SAP is making a major push into the GenAI revolution by investing $1.1 billion in its Business AI program. Despite currently implementing layoffs, the company is positioning itself for the future by encouraging its customers to adapt and evolve. CEO Christian Klein stated that the majority of the layoffs will be recreated in new parts of the company to meet new needs.
As part of this investment, SAP is also adding elements to its Rise with SAP program for companies moving their workloads to the cloud. The company is positioning the cloud as a requirement for accessing new GenAI capabilities.
SAP sees GenAI as the greatest opportunity since the rise of the cloud, and this sentiment is shared by other industry leaders such as Alphabet, AWS, ServiceNow, and IBM, all of which have a strong focus on GenAI. With this investment, SAP aims to continue leading the charge in the technology industry as it pioneered the enterprise application market 50 years ago.