Centrica adopts SAP AI in long-term cloud overhaul

Centrica has adopted RISE with SAP and SAP Business AI, marking a new phase in a partnership between the two companies that spans more than 20 years.

The energy and services group is using the software as part of its effort to reshape itself from a traditional energy supplier into a more service-led business. The programme is intended to improve core operations, strengthen the supply chain and support the expansion of Centrica's digital energy service by 2030.

Centrica is making the change as energy companies face a more difficult operating environment. The sector is dealing with the shift to renewables, changing regulation, geopolitical pressure and changing customer demand, all of which are pushing suppliers to update how they run their businesses.

The initial implementation will focus on finance as Centrica extends what it describes as a SAP-first strategy across corporate services. The system is scheduled to go live in July 2026.

According to SAP, the move to the cloud is expected to cut Centrica's total cost of ownership, simplify its technology landscape and create a cleaner data core across its main corporate functions. The latest step follows Centrica's first go-live with SAP Business Data Cloud earlier this year, which unified SAP and non-SAP data across the organisation.

That data work is intended to support wider use of artificial intelligence tools across the business. SAP said the combination of the new cloud deployment and the data platform would provide the foundation for Centrica to expand its use of SAP Business AI and explore agentic AI applications.

As part of the programme, Centrica is also implementing Joule, SAP's business AI system. The tool is designed to change how employees interact with SAP software through a more conversational interface and has been enabled alongside Microsoft Copilot within Centrica.

Executive view

Darren Miles outlined Centrica's view of its long-running relationship with SAP.

"This latest milestone in our partnership with SAP reflects the confidence we have in a relationship that has supported us for more than 20 years. As we continue to scale our business, it's essential that the technology underpinning our operations gives us a competitive edge and builds on the successes we've seen so far. Our work with SAP is grounded in trust and mutual value, and this new programme provides an agile digital foundation that will unlock new opportunities for growth and transformation," said Darren Miles, Chief Technology Officer, Centrica.

Centrica is working with SAP, Microsoft and systems integrators on the broader transformation programme. The aim is to support a business model that relies more heavily on services as markets and policy demands continue to shift.

SAP framed the project as part of a wider trend in the energy industry, where companies are under pressure from governments and consumers to respond to clean energy targets while maintaining resilience in core operations. For suppliers with large legacy systems, that often means combining cloud migration, data management and AI tools in a single programme.

Industry pressure

Leila Romane said the backdrop to the deal is growing complexity across the energy market.

"Energy companies today are operating in a complex environment, with growing pressure from policymakers and consumers to help meet clean energy targets. By moving to the cloud and adopting SAP Business AI, Centrica can navigate current and future energy and climate challenges with greater digital resilience. Our long-term partnership is going from strength to strength, and the foundations are now in place for Centrica to capitalise on the benefits that AI offers," said Leila Romane.