SAP Freezes Most Travel and Hiring Due to AI's Soaring Cost — Except AI Itself

SAP, one of the world's largest software companies, suspended most travel and hiring last month because of AI's soaring cost, with exceptions made only for AI-related travel or hires, according to an internal email obtained by 404 Media. The email, reported by Bloomberg in July, is still in effect, a current SAP employee said.

Key Details from the Source

• Scope of freeze: Most travel and hiring suspended company-wide. Exceptions for AI-related roles and travel.
• Duration: Freeze began in July and is still active as of the article date (Aug 6, 2026). The employee said it was brought up again in a recent global employee meeting.
• Cause: AI's soaring cost, not savings. The employee noted SAP is rolling out a newly created AI tool company-wide, which they expect to "massively increase costs."
• Context: Highlights how companies are realizing AI is not the cost-saver promised; some are throttling employee AI usage as costs spiral.

The article quotes the internal email saying SAP needs to "be disciplined in how we spend." The anonymous employee spoke to 404 Media to avoid retaliation.

This story is a reminder that AI infrastructure costs can be significant, prompting even giants like SAP to tighten budgets elsewhere.