AI-Fueled Productivity Doubt Raised by SAP's Work Council
In the tech-driven world of today, Artificial Intelligence (AI) has become a buzzword, and SAP, a leading enterprise software company, is not immune to its allure. The works council at SAP, led by employee representative Andreas Hahn, is proceeding with a measured and level-headed approach towards AI, drawing parallels to the internet hype of yesteryears.
Andreas Hahn has voiced concerns about the productivity gains reported by CEO Christian Klein through AI, expressing skepticism about the 30% increase in productivity claimed by the SAP head. In an interview with Capital, Hahn stated that he does not fully understand this claim, and the internal rollout of Microsoft's Copilot, the central AI tool at SAP, is not yet fully completed.
Hahn has also warned against being driven by an "AI hype." He believes that if one can use AI, so can competitors, and that companies assuming they can deliver the same with fewer resources risk being overtaken by competitors who can deliver "more and better products in a shorter cycle with an unchanged team."
Despite these concerns, Hahn maintains his stance from last year that AI will not replace jobs at SAP. He reiterated this in early 2024, stating that AI cannot replace jobs at the company. Hahn's perspective on AI at SAP is that it will not lead to widespread job replacement.
The works council at SAP views SAP's current approach to AI as measured and level-headed. They are cautious about the impact of AI on jobs within the company, but they believe that SAP will approach AI in a thoughtful and reasonable manner, similar to their approach during the internet hype.
Amidst this, SAP announced a job reduction program that could affect up to 10,000 jobs, justifying it with the company's investments in AI. Rainer Wind, the current head of the labor department at SAP, apparently has doubts about the claimed productivity gains through artificial intelligence.
In conclusion, while the works council at SAP is proceeding with a cautious approach towards AI, employee representative Andreas Hahn remains optimistic that SAP will approach AI in a thoughtful and reasonable manner, avoiding the pitfalls of an "AI hype."
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