SAP CEO Klein Reorganizes Board to Focus on Developing AI

Core Viewpoint - SAP SE is restructuring its executive board to prioritize artificial intelligence in response to increasing pressure from the technology sector and investor concerns about the value of its AI offerings [1][2]. Group 1: Executive Changes - CEO Christian Klein will transfer oversight of the sales department to Thomas Saueressig, who will become Chief Customer Officer on April 1 [2]. - A new vertical called the Customer Value Group will be created under Saueressig, integrating sales and customer relations [3]. - Board member Muhammad Alam will not renew his contract due to personal reasons, contributing to high turnover in SAP's executive board [4][5]. Group 2: Market Response - SAP shares fell 2.4% to €166.86 following the announcement of the reorganization, marking a 39% decline over the past year [4]. - Investors are increasingly wary of software-as-a-service companies due to fears of disruption from AI technologies [2]. Group 3: AI Product Concerns - SAP's AI assistant Joule, launched in 2023, has faced user dissatisfaction, with reports indicating that the tools are difficult to use and not perceived as worth the additional cost [6].