Live data from Hacker News

SAP stops most travel and hiring because of AI's soaring cost

404media.co

21–30 of 72 posts

Re: SAP stops most travel and hiring because of AI's soaring cost

#21

If you believe that AI does add to productivity gains, say equivalent to adding 10-20% employees, would you do anything differently than SAP?

These are enough gains that you don't need to believe, they should be measurable

Not really. A company can work and do things without having to run RCTs to prove everything. The market itself is the RCT.

Re: SAP stops most travel and hiring because of AI's soaring cost

#23

If you believe that AI does add to productivity gains, say equivalent to adding 10-20% employees, would you do anything differently than SAP?

If AI was actually making you more profitable, you wouldn't need to be cost cutting to avoid bankruptcy.

Re: SAP stops most travel and hiring because of AI's soaring cost

#24
post #19

Having worked at some giant firms that heavily depend on SAP, I would think their position as "system of record for procurement/production" would get stronger with AI. e.g. AI + a good database of what your company does seems like an excellent combination.

Would a technology famous for hallucinating data often enough, and in many context unable to guarantee it won't assume and hallucinate when it feels "confident enough" despite a robust system prompt, be really considered for a "system of record for procurement/production" usage? (yes yes RAG exists)

In the ERP space, AI is being used mostly for repetitive tasks, documentation and forecasting-type activities or where a non-deterministic answer might be useful. Scanning in documents and using OCR to create an order, asking what page I use to do X, historical demand modelling and constraint scheduling. Also have seen it used to do order flow type stuff like suggesting products to sell if they buy ABC. I'm not really seeing it being used to do heavy analysis and they've generally been careful not to put it in places where a hallucination could result in a bad business decision.

Re: SAP stops most travel and hiring because of AI's soaring cost

#25

If you believe that AI does add to productivity gains, say equivalent to adding 10-20% employees, would you do anything differently than SAP?

If AI was actually making you more profitable, you wouldn't need to be cost cutting to avoid bankruptcy.

I'm not sure who is getting bankrupt?

Re: SAP stops most travel and hiring because of AI's soaring cost

#26
This "AI business" has really opened my eyes to how..insane the average person is, and just how bad discourse has gotten.

Look at the conversation: people are writing off this technology (on a tech forum no less) as useless, because it can make mistakes. We criticize the cost, and the business models, and the companies, the purveyors and users. Why? Because we don't quite understand how best to use it...3 years in.

People have lost all concept of time scales, I guess. They expect everything to be polished and mature NOW. How many people realize that could take a decade or more?

So, yeah, a stodgy old company has figured out they don't need to hire and don't need to travel, and AI is expensive. So what?

Re: SAP stops most travel and hiring because of AI's soaring cost

#28

Having worked at some giant firms that heavily depend on SAP, I would think their position as "system of record for procurement/production" would get stronger with AI. e.g. AI + a good database of what your company does seems like an excellent combination.

The same argument can be made about snowflakes and other providers that handle the data layer. If they can leverage AI in a safe contained environment they would become the clear winner

Re: SAP stops most travel and hiring because of AI's soaring cost

#29

Earlier quoted context omitted.

These are enough gains that you don't need to believe, they should be measurable

Not really. A company can work and do things without having to run RCTs to prove everything. The market itself is the RCT.

If you doubt that you have gained something as high as 20% gains, it probably just means you got nothing.

And also, individual productivity isn't the same as organisation productivity, especially at such a large company.

Re: SAP stops most travel and hiring because of AI's soaring cost

#30
This tells me we’re getting close to “peak bubble.” We saw these same sort of stupid headlines just before the dot-com bubble popped, too. When companies are distorting regular business to do the new thing, they’ve gone past the point of reasonableness on the new thing and we’re ready for a snap-back.
Post reply on HN