SAP(SAP.US)Reorganizes Board of Directors: CEO Corian Hands Over Sales Power, Going All In on AI to Tackle the Wave of Technological Disruption

Bloomberg News has learned that SAP (SAP.US) CEO Christian Klein announced a plan to restructure the executive board and stated that he will personally increase his focus on artificial intelligence. The European software company with the highest market value is facing increasing pressure from this technology.

According to an all-staff email sent by Klein on Monday, he will transfer oversight of the sales department to board member Thomas Saueressig, who is currently responsible for after-sales and helping customers deploy SAP software. Starting April 1, Saueressig will serve as Chief Customer Officer.

This strategic adjustment comes as investors are fleeing SaaS companies, worried that their businesses will be disrupted by AI. As new AI tools raise concerns about automating more tasks and workflows, the stock prices of enterprise software companies have been volatile in recent weeks. Last week, reports indicated that customers, resellers, and investors questioned the pricing and value of SAP’s flagship AI product.

“The evolution of artificial intelligence is rapid, and we must keep pace,” Klein wrote in the email. “We need to transform SAP end-to-end once again and fully commit to AI.”

Over the past year, SAP’s stock has fallen 38%, losing its position as the most valuable publicly traded company in Europe.

Klein also confirmed in the email a report from last Friday, stating that Mohamed Aram, a board member responsible for product and engineering, will not continue after his contract ends in March 2027 due to personal reasons.

Aram’s departure will add to the high turnover among SAP executives in recent years, prompting the company to reassign board responsibilities. When former Chief Revenue Officer Scott Russell left SAP in 2024, Klein took over some of his sales responsibilities, which will now be transferred to Saueressig.

SAP first launched its AI assistant Joule in 2023, designed to help users navigate complex SAP systems and simplify tasks like programming. Previously, some users expressed disappointment, feeling that Joule did not deliver returns matching their initial investment.

SAP responded at the time that “interest from customers across industries is strong and widespread, and adoption is meeting our expectations.”

In the Monday email, Klein wrote that SAP needs to change its “product portfolio to reshape how enterprises operate and how end users collaborate with AI agents.” The way SAP sells and licenses AI solutions must be adjusted to “deliver autonomous services based on business outcomes,” in order to accelerate the adoption of SAP solutions.