Key facts
- SAP expects to generate over €2 billion in efficiency gains from AI model changes.
- The efficiency gains are projected over the next two years.
- SAP uses over 70 AI models from providers including OpenAI, Anthropic, and Google.
- The company's CFO, Dominik Asam, stated the strategy.
- Customers are increasingly demanding local solutions and specifying model origins.
Software giant SAP is strategically replacing some of its most expensive artificial-intelligence models with more cost-effective alternatives, a move it anticipates will yield over €2 billion in efficiency gains within the next two years. CFO Dominik Asam explained that the company selects the cheapest model capable of meeting required performance standards, even as overall AI spending is expected to rise with increased adoption. SAP's business model, which charges customers per task rather than for computing resources, allows lower operating costs to directly boost profitability. Additionally, customer demand for localized solutions and specific model requirements, particularly from regulated industries and European clients, is influencing SAP's AI model choices.