During the gold rush of the 1840s and ’50s, the true winners weren’t necessarily the miners striking it rich, but the savvy entrepreneurs who sold them the tools and provisions they needed. One notable example was Samuel Brannan, California’s first millionaire, who made his fortune selling supplies to miners. Fast forward to today’s tech-focused ‘gold rushes,’ such as the artificial intelligence boom, and the concept of selling ‘picks and shovels’ to miners still holds true.
While companies like Nvidia and ASML, who provide the underlying technology for AI, continue to see success, the broader impacts of the AI boom are still unfolding. SAP SE, a major player in enterprise resource planning software, is one example of a company benefiting indirectly from the rise of AI. The transition to cloud-based ERP services, driven in part by AI advancements, has boosted SAP’s cloud revenue growth and positioned the company for future success.
SAP is also investing in its Business AI unit, offering a range of AI products to help businesses automate tasks, improve communication, and enhance productivity. While the immediate revenue impact of these AI offerings may be incremental, SAP’s CFO Dominik Asam is optimistic about the long-term potential. By leveraging AI to streamline processes and increase worker productivity, SAP aims to achieve cost savings and margin expansion in the years to come.
As the AI revolution continues to unfold, companies like SAP are navigating the balance between hype and reality, recognizing the transformative potential of AI while also staying grounded in practical applications. With a focus on driving innovation, enhancing productivity, and embracing the power of AI, SAP is positioning itself as a key player in the evolving tech landscape.