Representatives of SAP employees are questioning the extent to which artificial intelligence will significantly boost developer productivity within the German technology giant. Following a statement from CEO Christian Klein claiming a 30 percent productivity increase for SAP developers thanks to AI technology, Andreas Hahn, head of the European Works Council and Supervisory Board, expressed skepticism, stating that the metric is “a measurement that we cannot comprehend.
Hahn further noted that the internal rollout of Microsoft’s Copilot, the AI tool utilized within SAP, is “not yet completely finished.
The Works Council has cautioned against letting enthusiasm for AI technologies drive decisions. They warned that rapid adoption carries risks, as “if I can deploy an AI, so can someone else. And the competition isn’t sleeping”. The prospect of attempting to maintain the same output with fewer resources and subsequently reducing developer capacity, creates vulnerability. Companies maintaining larger teams could potentially deliver more products, faster, leaving those reducing resources at a disadvantage. Hahn stated he does not anticipate large-scale developer layoffs due to AI implementation.
Previously, in early 2024, Hahn asserted that AI was not capable of replacing jobs at SAP. At that time, the software company initiated a program to reduce up to 10,000 positions, citing investments in AI as a contributing factor. He maintains this stance.
The Works Council believes that SAP is proceeding cautiously regarding AI adoption. Hahn drew parallels to the early days of the internet hype, suggesting that SAP is adopting a considered approach akin to its previous measured response to internet adoption. He hopes SAP will similarly deliberate and implement AI thoughtfully.