SAP CEO Christian Klein has warned employees that the company’s shift to artificial intelligence will not be easy, saying it could be as difficult as its earlier transition to cloud computing. Klein made the remark as SAP continues to reshape its business for the AI era, amid growing pressure from investors and rapid changes in enterprise technology. According to a Bloomberg report, the CEO said the transition will involve significant changes across the company, similar to the challenges SAP faced when it moved from traditional software to cloud-based services.
SAP doubles down on AI despite internal tensions
The warning comes at a time when SAP is also dealing with internal concerns around its human resources policies. The company has recently decided to keep Gina Vargiu-Breuer, its Chief People Officer, on board, extending her contract through January 2030. This decision comes even though some employees have voiced concerns about a new bonus structure.The compensation system, rolled out earlier this year, had triggered backlash after it was found to reward underperforming managers while setting stricter targets for lower-level employees. Following the criticism, Klein asked the HR team to revise the stock-based compensation model, and SAP set aside millions of euros to address employee concerns.Chairman Pekka Ala-Pietilä defended the leadership decision, saying Vargiu-Breuer has strengthened how the company manages its workforce and will help drive SAP’s transition into the AI era.
AI shift expected to reshape SAP’s workforce and operations
Klein’s comparison of the AI shift with the company’s earlier cloud transition highlights the scale of change expected within SAP. Transitioning to the cloud required a significant overhaul of products, sales approaches, and how we operated internally, Klein said.A similar transformation is now underway as SAP looks to integrate AI across its software offerings and business processes. The company has not detailed specific changes, but the shift is expected to impact how employees work, how products are built, and how customers use SAP’s services.
