In the high-stakes world of enterprise software, where innovation drives multibillion-dollar valuations, executives are increasingly turning to artificial intelligence not just as a tool for efficiency, but as a lever for fundamental restructuring. Dominik Asam, chief financial officer of SAP SE, the German software behemoth valued at around $320 billion, recently underscored this shift during a Goldman Sachs conference. He candidly stated that AI advancements could enable the company to “afford to have less people,” a remark that echoes broader industry pressures to streamline operations amid rising costs and competitive demands.

Asam’s comments, reported in a Fortune article, highlight SAP’s aggressive push into AI, including a $1 billion investment in startups and internal tools like Joule, an AI copilot designed to automate tasks from coding to customer service. With a workforce of over 110,000, SAP is navigating what Asam described as a “brutal” process of reallocating resources, potentially reducing headcount in engineering and back-office roles while ramping up productivity.

AI’s Double-Edged Sword in Corporate Efficiency

This isn’t mere rhetoric; SAP’s strategy aligns with a wave of tech giants betting on AI to reshape their employee bases. For instance, the company has already initiated restructuring efforts, including voluntary buyouts and role eliminations, aiming to cut costs by €2 billion annually. Asam warned that mishandling this transition could lead to a “catastrophe,” emphasizing the need for careful implementation to avoid disrupting core business functions.

Industry observers note that SAP’s approach mirrors tactics at peers like Oracle and Salesforce, where AI integrations have led to similar workforce adjustments. A Slashdot summary of the Fortune piece amplified these concerns, pointing out how AI could diminish the need for human engineers by automating code generation and debugging, potentially slashing development times by up to 30%.

Workforce Implications and Broader Industry Trends

The ripple effects extend beyond SAP. According to a Gartner survey referenced in their March 2025 press release, many CFOs are resetting expectations around AI’s productivity gains, with only marginal improvements seen in early adoptions despite heavy investments. Yet, success stories are emerging: companies like Intel and Nike, as detailed in a Business Insider report, have leveraged AI for cost-cutting, laying off thousands to fund tech upgrades.

For industry insiders, this signals a pivotal moment. AI’s ability to handle repetitive tasks could free up talent for higher-value work, but it also risks exacerbating job insecurity in an already volatile tech sector. SAP’s Asam stressed upskilling as a countermeasure, investing in training to transition employees into AI-augmented roles.

Strategic Risks and Future Outlook

However, the path forward is fraught with challenges. Critics argue that over-reliance on AI might stifle innovation if human oversight diminishes, a point echoed in CNBC’s analysis of how firms like Google are using AI to trim operational fat. In a CNBC article from August 2025, executives from various sectors admitted that while AI boosts internal productivity, it often comes at the expense of headcount.

As SAP and its rivals press on, the key question for CFOs everywhere is balance: harnessing AI’s potential without alienating the very workforce that built their empires. With global tech layoffs surging, as noted in Capacity Media’s mid-2025 overview, the industry must tread carefully to ensure technological progress doesn’t come at an unsustainable human cost.