SAP SE (SAP.US) Chief Executive Officer Christian Klein has announced a restructuring plan for the company's executive board, signaling a heightened personal focus on the artificial intelligence sector. This strategic move comes as the European software giant, which holds the region's highest market valuation, faces mounting pressure from advancements in AI technology.
According to a company-wide email distributed by Klein on Monday, he will transfer his oversight responsibilities for the sales organization to board member Thomas Saueressig, who currently manages post-sale operations and assists customers with SAP software deployment. Effective April 1, Saueressig will assume the role of Chief Customer Officer.
This strategic realignment at SAP coincides with a trend of investors moving away from software-as-a-service companies due to concerns that their core business models could be disrupted by AI. Stock prices for enterprise software firms have experienced volatility in recent weeks, driven by anxieties that new AI tools could automate a wider range of tasks and workflows, potentially reducing the need for traditional software solutions. A report last week indicated that SAP's flagship AI product is facing scrutiny from customers, partners, and investors regarding its pricing and perceived value.
"The evolution of AI is happening at an unprecedented pace, and we must keep up," Klein stated in the email. "We need to transform SAP end-to-end once again, going all-in on AI." Over the past year, SAP's share price has declined by 38%, causing the company to lose its status as Europe's most valuable publicly traded company.
In the same communication, Klein confirmed a report from the previous Friday stating that board member Muhammad Alam, responsible for products and engineering, will not seek renewal of his contract, which expires in March 2027, for personal reasons. Alam's departure is expected to exacerbate the high rate of executive turnover SAP has experienced in recent years, a trend that has previously prompted the reallocation of board responsibilities. When former Chief Revenue Officer Scott Russell left SAP in 2024, Klein absorbed some of his sales duties; these responsibilities will now be transitioned to Saueressig.
SAP initially launched its AI assistant, Joule, in 2023. The tool was designed to help users navigate the complexities of SAP systems and simplify tasks such as programming. However, some users have expressed disappointment, feeling that Joule has not delivered a return commensurate with their initial investment. At the time, SAP responded by stating that "interest from customers across industries is strong and broad, and adoption is meeting our expectations."
Klein emphasized in Monday's email that SAP must evolve its product portfolio "to reshape how businesses operate and how end-users collaborate with agentic AI." The company's approach to selling and licensing AI solutions requires adjustment to enable "delivery of self-services based on business outcomes," thereby accelerating the adoption of SAP's solutions.
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