SAP Swaps AI Models to Save 2 Billion Euros

SAP is replacing high-cost artificial-intelligence models in its product suite with cheaper alternatives to generate more than 2 billion euros in efficiency gains over the next two years. The company currently utilizes over 70 AI models from providers including OpenAI, Anthropic, and Google, but is now prioritizing the cheapest model capable of meeting specific performance standards.

CFO Dominik Asam noted that the company has already removed some of the most expensive models from tools like its internal consulting assistant. Because SAP charges customers for completed tasks rather than the underlying computing resources, reducing these operating costs directly increases the company's profitability.

Despite these efficiency measures, SAP expects overall AI spending to increase as adoption grows. The shift also addresses rising demand from European customers and regulated industries for local solutions and specific requirements regarding the origin of the AI models used.