Generative AI to Reshape Mexican Enterprise Management: SAP

Mexican businesses are navigating a complex and evolving environment, driven by supply chain disruptions, shifting regulations, and talent acquisition challenges, says Cristina Palmaka, President Latin America and Caribbean, SAP. Two transformative forces are reshaping enterprise management: increasing operational complexity and the integration of generative AI (Gen AI).

“Gen AI is not merely altering operational processes; it is unlocking new avenues for innovation and efficiency,” writesPalmaka in a press release. “Businesses need to fundamentally shift by connecting people, data, and applications to address today’s challenges and drive progress.”

According to SAP Emarsys Power to the Marketer report, Mexican retail businesses face critical issues in customer engagement and operational inefficiencies. For example, 40% of consumers report that marketing emails are irrelevant, and 30% identify difficulties with product returns as a significant obstacle. These challenges highlight gaps in customer experience that AI can address through enhanced personalization and streamlined operations. However, the integration of this technology continues to be challenging. 

“Many companies still operate with on-premise infrastructures, which complicates updates and prevents them from accessing key innovations like AI,” says Rui Botelho, President Mexico, SAP, to MBN. 

To leverage AI effectively, businesses must move beyond siloed, legacy systems. Palmaka says that modern enterprise management requires process integration, data harmonization, and advanced AI capabilities to generate real-time insights and actionable recommendations.

Necessary key elements for this transformation include:

1. End-to-End Process Integration: A connected enterprise generates trusted business data, fostering stronger customer relationships, optimized operations, and smarter decisions.

2. Harmonized Data: Unified internal and external data creates a single source of truth, reducing redundancies and improving governance, critical for AI-driven decision-making.

3. Advanced AI: Beyond automation, AI analyzes data in real time, learns continuously, and provides actionable insights for comprehensive enterprise optimization.

Several companies in Mexico have already adopted AI. For example, sports retailer Innovasport implemented SAP Commerce Cloud and SAP Emarsys Customer Engagement solutions. These tools allowed it to improve customer personalization, resulting in a 40% increase in loyalty program membership, reports SAP.

Another example is Mercado Libre, the largest e-commerce platform in Latin America. This platform adopted RISE with SAP, a cloud-based ERP solution with integrated AI capabilities. The system streamlined financial processes, improved operational transparency, and enhanced responsiveness to market demands. The addition of Joule, SAP’s generative AI copilot, has further accelerated real-time decision-making, enhancing operational efficiency across millions of users.

“With RISE with SAP and AI capabilities like Joule, we are building a scalable, robust technological infrastructure that allows us to quickly adapt to market needs and deliver personalized solutions to our users,” says Dereck Dougall, Senior Systems Director, Mercado Libre, through SAP’s press release.

AI’s Broader Implications for Retail and Beyond

AI’s transformative impact extends across industries, with 88% of Mexican consumers recognizing its positive influence on retail experiences, says SAP. Palmaka says that 34% of consumers express a desire for AI to assist in product discovery, indicating a growing demand for intelligent, personalized solutions.

These technologies are turning complexity into an opportunity for growth by integrating processes, harmonizing data, and incorporating AI to enable sustainable, competitive growth.

"We are committed to bringing innovative technologies, such as AI and sustainability solutions, to the Mexican and Latin American market. We are ready to help companies standardize their accounting and meet sustainability goals," says Botelho to MBN. "We are also expanding our ecosystem by actively collaborating with local and international partners looking to better understand the market and make significant investments."