Byte-Sized AI: SAP Plans to Release Retention-Focused Retail Systems; Alo Yoga Links with Invent.ai

Byte-Sized AI is a bi-weekly column that covers all things artificial intelligence—from startup funding, to newly inked partnerships, to just-launched, AI-powered capabilities from major retailers, software providers and supply chain players.

SAP rolls out retail-focused AI functions ahead of NRF 2025

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Technology giant SAP announced Thursday that it had made S/4HANA Cloud Public Edition, retail, fashion and vertical business solution generally available. S/4HANA is SAP’s proprietary enterprise resource planning (ERP) system, which uses data and decisioning to help retailers keep their business up and running on a day-to-day basis; it’s used by some of retail’s largest players.

The release includes several AI-powered tools that the company believes will help retailers meet customer expectations, in turn helping with retention metrics. SAP Emarsys data shows that eight in 10 consumers said they don’t feel valued enough by the brands they put their loyalty behind.

By integrating S/4HANA with Emarsys and others SAP tools, the company announced that, in the back half of 2025 it will empower retailers with a new, loyalty-focused system. It will assign each customer a loyalty wallet on the cloud, allowing them to receive personalized offers and discounts; will allow retailers with multiple brands (think Gap and its sister brands, Old Navy, Athleta and Banana Republic) to manage multi-brand loyalty programs and more.

And though those loyalty capabilities won’t be available until the second half of the year, retailers and brands also have a new capability to look forward to in the first half of the year: an AI shopping assistant. The company said it will change e-commerce by leveraging “through natural language conversations that help customers quickly find exactly what they need,” though it did not specify what the exact capabilities of the product will include.

Leslie Hand, group vice president for IDC Retail Insights, said the S/4HANA availability update, paired with the incoming AI-powered systems marks an exciting leap for SAP.

“SAP’s announcement of an all-in-one platform tailored for retail represents a meaningful differentiator in the market,” Hand said in a statement. “Retailers often struggle with fragmented solutions that excel in some areas but cannot deliver the end-to-end integration necessary for seamless retail operations.”