SAP SE Chief Executive Officer Christian Klein announced a major executive board reorganization to prioritize artificial intelligence development as the company faces mounting pressure from investors and competitors. The restructuring moves Thomas Saueressig into the newly created Chief Customer Officer role, overseeing both sales and customer relations under a unified Customer Value Group.

Klein's move comes as enterprise software stocks have been battered by fears that AI could disrupt traditional software-as-a-service models. SAP shares fell 2.4% to €166.86 in Frankfurt trading after the announcement, extending a 39% decline over the past year that has cost the company its position as Europe's most valuable public company. The reorganization aims to accelerate SAP's AI strategy as customers question the value of its flagship AI product Joule.

Product and engineering board member Muhammad Alam will depart in 2027, adding to recent high-level turnover at SAP. The company is racing to adapt its product portfolio and licensing models to focus on "business outcomes" and "autonomous services" as Klein pushes for an end-to-end transformation centered on AI. With enterprise customers demanding more value from AI investments, SAP's reorganization signals a recognition that the company must evolve quickly to remain competitive in an increasingly AI-driven software landscape.