At a recent tech conference in San Francisco, SAP’s CFO Dominik Asam delivered a candid and direct assessment of how artificial intelligence is transforming the company’s operations and strategy. Known for his no-nonsense approach, Asam didn’t mince words when discussing AI’s impact on software development and workforce planning. He revealed that he personally relies heavily on AI tools, particularly for research and data gathering. “For me personally, it’s really more research—I’m preparing a presentation and I want data, so I just prompt the tool to give me that,” he said. He often uses Perplexity to back up key business insights, such as the growing dominance of technology in the global economy. One prompt showed that 28% of the MSCI World Index is now made up of IT companies—surpassing even banking and financial services, which account for 18%. He noted that nine of the world’s ten largest market-cap companies are tech firms, with Broadcom recently overtaking Berkshire Hathaway. “In 1980, it was just IBM,” Asam said. “Software is eating the world.” Inside SAP, AI is being deployed across the organization, especially in back-office functions where thousands of employees handle repetitive tasks. “There, it’s about making them more productive by automating their work,” Asam explained. The company is also rolling out AI-powered coding tools to its 30,000-plus software engineers, aiming to boost efficiency and accelerate development. When asked whether AI could reduce the need for software developers, Asam was blunt. “There’s more automation, simply. Certain tasks are automated, and for the same volume of output, we can afford to have fewer people,” he said. This isn’t about cutting jobs for the sake of it, but about leveraging AI to increase productivity and profitability. He dismissed concerns that customers would abandon SAP in favor of building their own software. “We’re doing the same thing,” he said. “The real question is, who has the bigger advantage? Is it a less experienced in-house team using AI tools—or SAP, with a systematic transformation and full-scale adoption across our developer base?” Asam stressed that AI is a double-edged sword. “I will be brutal,” he said. “AI is a great catalyst. It can be great—or a catastrophe. It will be great if you implement it faster than your competitors. If you fall behind, you’re in trouble.” He emphasized that SAP is working nonstop to stay ahead, embedding AI into its five-year strategic plan to drive innovation and maintain its edge in the software industry. In his view, the outcome isn’t just about efficiency—it’s about survival. “Both us and our customers will be better,” he said. “But we’ll only fall behind if our pace of innovation slows. And why should it?”