Cristiano Amon, the chief executive officer and president of Qualcomm, explores the potential impact of artificial intelligence (AI) on driving behaviors in an interview on “The Claman Countdown.”
Following a positive forecast by a German software giant regarding increased cloud revenue and the announcement of restructuring affecting 8,000 positions to focus on AI-driven business sectors, SAP SE’s stock surged by 7% to reach a record high.
The company unveiled plans to invest \(2 billion (\)2.2 billion) in initiatives aimed at either replacing employees with AI expertise or providing training through voluntary redundancy programs.
With the rise in popularity of OpenAI’s conceptual AI systems and their integration into products, SAP initiated experimental phases, aiming to maintain its workforce levels by the end of 2024.
FILE PHOTO: An office of the European technology firm SAP in Walldorf, Germany, is depicted on May 12, 2016. The company’s brand is visible in the image. (Credit: Ralph Orlowski, Reuters)
Through its investment entity Sapphire Ventures, SAP commits to investing over $1 billion in supporting AI-powered tech startups, foreseeing significant transformations in its operations driven by GenAI.
Jürgen Molnar, an investment planner at RoboMarkets, highlighted the ongoing organizational adjustments geared towards navigating the era of artificial intelligence.
Despite potential workforce transitions, HR considerations are paramount, with new opportunities expected to emerge within the company’s landscape.
Major tech players like Google and Microsoft have initiated layoffs to pivot towards robotics and AI software, aiming to streamline operations.
TickerSecurityLastChangeChange %SAPSAP SE174.53+11.18+6.84%
The restructuring costs, primarily incurred in the initial quarter, are projected to enhance operating income by 500 million euros by 2025, driven by efficiency gains.
SAP’s robust performance in 2023, with a 23% growth reaching 13.66 billion euros, sets the stage for a forecasted 24% to 27% surge in cloud revenue.
The company exceeded expectations with a 13% currency-adjusted rise in operating income to $8.7 billion last year, outperforming analyst estimates. SAP anticipates further growth, targeting a 17% to 21% increase in 2024.
POLAND- 2023/10/25: A cellphone displaying Artificial Intelligence visuals alongside the SAP logo. (Credit: Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)
SAP’s Chief Financial Officer, Dominik Asam, aims to drive profitability, emphasizing the company’s achievement of triple-digit non-IFRS operating profit growth despite challenging market conditions.
In response to accounting adjustments, SAP revised its medium-term outlook by lowering the 2025 operating profit target from around 11.5 billion euros.
