Technology

SAP executive predicts software market recovery amid artificial intelligence investments

The company is adopting consumption-based pricing and acquiring data firms following an industry sell-off.

Updated Sep 5, 2026 · 10:19 UTC1 reports

The short version

SAP global president Jan Gilg characterized recent enterprise software stock declines as an industry-wide overreaction that will eventually reverse.[Business Insider]
The enterprise software provider saw its stock rebound roughly 40% after reporting earnings in late July following an earlier 20% decline over the past year.[Business Insider]
To compete with artificial intelligence rivals, SAP built its Tabular AI model, acquired Prior Labs, Reltio, and Dremio, and is transitioning toward consumption-based pricing models.[Business Insider]

SAP executive Jan Gilg stated that the SaaS stock sell-off was an overreaction across the industry and asserted that the pendulum will swing back.[Business Insider]
SAP's stock fell approximately 20% over the past year before rising roughly 40% after reporting earnings in late July.[Business Insider]
SAP developed its first foundational model, Tabular AI, designed to make predictions using business data.[Business Insider]
SAP acquired Prior Labs, Reltio, and Dremio to boost its AI and data capabilities.[Business Insider]
SAP is transitioning from certain subscription pricing structures toward consumption-based pricing models for AI.[Business Insider]

The scope of anticipated industry consolidation among single-product vendors remains an executive forecast rather than a verified market outcome.[Business Insider]

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.