In a candid interview, SAP’s chief financial officer, Dominik Asam, revealed how artificial intelligence is reshaping the company’s operations, allowing it to produce more software with a leaner workforce. Asam, speaking exclusively to Business Insider, emphasized that AI tools are boosting productivity in engineering and back-office roles, potentially reducing the need for as many employees while accelerating development cycles. This shift comes amid broader industry trends where tech giants are leveraging AI to streamline processes, but SAP’s approach highlights a strategic pivot toward efficiency in enterprise software.

The German software powerhouse, known for its enterprise resource planning systems, has been investing heavily in AI since early 2024. Asam noted that generative AI is not just automating routine tasks but fundamentally altering how code is written and maintained, enabling teams to deliver higher-quality outputs faster. This efficiency gain, he argued, positions SAP to outpace competitors in a market demanding rapid innovation.

AI’s Role in Reshaping Workforce Dynamics

Critics within the tech sector worry that such AI-driven efficiencies could lead to widespread job displacements, yet Asam framed it as an opportunity for upskilling. Drawing from SAP’s earlier restructuring announced in January 2024, which affected around 8,000 positions through buyouts and retraining, the company is doubling down on AI integration. According to Reuters, this move was explicitly tied to generative AI’s potential to transform business operations, with SAP projecting operating profits to reach €10 billion by 2025.

Internally, SAP has rolled out tools like its Joule copilot and AI agents, as detailed in announcements from the Sapphire 2025 conference covered by Technology Magazine. These innovations aim for up to 30% productivity gains across the portfolio, allowing engineers to focus on complex problem-solving rather than repetitive coding. Asam pointed out that this means fewer people are needed for the same volume of work, but the output—more sophisticated software—benefits customers in sectors like manufacturing and finance.

Strategic Implications for Enterprise Software

Looking ahead, SAP’s AI strategy extends beyond internal efficiencies to customer-facing solutions. The company’s Business AI Flywheel, unveiled at Sapphire 2025 and analyzed in AI News, integrates data and applications for continuous improvement, potentially disrupting traditional software-as-a-service models. Asam suggested this could redefine the “buy versus build” debate, echoing warnings from OpenAI’s CFO in a separate Business Insider piece about AI’s impact on in-house development.

However, challenges remain, including the need for robust governance to ensure AI reliability. SAP’s Q2 2025 release highlights, as reported on the SAP News Center, include enhancements in AI scenarios that address these concerns, from ethical data handling to scalable deployments. Industry analysts, such as those at SAPinsider in their 2025 plans overview, predict rapid growth in these features, but warn of leadership turbulence as SAP adapts.

Broader Industry Repercussions and Future Outlook

For industry insiders, SAP’s trajectory underscores a pivotal moment where AI isn’t just a tool but a core driver of competitive advantage. Asam’s frank admission—that AI enables more output with fewer resources—mirrors sentiments from SAP CEO Christian Klein in a Stratechery interview, positioning the company as a leader in enterprise AI. Yet, this efficiency push raises questions about talent retention and ethical AI use, especially as global regulations evolve.

Ultimately, SAP’s model could inspire other firms to rethink their structures. With projections of sustained AI investments through 2025, as outlined in Forbes’ BrandVoice piece on CFO strategies, the focus is on balancing short-term gains with long-term sustainability. As the tech world watches, SAP’s experiment may define how AI redefines productivity without sacrificing innovation.