Software Giant SAP Stops Most Travel and Hiring Because of AI's Soaring Cost

According to an internal SAP email obtained by 404 Media, SAP suspended most travel and hiring in the previous month due to the high cost of AI, with exceptions made only for AI-related travel or hires. Bloomberg reported the freezes in July, but a current SAP employee confirmed the bans are still active and were brought up again during a recent global employee meeting.

The employee also noted that SAP is rolling out a newly created AI tool across the entire company, which they expect to massively increase costs. The source was granted anonymity to protect against retaliation. The report highlights how companies are grappling with AI's real financial burden, sometimes throttling employee AI use or seeking other cost-cutting measures, rather than treating AI as a pure cost saver.