During an intense interview, the CFO of SAP discussed how AI enables the company to generate more software with fewer employees. At a recent tech conference in San Francisco, I had the opportunity to speak with Dominik Asam, the CFO of SAP, which is Europe’s most valuable software firm. Initially, I inquired about the AI tools he utilizes, leading to a broader discussion. Asam revealed that he heavily relies on AI for research purposes. He clarified that he uses it to gather data quickly while preparing presentations. One of his key objectives is to motivate SAP customers to embrace AI promptly and not wait for disruptions. Asam often cites the popular phrase “software is eating the world” and leverages an AI chatbot service called Perplexity to substantiate this concept with data. For instance, during a recent session, Perplexity revealed that as much as 28% of the MSCI World Index comprises IT companies, surpassing banking and financial services by 10 percentage points. Asam also queries Perplexity about the top 10 market cap companies globally, noting that nine are tech firms, highlighting how software is dominating various industries.
Internally, SAP integrates AI to streamline operations, especially in high-level technical tasks. As Asam explained, this automation aims to enhance productivity by automating tasks for thousands of employees involved in back-office operations. Furthermore, SAP’s team of software engineers is embracing AI coding tools to address concerns about potential disruptions in the software sector. Expressing skepticism towards investors who believe all customers will develop their software, Asam emphasized SAP’s commitment to innovation through systematic transformation programs involving over 30,000 developers using new AI tools.
Ultimately, Asam foresees mutual benefits for SAP and its customers through enhanced productivity and innovation facilitated by AI implementation. He emphasized that automation plays a crucial role in achieving more efficient outcomes with fewer personnel. This strategy aligns with SAP’s five-year plan aimed at boosting productivity and profit margins through technological advancements like AI tools. Warning about the critical role of AI as a catalyst for success or failure in the software industry, Asam stressed the importance of staying ahead of technology trends to avoid falling behind competitors.
In conclusion, Asam underscored that embracing AI effectively is crucial for sustained progress and competitiveness within SAP and urged continuous efforts to innovate and adapt swiftly to evolving technologies in order not to lag behind industry peers.