Europe's biggest software company SAP pauses travel and hiring over AI costs

​SAP has paused most travel and hiring. Europe's largest technology company has introduced the measures as it increases investment in artificial intelligence (AI), telling employees it needs to "be disciplined in how we spend." According to an internal email obtained by 404 Media, only AI-related hiring, customer-facing travel and trips linked to AI development or critical AI training are exempt from the restrictions.​The restrictions remain in place, according to a current SAP employee cited by 404 Media, which first obtained the internal email. Under the policy, only AI-related hiring, customer-facing travel and trips directly linked to the company's AI initiatives or mission-critical employee AI training are exempt, reflecting SAP's focus on "be disciplined in how we spend" while expanding its AI capabilities.​AI investment prompts spending controls in SAP​In the email sent to employees worldwide, SAP said it is making significant investments in AI products, internal AI adoption and strategic acquisitions focused on data and artificial intelligence.​"As AI reshapes the future of our industry, we are making significant investments in the products and AI capabilities we build, complemented by strategic acquisitions in data and AI where we need additional expertise and technology," the email reads.​The company added that expanding AI use across its operations has also increased token usage and related costs as more AI-powered services are deployed.​"We are also investing in how we consume AI across SAP, with token usage and related costs increasing as more AI-driven scenarios go live. Taken together, this makes it even more important that we focus our spending on what matters most to future-proof SAP,” the letter added.​SAP has limited hiring to AI-focused roles​As part of the cost-control measures, SAP said new recruitment will be restricted to selected positions, primarily those supporting its long-term AI strategy.​"As part of this, SAP needs to 'be disciplined in how we spend,'" the email continues. That includes focusing "'new hiring on selected profiles only [emphasis in original], mainly core AI roles, that are critical for our long-term success.'" The travel restrictions apply to most internal business trips.​"Going forward, we will put a pause to our internal travel," the email states. "Customer-facing trips and travel that is directly related to our AI development efforts around our 'All in on AI' program as well as travel to deliver mission-critical AI trainings for employees will continue."​The email concludes by stating that the measures are intended to prioritise spending rather than reduce activity.​"These measures are not about doing less. They are about making deliberate choices: investing where it matters most — in our people, our customers, and the technologies that define the next era of enterprise software — and being careful and responsible in areas where we can save. By balancing where we invest and where we save, we ensure that SAP remains strong, competitive, and well-positioned for the long term."​How other companies are reassessing AI spending​The internal memo comes as companies continue to assess the financial impact of deploying AI tools at scale. According to 404 Media, several organisations have introduced measures to control AI-related expenses as usage increases.​The report notes that Citi has restricted access to certain AI models, Atlassian has ended unlimited AI usage and introduced employee usage dashboards, Adobe has not renewed unlimited access to Claude, and Microsoft has implemented AI budget limits while encouraging more efficient use of tokens.​404 Media also reported that leaked audio from Accenture described rising token costs and discussions about limiting non-technical employees' use of AI for routine tasks. In some cases, companies have reportedly modified AI assistants to generate shorter responses to reduce operational costs.Get the latest technology news and updates. Download the TOI App.