On January 28, 2020, Christian Klein, co-chief executive of German software and cloud computing giant SAP, spoke at the SAP 2019 financial results press conference in Walldorf, southwest Germany. – German software giant SAP reported that its profits were hit by heavy restructuring costs but raised its forecast for the year ahead.
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CEO of German corporate technology giant: Europe should avoid regulating artificial intelligence and focus on technological achievements sap told CNBC on Tuesday.
Christian Klein, who has held SAP’s top job since April 2020, said that if Europe over-regulates the artificial intelligence industry, it risks falling behind the United States and China.
While mitigating the risks associated with artificial intelligence is important, Klein believes regulating the technology while it is still in its infancy would be misguided.
“How we train algorithms and embed AI use cases into our customers’ businesses is really important – they need to deliver the right outcomes for their employees and for society,” Klein told CNBC’s “Squawk Box Europe” on Tuesday. “.
“If you only regulate European technology, how do our startups in Europe compete with other startups in China, Asia and the United States?” Klein added.
“Especially for European startups, it’s important to consider the outcomes of the technology rather than regulating the AI technology itself.”
Instead, Klein believes businesses need to take a more coordinated pan-European approach to pressing issues such as the energy crisis and the digital transformation, and generally reduce regulation rather than more.
Optimistic profit
His comments came after SAP reported bumper third-quarter earnings on Monday night. Software vendor shares The increase exceeded 4%, reaching a record high.
The software giant reported total revenue of 8.5 billion euros ($9.2 billion) for the quarter, up 9% year-over-year, with sales related to cloud products growing 25%.
SAP raised its forecast for 2024 cloud and software revenue, operating profit and free cash flow. The German company has been working on its transition to cloud computing for the past decade.
In 2016, SAP acquired business travel and expense platform Concur, betting that software would move to the cloud.
Recently, SAP has made artificial intelligence a focus of its strategy as it looks to reposition itself for faster growth after rising interest rates and macroeconomic headwinds dented tech spending and led to layoffs across the industry.
In January, SAP announced a restructuring plan that affected more than 7% of its global workforce – the equivalent of 8,000 positions.
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