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Asam is one of many businesses executives who've been startlingly candid about their intentions to displace human labor with AI tools or agents. From their point of view, you can directly replace your overpaid, calling-in-sick grunts with ever-dependable AI agents. Or you can whittle your workforce down to a skeleton crew that are super efficient thanks to the magical abilities of AI.
Amazon Web Services and SAP are expanding their collaboration to give European organizations more control over their data and processes in the cloud. Both companies announced that SAP Sovereign Cloud solutions will be available in AWS's European Sovereign Cloud. This infrastructure is part of a planned €7.8 billion investment by Amazon. AWS and SAP have long worked together to offer cloud and business solutions. While SAP contributes its expertise in business applications, AWS provides the infrastructure and operational support.
The pressure is mounting on business leaders to harness AI to make work faster, cheaper, and more efficient. That may thrill investors, but for employees, it could mean fewer jobs around the world. At the $320 billion software giant SAP, there will likely be a need for fewer engineers to deliver the same-or even greater-output, according to the company's CFO Dominik Asam.
SAP has proposed concessions to the European Commission to address competition concerns. The German company hopes that these proposals will prevent a costly investigation. This is according to sources at Reuters. Without an agreement, the company risks a fine of up to 10 percent of its annual global turnover. For a company the size of SAP, that could amount to several billion euros.
European markets opened higher on Wednesday, supported by a rebound in SAP and growing investor optimism ahead of the Federal Reserve's policy decision later in the day. However, the market could remain at risk as investors could remain cautious. SAP led gains in the index, advancing nearly 4% in early trading after upbeat management commentary helped allay recent concerns over its cloud segment.
The DAX rose on Wednesday, led by a strong performance in the auto sector after a trade agreement between the United States and Japan lifted investor sentiment.
The Federal Circuit panel indicated that the district court imposed an unjustifiably high standard on SAP in regard to specifying trial witnesses, though SAP's neutrality claim was upheld.