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SAP unveils agentic AI tools for manufacturing supply

Tue, 21st Apr 2026 (Today)

SAP has unveiled new agentic AI tools for manufacturing and supply chain operations at Hannover Messe 2026. The launch centres on software embedded in business processes across production, logistics and cloud-based enterprise systems.

The new products target manufacturers facing higher costs, tougher competition and more complex operations. SAP set out a model in which AI agents detect changes in supply and production conditions, assess constraints and trigger actions within core workflows.

The announcement puts manufacturing at the centre of SAP's broader push to weave artificial intelligence into day-to-day corporate systems rather than treat it as a separate layer. That approach spans design, planning, manufacturing, logistics, asset management and supplier networks connected through SAP's business network software.

Among the products highlighted was SAP Supply Chain Orchestration, which uses a real-time knowledge graph alongside Joule, SAP's AI assistant, to identify and respond to risks across multi-tier supplier networks. SAP also pointed to digital product passport functions and e-invoicing compliance tools built into routine business processes.

Factory Focus

At the trade fair, SAP is using live demonstrations to show how the software links digital planning with physical production. A CNC machine made by DMG Mori is producing spare parts, which are then passed directly into an Uhlmann packaging machine in a connected sequence.

Another demonstration features a humanoid robot carrying out picking and packing tasks. The setup is intended to show how Joule can connect digital decisions to actions on the factory floor.

SAP is also using the event to underline the role of partners in its industrial strategy. Accenture, PwC and Capgemini are co-demonstrating end-to-end manufacturing and supply chain systems, while Snowflake is taking part in a session focused on data.

The company also outlined its support for Manufacturing-X, a cross-industry initiative designed to enable secure, standardised data exchange across manufacturing supply chains. The project is part of a broader European effort to improve industrial data interoperability while preserving control over how information is shared between companies.

Industrial Push

The Hannover Messe launch comes as large software groups compete to persuade industrial companies that AI can deliver practical gains in planning, procurement, production and after-sales service. Manufacturers have shown interest in systems that promise earlier warnings of disruptions, better use of factory assets and faster responses to demand shifts, but many remain cautious about implementation costs and integration with existing equipment.

SAP argues that these concerns can be addressed by placing AI directly inside established enterprise applications. Rather than asking users to move between separate tools, the software company is pushing for automated decisions and recommendations to appear within the same systems used to manage orders, suppliers, production and logistics.

Christian Klein, chief executive officer of SAP, is due to speak at the event in a session on industrial AI. His remarks are expected to focus on the move from AI strategy to business execution in manufacturing.

That message reflects a wider market shift away from broad claims about AI and towards use cases with clearer returns. Industrial groups are under pressure to raise efficiency while coping with tariff uncertainty, shifting supply routes, regulatory changes and customer demands for faster delivery and more traceable products.

SAP says its latest manufacturing and supply chain offering is intended to help businesses operate as one connected enterprise. In practice, that means linking data and decisions from planning through to delivery and after-sales support, with compliance requirements managed within the same workflows.

"Today's manufacturing companies face the dual challenge of managing complexity while responding agilely to change amidst rising costs and intensifying global competition," said Dominik Metzger, President and Chief Product Officer, SAP Supply Chain Management. "By embedding agentic AI directly into core business processes, SAP enables enterprises to sense market changes in real time and translate them into immediate execution. By orchestrating enterprise-wide operations into a single connected system-from design and planning to manufacturing, logistics, and asset management-companies can bridge the gap between planning and execution, consistently delivering the reliable business outcomes that customers expect."