SAP CEO Christian Klein warned employees that the company’s transition to artificial intelligence will not be easy, saying it could be as difficult as its previous transition to cloud computing. Klein made the remarks as SAP continues to reimagine its business for the AI era amid increasing pressure from investors and rapid changes in enterprise technology. The CEO said the transition will involve major changes across the company, similar to the challenges SAP faced when moving from traditional software to cloud-based services, Bloomberg reported.
SAP ramps up use of AI despite internal tensions
The warning comes as SAP is addressing internal concerns about its human resources policies. The company recently decided to keep chief human resources officer Gina Varghiu-Breuer on the board of directors and extend her contract until January 2030. The decision came despite some employees expressing concerns about the new bonus structure.The compensation system, introduced earlier this year, sparked a backlash after it was found to reward underperforming managers while setting tougher targets for lower-level employees. Following the criticism, Mr Klein asked his human resources team to review its stock-based compensation model, and SAP set aside millions of euros to address employee concerns.Chairman Pekka Ala-Pietilä defended management’s decision, saying Vargiu-Breuer will strengthen the way employees are managed and accelerate SAP’s transition into the AI era.
AI shift expected to reshape SAP’s workforce and operations
Klein’s comparison of the AI migration to the company’s previous cloud migrations highlights the scale of change expected within SAP. The move to the cloud required a major overhaul of the company’s products, sales approach and internal operations, Klein said.A similar transformation is currently underway as SAP aims to integrate AI across its software products and business processes. Although the company did not provide details on specific changes, the changes are expected to impact how employees work, how products are built, and how customers use SAP services.
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