia and industry under Sun’s direction is particularly interesting. This approach promises to bring state-of-the-art AI developments into the SAP ecosystem, potentially offering finance leaders access to the latest AI innovations. Collaborations with institutions like Stanford, MIT, and others could lead to groundbreaking AI applications in finance, further empowering SAP users. SAP’s Commitment to Ethical AI Use Under Sun’s leadership, SAP will emphasise ethical AI, focusing on strict adherence to data protection laws and responsible AI solutions. Sun’s statement, “At SAP, we want to grow trust… Our ethically responsible handling of AI helps ensure that customers can trust how we’re building these capabilities,” underscores a commitment to ethical standards and regulatory compliance, crucial for finance leaders dealing with sensitive financial data. Barua also emphasises SAP’s commitment to ethical AI, noting “readers should be familiar with our approach to ethics with AI. While we acknowledge the seemingly limitless potential of AI, we are acutely cognisant of the need to harness that power in the most ethical way possible. Thomas Saueressig, Member of SAP Executive Board, recently articulated our position thus, ‘With a powerful technology like Artificial Intelligence (AI) comes also great responsibility: Our customers trust in our ability to build, deploy, and use AI in a responsible and ethical way. The rapid rise of generative AI has further increased the need for the highest levels of ethical standards – and that’s what we deliver. By integrating AI capabilities into our solutions, we aim to provide unbiased and sustainable support to people.’ Unfortunately, this statement may give rise to the perception, among some customers, that SAP is slow or lagging in this race. But we are neither in a race nor an AI company. Our overarching responsibility is to provide our over 400,000 customers and millions of users complete trust and reliability in the AI capabilities that we will continue to relentlessly incorporate into our cloud solutions.” Addressing Challenges in AI Integration While the potential benefits are significant, finance leaders must also navigate challenges associated with AI integration. These include ensuring data privacy, managing change within organisations, and staying abreast of the rapidly evolving AI landscape. However, these challenges present opportunities to innovate, differentiate, and drive sustainable growth. Walter Sun’s appointment as the head of AI at SAP is more than just a leadership change; it heralds a new chapter in finance transformation. His vision of responsibly integrating AI into business practices aligns perfectly with the needs of finance leaders in global enterprises. By leveraging AI, these leaders can unlock new levels of efficiency, insight, and strategic value in their operations. For SAP users, this change points to a future where AI is not just an add-on but an integral part of the financial system, driving innovation while maintaining ethical standards. As the AI landscape evolves, finance leaders must remain agile, embracing these new technologies to stay competitive and deliver optimal financial results. What does this mean for Mastering SAP Members? Adopt a phased approach to AI integration. Embrace Walter Sun’s “crawl, walk, run” strategy for AI implementation in your finance operations, starting with smaller projects like automating invoice processing before scaling to more complex applications like predictive financial analysis. Focus on ethical AI utilisation. Prioritise ethical AI practices in line with SAP’s commitment, ensuring adherence to data protection laws. For instance, when deploying AI for financial forecasting, ensure the algorithms are transparent and comply with financial regulations to maintain integrity and trust. Encourage cross-functional collaboration to accelerate innovation. Engage in collaborations between academia and industry, as advocated by Sun, to access state-of-the-art AI developments and innovative solutions for finance. You can find detailed information in SAP’s AI ethics handbook for members interested in exploring SAP’s approach to ethical AI. It offers comprehensive insights into their commitment to responsible AI practices. The handbook is available at SAP’s AI Ethics page.