Christian Klein, the co-CEO of German software and cloud computing behemoth, SAP, highlighted the company’s impressive financial performance for 2019 at a press conference held on January 28, 2020, in Walldorf, Germany. Despite significant restructuring expenses, SAP was able to lift its projections for the following year.
Klein shared his views on the regulation of artificial intelligence (AI) technology within Europe in a recent interview with CNBC. He suggested that instead of imposing rules on AI, the focus should be on the outcomes that the technology can deliver.
The SAP chief, who took over the company in April 2020, warned that Europe may lag behind the US and China if it continues to impose heavy regulations on the AI sector. He emphasized the importance of mitigating the risks associated with AI but cautioned against imposing rules on the technology while it’s still developing.
Highlighting the significance of AI in businesses, Klein noted that the algorithms and use-cases must deliver beneficial outcomes for employees and society at large. He raised concerns over the competitiveness of European startups against their counterparts in China, Asia, and the US if heavy regulations are imposed on AI technology within Europe.
Klein also stressed the need for a unified, pan-European approach to tackle pressing issues such as the energy crisis and digital transformation. He advocated for lesser regulation rather than more.
In other news, SAP reported robust earnings for the third quarter on Monday. Shares of the software provider surged over 4% to a record high. The company’s total revenue for the quarter was 8.5 billion euros ($9.2 billion), an increase of 9% from the previous year with sales from cloud products seeing a 25% jump.
SAP revised its 2024 outlook for cloud and software revenue, operating profit, and free cash flow. The firm has been gradually transitioning to cloud computing over the past ten years. In a significant move towards this transition, SAP acquired Concur, a business travel and expenses platform, in 2016.
In recent years, SAP has been focusing on AI as a key part of its growth strategy. The company aims to position itself for rapid growth as it navigates through higher interest rates and macroeconomic challenges that have impacted tech spending and led to layoffs across the industry.
Earlier this year, SAP announced a restructuring plan affecting over 7% of its global workforce, equivalent to 8,000 positions.
