Imagine having the power of artificial intelligence right at your fingertips, tailored to your unique needs, all without your data and your AI processing ever leaving your region. This is not a futuristic dream but a present-day reality made possible by the SAP locally hosted AI architecture on the SAP Business Technology Platform.

The significance of locally hosted AI

Organizations today face mounting challenges from rapidly evolving privacy laws, cross-border data restrictions, and increasing pressure for digital sovereignty, making the need for a local AI hosting essential for ensuring compliance, safeguarding sensitive information, and maintaining full control over their digital operations within regional boundaries.

This is not just for regulated industries like healthcare and finance: any enterprise, handling highly sensitive or proprietary data where strict compliance, privacy, and data residency laws apply need AI solutions that are hosted locally and keep the data and execution within their own region.

SAP locally hosted AI offers a robust solution by keeping data processing and AI interactions within regional boundaries. This approach not only enhances data security but also ensures compliance with stringent local data regulations. By leveraging locally hosted AI, businesses can rest assured that their sensitive information is not exposed to third-party entities or subject to cross-border data transfer laws.

What is SAP locally hosted AI?

SAP locally hosted AI means SAP runs all your AI and data processes right in your region, so information never leaves local boundaries—it’s processed and stays securely where your business operates.

We implement AI locally by hosting generative AI models in its SAP Cloud Infrastructure and by connecting them directly to your own SAP Business Technology Platform tenant in your region.

On top of hosting the models, all the data management and all the prompt engineering and processing happens within the SAP environment, shielding it from third party access.

In its first implementation, we deliver SAP locally hosted AI to European customers with hosted models coming from Mistral.

You can build applications which keep data and AI processing within your region or you can purchase certified partner applications which fully work in the same local environment.

Building custom AI solutions, locally controlled

With locally hosted AI, we empower organizations to create AI solutions specifically designed to meet their unique requirements. Whether it's moving existing custom solutions to a local AI environment or developing new ones, we provide the tools and support needed to achieve these goals. The ability to run AI applications locally means that businesses can address their specific challenges when it comes to make sure that their data and all their AI processing remains in the same region with the appropriate regulations that safeguard their business and the integrity of their own customer information processing.

Unblocking the key advantages of locally hosted AI: Control, compliance, integration

Locally hosted AI brings organizations a complete package of advantages—enhanced data control and security, reliable compliance with local regulations, seamless integration and flexible scalability, plus simplified AI adoption. In the following sections, we’ll dive into each of these benefits and show how SAP’s solutions make it easier to maximize the power of AI while keeping your business fully protected and future ready.

Enhanced data control and security

One of the standout benefits of locally hosted AI is the enhanced control over data. By keeping AI hosted in a local environment, businesses can ensure that their data and processes remain secure within their own regional and organization boundaries. This eliminates the risk of data breaches associated with international data transfers and provides peace of mind knowing that sensitive information is well-protected.

Compliance with local regulations

Navigating the complex landscape of data regulations can be daunting. Locally hosted AI simplifies this process by ensuring that all data processing complies with local regulations. This is particularly important for industries that handle sensitive information, such as healthcare, finance, and government sectors. With locally hosted AI, organizations can operate with confidence, knowing they are adhering to all relevant regulations.

Seamless integration and flexibility

Locally hosted AI is designed to integrate seamlessly with existing systems. This means businesses can leverage their current infrastructure while incorporating AI capabilities managed within their own region. The flexibility of SAP's curated selection of AI models allows organizations to choose the best tools for their specific needs, ensuring optimal performance and results. Furthermore, SAP locally hosted AI's adaptability means it can evolve alongside the business, accommodating future growth and changes in requirements.

Simplifying AI adoption

Adopting AI technology can be a complex and resource-intensive process. We simplify this journey with a unified contractual framework and comprehensive support. This approach reduces the barriers to entry and makes it easier for businesses to integrate AI solutions into their operations. By streamlining the adoption process, SAP locally hosted AI enables organizations to harness the power of AI more efficiently and effectively.

Real-world applications of SAP locally hosted AI

The potential applications of locally hosted AI are vast and varied. From processing of citizen information for public entities to information analysis and extraction in healthcare, the possibilities are endless. Let's explore a few real-world examples where locally hosted AI is making a significant impact.

Public sector

In the public sector, locally hosted AI can be instrumental in managing citizen information and enhancing public services. For instance, local governments can use AI to analyze data from various sources to identify trends and needs within the community. By processing this data locally, municipalities can ensure that sensitive information, such as citizen records, remains secure and complies with data protection regulations. This enables public sector organizations to improve service delivery and respond to citizen needs while fostering greater trust with the community.

Healthcare

In the healthcare sector, locally hosted AI can be used to analyze patient data and predict health outcomes. By processing data locally, hospitals and clinics can ensure that sensitive patient information remains confidential and complies with health data regulations such as the EHDS Regulation in Europe. This allows healthcare providers to deliver personalized treatment plans without compromising data security.

Finance

Financial institutions can leverage locally hosted AI to detect fraudulent transactions and manage risk more effectively. By keeping data within regional boundaries, banks and financial services can maintain compliance with strict financial regulations and protect customer information, helping them to comply with the FIDA framework in Europe. AI's ability to analyze data quickly, in detail and accurately makes it an invaluable tool for the finance industry, local hosting adds a layer of security to financial information.

Manufacturing

In manufacturing, locally hosted AI can optimize production processes and predict equipment failures before they occur. Manufacturers are using AI to analyze data from sensors and machines in real-time, to help reduce downtime and improve. The localized nature of the AI processing ensures that proprietary data about production methods and technologies remains secure.

Conclusion

Locally hosted AI represents a significant advancement in the secure and responsible use of artificial intelligence. By enabling businesses to create custom AI applications while keeping AI secure within regional boundaries, locally hosted AI offers a powerful blend of innovation, security, and compliance. Whether you're in healthcare, finance, public sector, or any regulated industry, SAP locally hosted AI provides the infrastructure and support needed to unlock the full potential of your data in a safe environment.

Don't miss the opportunity to safeguard your business with SAP locally hosted AI. Contact your SAP partner or account owner today to learn more about how you can leverage this cutting-edge technology to achieve your goals. By embracing locally hosted AI, you can ensure that your data remains secure, your operations comply with local regulations, and your business stays ahead in the competitive landscape.