SAP Inc.

SAP CFO Warns: AI Will Replace Jobs, Calls Technology a 'Great Catalyst'

September 28, 2025 - SAP’s chief financial officer, Dominik Asam, has issued a stark warning on the future of work in light of artificial intelligence adoption, bluntly stating: “I will be brutal.”

In an interview with Business Insider, Asam was asked if the company’s push toward AI-driven coding tools was meant to increase productivity without expanding the workforce. His response made clear that efficiency gains would come at the cost of jobs.

“By using AI, there’s more automation, simply,” Asam said. “There are certain tasks which are automated and for the same volume of output we can afford to have less people.” He emphasized, “For SAP and any other software company, AI is a great catalyst.”

Asam’s remarks reflect a broader trend among business leaders who are openly acknowledging AI’s potential to displace human workers. The appeal is straightforward: AI systems can replace employees or enable smaller teams to deliver more output. Yet, while executives tout AI’s promise, many companies have faced setbacks after leaning too heavily on the technology. Persistent challenges like hallucinations, unreliable outputs, and inefficiencies in coding assistance have forced some firms to reconsider workforce cuts.

Still, enthusiasm for AI across industries remains strong. Asam confirmed that SAP is deploying AI to automate back-office functions across thousands of roles, while its software engineers also integrate AI tools into development workflows. This mirrors strategies at companies like Google and Microsoft, where executives report that large language models already generate more than a quarter of all code.

Asam himself is an avid user of AI chatbots, which he employs for tasks ranging from gathering presentation data to retrieving business trivia. “I’m preparing a presentation and I want to have some data and I just prompt the tool to say, give me that data,” he explained. Sharing one example, he recalled asking which companies rank among the world’s most valuable. “Nine of them are tech companies and Broadcom recently threw out Berkshire Hathaway,” Asam noted. “In 1980, it was just IBM. So software does eat the world.”

His bullish stance aligns him with other high-profile tech leaders captivated by AI tools. Figures such as Elon Musk, who champions his Grok chatbot, and Uber cofounder Travis Kalanick, who has touted AI’s role in exploring quantum physics, illustrate how deeply AI enthusiasm has taken root at the executive level.

For Asam, there is little doubt about AI’s trajectory. “I am sometimes baffled when I hear from some investors that all customers will write their own software themselves,” he told Business Insider, underscoring his conviction that AI will remain central to the future of enterprise technology.

Source: https://futurism.com/artificial-intelligence/sap-exec-fired-ai

EU Opens Antitrust Investigation into SAP's Software Practices

September 25, 2025 - BRUSSELS — The European Commission has launched a formal antitrust investigation into SAP (SAPG.DE), citing concerns that the German software giant may have unfairly limited competition through its business practices.

SAP, the leading global provider of enterprise resource planning (ERP) software, could face penalties of up to 10% of its annual global turnover if found in violation of EU competition rules. The probe focuses on SAP's aftermarket conduct concerning ERP systems used by enterprises for managing operations such as finance, HR, supply chains, procurement, and sales.

“We are concerned that SAP may have restricted competition in this crucial aftermarket, by making it harder for rivals to compete, leaving European customers with fewer choices and higher costs,” said EU antitrust chief Teresa Ribera in a statement. “Thousands of companies across Europe use SAP's software to run their business.”

The investigation follows previous reports indicating SAP had proposed concessions to alleviate concerns raised by the Commission regarding its ERP-related practices.

Despite the scrutiny, SAP maintains that its conduct complies with competition law. “We do not anticipate the engagement with the European Commission to result in material impacts on our financial performance,” SAP said in a statement. “However, we take the issues raised seriously and we are working closely with the EU Commission to resolve them.”

The Commission highlighted several specific practices under review:

SAP may be impeding customers from switching to third-party maintenance and support providers for parts of their operations.

Customers may be blocked from discontinuing services tied to unused software licenses.

SAP reportedly extends the initial term of on-premises ERP licenses, preventing early termination of services.

The company also imposes reinstatement and back-maintenance fees on clients who resume support after a lapse, charging amounts equivalent to what would have been paid during the inactive period.

The investigation is ongoing, and SAP has said it is cooperating fully with the regulatory authorities.

Source: https://www.reuters.com/sustainability/boards-policy-regulation/eu-opens-probe-into-possible-anticompetitive-practices-by-sap-2025-09-25/

SAP to Acquire SmartRecruiters to Enhance HR Offerings

August 3, 2025 - SAP announced on Friday that it has signed a definitive agreement to acquire SmartRecruiters, a company known for its recruiting software solutions.

According to the press release, the European enterprise software leader highlighted SmartRecruiters’ "powerful, user-friendly interfaces and seamless workflows" as a strong addition to its current suite of human resources tools.

“Customers will be able to manage the entire candidate lifecycle — from sourcing and interviewing to onboarding and beyond — all in a single system to streamline the experience for recruiters, hiring managers and, in particular, candidates,” said Muhammad Alam, SAP executive board member overseeing product and engineering.

The financial details of the acquisition have not been made public. SAP expects the transaction to be finalized in the fourth quarter of 2025.

SmartRecruiters last disclosed a $110 million Series E funding round in 2021, which valued the company at $1.5 billion.

Source: https://techcrunch.com/2025/08/03/sap-is-acquiring-smartrecruiters/