SAP Freezes Most Travel and Hiring as AI Costs Soar
Software Giant SAP Stops Most Travel and Hiring Because of AI's Soaring Cost
SAP, one of the world's largest software companies, has suspended most travel and hiring due to the soaring costs of AI, according to an internal email obtained by 404 Media. The restrictions, which began in July, remain in effect, with exceptions only for AI-related activities. A current employee noted that the company is rolling out a new AI tool company-wide, likely increasing costs further. This move highlights the financial strain AI places on businesses, leading some to throttle employee AI usage.
SAP says it needs to “be disciplined in how we spend.”
- alexpotato
Having worked at some giant firms that heavily depend on SAP, I would think their position as "system of record for procurement/production" would get stronger with AI.
e.g. AI + a good database of what your company does seems like an excellent combination.
- mikert89
The big risk for these platforms is that AI reduces the cost to switch to another ERP. IF AI can map all of the data between two different competitors, the whole business model is finished
- m4rtink
So will AI be what finally kills SAP, making world a little bit better? ;-)
- qw2187
Telling that SAP now exfiltrates all your company data to the U.S. AI cartel:
- gruturo
So they are using AI to run the company, and AI allocated all the money to AI?