Artificial intelligence (AI) is having a major impact on e-commerce. AI can mimic human intelligence through techniques like machine learning and deep neural networks. AI has the potential to significantly change businesses and the global economy. Retailers are increasingly investing in AI to improve marketing, sales, customer service, and supply chain management. By 2021, retailers that use AI for visual and voice search could increase digital commerce revenue by 30%. AI adoption is expected to boost global business revenue significantly between 2017-2021. SAP offers AI and machine learning capabilities across its software portfolio to help businesses gain insights from data.

1. Franck Cohen,
Chief CommercialOfficer, SAP
October18,2017
Explore the Impact of AI on
E-Commerce

2. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“Artificial Intelligence is a set of
techniques that enable a computer
to mimic the human brain.”
Decision Tree Machine Learning Deep Neural Networks
Definition of AI

3. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Artificial Intelligence: The Next Digital Frontier
Anything that could give
rise to smarter-than-
human intelligence in
the form of AI… wins
hands down as doing
the most to change the
world. Nothing else is
even in the same
league.
- Eliezer Yudkowsky
MachineIntelligence Research
Institute
I think we are about to
see the biggest
paradigm shift in human
history… AI will
overtake human
beings not just in
terms of knowledge,
but in terms of
intelligence.
- MasayoshiSon
CEO
Softbank
AI is the new
electricity. Just as 100
years ago electricity
transformed industry
after industry, AI will do
the same.
- Andrew Ng
Professorof AI
Stanford University
According to a new
report from PwC, AI
could contribute up to
$15.7 trillion to the
global economy in
2030.
- PwC
What’s the real value of
AI for yourbusiness?

4. Services industries by 2035
94%
Accountants
and auditors
89%
Security
guards
75%
Call center
employees
71%
Service
technicians
66%
Legal
associates
48%
Computer
programmers
Source: 'Future of Employment' Study - Oxford Martin School

5. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The amazing ways
Burberry is using
Artificial Intelligence and
Big Data to drive success
25.09.2017
Three Quarters of
Fashion retailers will
invest in AI over the next
24 month
14.05.2017
Alibaba to invest $15bn
in R&D labs in push to
become AI leader
11.10.2017
Latest headlines
In a blog post announcing the
partnership, Google explains
that the pair will seek to shake
up consumerism using AI. In
particular, Google hopes to
use its AI butler app, Assistant,
to help customers automate
orders.

6. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Expected Spend on Cognitive & AI Systems in Retail Industry
Source: IDC Press Release, 25.09.2017
$1.7 B
$11.1 B
2017 2018 2019 2020 2021
58.8%
CAGR

7. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Everything Is Changing in Retail
Source: IDC Global IoT Decision Maker Survey 2016,
Retail respondents

8. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
AI Technology Choices (% of Respondents)
What type of AI are you planning to use or exploring?
Source: IDC’s AI/CRM Economic Impact Survey, 2017
All Respondants AI Adopters
Cognitive/AI system platforms 25 29
Machine learning 28 34
AI-based data preparation and enrichment tools 35 48
Machine vision/image recognition 26 31
Voice/speech recognition 30 41
Text analysis and natural language processing 27 34
Bots and virtual digital assistance solutions 21 32
Social media pattern analysis, sentiment analysis 33 35
Advanced numerical analysis (e.g.,IoT streaming, machine logs) 31 41
Supporting technologies: ontologies, knowledge base curation,
dialog management, q&A processoing, and so forth
38 40
n = 1,028 total (292 current AI adopters)

9. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Some of the ways AI is expected to impact CRM activities:
Source: IDC’s AI/CRM Economic Impact Survey, 2017
q Helping companies improve brand campaigns and recognition
q Anticipate demand trends
q Improving lead generation and qualification
q Selecting the right sales opportunities
q Optimize sales call/sales cycle
q Optimizing pricing
q Optimizing distribution logistics & warehouses
q Solving customer support problems faster
q Lowering costs of support calls while increasing resolution rates
q Preventing loss through fraud detection

10. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Opportunity Analysis
Less Likely More Likely
Really Likely
AI Scoring Factors:
- Past Results
- Industry Segment
- Geography
- Key Stakeholders
- Specific Objectives
- Competitors
- Government Regulations
- Economy
- . . .
AI inAction–Opportunity
Identification/Analysis
Recommendations on How to Change
the Odds, and Keeps Tracking

11. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
40+ Commerce Startups Using AI
Source: CBINSIGHTS, June 2017

12. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
CEM Platform
Frontline ResponseBusiness Optimization
Online Feedback
CX Analytics
Natural Language Smart Sentiment IndustryModels & World Omni Source Bridge Structured
Processing Filtering & Emotion Theme Detection Awareness Analytics & Unstructured
Insights
Discovery
RootCause
& Drivers
Team
Management
Prioritized
Response
Customer
Engagement
Trends &
Alerts
Survey Feedback
• Panels & Research
• Net Promotor
• Post Sale
• Support
• Web & Digital
• Employee
• Facebook
• Twitter
• Instagram
• LinkedIn
• Glassdoor
• Ratings & Reviews
• Blogs
• News
• Communities
Interaction Feedback
• Voice Transcriptions
• Call Center Notes
• Chat
• Email
• CRM Data
• Behavior & Demographic Data
Analyze
Act
Listen

13. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
RETAIL - Increased use of robots in warehouses
Source: Amazon and company reports fromCiti Research

14. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
AI for Retail
q By 2021, early adopter brands that redesign their websites to support visual
- and voice - search will increase digital commerce revenue by 30%
q IDC calculates that AI associated with CRM activities will boost global business
revenue from the beginning of 2017 to the end of 2021 by $1.1 trillion
q Gartner predicts that by 2020, 85% of a client ‘s relationship with a business will be
managed without interacting with any human

15. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP: Machine Learning enables next level of application intelligence
Intelligent Sales Mgmt
Intelligent Marketing
SAP Leonardo MachineLearningFramework
Intelligent Recruiting
Intelligent Talent Management
Data
010010
001010
100101
Intelligent Cash Management
Intelligent Inventory Mgmt
Workforce EngagementCustomer Experience
Spend ManagementIoT & Supply Chain
Intelligent Supply Chain
Intelligent Plant Maintenance
Intelligent Invoice Matching
Intelligent Expense Management
Digital Core
010110100101010

16. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Machine Learning is embedded across the SAP portfolio
Finance
Marketing
Sales
Service
Human Resources
Procurement
Supply Chain
Platform
Cash Application Accounts Payable Predictive Accounting …
…Brand Impact Customer Behavior Segmentation
…
Service Ticketing
Customer Retention Sales Forecasting
CoPilot
…
…
Goods & Services Classifier …
Solution Recommender
Profile Completeness
…Resume Matching Learning Recommender openSAP Translation
Financial Advising
Forecasting (IBP) Stock in Transit
Available now Wave 2 Wave 3
Machine Learning Foundation …Model Training Infrastructure

17. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
AI – What’s next ?

18. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Call to Action
• Don’t believe the hype: Not every business is using AI. . . yet.
• Believe the hype: AI can potentially boost your top and bottom lines
• Be bold – Embrace disruption.
• Unleash the power of data.
• The time is now. Your competition is not waiting around.

19. PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Thank you
010110100101010
0101100
0101100
011010
010110100101010
0101100
010110100101010
010110100101010
011010