Opinion
Herzig: Enterprise AI adoption gap is widening rather than narrowing
“We also see that the AI adoption in the enterprise is still not where we want to see it, right? Like there's this Gartner curve, right? Where say like there's this AI innovation race, and then there's this AI outcome race, right? Then the gap almost increases,…”
Insight
Herzig: Agentic coding succeeds because outcomes are automatically verifiable
“The problem of why does agent decoding work so well, Sarah, is of course you can verify the outcome, right? You can either say, hey, is the program compiling or are your unit tests, right? Does it work, et cetera.”
Opinion
Herzig: Developers never actually adopted test-driven development in practice
“The reality is nobody did it. At least I never did it because it was so much more fun. It was not very popular at the end.”
Prediction Not checkable as stated
Herzig: Most enterprise agents will rely on tool calling, not GUI
“I still believe for the most part it will, The majority will live with tool calling, right? And agents running in the background and so on, right? Because you also don't, you know, maybe want to have the browser open all the time. Okay, we can do this with hea…”
Insight
Herzig: Large language models are not designed for predictive enterprise tasks
“Now, if you want to do these predictions, quite frankly, then the challenge is large language models are not made for this, right? The way how they, you know, generate just one token after another, essentially, in a sequence-to-sequence modeling. I mean, They'…”
Insight
Herzig: The era of software requiring manual user intelligence is over
“The time is clearly over where you design software, where the dump software, where the, that requires the intelligence to sit in front of the computer.”
Insight
Herzig: System of Record Data Is Insufficient for Autonomous Enterprise Agents
“If you just look into the system of record today, that data is insufficient for this grand vision that everybody has, that it becomes this autonomous enterprise or like the agency of these agents is increasing right over time.”
Insight
Herzig: Agent Decision Traces Create a Data Flywheel for Enterprise AI Evals
“And that then leads to this kind of, I call this then this data flywheel, so to speak. So because with every trace, every input a user gives you with all the observability that an agent writes you have new data sources that can then lead to new evals where som…”
Disclosure
Herzig: SAP developed RPT-ONE tabular foundation models after two years of research
“And that led, actually, this was two years of research. We published it also at NeurIPS and a bunch of other conferences. We call this RPT-ONE, so RAPID-ONE stands for relational pre-trained transformers. It's still based on the transformer architecture, but w…”
Prediction Not checkable as stated
Herzig: AI will transition software pricing to consumption, then outcome-based models
“Very clearly with AI, it was very clear for us that, you know, step by step, it will go towards this consumptive world, right? First consumptive, and then maybe in the next step, once we have more verifiability in the system, then also towards maybe an outcome…”
Disclosure
Herzig: SAP built a knowledge graph to bridge natural language and structured data
“We are seeing through, for example, the knowledge graph, the SAP knowledge graph that we've built, which is kind of the glue between natural language and the structured data in the system to really bring this together.”
Assertion Supported
Herzig: SAP powers core operations for 400,000 enterprise customers
“SAP is the market leader, right, in enterprise of software applications and platforms, right? It's a 400,000 enterprise customers, and usually I just running their finance and HR and, you know, supply chain, manufacturing, execution, logistics, warehouse manag…”
Disclosure
Herzig: SAP software is mostly licensed per-seat today with few exceptions
“For the most part, SAP software is seat based, licensed today with a few exceptions like a conquer or a field glass, for example, or the business network.”
