Skip to main content
Globe And Street

The world, accounted for.

Global business and finance

SectionsMenuClose

SAP targets efficiency gains above €2 billion with cheaper AI

The software company is changing models in some products while expecting its overall AI spending to rise as adoption expands.

Illustration of software systems connected to artificial intelligence models
Photo: CNA

SAP is replacing costly artificial intelligence models in some products with cheaper options and expects the changes to deliver efficiency gains exceeding €2 billion over the next two years, it said on October 28.

Chief Financial Officer Dominik Asam said an internal consulting assistant was among the products affected. Less costly models have taken the place of some of the most expensive ones where they could still perform well. SAP's selection spans more than 70 models, with OpenAI, Anthropic and Google among the suppliers.

Asam said SAP increasingly picks models on cost, provided they meet the standard needed for a task. The company nevertheless anticipates higher AI expenditure as adoption increases. SAP said it wants to preserve healthy margins as it scales, rather than reduce spending outright.

SAP bills for tasks completed instead of the computing resources consumed in producing responses, allowing operating savings to support profitability. Asam also said model origin is drawing greater customer scrutiny: government agencies and regulated businesses increasingly exclude models on that basis, while European customers are seeking more local options.

Editorial policyReport a mistake

About the author

Hao Chen

Technology Editor

Edits and reviews technology business stories: artificial intelligence, chips, big tech, software, cybersecurity incidents, start-ups and platform regulation.