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SAP stops most travel and hiring because of AI's soaring cost

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Re: SAP stops most travel and hiring because of AI's soaring cost

#62
post #24
post #19

Earlier quoted context omitted.

Would a technology famous for hallucinating data often enough, and in many context unable to guarantee it won't assume and hallucinate when it feels "confident enough" despite a robust system prompt, be really considered for a "system of record for procurement/production" usage? (yes yes RAG exists)

In the ERP space, AI is being used mostly for repetitive tasks, documentation and forecasting-type activities or where a non-deterministic answer might be useful. Scanning in documents and using OCR to create an order, asking what page I use to do X, historical demand modelling and constraint scheduling. Also have seen it used to do order flow type stuff like suggesting products to sell if they buy ABC. I'm not reall…

> forecasting-type activities

AI/ML yes, LLM's no (unless someone is naively using LLM's for forecasting)

Re: SAP stops most travel and hiring because of AI's soaring cost

#63

Earlier quoted context omitted.

That is not what ERPs are used for. Would love to hear how AI is going to help here. This is like a young engineer thinking the CDC machine they just bought, is going to make Airbus and Boeing obsolete...

It’s well known that the moat of system of record is how difficult it is to extract your data into another system.

> It’s well known that the moat of system of record is how difficult it is to extract your data into another system.

I think that is one aspect but not the biggest issue.

The specific shape of data and shape of functionality gets built around for decades due to incompleteness of any system, expanding dependencies and changing business needs.

Decades of building around the system results in a mountain of work when trying to replace the system, typically a larger body of work than implementing the base system itself.

Re: SAP stops most travel and hiring because of AI's soaring cost

#65

Wait, first they stopped hiring because AI is going to replace everybody. Now they stopped hiring because AI, which was going to replace everybody, costs too much. You can’t make this stuff up.

Sometimes buying a tool to make 10 people 15% more effective is a better choice than hiring 1 person.

Re: SAP stops most travel and hiring because of AI's soaring cost

#67

Earlier quoted context omitted.

If AI was actually making you more profitable, you wouldn't need to be cost cutting to avoid bankruptcy.

I'm not sure who is getting bankrupt?

No one, because they cut costs to avoid it.

Re: SAP stops most travel and hiring because of AI's soaring cost

#68

Earlier quoted context omitted.

It’s well known that the moat of system of record is how difficult it is to extract your data into another system.

> It’s well known that the moat of system of record is how difficult it is to extract your data into another system. I think that is one aspect but not the biggest issue. The specific shape of data and shape of functionality gets built around for decades due to incompleteness of any system, expanding dependencies and changing business needs. Decades of building around the system results in a mountain of work when try…

most of this complexity is because 1000 different types of businesses are jammed into the same database schema and ERP. Its all non sense

Re: SAP stops most travel and hiring because of AI's soaring cost

#69
post #53

Earlier quoted context omitted.

> Scanning in documents and using OCR to create an order, I remember this being done more than 10 years ago. The other uses cases you describe also were being done. Of course with AI maybe it’s become easier and cheaper?

Take your favorite OCR software. Then take a photo of a document and throw it into ChatGPT, or Gemini, along with the word "Transcribe". ChatGPT wins, by a landslide. BUT AI's advantage doesn't stop there. "Take this picture of some idiot filling in form 49, I've also attached the PDF, fill in the PDF fields, provide a database record according to the schema attached and flag if there are any obvious problems with th…

30 document analysis in parallel

Re: SAP stops most travel and hiring because of AI's soaring cost

#70

The big risk for these platforms is that AI reduces the cost to switch to another ERP. IF AI can map all of the data between two different competitors, the whole business model is finished

Maybe but I work for a company that integrates with a lot of ERPs and I don't know why but the rando IT guy who can't get themselves out of a paper bag is still a thing. You'd think AI would help them but man ... doesn't seem like it.
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