SAP and Mistral AI

1. 100% European, locally hosted AI, maintained in SAP-operated infrastructure.
2. 80% reduction in repetitive support queries.
3. Multilingual: several languages supported natively including German, French, and Italian.

SAP leverages Mistral AI's advanced language models to continue to transform enterprise operations across multiple industries. Through Mistral's superior Large model with multilingual capabilities and European localization of AI hosting, SAP delivers intelligent agent orchestration that goes far beyond traditional chatbots for direct answers to queries and a setup tailored to avoid hallucinations.

This partnership enables SAP to serve organizations like Swiss Federal Railways (SBB CFF FFS), as well as industries such as telecommunications and finance with AI-powered solutions that maintain complete, local AI hosting and data localization, ensuring optimal regulatory compliance.

“Our expanded partnership with Mistral AI reinforces SAP’s commitment to responsible AI, enabling businesses to harness the power of generative AI while maintaining control over their data and intellectual property—a key milestone toward more sovereignty for the European market.”

Philipp Herzig, Chief Technology Officer of SAP SE

Knowledge management and business processes are universal challenges.

Modern enterprises face universal challenges that span every sector: repetitive support queries that overwhelm expert teams, knowledge silos that prevent efficient information sharing, and manual processes that consume valuable human resources. These pain points become particularly acute during major transformations and migrations—whether it's SBB's five-year software migration affecting 30,000 employees, or finance teams processing monthly accruals across thousands of transactions.

The complexity multiplies in European markets when there are multilingual situations a. Organizations operating in German, French, and Italian face additional barriers when AI solutions can't effectively handle regional languages and dialects.

For regulated industries like the public sector and finance (and many others), these challenges are compounded by strict data localization or sovereignty requirements. Organizations need AI solutions that can deliver enterprise-grade performance while ensuring sensitive data never leaves regional boundaries.

Mistral AI enables SAP's optimized transformation.

Mistral AI's large language models enable SAP to deliver enterprise AI solutions through a reusable framework. From intelligent chatbots that can provide interactive, real-time multilingual support with humans-in-the-loop, to agentic workflows that can autonomously handle entire business processes—Mistral AI's capabilities allow SAP to augment their existing products while meeting strict compliance and regulatory requirements. A novelty? The specific usage of agent orchestration enables reduction, or elimination, of hallucinations for preconfigured queries, thereby giving trust in the answers provided.

Intelligent chatbots to streamline software migrations.

A recent implementation at SBB exemplifies SAP's AI capabilities. To help address end-users support needs during SBB's multi-year software migration, the SAP team built a multilingual chatbot leveraging Mistral Large hosted entirely on the SAP operated infrastructure. The chatbot employs sophisticated retrieval-augmented generation (RAG) to draw from multiple knowledge sources including FAQs, training materials, and unstructured content like recordings and screenshots. As employees interact with the intelligent chatbot, the system leverages advanced prompt engineering and glossary-based query rewriting to handle domain-specific abbreviations—so that if team members ask about “how to submit a SO”, the chatbot automatically expands "SO" to "sales order" for a more accurate retrieval.

A critical innovation is the human-in-the-loop functionality: when the AI cannot resolve a query, expert responses are automatically captured and added to the knowledge base, making that information instantly available to all future users. This creates a continuously learning system that grows smarter with each interaction.

The solution integrates directly into employees' existing workflows through SAP’s Build Work Zone portal and Microsoft Teams, eliminating the need for separate support applications and meeting users where they already work.

Agentic workflows for business process automation.

But SAP's vision is to build truly autonomous business processes. The upcoming Accounting Accruals agent by SAP, built on Mistral AI, scheduled for beta release in the coming months, runs autonomously at predetermined times, searching for necessary information, performing calculations, and preparing draft journal entries without human intervention. The AI reads data from SAP systems and interprets accounting policy documents using Mistral AI's language understanding capabilities.

Mistral-powered Accounting Accruals agent by SAP.

A reusable AI framework powered by Mistral AI.

SAP's framework is designed for rapid deployment across industries. The same foundational technology powering SBB's' migration support has been adapted for telecommunications companies supporting field workers with fiber cable installation, and is being expanded to multiple public sector organizations. This reusability dramatically reduces implementation time and costs while maintaining enterprise-grade security and compliance.

Why Mistral AI?

SAP selected Mistral AI models for their:

• Ability to be hosted directly on the SAP operated infrastructure
• Data localization alignment with SAP's compliance requirements
• Superior multilingual performance in German, French, and Italian based on benchmark testing
• Cost-efficient model orchestration enabling balanced performance and operational costs
• Scalability supporting rapid expansion across industries without sacrificing quality

Dramatic reduction in support bottlenecks and enhanced user experience.

The implementation of SAP's Mistral-powered chatbot has delivered significant operational improvements for SBB, fundamentally transforming how enterprise software migrations are supported.

• Support volume transformation: SBB achieved an estimated 80% reduction in repetitive support queries, freeing expert "super users" to focus on complex problem-solving.
• Scalable coverage: From 1,000 pilot users expanding to 30,000 employees, demonstrating enterprise-wide scalability.
• Real-time knowledge growth: Automated knowledge base expansion eliminates traditional lag between problem resolution and knowledge sharing.

The Accounting Accruals Agent, entering beta in the coming months, represents a new paradigm where agents handle complete business processes. "Each and every company does accruals at the end of the month and quarter," explains Donatella. "This applies to each and every customer that we have in S4HANA Public Cloud". The potential impact spans SAP's entire customer base, transforming manual, time-intensive processes into automated workflows.

Looking ahead: expanding beyond basic support.

Building on the success of the initial chatbot deployment, SAP is expanding the framework's capabilities to support complex business processes. The next phase includes procurement process automation using Mistral AI's tool and function calling capabilities, addressing the complicated multi-channel buying processes required in public sector environments.

The reusable framework is already being adapted for telecommunications and other regulated industries. This expansion demonstrates how SAP's partnership with Mistral AI is setting new standards for secure, compliant, and user-centric AI in enterprise environments.

Overall, the Mistral AI SAP technology partnership is running strong, both with use cases and coming innovations, delivering locally-hosted AI for global customers with regional needs for trust and compliance requirements.