To navigate AI’s evolution, organizations need to understand that it’s no longer just a question of “What can AI do?” but “How do we set our organization up for success with AI? How do we build for it? What problems do I solve with which models? How do we govern it?”

Looking ahead to five critical themes that will define enterprise AI in 2026, these present both opportunities and challenges for organizations. Let’s dive in.

1. New categories of AI foundation models unlock enterprise value

Advances in generative AI stem from breakthroughs in “foundation models,” massive neural networks trained on vast amounts of data that can be adapted to a wide range of tasks.

Large language models (LLMs) were the first wave of foundation models at scale. General-purpose LLMs, trained on the equivalent of all the text on the internet, opened the door to many value-adding use cases, including summarizing documents, writing code, and powering applications like ChatGPT and Claude. Over the last few years, we have already seen the foundation model approach applied to other domains, such as video creation and voice.

In 2026, specialized foundation models optimized for specific data types and domains will power the high-value enterprise AI use cases. Video generation models have already shown that models grounded in real-world physics data can reason about scenes and physical dynamics. Emerging world models demonstrate that simulating the physical world unlocks new possibilities in simulation, synthetic training data, and digital twins. Vision-language-action models demonstrate that robot-specific foundation models can generalize to new tasks and environments, enabling the transformation of web-scale knowledge into real-world actions in logistics and manufacturing.

In the enterprise domain, a similar shift is underway for structured data found in databases and transactional business software. While LLMs are impressive across many enterprise use cases, they cannot handle tasks like numerical predictions, such as inferring a delivery date or supplier risk score. However, work on relational foundation models shows that training on structured datasets—for example, data in tables, rather than generic text or images from the internet—can deliver high predictive accuracy without the tedious feature engineering and training required in classical machine learning. This means organizations can deploy predictive models in days, not months. Recent launches of relational foundation models, such as SAP-RPT-1, Kumo, and DistilLabs, highlight how new models can directly support use cases like forecasting, anomaly detection, and optimization across ERP, finance, manufacturing, and supply chain scenarios.

In 2026, these specialized models are expected to scale to deliver superior performance and economics for structured business tasks, surpassing general-purpose LLMs and state-of-the-art machine learning algorithms. These models will emerge as the workhorses behind high-value enterprise tasks.

2. Software evolves toward AI-native architecture

AI has seen various approaches create value over the decades, from the first rules-based expert systems to probabilistic deep learning and the recent explosion in generative AI. In 2026, organizations will shift from enhancing existing AI applications and processes to AI-native architectures, which will fully realize the promise of modern AI.

AI-native architecture adds a continuously learning, agentic intelligence layer on top of deterministic systems, enabling applications to become intent-driven, context-aware, and self-improving rather than being statically coded around fixed workflows. Agentic systems will still only be as good as the context layer they can reliably retrieve and ground on. Here, organizations should invest in truly comprehensive, semantically rich knowledge graphs that provide a scalable source of context, making AI-native software dependable and self-improving.

Enterprise applications will increasingly be built natively around AI capabilities, featuring user experiences designed for multi-model, natural language interaction; AI agents reasoning through complex processes; and a foundation managing foundation models, services, and a knowledge graph capturing semantically rich business data. AI-native architecture also enables more employees to create apps—such as smaller, ad-hoc productivity applications—in a matter of minutes without straining IT. 

AI-native architecture builds on, and even requires, established SaaS principles and investments in modern cloud applications. The technical term for combining probabilistic, adaptive AI models with deterministic systems of record is called neurosymbolic AI. It brings together AI’s best capabilities to adapt with reliable, governable, and deterministic processes. Next-gen applications will not just have AI bolted on; they’ll be built around AI at their core. This means combining reasoning, business rules, and data to deliver insights and automation seamlessly. Imagine ERP systems that proactively flag anomalies, recommend actions, and even execute workflows autonomously—all while staying aligned with company policies and regulations.

3. Agentic governance becomes mission-critical

Over the past two to three years, generative AI has introduced a wave of value-added use cases. These use cases were largely based on users sending a prompt to a model, receiving a response, and then interacting with the model again.

Last year saw the start of the next wave of innovation: AI agents capable of planning and iteratively reasoning through multi-step tasks, including selecting tools, self-reflecting on progress, and collaborating with other AI agents. These advanced AI agents promise to tackle complex business processes that were previously immune to automation, such as analyzing myriad documents, records, and policies to or .

However, the proliferation of AI agents, many of which handle critical tasks and sensitive data, demands the development of new capabilities. Agentic governance will emerge as a critical capability as organizations deploy hundreds of specialized AI agents. The “agent sprawl” challenge will mirror previous shadow IT crises, but with higher stakes given agents’ autonomous decision-making capabilities.

Forward-thinking enterprises will establish comprehensive governance frameworks addressing five dimensions: agent lifecycle management (version control, testing protocols, deployment approval, retirement procedures); observability and auditability (agent inventory, logging, reasoning paths, and action traces); policy enforcement (embedding business rules, regulatory constraints, and ethical guidelines into agent execution); human-agent collaboration models (defining autonomy boundaries, approval requirements, and escalation pathways); and performance monitoring (tracking accuracy, efficiency, cost, and business impact).

The organizational shift will prove profound—from viewing AI as an independent tool to managing agents as digital coworkers requiring onboarding, performance reviews, and continuous improvement. HR and IT functions will collaborate on “digital workforce management” as organizations treat agentic governance as seriously as they do traditional workforce oversight.

4. Intent-driven ERP and generative UI emerge as a new user experience

Consumers are becoming increasingly familiar with computer interactions requiring prompts in natural language, voice, and even images and gestures. At the same time, generative AI’s ability to create text, graphs, code, and HTML on the fly is improving rapidly. In parallel, AI agents enable users to simply express their intentions, allowing the agent to determine how to work toward achieving that goal.

These advancements open the door to varied and entirely new modalities for users to work with enterprise software, as well as “no-app ERP” experiences. For example, to book a customer visit, a worker typically needs to open an analytics application to review the account, look in the CRM system to retrieve the customer’s address, and then navigate to another application to book travel, among other tasks. 

In 2026, we will see “gen UI” experiences increasingly surface via digital assistants, relieving users from the need to navigate between multiple applications and perform manual tasks. With time, AI will allow the user to simply express the intent: “Prepare a trip to my customer with the most leads.” From here, an AI agent will plan out the steps and required systems, interacting with the user to confirm travel details while dynamically generating analytical graphs and briefing material in the window. As AI agents develop stronger calculation and prediction tools, users will be able to “speak to their data” more naturally, with agents making data-based decisions in the background. To be clear, interactions with agents will extend far beyond a chat box; organizations will enjoy rich visualizations, complete workflows, and the ability to build hyper-personalized apps with just a few commands.

The user interface will not disappear. No-app ERP experiences and autonomous agents require the same foundational substrate that humans rely on for their daily work: structured workflows, security, governance, and business logic defined in business applications. The difference is that agents consume these primitives programmatically at scale, not only through a GUI, and humans can interact with these agents via natural language without ever needing to open the application.

These capabilities will usher in a new paradigm for human-AI collaboration and productivity in the workplace. Personalized experiences and adaptive workflows across applications and data sources will lower adoption barriers. This ability to focus solely on achieving a user’s intention, regardless of the interaction modality and underlying systems, will drive return on investment (ROI) in AI and enterprise software.

5. Deglobalization drives sovereign AI offerings

AI sparked debates about digital sovereignty among nations due to AI’s potential impact on everything from scientific discovery and national security to economic productivity and even culture. Events in geopolitics, such as supply chain disruptions caused by tariffs and war, have only intensified the urgency that many nations and organizations feel to become digitally sovereign.

Digital sovereignty has two broad definitions. First, digital sovereignty is an information security designation governing data storage and access, such as U.S. FedRAMP and German VSA, required to process sensitive governmental data in a “sovereign cloud.” Second, and more broadly, sovereignty refers to the provenance of physical assets, intellectual property, legal jurisdiction, and services along the cloud stack. For example, does an application utilize an AI model created in Europe, the U.S., or China, and is the data center geographically isolated? 

The high stakes, geopolitical uncertainty, and complexity of “sovereign AI” will lead enterprises to increasingly demand AI and cloud solutions that are simultaneously cutting-edge, flexible, and fully sovereign. This intensifies the shift from globalized one-size-fits-all cloud to regionally compliant, AI-powered enterprise platforms. At the same time, governments will continue to refine their national AI strategies to invest in areas along the stack where they can compete and create value.

Executing on the 2026 AI themes

In 2026, AI is poised to move from a supporting tool to a fundamental pillar of the enterprise. This shift is driven by a convergence of defining trends—including increasingly capable agents, generative UI, and AI-native architecture—that push AI from the application layer and into the very core of business operations.

Organizations that thrive will be those that recognize this shift and build an enterprise that is purpose-built for AI: establishing robust governance to manage a new, collaborative workforce of humans and AI agents; embracing gen UI to lower adoption barriers and an intent-driven user experience that helps employees interact naturally; seeking out specialized foundation models that are precisely tuned for enterprise use cases to drive business value; and, finally, building applications natively around AI that combine reasoning, business rules, and data, delivering proactive insights and automation.

However, in 2026, organizations will still need high-quality, connected data. Data siloes severely limit the effectiveness of AI. As mentioned, AI-native architecture requires established investments in modern cloud applications that harmonize data across the entire business—because unified data means AI’s outcomes are more accurate and relevant.

Jonathan von Rueden is chief AI officer at 51·çÁ÷SE.
Walter Sun is senior vice president and global head of AI for 51·çÁ÷Business AI at SAP.
Sean Kask is vice president and head of AI Strategy for 51·çÁ÷Business AI at SAP.

But what exactly lies ahead? We’d like to share five key themes for AI in 2025 that undoubtedly come with challenges for businesses but also the potential to redefine what’s possible. Ready to glimpse into next year and beyond? Let’s dive in.

1.  Agentic AI: Goodbye Agent Washing, Welcome Multi-Agent Systems

AI agents are currently in their infancy. While many software vendors are releasing and labeling the first “AI agents” based on simple conversational document search, that will be able to plan, reason, use tools, collaborate with humans and other agents, and iteratively reflect on progress until they achieve their objective are on the horizon. The year 2025 will see them rapidly evolve and act more autonomously. More specifically, 2025 will see AI agents deployed more readily “under the hood,” driving complex agentic workflows.

Users will interact with a copilot for their tasks, which will deploy the request and coordinate among systems of multiple expert AI agents to complete more difficult tasks. Future AI agents, or , can collaborate to understand the business user, have all the context, and structure the problem to subsequently interact with these domain-specific expert AI agents — each performing specific sub-tasks that together complete a much more complex task. In the future, users will not even need to trigger an action. Instead, AI agents will proactively respond to business events such as incoming customer inquiries, supply chain disruptions, or demand surges. They will automatically prepare a decision workflow as far as they can before pinging the human user for feedback.

If we look at a five-year horizon, AI agents will simplify significant portions of workflows, even aspects that have been resistant to automation, such as exceptions in customer service, long-tail administrative tasks, and specific programming activities like coding or debugging software. AI agents will be flexible and can plan, fail, and try something else or self-correct based on reasoning. AI agents will handle and complete routine, repetitive tasks end-to-end as effectively and often even more effectively than humans, leading to increased productivity and demonstrable cost savings. Agents will be more adaptable and robust than conventional robotic process automation (RPA) for longtail and highly extensive tasks. This means figuring out the best result out of many possible outcomes, which is almost impossible to hardcode in an RPA algorithm with classical automation methods.

Adopting AI in these domains will also shift workforce dynamics, with human roles evolving to focus on anticipating uncommon scenarios, coping with ambiguity, factoring in human behavior, making strategic decisions, and driving genuine innovation — complemented, not replaced, by AI capabilities. 

In short, AI will handle mundane, high-volume tasks while the value of human judgement, creativity, and quality outcomes will increase.

2. Models: No Context, No Value

Large language models (LLMs) will continue to become a commodity for vanilla generative AI tasks, a trend that has already started. LLMs are drawing on an increasingly tapped pool of public data scraped from the internet. This will only worsen, and companies must learn to adapt their models to unique, content-rich data sources. Model improvements in the future won’t come from brute force and more data; they will come from better data quality, more context, and the refinement of underlying techniques. Companies must spend more time innovating to make better models through fine-tuning and model adaptation rather than just training larger and larger models. Neurosymbolic AI techniques, especially knowledge graph, will see a renaissance since they can provide both learning objectives for foundation models and context to significantly improve the performance of generative AI while reducing hallucinations.

We will also see a greater variety of foundation models that fulfill different purposes. Take, for example, physics-informed neural networks (PINNs), which generate outcomes based on predictions grounded in physical reality or robotics. PINNs are set to gain more importance in the job market because they will enable autonomous robots to navigate and execute tasks in the real world, from warehouses to manufacturing plants, or models trained on tabular, structured data, like 51·çÁ÷Foundation Model, and can handle tasks that LLMs cannot do well, like predictions of numeric values.

Models will increasingly become more multimodal, meaning an AI system can process information from various input types. AI applications will eventually evolve into “any-to-any” modality solutions capable of understanding, processing, and reasoning across text, voice, image, video, and sensor data within a single model. In addition, smaller and more specialized LLMs with scalable finetuning techniques and the ability to work on any device will become more common, a trend that may lead to hyper-personalized models for organizations or even individuals in the future.

Enterprises will shift toward strategies utilizing multiple foundation models (not to be confounded with multimodal capabilities in a single model, described above), leveraging a diverse set of AI models and techniques tailored to specific use cases. This is backed by the trend of fine-tuning small slices of models, which requires fewer resources and much less data, resulting in full model flexibility and enabling businesses to extract more value from their unique data and gain a competitive edge. Enterprise software vendors will offer or extend integrated AI model marketplaces and platforms that support seamless model deployment, management, and updating. Benchmarking and lowering model switching costs will help deploy the same use cases in heterogeneous environments. Context equals value. Knowledge graph technology has been around for 40 years and is now seeing a revival because it can overcome key LLM challenges, such as understanding complex formats, hierarchy, and relationships between business data. Knowledge graphs offer data meaning and explain the relationship between entities, significantly supercharging the abilities of LLMs. The next step in this journey will be large graph models, allowing further advancement in generative AI.

Implicit knowledge is power, and making knowledge explicit to others is a superpower.

3. Adoption: From Buzz to Business

While 2024 was all about introducing AI use cases and their value for organizations and individuals alike, 2025 will see the industry’s unprecedented adoption of AI specifically for businesses. More people will understand when and how to use AI, and the technology will mature to the point where it can deal with critical business issues such as managing multi-national complexities. Many companies will also gain practical experience working for the first time through issues like AI-specific legal and data privacy terms (compared to when companies started moving to the cloud 10 years ago), building the foundation for applying the technology to business processes.

From a technological perspective, while 2024 saw significant advancements in AI, 2025 will see companies focus on making these advancements more meaningful through seamless data integration, ultimately enhancing the accuracy and significance of AI-powered outcomes and boosting adoption. Lastly, in 2025, we might glimpse a shift in the software business model from building static software features and functions to an outcome-as-a-service model focused on achieving process objectives.

4. User Experience: AI Is Becoming the New UI

AI’s next frontier is seamlessly unifying people, data, and processes to amplify business outcomes. In 2025, we will see increased adoption of AI across the workforce as people discover the benefits of humans plus AI.

This means disrupting the classical user experience from system-led interactions to intent-based, people-led conversations with AI acting in the background. AI copilots will become the new UI for engaging with a system, making software more accessible and easier for people. AI won’t be limited to one app; it might even replace them one day. With AI, frontend, backend, browser, and apps are blurring. This is like giving your AI “arms, legs, and eyes.” While power users will still have singular, expert interfaces, most users will demand flexibility across multiple access patterns. At the same time, there will be a growing acceptance of longer inference times for high-quality answers to complex, previously unsolvable problems and actions in domains requiring deep analysis and research. Ultimately, users will recognize the trade-off between latency and complexity of tasks handled by AI.

Importantly, we will see organizations move beyond viewing AI as a collection of productivity tools and begin reimagining their workforce as a network of collaborative intelligence with AI agents and humans working to accelerate innovation within the enterprise. For example, combining human expertise in strategic thinking with AI’s strengths in large-scale analysis and pattern recognition will create new competitive advantages for companies that effectively orchestrate these hybrid intelligence networks to drive breakthrough discoveries and market opportunities. Next year will also mark the early stages of a significant shift in how humans and AI work together, with agents evolving into workflow partners, taking initial steps toward independently navigating software environments and automating routine tasks – from data analysis and report generation to schedule coordination and software testing. This will also start a longer journey toward transformed work processes and patterns, with forward-thinking organizations developing new roles, metrics, and training approaches for effective human-AI task collaboration.

5. Regulation: Innovate, Then Regulate

It’s fair to say that governments worldwide are struggling to keep pace with the rapid advancements in AI technology and to develop meaningful regulatory frameworks that set appropriate guardrails for AI without compromising innovation. The regulatory landscape will become even more fragmented, with the tracking hundreds of AI regulations under discussion worldwide. This requires evaluating model compliance with and technical interpretation of various regulatory frameworks.

In 2025, the discussion will shift from what we try to regulate from a technical standpoint to how we innovate and what we deem fundamentally human. This discussion will elevate the role of humans, contribute a much more positive perspective, and help shape a long-term vision for how we want humanity and AI to live and work together. 

In this environment, it will continue to be critical for companies developing and deploying AI technology to adhere to responsible principles around safety, security, and ethical use. This will also help set the stage for important precedents and compliance.

Executing on the Themes in 2025

Indeed, these are just a few of what we are sure will be many exciting advancements for AI in 2025. Overall, the biggest takeaway from the year ahead will be making existing breakthrough technology more meaningful. We will see AI much deeper and almost invisibly embedded in consumer and enterprise applications and witness more advancements in how vendors and organizations that use these applications embed their individual contexts and data into AI seamlessly.

Getting to the point of leveraging AI generally, however, will require businesses to take advantage of a modern cloud suite with unified data access and harmonized data models to overcome data silos and fully benefit from AI innovation that spans across the whole enterprise. This will drastically increase the accuracy and significance of AI-powered outcomes, ultimately boosting adoption, specifically in the enterprise space.

We can’t wait to see what the future holds.

Sean Kask is vice president and head of AI Strategy for 51·çÁ÷Business AI at SAP.
Walter Sun is senior vice president and global head of AI for 51·çÁ÷Business AI at SAP.
Jonathan von Rueden is head of AI Frontrunner Innovation for 51·çÁ÷Business AI at SAP.