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SAP and Microsoft Announce Generative AI Collaboration to Address Talent Gap

The News: SAP and Microsoft announced a generative AI collaboration integrating SAP SuccessFactors solutions with Microsoft 365 Copilot and Copilot for Microsoft Viva Learning. SAP and Microsoft will work together to streamline recruiting and employee development processes enabling companies to address the talent gap. Read the full Press Release from SAP.

SAP and Microsoft Announce Generative AI Collaboration to Address Talent Gap

Analyst Take: SAP recently announced a collaboration with Microsoft to integrate SAP SuccessFactors solutions with Microsoft 365 Copilot and Copilot for Microsoft Viva Learning. SAP SuccessFactors will leverage generative AI for recruiting, especially around job descriptions and for interview prompts, as well as learning and development.

This was of particular interest to me as I learned of the importance of and challenges posed by job descriptions in the workplace from Jim Newman, president and CEO of Hrizons, an SAP partner that I was fortunate to be able to interview a couple of years ago. Job descriptions need to be written, evaluated, analyzed, benchmarked when taking jobs to market. There’s compliance, and legal considerations, along with ADA and the EOC in the U.S. and other government agencies across the world and, of course, there’s bias to avoid. And on top of all of this, organizations still need to be able to write job descriptions that attract talent. It’s no small undertaking.

Today, it’s not uncommon that companies struggle to identify the skills they currently have, and idetify what skills they will need in the future. And the talent gap is also an issue for organizations worldwide, with many struggling to find skilled professionals to fill crucial roles. This collaboration between SAP and Microsoft, leveraging generative AI for recruiting aims to bridge that gap.

By leveraging the power of generative AI, SAP and Microsoft will enable customers to automate repetitive tasks, streamline processes, and augment human capabilities. Here are a couple of examples of how it will work:

  • Recruiting: SAP SuccessFactors Recruiting solution will be integrated with Microsoft 365, giving leaders the ability to fine-tune job descriptions using Copilot in Microsoft Word. The final job description will then be published in SAP SuccessFactors solutions. In addition, SAP will also leverage the Azure OpenAI Service API to offer prompts to interviewers within Microsoft Teams.
  • Learning: SAP SuccessFactors solutions will be integrated with Microsoft Viva Learning enabling employees to use Copilot in Viva Learning to create personalized learning recommendations based on data and learning courses in SAP SuccessFactors solutions. Upon learning completion, SAP SuccessFactors will update automatically giving companies a clear picture of their workforce skills.

At SAP Sapphire in Orlando today, Satya Nadella, Chairman and CEO, Microsoft said, “We’re building on our long-standing cloud partnership with SAP and bringing together the power of Microsoft 365 Copilot with SAP SuccessFactors solutions to transform how organizations attract and develop their most important resource – their people.”

The SAP and Microsoft generative AI collaboration will be designed to integrate seamlessly with SAP’s suite of enterprise software solutions, giving companies enhanced tools for talent management and development. By combining their expertise and resources, they aim to equip companies with the tools they need to address the talent gap.

Wrapping up, the announcement of the SAP Microsoft collaboration to leverage generative AI to address one of the biggest challenges for today’s companies in addressing the talent gap. This collaboration will enable companies to recruit and retain employees with the skills they need and train for the skills they will need in the future. By leveraging the power of generative AI, SAP and Microsoft will enable customers to automate repetitive tasks, streamline processes, and augment human capabilities.

And if you’re interested in learning more about some HR tech solutions you might not know you need, including the importance of job descriptions, you might enjoy my interview with Hrizons’ Jim Newman, which you’ll find here: HR Tech Solutions to Add to Your Arsenal.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.

Other insights from The Futurum Group:

SAP Introduces SAP Datasphere, Next Generation Cloud Data Warehouse

SAP Launches SAP Build, its Low-Code Platform, and Partners with Coursera to Empower Developers and Businesses

How HR Tech Solutions are Fueling a Hybrid Workplace and Tech-Enabled Workforce

Author Information

Shelly Kramer is a Principal Analyst and Founding Partner at Futurum Research. A serial entrepreneur with a technology centric focus, she has worked alongside some of the world’s largest brands to embrace disruption and spur innovation, understand and address the realities of the connected customer, and help navigate the process of digital transformation. She brings 20 years' experience as a brand strategist to her work at Futurum, and has deep experience helping global companies with marketing challenges, GTM strategies, messaging development, and driving strategy and digital transformation for B2B brands across multiple verticals. Shelly's coverage areas include Collaboration/CX/SaaS, platforms, ESG, and Cybersecurity, as well as topics and trends related to the Future of Work, the transformation of the workplace and how people and technology are driving that transformation. A transplanted New Yorker, she has learned to love life in the Midwest, and has firsthand experience that some of the most innovative minds and most successful companies in the world also happen to live in “flyover country.”

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