In 'brutal' interview, SAP CFO says AI means the company can produce more software with fewer people

During a recent tech conference in San Francisco, SAP's Chief Financial Officer, Dominik Asam, shared his insights on the transformative role of artificial intelligence within the software industry. Asam, a self-proclaimed heavy user of AI tools, emphasized that these technologies are not just about efficiency but are pivotal in reshaping how SAP operates. Asam highlighted his personal experience with AI, describing it as an essential research tool for preparing presentations and gathering data. He articulated a pressing message to SAP's customers: the urgency to adapt and not be left behind in the AI-driven landscape. He referenced the significant presence of IT companies in the MSCI World Index, noting that they now make up 28% of the benchmark, underscoring the rapid shift towards technology. The CFO also pointed to the dominance of tech firms among the world's largest companies, stating that nine out of the top ten by market capitalization are in the tech sector. This shift marks a significant change from the past, where only IBM held such prominence. Internally, SAP is leveraging AI to enhance productivity across its operations, particularly in back-office functions where the company has a vast workforce. Asam explained that automation is key to improving efficiency, allowing for a streamlined approach that could reduce the number of employees needed for certain tasks. Moreover, SAP's development team is integrating AI coding tools into their processes, a move that Asam believes will keep the company competitive in a rapidly evolving market. He challenged the notion that companies could easily develop their own software without professional support, stressing that SAP's systematic approach to AI adoption gives it an edge. Asam expressed his optimism about the future, stating that both SAP and its customers will benefit from this technological leap. He acknowledged the risks involved, declaring that the successful integration of AI could either propel companies forward or leave them struggling to catch up. "For SAP and any other software company, AI is a great catalyst. It can be either great or catastrophic," he stated. The company's five-year plan aims to harness the power of AI to boost productivity and profitability, ensuring that SAP remains at the forefront of innovation in the software industry.