Unlocking Agentic AI in Manufacturing: Microsoft and SAP Collaboration

In a recent SAPinsider conversation, Robert Holland sat down with Ward Lawrence, Manufacturing Partner Strategy Lead at Microsoft, and Sam Castro, Global Product Marketing Manager for Manufacturing at SAP, to explore how agentic AI is transforming Industry 4.0. The discussion highlighted how Microsoft and SAP are collaborating to break down data silos, enabling manufacturers to leverage structured ERP data without massive migrations, and accelerating ROI through cloud adoption and multi-agent workflows. Key examples included production scheduling agents that coordinate inventory, procurement, and human oversight to optimize yields and reduce energy use by 15-20% in early implementations.

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Experts emphasized governance via tools like Microsoft’s Agent 365 for observability and SAP’s model context protocols to ensure secure, compliant operations amid skills gaps and supply chain pressures. Attendees learned practical strategies for deploying autonomous agents in mission-critical environments, from predictive maintenance to real-time rebalancing, fostering faster decision-making and consistent OEE improvements. Watch the full recording to discover how these innovations are delivering tangible outcomes like 10-15% production yield gains and helping manufacturers escape “pilot purgatory.”