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SAP Suspends Travel and Hiring Due to AI Costs

Hacker News •
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SAP, one of the world’s biggest software companies, suspended most travel and hiring last month because of AI’s soaring cost. Exceptions are only being made for AI-related travel or hires, according to an internal email obtained by 404 Media. While Bloomberg reported on the freezes in July, a current SAP employee stated the bans remain in effect.

During a recent global employee meeting, the topic was addressed again. The employee noted that SAP is currently rolling out a newly created AI tool to the entire company, which they believe massively increases costs. This move highlights how companies are coming to grips with the reality of AI’s expense.

Rather than being a massive cost saver, some companies are throttling employees’ AI use as it spirals out of control. Organizations are now scrambling to find other ways to keep costs down as the financial impact of implementing these technologies becomes clear.