SAP freezes most travel and hiring because AI costs are soaring

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

SAP suspended most non-AI travel and hiring last month, per an internal email obtained by 404 Media. A current employee says the freeze is still in effect and a new in-house AI tool is rolling out company-wide, which will only drive costs higher. The move echoes a broader pattern of companies throttling AI usage to control runaway spend.

Why it matters: Internal SAP email confirms AI costs are cannibalizing regular opex — not speculation, an active freeze. 404 Media obtained primary internal docs, so sourcing is strong. Capped below 85 because it's a single-company case, not yet a cross-industry trend signal.