- SAP development converges in VS Code and Business Application Studio.
- New AI agents, powered by SAP AI Core, act as 'co-developers'.
- Model Context Protocol (MCP) servers provide domain-specific SAP knowledge.
SAP TechEd 2025 unveiled a groundbreaking shift in developer experience, showcasing how AI agents are set to revolutionize application development within the SAP ecosystem, all powered by secure, enterprise-grade AI.
The long-awaited convergence of SAP development tools has arrived, with SAP Build, ABAP Cloud, and CAP now seamlessly integrated into Visual Studio Code and the SAP Business Application Studio. This unification, built on an open-source framework, promises a streamlined environment for developers, moving away from disparate tools towards a single, powerful IDE. But the real game-changer introduced at TechEd is the advent of intelligent development through AI assistants, transforming the coding process into a collaborative effort with an AI 'co-developer'.
Central to this innovation is the Client AI assistant, demonstrated as a powerful co-developer capable of designing, installing, testing, and crucially, fixing code. This assistant is not a standalone tool but is securely powered by SAP AI Core, SAP's robust AI engine. This ensures that all data prompts and AI credits remain within SAP's stringent B2P trust boundary, providing a compliant, governed, and enterprise-grade AI experience. This focus on security and trust is paramount for businesses leveraging AI in their critical applications.
The intelligence of these AI agents is significantly amplified by Model Context Protocol (MCP) servers. These servers grant AI agents access to domain-specific knowledge and functions within an SAP context, such as UI5, CAP, and Fiori. During a live demo, an AI agent successfully generated an SAP CAP application with a product service, even consulting documentation before execution. Subsequently, it created a UI5 application for the same product service, demonstrating its ability to understand and build across the full SAP stack. Developers can guide these agents with specific rules, ensuring the AI performs tasks precisely as intended.
This new paradigm, where SAP development, AI assistants, SAP AI Core, and MCP servers work in concert, promises to elevate developers. By automating routine tasks and providing intelligent assistance, developers can be smarter, faster, and more creative, focusing on innovation rather than boilerplate code. The future of SAP development is clearly one where AI is not just a tool, but an integral partner in the creation process.
“elevating us developers to be smarter faster and more creative right”
- Nico Schoenteich, Developer Advocate, SAP




