Why deep integration matters

By 2025, AI agents will no longer be a futuristic notion—they will be standard members of high-volume shared services?centers, transforming the way invoices are?processed?and compliance is managed. CFOs who want to harness these advances must learn to differentiate true?#VerticalAIagents?from AI solutions that merely add buzzwords on top of outdated methodologies. In the same way that self-driving cars rely on both advanced AI and real-world data to navigate safely,?AI-driven #SAP processes?must be grounded in deep domain knowledge and rigorous integration to deliver meaningful—and compliant—results.

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F110: A lesson in enduring relevance

A classic example of how critical thorough integration is to long-term success is?F110, SAP’s automatic payment run function. This functionality has remained core to SAP Finance for more than 30 years, not just because it was well programmed?(kudos to Maex Ament ), but because it fits seamlessly into SAP’s comprehensive finance ecosystem.

1. Deep alignment with SAP core: SAP’s core functionality remains consistent globally, even though it can be configured to suit different industries and markets. F110’s real strength lies in leveraging this standard core while allowing enough flexibility to address local compliance requirements—without fundamentally altering how SAP works.
2. Compliance and process automation: By tapping directly into vendor data, payment terms, and tax information, F110 automates critical steps, reducing errors and ensuring adherence to corporate policies and local regulations. Its tight integration is what makes it an indispensable tool for finance teams worldwide.

This enduring relevance highlights a key principle:?Technology that fully embraces native SAP processes and data structures stands the test of time.

Why “Vertical AI” must be?an?SAP expert

When it comes to AP automation, a?vertical AI agent?cannot merely perform generic invoice scanning or claim to “understand” finance at a surface level. Instead, it must:

1. Integrate directly with SAP: Any AI-driven application should rely on SAP methods and data structures—like purchase orders (POs), vendor master data, and tax codes—rather than replicating or bypassing them. When an invoice needs to be validated or matched, the solution should invoke existing SAP checks, ensuring consistent and auditable results.
2. Leverage built-In compliance: SAP already excels at controlling payment blocks, storing historical vendor transactions, and enforcing approval hierarchies. A vertical AI agent taps into these mechanisms to automate processes rather than create parallel compliance checks that might diverge from SAP’s core logic.
3. Adapt to SAP’s standard yet configurable model: While SAP’s functionality remains consistent at its core, it can be highly customized to meet industry-specific or market-specific needs. A vertical AI agent must be equally flexible—able to handle manufacturing invoice nuances as readily as it handles retail or service-sector invoices—without losing alignment with SAP fundamentals.

By blending domain-rich SAP expertise with targeted AI capabilities, a vertical AI agent can automate routine tasks, highlight exceptions, and streamline approvals without undermining established and proven SAP processes.

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The value of AI in AP: Grounded, not just hype

Where does?artificial intelligence?fit into this equation if most of the heavy lifting remains tied to SAP’s standard functionality? The short answer is that?an AI agent adds?an extra layer of?efficiency and intelligence,?eliminating today’s manual activities. ?All processing is done in real-time,?24/7 across all markets and languages.

This approach strikes a balance: the AI does what it does best (interpreting unstructured data, providing semantic understanding) and leaves the core compliance rules, payment logic, and final decision-making to SAP’s well-tested engine?– without any human in between.

Ensuring compliance: Like self-driving cars on real roads

Self-driving cars?won’t exist if it was only about AI.?Decades of engineering skills ensure safety and convenience for the?passengers.?Likewise,?AI-driven SAP processes?must integrate?their?advanced AI algorithms with SAP’s proven compliance structures and finance logic. This “grounding” prevents costly errors and helps CFOs maintain full confidence in automated?processes.

Real-life value

• Hyper-scalability:?For AI Agents like NXT AP, it does not matter whether 10, 100, or 10,000 documents are processed.?
• Reduction in human touchpoints: Many transactional tasks—once handled by entire teams of accountants—are now streamlined by?AI Agents. This is not mere augmentation; it increasingly?replaces?the need for manual?activities.
• Compliance by design: Because the AI agent’s decisions are grounded in SAP, every action?is based on SAP’s customer-specific customization.?All processing is done inside of SAP, data never leaves SAP, all standard reports can be used to ensure transparency.

Conclusion: Embrace the agent, demand the expertise

The era of?Vertical AI agents?is upon us. These next-generation solutions will do more than just expedite manual tasks—they have the potential to?replace entire layers?of repetitive accounting work and free your finance talent to focus on strategic initiatives. Yet the ultimate success hinges on?deep and experienced-based domain knowledge?and rigorous?technical integration?with SAP.

As you weigh your options, remember the self-driving analogy: a flashy sensor or AI algorithm alone doesn’t guarantee road safety. Similarly, an AP solution that touts “machine learning” or “generative AI” yet remains disconnected from SAP’s core structures will not deliver genuine compliance or efficiency.

For CFOs aiming to future-proof their finance function, investing in?truly grounded, vertical AI solutions?like NXT AP is the surest way to drive meaningful transformation and stay on course in a rapidly evolving landscape.

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Glossary

Vertical AI Agent - An AI-driven solution specializing in a specific domain—like Accounts Payable in SAP—that integrates deeply with existing systems, leveraging both domain expertise and advanced AI capabilities. It uses SAP’s native processes to maintain compliance, rather than duplicating or bypassing them.

Computer Vision - A branch of AI focused on enabling machines to interpret and?“understand”?visual data. Solutions like Microsoft Azure’s computer vision, used by NXT AP, are trained on millions of invoices across multiple markets, languages, and formats, enabling faster, more accurate data capture.

Generative AI?(like GPT models) interprets and creates new, context-rich?data. In AP, Generative AI can resolve ambiguities, whereas standard ML offers only probabilistic outputs (e.g., “90%?confidence”).

Grounded In AI terms, being “grounded” means the solution references real-world data, rules, and contexts—in this case, SAP’s built-in compliance checks, established methods ("LIV"), and historical transactional data. Grounding ensures accurate and contextually relevant decisions rather than purely theoretical or probabilistic outputs.

Big news alert!

NXT AP has officially landed on the Azure Marketplace, bringing our game-changing solution directly to you!

NXT AP, our flagship Vertical AI Agent for AP automation, is now globally accessible via the Azure Marketplace. Powered by Microsoft Azure AI services, including Computer Vision and GPT, NXT AP integrates seamlessly into SAP to deliver real-time, intelligent processing of invoices. This collaboration with Microsoft ensures customers and partners worldwide can benefit from cutting-edge automation and compliance tools, redefining corporate finance operations.

Ready to elevate your finance automation? Explore NXT4SAP on Azure Marketplace -Check this out here.

Milestone unlocked.

First NXT AP installation in Germany

We’re thrilled to announce the first deployment of NXT AP under its official brand name for a prominent German organization. This implementation replaces intricate legacy systems with cutting-edge features for data capture, invoice parking, and exception handling. The successful rollout highlights NXT AP’s ability to drive efficiency and ensure compliance in high-volume, multinational Accounts Payable operations.

nxt4sap is hiring!

We’re expanding our team to support the next wave of innovation in AP automation and AI integration. If you're passionate about shaping the future of finance and working with cutting-edge technologies like Azure AI, join us! Check out our careers page for current openings and become part of our transformative journey.

Follow nxt4sap on Linkedin for all hiring updates.

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OpenAI introduces "Operator" AI Agent

On January 23, 2025, OpenAI unveiled "Operator," an AI agent capable of autonomously performing web-based tasks. Operator combines GPT-4o’s vision capabilities with advanced reasoning to interact seamlessly with graphical user interfaces. By?analyzing?screenshots and performing mouse and keyboard actions, it simplifies complex workflows through step-by-step execution and self-correction. This breakthrough challenges traditional RPA (Robotic Process Automation) solutions by offering a more intelligent, adaptive, and user-friendly approach to automation, marking a significant shift in how businesses can streamline digital workflows.

30-min LinkedIn Live Webinars! Join and discover how cutting-edge solutions are transforming the accounts payable processes and keeping organisations ahead with the latest in AI technology.

[Linkedin Live Webinar] Seamless integration of legacy solutions

Date: Wednesday, 29th January 2025

Time: 3:30 PM - 4:00 PM

Follow NXT4SAP on Linkedin to get instant notifications when webinars go LIVE.

Upcoming next month

Future CFO Thailand

For all CFOs and finance leaders in Thailand, we highly recommend attending this event.

While Thailand's growth appears stable, there are always challenges that could derail progress. Coupled with Thailand's transition into a low-carbon society, how would these new developments impact finance leaders in Thailand? Join your peers at FutureCFO Thailand to discuss how to overcome the challenges ahead.

Date: 20th February 2025

Details: TBA. Follow FutureCFO to receive instant notifications about this event.

Contact: Nigel Standley

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Unlock the future of finance with AI-driven financial solutions that automate compliance and optimize decision-making. Leverage AI-powered compliance to stay ahead of the competition. Enhance your financial operations with AI for real-time financial intelligence, and automated invoice processing. Start transforming your business with next-gen AI finance solutions today—experience the power of intelligent financial systems that drive results and ROI.

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Disclaimer: All content in this newsletter is provided for informational purposes only. The use of trademarks such as SAP and Microsoft?is?solely for reference purposes, and all respective rights remain with their owners. This newsletter is created by independent experts and is not affiliated with or endorsed by SAP SE, Microsoft Corporation, or any of their subsidiaries. Please consult your own advisors before making any decisions based on the content of this newsletter.