We recently published a list of Stay Ahead: 9 Key AI News Updates You Need to See. In this article, we are going to take a look at where SAP SE (NYSE:SAP) stands against other key AI news updates you need to see.
A very adaptable tool, generative artificial intelligence has been used in various fields. As a result, it could develop into a general-purpose technology that can evolve into a machine capable of carrying out any task that a human can. Given that the generative AI market is growing at a compound annual growth rate of 34.20%, according to Research and Markets, it has sparked an arms race between companies and, most recently, between countries.
A week into office, President Donald Trump rolled back Biden-era artificial intelligence safety and security measures. The rollback is part of the new administration’s bid to speed and accelerate generative AI development as the US seeks to win the AI race against China.
To maintain global leadership in AI technology, “we must develop AI systems that are free from ideological bias or engineered social agendas,” Trump’s order says.
Trump’s Executive Order overturned President Joe Biden’s 2023 policy, which required AI developers to perform safety testing and report findings to the government prior to releasing systems that could endanger public health, national security, or the economy.
According to the Trump administration, the Biden policy “established unnecessarily burdensome requirements for companies developing and deploying AI that would stifle private sector innovation and threaten American technological leadership.”
Additionally, the Biden executive order demanded that deepfakes be watermarked, that government agencies establish AI testing standards that consider national security threats, and that federal law enforcement and intellectual property regulators change how copyrighted works are used in AI training. The previous administration “hampered the private sector’s ability to innovate in AI by imposing government control over AI development and deployment,” according to Trump’s executive order.
The removal of the safety and security measures is being portrayed as a floodgate, opening for AI development, which could hasten advancements in the still-emerging field but also present risks. Nevertheless, the Consumer Federation of America and Mozilla have written a letter urging the White House to maintain “key rules” for transparency and testing in artificial intelligence.
“Without guardrails like testing and transparency on an AI system before it’s used — guardrails so basic that any engineer should be ashamed to release a product without them — seniors, veterans, and consumers will have their benefits improperly altered and their health endangered,” they wrote. “We call on you to keep key rules about testing and transparency for safety- and rights-impacting AI in place.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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A data centre room with cloud technology, illustrating the enterprise application software services.
SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) and its subsidiaries provide applications, technology, and services worldwide. It offers SAP S/4HANA, which includes finance, risk, and project management software capabilities. On January 30th, analysts at JMP Securities reiterated a Buy rating on the stock while hiking the price target to $330 from $300. The upgrade came on the company delivering stellar financial results driven by strong demand for its artificial intelligence-powered solutions.
The price hike also comes days after CEO Christina Klein reiterated that DeepSeek AI technology has affirmed the tremendous opportunity for SAP SE (NYSE:SAP) and other enterprise software companies to provide AI-powered solutions. “When you are selling software as a service and looking at our strategy, it’s actually good news,” Klein said.
According to the executive, the fact that it is possible to come up with AI innovators at a fraction of the cost should eventually benefit enterprise software companies. The CEO also confirmed that they have been testing AI technology and are considering adding DeepSeek to SAP’s AI Hub. Additionally, the company is focused on its growth strategy through the RISE program and is on course to triple support revenue from €11 billion.
Overall, SAP ranks 6th on our list of key AI news updates you need to see. As we acknowledge the growth potential of SAP, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SAP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
