SAP targets over €2 billion in efficiency gains by switching AI models
As enterprises scrutinize the cost and sourcing of artificial intelligence tools more closely, SAP is replacing some high-cost AI models in its products with cheaper alternatives. The software group expects the shift to deliver more than €2 billion in efficiency gains over the next two years while AI spending still rises with broader adoption.
Highlights
- SAP targets over €2 billion in efficiency gains by replacing costly AI models in its products with lower-cost alternatives where performance remains strong.
- SAP uses over 70 AI models from providers like OpenAI, Anthropic, and Google, prioritizing cheapest viable models to protect margins as total AI spend rises.
- European and regulated-sector clients increasingly require local or origin-specific AI models, shaping SAP's sourcing and compliance-driven AI strategy.
AI model changes and margin strategy
As reported by Reuters, SAP Chief Financial Officer Dominik Asam says the company has removed some of the most expensive AI models from products including its internal consulting assistant and replaced them with lower-cost options where performance remains strong.SAP uses more than 70 AI models from providers including OpenAI, Anthropic and Google. Asam says the company is increasingly selecting the cheapest model that can complete a task to the required standard, while still expecting total spending on AI to increase as usage expands.
The company says its objective is to protect margins as scale grows, rather than to cut AI expenditure in absolute terms. Because SAP charges customers for completed tasks instead of the computing resources behind them, lower operating costs can directly support profitability.
Customer requirements shape AI sourcing
Buyer preferences are also influencing SAP's model choices, especially in regulated sectors and the public sector. Asam says government agencies and companies in regulated industries are increasingly setting specific requirements and excluding models based on origin.European customers are also showing growing demand for local AI solutions. That trend adds a regional sourcing dimension to SAP's AI strategy as companies weigh cost, performance and compliance at the same time.
In our earlier coverage on how AI is reshaping competitive standards for businesses, we explained that rapid adoption is raising expectations and making “average” performance and comfortable margins harder to sustain. The piece argued that companies need to rethink investment priorities, workforce skills, and decision-making, as AI-driven productivity gains increasingly separate firms that adapt from those that risk losing relevance.
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