.png){kind=logo}
AI has put big software companies under pressure. SAP, Salesforce and Workday have all faced concerns about how AI could change the software business. In the last year, SAP’s stock fell more than 20% as part of the wider ‘SaaSpocalypse.’ However, the SAP global president of customer success and Americas, Jan Gilg, was still optimistic about the company. He opined, “As usual, I feel the pendulum will swing back.”
The problem arose after advanced AI tools began making their way into companies and solving various problems. Companies eventually became less interested in investing in traditional software. However, after the crisis, SAP recovered its stock this July. The official reports reveal the company's stock has risen by 40%.
Cloud growth and its work in AI have helped lift investor confidence. Gilg said the earlier fall was an overreaction across the software sector. Gilg is confident that AI can’t replace everything that traditional software does. He mentioned, “It's really multifaceted. On the one side, there was the idea that customers will vibe code their software themselves rather than buying packaged software. We don't see that, frankly.”
He further added, “We don't see that, especially for mission-critical purposes. It's not just about features and functions. It's about auditability, governance, and the maintenance of the software.”
Also Read: Why GitLab is Becoming More Than a DevOps Platform: The AI Shift in Software Development
AI has raised fears that companies may start making more software on their own. This could reduce their need for traditional software products. SAP believes this change will not happen overnight. Large businesses still need software for key tasks. These systems need checks, security, and regular support. Replacing them with AI tools may not be as simple as it sounds.
AI is creating another challenge too. Running AI services can be expensive. Companies want to know if they are getting enough value from their AI spending. SAP does not see AI as a reason to step away from software. The company sees it as a new way to grow. Its existing business systems and data could give it an edge as more companies bring AI into daily work.
