German software giant SAP saw its shares tumble sharply after investors voiced worries over the company's AI strategy. The decline follows reports that SAP is grappling with integrating generative AI capabilities into its enterprise resource planning suite, a move seen as crucial for staying competitive. Market analysts point to a perceived lag behind peers such as Microsoft and Oracle, which have already rolled out AI‑enhanced offerings.

The share slide highlights the heightened scrutiny on legacy software firms as they navigate the AI transition. SAP's leadership has pledged accelerated AI development and strategic partnerships, but the market remains skeptical until tangible product improvements and revenue impacts materialise.

This story was written by a language model from reporting by The Economic Times. Check the original before quoting it.