SAP

Her Majesty’s Revenue and Customs (HMRC) is partnering with SAP to modernize its core revenue systems, embedding AI for tax administration. This involves re-architecting the Enterprise Tax Management Platform (ETMP) onto SAP’s UK Sovereign Cloud. The initiative aims to unify data, automate processes, enhance efficiency, and improve taxpayer experience while ensuring data security and regulatory compliance. This approach underscores the importance of robust infrastructure and data governance for effective AI adoption in regulated sectors.

SAP’s stock plunged 16% as fourth-quarter cloud backlog growth of 16% missed analyst expectations. The company cited large transformational deals and legal termination clauses for the shortfall, though CEO Christian Klein remains optimistic about future revenue acceleration. Investors are also watching SAP’s response to AI’s potential impact on software development demand and its own R&D integration efforts.

SAP and Fresenius are partnering to build a sovereign AI platform for healthcare, prioritizing secure data processing and data sovereignty within clinical settings. This initiative aims to create an open, integrated ecosystem for hospitals to leverage AI responsibly. By combining SAP’s technology with Fresenius’ healthcare expertise, the platform will address data fragmentation and enhance interoperability, ultimately accelerating digital transformation and improving patient care across Europe.

SAP is making a big push in enterprise AI, CEO Christian Klein cites AI as key to customer deals. Q3 cloud backlog surged 23% to €18.8B, showing demand for AI-infused cloud services. While Q3 revenue rose 7% to €9.08B, it slightly missed estimates. Deutsche Bank maintains a positive outlook, but SAP is guiding towards the lower end of its cloud revenue forecast. Klein emphasizes focusing on practical AI applications and value creation, stressing the importance of real-world adoption. SAP aims to transform into an AI-first entity.

Coveo received the SAP Global Customer Experience Award for Partner Excellence 2025 for its contributions to SAP Customer Experience solutions. The award recognizes Coveo’s AI-powered relevance platform and its integration with SAP Commerce Cloud and SAP Service Cloud. Early adopters like Blackwoods have seen significant improvements (e.g., a 45% NPS increase) after integrating Coveo with SAP. Coveo’s AI platform personalizes experiences by connecting users with relevant information and products, driving business outcomes for global enterprises.

The European Commission has launched an antitrust investigation into SAP, focusing on potential anti-competitive practices within its on-premises software support services. The probe will examine if SAP’s policies unfairly restrict competition in the aftermarket for maintenance and support, potentially limiting options and increasing costs for businesses. SAP believes its policies comply with EU rules and is cooperating with the Commission. The investigation arrives as SAP transitions to cloud-based services and could influence its future business practices. SAP shares dipped following the announcement.

SAP will invest €20 billion over the next decade to expand its sovereign cloud infrastructure in Europe, including IaaS and on-premise options. This initiative aims to address data sovereignty concerns and GDPR compliance by ensuring customer data remains within the EU. The move positions SAP to compete with Microsoft and Amazon while aligning with the European Commission’s focus on technological sovereignty and AI development. SAP is also involved in the EU’s “AI gigafactory” initiative.