SAP confident that artificial intelligence will create new jobs

German software maker SAP SE believes artificial intelligence (AI) will create new jobs, even as the rise of the new technology overshadows human jobs.

“We believe AI will create more jobs by increasing productivity. We are working with our partners to Leverage artificial intelligence and increase project productivity. “Wednesday.

“AI helps us accelerate migration and reduce implementation costs, further driving our business growth,” Alam said.

CEO Christian Klein echoed similar sentiments, saying that as AI-driven businesses grow, the demand for developers will increase, which will increase the developer pool in India.

“In India, the economy is diversifying rapidly and all these customers need software; this is a great place for the technology industry.” Klein, who took over as CEO in April 2020, said in an interview with the media. “Now we can code the software faster and work more efficiently, but we have to code more software. And as long as that happens, we will invest further. Also here, the development workforce in India will also further increase.”

“While AI may appear to reduce the number of people required to perform a task, we need to see more job opportunities across multiple technologies as a result of AI.” Forrest Research. He added that technology spending by organizations will increase and AI will help create new jobs generated by companies investing in new AI technologies.

SAP, a software maker headquartered in Walldorf, Germany, provides the world’s largest companies with software that manages their business processes, including human resources, finance, supply chain management and inventory.

SAP’s board’s positive talk on artificial intelligence contrasts with comments from Google parent Alphabet Inc Chief Executive Sundar Pichai, who gave a speech on a conference call with analysts after the company’s earnings. The job of a programmer is a wake-up call.

“We are also using AI internally to improve our coding processes to increase productivity and efficiency. Today, more than a quarter of new code at Google is generated by AI and then reviewed and accepted by engineers.” October 29 Pichai said on a conference call with analysts after the company announced its financial results for the quarter ending in September 2024.

Back home in India, the chief executive of the country’s largest software services company has sought to allay investor concerns about the threat to jobs posed by generative artificial intelligence (GenAI).

“ChatGPT generated a lot of early interest. But people slowly realized that it was most useful for solving one type of problem.” K. Krithivasan, CEO of Tata Consultancy Services Ltd., India’s largest software services company, told Mint on July 12 “People are realizing that it’s not going to take away all the jobs, but it’s going to take humans,” Shi said. “

The launch of ChatGPT about two years ago put GenAI on the map and into company boardroom discussions for its content generation capabilities in video, audio and written formats.

Krithivasan’s colleague Salil Parekh, CEO of Infosys Ltd., echoed similar sentiments. “So, at this stage, my feeling is that (artificial intelligence) technology will help businesses grow further more than any other technology. We are not seeing any layoffs at Infosys due to these new-age technologies,” Parekh said on August 26 told PTI in an interview.

These comments are significant for India, which graduates at least one million engineering students every year. The leap in demand for new technologies will lead to changes in the skills required of graduates.

“Tip engineers,” an industry term that refers to programmers who are good at instructing AI models to produce optimal results, are attracting demand from large companies keen to recruit talent with GenAI skills, Mint reported on March 13.

For now, the benefits of AI remain unclear as most local companies shy away from disclosing revenue from the new technology, unlike global peers Accenture and IBM.

IBM’s GenAI-related business books (bookings and actual sales) exceeded $2 billion as of July 2024, while Accenture, the world’s largest software services company, reported Gen AI bookings of 30 billion for the fiscal year ending in August 2024. billion dollars.

Addressing shareholders at the company’s 43rd annual general meeting, Infosys Chairman Nandan Nilekani said that large companies will be slower to embrace Gen AI than consumer-facing companies.

“The world is in the early stages of the AI ​​revolution, and unlike the rapid rollout of consumer AI, enterprise AI requires companies to make significant changes within the company, organize data, build responsible systems, follow industry rules. Many countries, etc. . So enterprise AI will take years to unfold,” Nilekani said on July 1, 2024.

For SAP, a little more than half of its revenue comes from its cloud business. The company reported revenue of $9.06 billion in the July-September 2024 period, with $4.66 billion in cloud business alone.