Cloud, data and AI: How to harness the new engines of progress
When it comes to investments in artificial intelligence (AI), the numbers are staggering.
Saudi Arabia and the UAE just announced plans to buy hundreds of thousands of advanced AI chips. And at France's 'AI Action Summit' earlier this year, public and private actors pledged investments surpassing EUR 300bn to advance AI in Europe.
It is very clear that expectations about the economic benefits of this technology are sky high. Yet, a recent McKinsey survey found that more than 80 per cent of organisations worldwide are not yet seeing any tangible impact on their
The key to the answer is that AI is not a stand-alone technology. For its benefits to materialize, AI has to be deeply embedded in business processes. And for that, companies have to put three pillars in place: modern cloud software, modern data management, and a consistent stack of AI technologies linking with them.
It starts with software
All successful companies use software to organise and optimise their business operations – from order intake and procurement to production, delivery and customer service. Yet, many enterprises still rely on legacy on-premise software – that is, a wide range of programs installed on the company's local IT servers.
This 'software landscape' often consists of disparate applications plugged together – heavily modified over the years and frequently not up to date with the latest innovations. These complex systems are costly to maintain, and they make it difficult for companies and their leaders to respond to challenges and opportunities with agility and speed.
AI applications, too, face major obstacles in legacy systems: They have a hard time grasping the company's inner workings, making sense of fragmented and widely distributed datasets, and may not be able to find certain key information.
The first step towards powerful business AI, therefore, is the move from legacy on-premise software to modern cloud software – that is applications that are centrally managed and maintained in professional data centers, constantly updated with new innovations, and tightly linked so information can flow freely between the different parts of the company.
For companies today, this so-called cloud migration is faster, smoother and more transparent than ever before – thanks to the proven methods and advanced digital tools now available. And the prize is larger than ever before, too: integrated cloud applications work together out of the box and cover the company's software needs end-to-end across departments. This integration allows a car maker, for example, to reduce time and cost – say, from receiving an order through the vehicle's production to its final delivery. Similar benefits extend to all other industries and workflows.
A cloud migration, consequently, is more than an IT project: it is the digital foundation for a thorough modernisation of the entire enterprise, for moving from 'good' to 'great'.
Once in the cloud, companies can add advanced data management solutions with little effort. Think of advanced data management as a magic filing cabinet: it automatically stores and organises all documents, all information, all data automatically in the right place and in perfect order – always up to date, perfectly searchable, without duplicates and errors, smartly annotated, and everything in the right context.
Cloud and data
In their combination, integrated
At the same time, they enable AI technologies to access, understand, and facilitate transactions across the company – assisting human users with repetitive tasks as well as with deep analyses and insights.
And the next evolution is already at hand: Based on integrated cloud applications and data management, digital coworkers – also known as 'AI agents' – are now able to carry out complex work assignments. For example: find overdue invoices, identify what went wrong, resolve the issue, and make sure payment targets are met.
Realising the tremendous benefits of AI is thus about going on a journey: from on-premise software to cloud applications, then onwards to modern data management and the use of AI agents throughout the enterprise. It is this journey that unlocks the tremendous potential so many see in AI – and enables us to completely reimagine how our businesses and economies are run.
The writer is the CEO of SAP SE.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sharjah 24
40 minutes ago
- Sharjah 24
FTA seizes over 3.5 million non-compliant excise goods
As part of its ongoing commitment to combat tax evasion, enhance tax compliance, and safeguard consumers, the FTA inspection team successfully uncovered the UAE-based operation, which was concealing an illegal cache of excise goods within shipments of clothing and footwear – in clear violation of UAE tax regulations. The FTA clarified that all seized excise goods have now been permanently confiscated, a tax assessment conducted, and corresponding fines have also been applied. The total number of illegal goods seized exceeded 3.5 million items. These included 1.56 million packs of cigarettes, 1.77 million packs of electronic smoking devices and accessories, 111,360 packs of raw tobacco, 4,000 packs of hookah tobacco, 121 packs of nicotine pouches, and 4,600 packs of excise beverages. The tax due on these products was equivalent to AED133.2 million, and legal action has been taken against the non-compliant establishments. The FTA stated that this operation is part of continuous monitoring efforts it undertakes in collaboration with the relevant local and federal authorities, and emphasised that – in order to avoid penalties and fines for non-compliance – producers, importers, and stockists of excise goods must adhere to the tax regulations set forth in Federal Law No. 7 of 2017 on Excise Tax and its amendments. In line with best international practices, the FTA confirmed that in its battle against tax evasion, it uses the latest advanced electronic control mechanisms, including the application of digital tax stamps on tobacco and tobacco-related products. Each stamp contains electronically registered data, which FTA inspectors verify to ensure the appropriate tax has been paid. The FTA also stressed its commitment to enhancing coordination and cooperation with all relevant federal and local government entities to ensure compliance with tax laws – across all seven emirates of the UAE.
Arabian Business
3 hours ago
- Arabian Business
Uber launches ‘Women Drivers' feature in Saudi Arabia
Uber has announced the upcoming launch of its new 'Women Drivers' product in Saudi Arabia, allowing women riders to be matched exclusively with women drivers via the app. The new feature, which will roll out gradually in the coming weeks, marks a major step forward in enhancing mobility and economic inclusion for Saudi women. The launch coincides with the seven-year anniversary of the Kingdom's historic decision to lift the driving ban on women, and is positioned as part of Uber's broader mission to empower women through innovation, local partnerships, and economic opportunity. Uber Women Drivers in Saudi Arabia The product is also designed for ease of use to ensure women feel comfortable and empowered. It will be available gradually for riders in the coming weeks. Here's how the product works: On-demand: The Women Drivers product allows women riders to be matched with Women Drivers. The product functions just like UberX and is selectable from the product mini-list with similar prices to Uber X Reserve: For women riders looking for added structure and planning, they can reserve a ride with a women driver up to 30 minutes in advance through the Uber Reserve feature Youssef Abouseif, KSA GM at Uber, said: 'Women across Saudi Arabia have shown how mobility can open the door to new possibilities. At Uber, we see that future as electric, shared, and autonomous – but also inclusive. 'The launch of the 'Women Drivers' product reflects our commitment to empowering women and supporting their mobility and economic independence. 'We're continuing to support women who choose to drive via the Uber app – giving them more choice, more opportunity, and a stronger sense of community. 'We're also thrilled to witness this dynamic change unfold in Saudi Arabia, and we firmly believe initiatives like these play a pivotal role in Saudi Vision 2030.' Uber is partnering with Alnahda Society, a leading non-profit organisation established in 1962 with a mission to empower women both economically and socially. The collaboration aims to support women in mobility through capacity-building initiatives, including financial literacy programs, by equipping women with essential skills. The initiative paves the way for economic independence and opens up opportunities such as driving via the Uber app. This effort builds on Uber's previous collaboration with Alnahda through the Masaruky initiative, which supported thousands of women in joining the workforce by helping them learn to drive and obtain a driver's licence. Additionally, Uber will host its first GigSister program in Saudi Arabia, creating a dedicated space for women drivers to connect, share experiences, and foster a supportive local community. These initiatives highlight how Uber is going beyond mobility to actively invest in the development and success of women across the Kingdom. Over the years, Uber has introduced a series of programs in Saudi Arabia, from the Wusool initiative, which supported more than 20m subsidised rides for women, to Women Rider Preference, which allows women drivers to choose if they want to exclusively pick-up women riders. Each of these initiatives has been carefully curated to advance women's participation in the workforce and align with the Kingdom's broader socio-economic goals.
Arabian Business
3 hours ago
- Arabian Business
Etihad Airways carries 1.8m passengers in June as 2025 traffic tops 10m
Etihad Airways reported strong growth in June 2025, flying 1.8m passengers, a 16 per cent year-on-year increase, as it continues its strategic network expansion and strengthens its position as the fastest-growing airline in the Middle East. The airline's passenger load factor reached 88 per cent, up from 86 per cent in June 2024, highlighting Etihad's success in managing capacity while maintaining robust demand across its routes. The airline's operating fleet now comprises 101 aircraft, supporting its expanding network and ongoing service enhancements. Etihad passenger growth During the first half of 2025, Etihad welcomed 10.2m travellers on board, reflecting a 17 percent rise from the same period in 2024. The average passenger load factor for the year to date stands at an impressive 87 percent. Antonoaldo Neves, Chief Executive Officer of Etihad Airways, said: 'We are pleased to see continued momentum in our growth, with passenger numbers in June increasing by 17 percent year-on-year in the first half of the year, maintaining our position as the fastest-growing airline in the Middle East. 'Our year-to-date figures show that more than 10m guests have flown with us in 2025, and our rolling 12-month total has almost reached 20m as our customers continue to place their trust in our service. 'Our route expansion continued in June as we began operating to Prague and Warsaw for the first time and resumed five seasonal routes to summer hotspots Nice Malaga Mykonos Santorini Antalya'
