SAP SE has announced a partnership with the Mercedes-AMG PETRONAS Formula One Team to implement intelligent enterprise solutions aimed at boosting operational efficiency, compliance, and innovation as the sport prepares for new financial regulations in 2026.
Under the revised FIA framework, the cost cap will rise to $215 million to account for expanded technical regulations and previously exempted items. While the increase provides greater scope, it also brings more stringent oversight and reporting requirements. For teams, the challenge lies in balancing performance with financial discipline.
Mercedes-AMG PETRONAS will adopt SAP Cloud ERP Private as its digital core, providing the team with real-time financial insights, predictive analytics, and streamlined processes. The system will integrate operations across research, manufacturing, and racing while enabling tighter control over spending.
Smarter racing with AI
A central feature is the use of SAP Business AI to forecast budget needs, manage supply chains, and optimise inventory — critical areas as Formula One enters a new era of financial governance.
One of the most immediate applications is in inventory management. Each Mercedes race car consists of more than 14,500 individual components. SAP’s cloud platform enables real-time tracking and valuation of these parts, reducing manual effort and ensuring accurate reporting to the FIA. This not only eases compliance but also enhances agility on race weekends, when operational demands are at their peak.
“SAP’s technology gives us the agility and transparency we need to compete at the highest level while staying within the financial guardrails of the sport,” said Michael Taylor, Director of IT at Mercedes-AMG PETRONAS F1 Team. “With SAP, we’re not just racing faster – we’re racing smarter.”
Compliance and sustainability
The 2026 financial rules will broaden expense categories and impose stricter reporting standards. SAP’s solutions include built-in audit trails to automate compliance reporting and scenario modelling to aid strategic decisions.
Mercedes is also leveraging AI-powered tools for sustainability. Data models are being used to track and reduce the team’s carbon footprint, while predictive analytics support efficiency gains across the supply chain. These efforts align with the FIA’s growing emphasis on sustainability within motorsport.
Custom digital innovation
Beyond core ERP functions, the team is using SAP Business Technology Platform and SAP Build to create bespoke applications. These tools digitise workflows, improve collaboration, and further embed technology into daily operations.
For SAP, the partnership highlights the potential of its enterprise solutions in high-performance environments. “The Mercedes-AMG PETRONAS F1 Team is setting the standard for digital transformation and AI-driven progress in motorsport,” said Sebastian Steinhaeuser, SAP’s Chief Operating Officer. “Together, we’re proving that operational excellence and innovation can go hand in hand – even at 300 km/h.”
A model for motorsport
As the 2026 season approaches, Mercedes’ embrace of advanced enterprise technology is seen as a blueprint for other teams facing the twin pressures of performance and financial accountability. With SAP’s systems in place, the team aims to maintain its competitive edge while ensuring full compliance with evolving FIA regulations.
