Unlocking AI-Assisted CAP Development with MCP Server

The article introduces a new MCP server for SAP Cloud Application Programming Model (CAP) that uses AI agents to assist developers in their work. The MCP server provides context-focused tools that help AI agents answer questions and perform tasks, such as adding columns to a select statement or registering custom READ handlers in CAP Java. The two tools provided by the MCP server are "search_model" and "search_docs", which allow AI models to perform fuzzy searches for CDS definitions and semantic searches for documentation, respectively. The MCP server bridges the gap between LLMs and external resources, enabling LLMs to interact with services, tools, and data, and making them more effective in assisting CAP developers.

SAP SE (SAP.DE) has recently introduced a new Model Context Protocol (MCP) server for its Cloud Application Programming Model (CAP), marking a significant advancement in AI-assisted development. This innovative server leverages AI agents to enhance the capabilities of developers working with CAP, providing context-focused tools that streamline their tasks. The two primary tools offered by the MCP server are "search_model" and "search_docs," which enable AI models to perform fuzzy searches for CDS definitions and semantic searches for documentation, respectively.

The MCP server bridges the gap between large language models (LLMs) and external resources, allowing AI agents to interact with services, tools, and data more effectively. This integration enables developers to utilize AI assistance for tasks such as adding columns to a select statement or registering custom READ handlers in CAP Java. By providing these capabilities, the MCP server significantly enhances the efficiency and effectiveness of CAP development.

SAP's strategic partnership with Alibaba Group, which integrates Qwen AI into SAP’s cloud ecosystem, further underscores the company's commitment to leveraging AI for enhanced enterprise solutions. This collaboration not only targets the Chinese market but also extends to global markets, with localized solutions and AI scalability. The integration of Alibaba's Qwen AI into SAP's AI Core in China exemplifies SAP's ability to adapt and innovate in response to market demands and technological advancements.

The introduction of the MCP server aligns with SAP's broader strategy of driving sustainable dividend growth while investing in AI and cloud R&D. The company's 2025 dividend of €2.54 per share, up from €2.35 in 2024, reflects a balanced approach that rewards shareholders while reinvesting in innovation. This disciplined capital allocation strategy ensures long-term profitability and supports dividend stability, positioning SAP as a high-conviction long-term investment.

In conclusion, SAP's new MCP server for AI-assisted CAP development represents a significant advancement in enterprise software development. By enhancing the capabilities of AI agents and bridging the gap between LLMs and external resources, the MCP server offers a powerful tool for developers. Combined with SAP's strategic partnerships and commitment to AI and cloud innovation, this development positions the company as a leader in the digital transformation era.

References:
[1] SAP Announces Q2 and HY 2025 Results [https://news.sap.com/2025/07/sap-announces-q2-and-hy-2025-results/]
[2] SAP and Alibaba Group Partner to Accelerate Cloud Transformation [https://news.sap.com/2025/05/sap-alibaba-group-partner-accelerate-cloud-transformation/]
[3] Alibaba and SAP Expand Strategic Partnership to Bring AI-Powered Enterprise Solutions to China and Global Markets [https://www.alibabacloud.com/blog/alibaba-and-sap-expand-strategic-partnership-to-bring-ai-powered-enterprise-solutions-to-china-and-global-markets_602284]
[4] SAP Partners With Alibaba to Accelerate Cloud Adoption [https://technologymagazine.com/articles/sap-partners-with-alibaba-to-accelerate-cloud-adoption]
[5] SAP (ETR:SAP) Is Increasing Its Dividend To €2.35 [https://finance.yahoo.com/news/sap-etr-sap-increasing-dividend-074707868.html]