{"version":1,"type":"story","url":"https://digestai.news/story/sap-cto-philipp-herzig-thinks-ai-coding-tools-miss-running-business","json":"https://digestai.news/story/sap-cto-philipp-herzig-thinks-ai-coding-tools-miss-running-business.json","markdown":"https://digestai.news/story/sap-cto-philipp-herzig-thinks-ai-coding-tools-miss-running-business.md","slug":"sap-cto-philipp-herzig-thinks-ai-coding-tools-miss-running-business","headline":"SAP CTO Philipp Herzig thinks AI coding tools miss running business","summary":"SAP’s chief technology officer Philipp Herzig argues that AI coding tools, while able to spin up apps quickly, overlook the harder task of running those apps in a business context. He says the “SaaS is dead” narrative conflates app creation with production‑ready operation, and that many pilots fail because they lack the governance, security and business‑process integration needed at scale.\n\nHerzig highlights SAP’s new Joule Work platform, which lets users state intent instead of clicking screens, and Joule Studio, a tool that gives developers a pre‑built enterprise context for building agents. He also discusses SAP’s Knowledge Graph and Company Memory, which map business data and capture decision rationale to reduce “fluent‑but‑wrong” answers. The company has committed more than €1B to Prior Labs and built SAP‑RPT models, with 60,000 colleagues using Joule Work internally.\n\nKey numbers include 80% of AI users feeling more productive, only 6% seeing profit impact, and a 50‑to‑45‑day reduction in average collection time from a tabular AI use case. Herzig stresses that the hardest engineering challenge is building safe, scalable agents with proper guardrails, not just making them work.","keyPoints":["Joule Work lets users state intent, assembling data from multiple apps into a visual workspace","60,000 SAP colleagues use Joule Work internally, and SAP has committed over €1B to Prior Labs","Tabular AI model SAP‑RPT‑1.6 offers explain‑by‑feature and explain‑by‑example to build trust in predictions"],"whyItMatters":"Enterprise AI must bridge the gap between app creation and reliable production. SAP’s focus on governance, intent‑driven interfaces, and tabular models shows how large firms can reduce costs and improve decision quality.","category":{"slug":"enterprise","name":"Enterprise & Industry","url":"https://digestai.news/category/enterprise"},"entities":{"companies":["sap","prior labs","google","nvidia"],"models":["joule work","joule studio","sap‑rpt‑1.6","sap‑rpt models"],"people":["philipp herzig","cheung"]},"firstPublishedAt":"2026-10-25T10:00:00Z","updatedAt":"2026-10-25T10:00:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"The Rundown AI","title":"SAP's Philipp Herzig on AI built for business data","url":"https://therundown.ai/articles/sap-s-philipp-herzig-on-ai-built-for-business-data","publishedAt":"2026-10-25T10:00:00Z","type":"newsletter","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":null,"cite":{"text":"Digest AI, \"SAP CTO Philipp Herzig thinks AI coding tools miss running business\", 25 October 2026, https://digestai.news/story/sap-cto-philipp-herzig-thinks-ai-coding-tools-miss-running-business","publisher":"Digest AI","title":"SAP CTO Philipp Herzig thinks AI coding tools miss running business","datePublished":"2026-10-25T10:00:00Z","url":"https://digestai.news/story/sap-cto-philipp-herzig-thinks-ai-coding-tools-miss-running-business"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}