AI-driven productivity growth questioned by SAP work council
In the ever-evolving world of technology, SAP, a leading enterprise software company, is making strides in the adoption of Artificial Intelligence (AI). However, the company's approach to AI remains cautious, as stated by its works council chairman and supervisory board member, Andreas Hahn.
Recently, SAP CEO, Christian Klein, claimed a 30% increase in productivity of SAP developers due to AI technology. Yet, Hahn questions the metric used to measure this increase, expressing a need for a more nuanced understanding of the impact of AI on productivity.
Hahn's stance on AI and jobs at SAP remains unchanged from his statement in 2024, reiterating that AI will not replace jobs at the company. He believes that AI can be used by anyone, implying potential competition, and suggests that companies delivering "more and better products in a shorter cycle with an unchanged team" could overtake competitors.
In 2023, SAP announced a job-cutting program of up to 10,000 positions, justifying it with investments in AI. However, the works council views SAP's approach to AI as reasonable and measured, and Hahn expresses skepticism about a potential large-scale reduction in developer jobs due to AI.
The internal rollout of Microsoft's Copilot, the central AI tool at SAP, is ongoing and not yet fully completed. The company is proceeding with a cautious approach towards AI, as Hahn compares the AI hype at SAP to the internet hype of the past, suggesting a need for a thoughtful and considered approach.
In the same year, Hahn compared the AI hype at SAP to the internet hype of the past, warning against being carried away by AI hype. He also expressed his belief that AI can be used by anyone, implying potential competition.
It is important to note that no specific evidence is given to support or refute the productivity increase claim made by Christian Klein. The employee representing the works council at SAP who spoke in 2021 to Capital magazine about possible massive layoffs of developers due to the introduction of AI was not explicitly named in the search results.
Despite the ongoing job-cutting program, the works council remains supportive of SAP's approach to AI. Hahn emphasises the importance of companies not assuming they can deliver the same with fewer resources, as they risk being overtaken by competitors.
In conclusion, SAP's approach to AI is characterised by caution and a measured response, as expressed by works council chairman Andreas Hahn. The company is proceeding with the internal rollout of AI technology, including Microsoft's Copilot, while maintaining a focus on productivity and job security for its employees.