This news paints a clear picture of how Artificial Intelligence (AI) is rapidly changing the workplace, especially within major tech companies like SAP. The core message from SAP’s executives is that AI-powered tools are enabling them to achieve the same or even greater output with fewer employees, a trend that they are openly acknowledging.
The Automation Shift at SAP
SAP’s Chief Financial Officer, Dominik Asam, has been quite direct about the company’s strategy. He confirmed at a recent tech conference that AI is a central part of SAP’s five-year plan to boost efficiency and profit margins.
Simply put, AI is making work faster and more productive. Mr. Asam explained that this isn’t just a futuristic idea—it’s already happening. AI is being woven into nearly every part of SAP’s business. Specifically:
- Back-Office Functions: Thousands of employees who handle complex administrative and support tasks are seeing AI tools take over more and more of the heavy lifting.
- Software Development: SAP’s team of over 30,000 developers is actively using advanced AI coding tools. These tools streamline the development process, helping engineers create the same amount of software, or more, in less time.
Mr. Asam’s perspective is clear and somewhat brutal: “For the same volume of output we can afford to have fewer people.” He sees this as a fundamental shift, stating, “There’s more automation, simply.”
AI: A Catalyst for Change
The CFO views AI not just as a tool, but as a catalyst that will determine which companies succeed and which struggle. He said the outcome will either be “great or catastrophe,” depending on how quickly and effectively a company adopts it.
His message to the industry is a high-stakes warning:
- Be a Leader: If a company, like SAP, implements AI well and faster than its competitors, it will experience significant growth and competitive advantage.
- Be Left Behind: If a company lags in AI adoption, it will “have a problem for sure.”
This high-stakes scenario is why SAP is aggressively integrating AI, seeing its structured and widespread approach as a way to gain an advantage over less-prepared companies.
AI’s Reach Beyond SAP
It’s important to note that SAP’s experience is not unique. Mr. Asam also emphasized that the benefits of AI will extend to their customers as well. Companies that effectively integrate AI into their operations will see similar gains in efficiency and competitiveness.
In fact, the use of AI is reaching every level, including the executive suite. The CFO himself admitted to using AI tools regularly to help prepare presentations and gather essential data on market trends.
The Broader Impact on Jobs
The most challenging aspect of this transformation is the impact on human employees, a reality that the executives are not trying to hide. The underlying principle of increasing output with fewer people inevitably means a reduction in the overall workforce.
This concern is echoed by leaders across the tech world and beyond:
- Amazon CEO Andy Jassy anticipates a similar outcome, stating that over the next few years, the extensive use of AI for efficiency will likely reduce their total corporate workforce.
- Goodwill CEO Steve Preston holds a similar view, expecting to see a “significant reduction in a number of jobs” as AI-led transformation takes hold.
The consensus among these leaders is that while AI brings incredible productivity gains, it will come at the cost of human jobs in certain functions. This shift is not a gradual one; it’s a fundamental and fast-moving transformation of the workplace where companies are prioritizing efficiency and automation. The challenge for employees and companies alike is figuring out how to adapt to this new reality where AI is a core driver of productivity.
