Artificial Intelligence is rapidly reshaping industries, with companies increasingly adopting automation through advanced large language models. Global technology firms, including SAP, are positioning AI as a key driver of productivity. However, this progress is also coming at the cost of human jobs, a reality that top executives are beginning to openly acknowledge.
Speaking at a technology conference in San Francisco, SAP’s Chief Financial Officer Dominik Asam admitted that AI tools are enabling the company to create more software with fewer employees. He confirmed that automation forms a significant part of SAP’s five-year strategy to boost efficiency and profit margins.
Asam explained that AI is being applied across SAP’s operations, particularly in back-office functions where thousands of employees handle complex tasks. He noted that the company’s 30,000 developers are actively adopting AI-powered coding tools to sustain productivity and accelerate innovation. While he recognised concerns about AI disrupting the software sector, he emphasised that SAP’s structured approach gives it an advantage over less-prepared rivals. “There’s more automation, simply. For the same volume of output we can afford to have fewer people,” he said.
He further described AI as both an opportunity and a challenge. “I will be brutal. For SAP and any other software company, AI is a great catalyst. It can be either great or catastrophe. It will be great if you do it well, if you are able to implement it and do it faster than others. If you are left behind, you will have a problem for sure.”
The CFO also revealed that he personally uses AI tools for preparing presentations and analysing market trends. He added that both SAP and its customers will benefit as AI enhances efficiency and competitiveness.
The transformation is not limited to SAP. Across Silicon Valley and beyond, many technology giants and startups anticipate workforce reductions as AI efficiency grows. Amazon CEO Andy Jassy remarked, “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
Steve Preston, CEO of Goodwill, also shared a similar perspective. “I don’t know that it’ll be catastrophic, but I do think we’re going to see a significant reduction in a number of jobs,” he said.
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