3.3 Building the foundations: organizational and technological Strong organizational and technological foundations are essential for a successful operational transformation and the use of AI agents at scale. Organizational foundations –Governance: Tailoring the organizational structure and operational processes to a company’s specific needs is crucial to support the transformation. To fully capture the value of AI agents, companies must review and adapt current processes and work procedures. –Skills and capabilities: To unlock the full potential of AI agents, companies will need a broad set of skills and capabilities. This may include specialized expertise (such as prompt engineering) that the organization currently lacks and may need to build from the ground up. Additionally, to optimize AI agent use, companies must recognize and understand the technology’s limitations. Supporting employees through upskilling and reskilling opportunities is also key, allowing them to grow along with the company. As these shifts elicit cultural changes, paying attention to employees’ emotional skills may further facilitate a smooth transition. –Change management: To succeed, change management must be led from the top of the organization, engaging all workers in the transformation. Building trust in the selected technologies through transparency and open communication early in the process is crucial to cultivating a culture of change. Developments in work practices and cultures influence how new and old roles, as well as new and existing talent pools, collaborate. Maintaining a continuous improvement mindset throughout the process ensures adoption and value realization. –Ecosystem partnering: Collaboration is an essential enabler for success, due to each technology’s inherent complexity and the depth of expertise required. The challenge is magnified when dealing with technologies that lack commonalities. For instance, embodied AI and virtual AI require different types of expertise and partnerships. –Legal compliance: As the regulatory landscape matures, manufacturers must ensure that AI and other technologies are used responsibly. They must carefully assess associated risks before implementation. For example, AI agents could grant access to data that should remain restricted, so companies must evaluate the potential risks of making certain information widely available. Frontier technologies, especially AI, help companies to enable tremendous value. To stay at the forefront, organizations must embark now on a journey from digital to adaptive towards autonomous operations. Success in this transition requires a well-defined strategy for a clean, digital core and data foundation, and a transformative organizational mindset, converging the traditional silos of operations. This will not only lead to a competitive advantage but also prepare companies for the major challenges of our time. Dominik Metzger, Senior Vice-President and Global Head, Software Engineering Digital Supply Chain, SAP3.2 Staying at the forefront of AI agent innovations The frontier technologies poised to disrupt operations are rapidly evolving. The field of AI agents is still developing, with new capabilities expected in the coming years. Maintaining leadership in the deployment of these innovations requires a sustained, systematic effort. Identifying and evaluating AI-agent innovations should be an organization-wide endeavour, as their impact extends beyond operations to areas such as engineering, procurement and IT, as well as the overarching business strategy. Companies should apply a systematic approach to reviewing such new technologies and assessing the maturity of their current operations, to facilitate the preparation, implementation and scaling of processes. The field of AI agents is still developing, with new capabilities expected in the coming years. Maintaining leadership in the deployment of these innovations requires a sustained, systematic effort. Frontier Technologies in Industrial Operations 19

Frontier Technologies in Industrial Operations 2025