This is the second article in a series that explains exactly what SAP Joule is, how it works, and what the future looks like for SAP users of all types. In our first article, we provided an introduction to SAP Joule. In this article, we take it back a step to provide a lesson about AI in general, and how the business world is changing as a result ...

You’ve probably heard it all by now: “AI is changing everything,” “AI is going to steal your job,” or “You need AI in your tech stack yesterday!” But what is AI really? And more importantly—how does it apply to you, your business, and your SAP landscape?

If you’re a business user or IT professional nodding politely in meetings where everyone’s throwing around buzzwords like “machine learning” and “generative AI,” this article is for you.

Let’s break down the different types of AI you’ll encounter in business, demystify how they actually work, and explain how SAP’s Joule assistant brings those capabilities into your day-to-day SAP life.

The 4 Flavors of Business AI (No Buzzwords Left Behind)

1. Predictive AI

What it is: This type of AI looks at historical data and says, “Hey, based on what’s happened in the past, here’s what I think will happen next.”

Use Case: Demand forecasting, cash flow predictions, or predicting machine failure in manufacturing.

Example: If you’re a supply chain manager, predictive AI might tell you, “Based on historical sales trends, warehouse throughput, and weather patterns (yes, really), expect a spike in product X next month.”

How it works (Technically):

• Uses statistical models and machine learning algorithms
• Trains on time-series data
• Outputs a forecast with confidence intervals

Analogy: It’s like your grandma predicting the weather based on her knees, but way more accurate and not dependent on humidity.

2. Prescriptive AI

What it is: Takes predictive AI one step further. Not only does it tell you what’s likely to happen, it recommends what you should do about it.

Use Case: Inventory optimization, dynamic pricing, or suggesting the best supplier based on lead time and cost.

How it works:

• Combines optimization algorithms with predictive models
• Evaluates multiple scenarios and constraints
• Suggests optimal action

Analogy: Think of it as Google Maps for business decisions. It doesn’t just say traffic’s bad. It tells you which route to take.

3. Generative AI

What it is: The showstopper. This is the AI that creates stuff—text, code, images, emails, even poetry (bad poetry, but still...).

Use Case: Auto-generating product descriptions, summarizing meeting notes, or writing ABAP boilerplate code.

How it works:

• Uses Large Language Models (LLMs) like GPT
• Trained on billions of tokens (a fancy word for “chunks of data”)
• Understands context and patterns in language

Analogy: It’s like that one coworker who always jumps in to write the summary after a long meeting—except it doesn’t need coffee breaks.

4. Conversational AI

What it is: Enables machines to interact with you via natural language—think chatbots, voice assistants, etc.

Use Case: Interacting with customers via chat, or querying your ERP system like you’re texting a friend.

How it works:

• Natural Language Processing (NLP)
• Intent recognition
• Entity extraction
• Backend orchestration (pulls data, executes logic)

Analogy: Imagine Clippy from Microsoft Word got an MBA and now answers your SAP questions on Slack.

Where Does SAP Joule Fit In?

SAP Joule is SAP’s answer to all of the above, but in context. While other AI tools are smart, they don’t speak “SAP.” Joule does, and fluently.

Let’s look at how Joule brings each AI category to life inside your SAP landscape:

Predictive + Joule

Scenario: You’re a finance lead trying to understand why cash flow dipped last month.

With Joule:

“Hey Joule, show me forecasted cash flow for Q3 and flag any anomalies by business unit.”

Joule pulls the relevant data, runs predictive models, and gives you a visual breakdown with commentary.

Prescriptive + Joule

Scenario: Inventory levels are off, and you’re trying to avoid stockouts.

With Joule:

“Joule, what’s the best supplier to replenish product SKU123 this week?”

Joule looks at vendor performance, pricing, delivery times, and recommends the most cost-effective option. No spreadsheets needed.

Generative + Joule

Scenario: You’re an SAP developer writing an ABAP program for invoice automation.

With Joule:

“Joule, generate a sample ABAP function module to fetch open invoices by customer.”

Boilerplate code appears, ready to be tailored. Joule also links to documentation and suggests performance tuning.

Conversational + Joule

Scenario: You’re a sales ops analyst needing customer order history.

With Joule:

“Joule, show last 5 orders for customer 105342, sorted by value.”

All in a conversational UI. No t-codes. No clicks.

Final Thoughts: Don’t Just Watch the AI Revolution, Drive It

SAP Joule isn’t just another chatbot. It’s a business-aware, context-savvy digital assistant baked right into your SAP landscape. From finance to procurement, supply chain to development, Joule helps users:

• Save time
• Reduce errors
• Make smarter decisions

Pro tip: You don’t need to wait for a revolution to start benefiting. If you're on S/4HANA Cloud or SuccessFactors, Joule is already knocking.

Ready to Try Joule?

At CONTAX, we help customers adopt AI in practical, business-first ways without the hype. Whether you’re exploring S/4HANA, optimizing processes, or looking to make SAP feel more human, we can help.

Let’s make AI useful. Let’s make it SAP-smart. Let’s make it work for you.