SAP CTO Philipp Herzig discusses enterprise software commercial models with Sarah Guo on No Priors.
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.”