SAP CFO Warns: AI-Driven Job Cuts Looming, But "Wrong" Implementation Will Be Catastrophic

SAP CFO Warns of AI-Driven Job Cuts: "A Catastrophe" if Implemented Wrongly BERLIN, GERMANY - In a candid interview with Business Insider, Dominik Asam, Chief Financial Officer (CFO) at the $320 billion software giant SAP, revealed that artificial intelligence (AI) will likely lead to significant job cuts within the company. Asam stated that AI will enable SAP to "afford to have less people" due to increased automation, but warned that if implemented incorrectly, it could result in a "catastrophe." According to Asam, AI will automate certain tasks, allowing for the same or even greater output with fewer employees. This shift is part of a broader trend in the industry, where companies are leveraging AI to streamline operations and reduce costs. SAP's 110,000-strong workforce may be impacted by this change, with Asam admitting that he will be "brutal" in implementing AI-driven layoffs. The company's reliance on AI has been growing rapidly, with SAP investing heavily in machine learning and automation technologies. Asam's comments come at a time when business leaders are under pressure to harness AI for efficiency gains. However, this shift raises concerns about the future of work and its potential impact on employees worldwide. Background and Context SAP is Europe's most valuable software company, with a market capitalization of over $320 billion. The company has been at the forefront of adopting AI technologies, recognizing their potential to drive growth and efficiency. However, this shift also raises questions about job security and the role of humans in an increasingly automated workforce. Additional Perspectives Experts warn that while AI-driven job cuts may be inevitable, companies must prioritize retraining and upskilling programs for affected employees. "The key is not just to automate tasks but to create new opportunities for workers," said Dr. Maria Rodriguez, a leading expert on AI and the future of work. Current Status and Next Developments SAP's reliance on AI is expected to continue growing in the coming years, with the company investing heavily in research and development. Asam's comments serve as a warning to other companies that failure to implement AI correctly could have disastrous consequences for employees and the broader economy. In conclusion, SAP's CFO has sounded the alarm about the potential risks of AI-driven job cuts, emphasizing the need for careful implementation to avoid a "catastrophe." As the industry continues to grapple with the implications of AI on employment, one thing is clear: companies must prioritize responsible adoption and retraining programs to ensure that workers are not left behind in an increasingly automated workforce. *Reporting by Fortune.*