BENGALURU: German software major SAP is tightening hiring, travel and third-party spending as it ramps up investments in artificial intelligence, according to an internal email sent to employees.In the email, SAP said the rapid pace of AI adoption is driving significant investments in AI products, strategic acquisitions, and the infrastructure needed to support AI workloads. He also noted that token consumption and related costs are rising as more AI-powered applications are deployed internally and for clients. “As AI reshapes the future of our industry, we are making significant investments in the products and AI capabilities we are building, complemented by strategic acquisitions in data and AI where we need additional expertise and technology,” the company said in an email to employees.“We are also investing in how AI is consumed across SAP, with token usage and associated costs increasing as more AI-driven scenarios come into play.” To fund these priorities, SAP said it will “exclusively focus new hiring on specific profiles only,” primarily on core AI roles critical to its long-term strategy.The company is also evaluating further reductions in third-party spending, saying AI makes suppliers and internal teams more efficient. As part of the effort, SAP will reintroduce its Expenditure Council process through its procurement organization to tighten oversight of external spending.SAP is also pausing internal travel across the company. However, customer-facing travel, travel directly related to the “All in on AI” program, and travel for mission-critical AI training for employees will continue.