STORY · SELSKAPER_
SAP halts travel and hiring due to spiraling AI costs
SAP has frozen most travel and new hiring to manage exploding AI costs, with exceptions only for AI-related activity. The company is rolling out a new AI tool internally, further driving up expenses.
WHY IT MATTERS
The case illustrates how even massive tech companies struggle with AI costs, and shows that AI investments don't always work as cost savings – sometimes they require drastic measures for cost control.
SOURCES
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