Concerns are being raised internally at SAP regarding the proclaimed impact of artificial intelligence on developer productivity. Andreas Hahn, European Works Council Head and Supervisory Board member, has questioned the company’s assertion that KI technology has increased developer output by 30%, stating that the metric is “one that we cannot follow.
According to Hahn, the rollout of Microsoft’s Copilot, the KI tool utilized internally at SAP, remains “not yet fully completed”. The Works Council has cautioned against allowing enthusiasm for KI to drive decisions, emphasizing the competitive landscape. They warned that the belief that the same output can be achieved with fewer resources and subsequently, releasing developer capacity, could leave the company vulnerable to rivals who maintain larger teams capable of delivering more products at a faster pace. Hahn indicated he does not anticipate significant developer job losses due to KI adoption.
Previously, at the beginning of 2024, Hahn had stated that KI was not capable of replacing SAP jobs. This comment was made at a time when the software company announced a program to reduce up to 10,000 positions, citing investment in KI as a factor. Hahn maintains his position on that earlier statement.
Hahn acknowledged a measured approach from SAP’s management regarding KI implementation, praising the company’s perspective. He drew parallels between the current KI trend and the earlier excitement surrounding the internet, suggesting that SAP is consciously avoiding premature adoption and instead opting for a more deliberate and informed integration of the new technology.