AI tooling is being rapidly added to the software we use every day. From Copilot to ChatGPT extensions on your browser, to agents trained on enterprise software. SAP has introduced Joule, an AI copilot designed to transform how businesses interact with their data and processes. This comprehensive guide delves into the functionalities, applications, licensing, pricing, benefits, and considerations of integrating SAP Joule into your organization.
To understand the true potential of tools like SAP Joule, it’s important to consider how AI is transforming businesses at large — in terms of productivity, cost-efficiency, and strategic value.
Microsoft reported in early 2024 that users of its Copilot tools were 29% more productive across typical knowledge worker tasks like writing, analyzing, and coding.
In a case study on SAP Joule’s financial integrations, users completed budgeting and forecasting tasks up to 80% faster using natural language queries instead of manual input.
While AI boosts productivity, it can also increase operational spend, especially under consumption-based models. For example, SAP’s AI pricing uses “AI Units”, which could cost €7 per unit, and organizations must purchase a minimum of 100 units per year, meaning €700 annually, excluding overages on the use of more AI Units.
Cloud infrastructure and data transfer costs (especially for services that use SAP HANA Cloud) can rise significantly depending on usage, as compute and storage are billed separately.
Shadow IT and Cost Leakage
Surveys have found that up to 38% of IT spend in enterprises is “invisible” to procurement or IT professionals, due to shadow IT and uncontrolled SaaS growth. AI copilots like Joule can mitigate this risk by centralizing workflows and making application usage more transparent across departments.
Insights from Industry Leaders on SAP Joule and AI Integration
The integration of AI copilots like SAP Joule into enterprise systems has garnered attention from industry leaders, who recognize their transformative potential. Big tech leaders have big ambitions for the replacement of workloads with their AI tools.
Christian Klein, CEO of SAP emphasized Joule’s role in enhancing user experience: “Joule will become our new Front-End, our new UX! Joule will turn your words into action!”
Juergen Mueller, CTO at SAP, highlighted the importance of supporting developers in the AI revolution: “Today’s dynamic technology and business landscape means every developer needs to be an AI developer. The innovations we’re launching at SAP are supporting the developers at the heart of the AI revolution and providing them with resources they need to transform the way businesses run.”
Satya Nadella, CEO of Microsoft, underscored AI’s significance: “Artificial intelligence and generative AI may be the most important technology of any lifetime.”
Daniel Dines, CEO of UiPath, discussed the evolution towards agentic AI: “Agentic AI represents a ‘second act’ for UiPath by integrating deterministic software automation with non-deterministic AI capabilities like large language models.”
These perspectives reflect a consensus among technology leaders about the pivotal role of AI copilots like SAP Joule in driving business innovation and efficiency, but at the end of the day, of course they’ll endorse products they’ve played a hand in creating! To understand if your business could really benefit, let’s dive into the specifics of what Joule is, how it’s licensed, and some of its use cases.
SAP Joule is a generative AI copilot embedded throughout SAP’s cloud enterprise portfolio. It leverages natural language processing (NLP) and machine learning to provide users with proactive, contextualized insights, enabling more informed decision-making and streamlined operations. By integrating seamlessly with various SAP applications, Joule aims to enhance productivity and break down silos within organizations.
Joule offers a range of features designed to optimize business processes:
Natural Language Processing (NLP): Allows users to interact with SAP systems using conversational language, simplifying complex tasks and reducing the learning curve.
Collaborative AI Agents: Facilitates cross-functional collaboration by enabling AI agents to work together across different business areas, such as finance, procurement, and supply chain management.
Real-Time Data Analysis: Provides instant insights and recommendations by analyzing data in real-time, supporting swift and informed decision-making.
Seamless Integration: Integrates smoothly with SAP’s suite of enterprise solutions and third-party applications, including Microsoft 365, allowing users to complete tasks and retrieve data across different platforms without switching contexts.
Custom AI Agent Creation: Through the Joule studio’s agent builder, teams can create and deploy custom AI agents tailored to specific business needs without requiring coding expertise.
Licensing and Pricing of SAP Joule
Understanding the licensing and pricing structure of SAP Joule is crucial for organizations considering its adoption:
Licensing Model: SAP Joule is primarily available to customers using SAP’s cloud solutions. Access for on-premise users is limited, which may influence the decision-making process for organizations not yet migrated to the cloud.
Pricing Structure: SAP employs a combination of bundled and usage-based pricing models for Joule. For instance, certain packages like the “Premium Plus” tier of the Rise with SAP offering include Joule’s functionalities alongside other innovations. However, some generative AI services within these bundles may incur additional usage-based charges, measured in “AI units.” The minimum purchase requirement is 100 SAP AI units, priced at €7 per unit, totalling €700 annually.
Given the complexity and potential variability in costs, organizations are advised to conduct a thorough analysis of their specific needs and consult with SAP representatives to obtain a detailed and transparent understanding of potential expenditures.
Integrating SAP Joule into business operations can yield several advantages:
Enhanced Productivity: By automating routine tasks and providing real-time insights, Joule enables employees to focus on strategic initiatives, thereby increasing overall productivity.
Improved Decision-Making: Access to contextualized and timely data allows for more informed decisions, reducing risks and capitalizing on opportunities promptly.
Cross-Functional Collaboration: Collaborative AI agents facilitate seamless workflows across different departments, breaking down silos and promoting a more integrated organizational approach.
Cost Efficiency: Automation of processes and improved resource allocation can lead to significant cost savings over time.
While SAP Joule offers numerous benefits, there are considerations to keep in mind:
Cloud Dependency: Full access to Joule is limited to SAP’s cloud solution users. Organizations relying on on-premise systems may need to evaluate the feasibility and costs of migrating to the cloud to utilize Joule fully.
Complex Pricing Structure: The combination of bundled and usage-based pricing can make it challenging to predict costs accurately. Organizations must assess their usage patterns and consult with SAP to understand potential expenses.
Implementation Challenges: Integrating Joule, especially in highly customized SAP environments, may require significant effort and resources, potentially leading to increased implementation costs and timeframes.
SAP Joule’s capabilities can be leveraged across various business functions:
Finance: Automates financial reporting and analysis, providing real-time insights into financial performance and facilitating more accurate forecasting.
Human Resources: Streamlines HR processes by automating tasks such as job description creation, offer approvals, and handling time-off requests, thereby enhancing employee experience and operational efficiency.
Sales: Equips sales teams with account insights and product recommendations, improving customer interactions and sales outcomes.
Supply Chain Management: Enhances supply chain operations by providing real-time data on inventory levels, supplier performance, and demand forecasting, leading to more efficient and responsive supply chains.
As with any emerging enterprise technology, deploying SAP Joule without a well-informed strategy can lead to either underutilization or unexpected cost spikes. Below are clear, actionable steps companies can take to evaluate whether Joule fits their needs — and how to scale it responsibly.
1. Map AI Use Cases to Business Objectives
Before jumping into implementation, organizations should identify clear, high-impact scenarios where Joule can drive measurable improvements. Ask questions like:
Tip: Start with no more than three pilot use cases. This makes it easier to track outcomes and justify scaling.
2. Estimate Potential Usage and Message Volume
SAP Joule’s licensing often includes a fixed number of “messages” (interactions) per user or tenant — with additional charges once the threshold is crossed.
To prepare, it’s important to review historical SAP system usage (e.g., SuccessFactors or S/4HANA) to estimate how often users might turn to Joule. You should also consider high-volume use cases like HR service desks or procurement ticketing, where conversational AI could replace routine manual input.
SAP’s Usage Analytics tools or third-party SAM platforms like Xensam or Flexera can help surface trends in actual system interaction volumes.
3. Align Licensing with AI Unit Requirements
As of now, AI usage in SAP is often priced via AI Units, which cost around €7 per unit, with a minimum of 100 units per year. To avoid unnecessary costs:
Pro Tip: Companies using SAP Joule via SuccessFactors currently receive message quotas at no extra charge, but this may change as pricing matures.
4. Involve Stakeholders Early
AI copilots affect multiple layers of the business — not just IT. Include stakeholders from:
IT and Security: To assess data governance, security implications, and integration complexity.
Finance/Procurement: To monitor usage-based billing and ROI.
End Users (e.g., HR, Finance, Sales): To determine how intuitive and useful Joule is in practice.
Tip: Appoint an “AI Product Owner” to gather feedback, prioritize use cases, and track adoption metrics post-implementation.
5. Monitor, Optimize, and Iterate
After deployment, companies should continuously monitor how Joule is being used:
Implement dashboards for AI interaction data — either through SAP’s native analytics tools or custom-built reporting — and run quarterly reviews to adjust use, retrain users, or modify licensing if needed.
Long-Term Strategy: Consider consolidating usage across departments to negotiate enterprise-level AI licensing or discounts.
SAP Joule represents a significant advancement in the integration of AI within enterprise systems, offering functionalities that enhance productivity, decision-making, and cross-functional collaboration. While the benefits are substantial, organizations must carefully consider factors such as cloud dependency, pricing structures, and implementation challenges. By conducting thorough analyses and consulting with SAP representatives, businesses can make informed decisions about adopting Joule to harness its full potential.
In an era where AI is reshaping the business landscape, tools like SAP Joule exemplify the transformative potential of technology when strategically aligned with organizational goals.
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2Data is an independent software licensing advisory specializing in Microsoft, Oracle, SAP, Salesforce and IBM optimization. We help companies reduce contract costs, manage risk, and simplify their software licensing.
