×

SAP swaps costly AI models for cheaper alternatives, targets over €2 billion in gains

By Thomson Reuters Oct 28, 2026 | 9:08 AM

By Leo Marchandon

Oct 28 (Reuters) – SAP, whose software is used by many of the world’s largest companies, is replacing some ​expensive artificial-intelligence models powering its products ‌with cheaper alternatives, a move it expects will generate more than €2 billion in efficiency gains over the next two years.

CFO Dominik Asam told Reuters the company ‌had ​removed some of the most ⁠expensive AI models ⁠from products including its internal consulting assistant and replaced them with lower-cost alternatives where performance remained strong.

SAP uses more than 70 AI ​models from providers including OpenAI, Anthropic and Google. Asam said the company increasingly chooses ⁠the cheapest model capable ⁠of performing a task to the ​required standard, while still expecting overall spending on ​AI to rise as adoption grows.

“The goal ‌is healthy margins as scale grows, not an absolute reduction in AI expenditure,” SAP said in answers to Reuters questions.

Unlike many AI ⁠providers, SAP charges customers for completed tasks rather than for the underlying computing resources used to generate ⁠responses, meaning ‌lower operating costs can help improve ⁠profitability.

Customers are also paying closer ​attention ‌to where AI models come from. ​Asam said ⁠government agencies and companies in regulated industries increasingly ask specific requirements and exclude models based on origin, while European customers increasingly demand local solutions.

(Reporting by Leo Marchandon in Gdansk; Editing by ​Matt Scuffham)