AI always destroys, even SAP

Christian Klein does not understand AI. For Klein, AI is just another discipline of computer science, like virtualization and then the cloud were before it. That is wrong! AI is a paradigm shift and not a successor to a familiar IT technology. Computer science is at a crossroads.

The drama with AI is the hopelessness: if the prophecies of AI providers such as OpenAI, Anthropic and many others come true, AI will be so powerful that everything and everyone will be at risk - including the existence of humanity. However, if investments in AI fail, the economy will face an unprecedented recession - a new global economic crisis of apocalyptic proportions could follow. AI always destroys!

SAP CEO Christian Klein has a different opinion, as was reported in the Financial Times in the guest article „Why the SaaSpocalypse doomsayers are wrong“: „When SAP accelerated its transition to the cloud six years ago, the skeptics were just as vocal. [...] What made the change difficult was not the technology itself, but the conviction of thousands of large companies. [...] Today, revenue from the cloud accounts for the majority of SAP's total revenue. [...] AI will be no different.“

Christian Klein equates AI with the cloud, which is a strategic and intellectual mistake. This equating of completely different concepts is a fundamental error in thinking. Cloud computing is another architectural response to the challenges of a holistic ERP system. AI in the form of LLM (Large Language Model) and EBM (Energy-based Model) is a new approach to how data is processed: It is no longer algorithms that determine the results, but mathematics (LLM) and physics (EBM).

AI naturally has its origins in computer science and, with neural networks and machine learning, AI was an IT discipline like many other techniques (simulation of dynamic systems, sorting algorithms, graph theory and matrix calculations, vector databases, etc.). SAP itself embraced this IT trend with SAP PAL (Predictive Analysis Library) and SAP Hana (Graph and Vector Engines).

ChatGPT is a fault line that fundamentally distinguishes traditional, algorithm-based computer science (including cloud computing) from „data processing“ characterized by language, mathematics, statistics and physics.

The way SAP CEO Christian Klein now equates cloud and AI in his FT essay is hybris. SAP's approach and prescriptions to its own existing customers when it comes to AI are disrespectful. According to a report on handelsblatt.com, another DAX CEO has already admitted to this arrogance: Deutsche Telekom CEO Tim Höttges openly admitted mistakes at the Group's Annual General Meeting in Bonn. In the business customer segment, the Group had rested on its network business for too long. „We were too arrogant,“ said Höttges in front of the shareholders. „We rested on old structures for too long.“

Is it possible that the statement „We were too arrogant“ also applies to SAP CEO Christian Klein? The fact is that SAP has not had a comprehensive and open discussion with existing customers and the community on the topic of AI. AI is not only destroying many ERP structures, but SAP is also bringing itself down through clumsy behavior, ignorance and hubris.

In the FT text, Christian Klein writes: „The companies that aligned themselves with technological developments instead of defending what had previously served them well emerged stronger from this transition.“ That may be true if the development is understood and not equated with old models of success (cloud computing) - AI is different and probably also more destructive.