AI replaces human workers: Indian CEO replaces 90% support staff with chatbot, internet outraged

The founder and CEO of an Indian e-commercefirm named 'Dukaan'has come under fire from social media users after announcing on Twitter that his company had replaced 90 per cent of its customer care team with an artificial intelligence (AI) chatbot.

The decision was met with anger and criticism, with users expressing concerns about the impact on employees' livelihoods, reportsNDTV.

In a tweet, the CEO defended his decision, stating that it was a necessary move to achieve profitability.

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He highlighted the significant reduction in response time, from over two hours to just three minutes, and emphasised the cost savings associated with customer support, which had been reduced by 85 per cent.

He tweeted, "We had to lay off 90 per cent of our support team because of this AI chatbot. Tough? Yes. Necessary? Absolutely."

He further explained that given the current economic climate, startups were prioritising profitability over striving to become "unicorns," and his company was no exception.

Social media backlash

However, Shah's explanation did not resonate well with social media users.

Many criticised him for his insensitivity towards the employees affected by the layoffs. One user tweeted, "This is extremely disrespectful towards all the people who were laid off. And a founder is boasting about layoffs along with a new feature in the same thread? This leaves such a bad taste for everyone who knows Dukaan and has followed its journey."

Another user compared Shah's demeanour to that of a child delightedly enjoying a treat, expressing their disapproval of the CEO's attitude towards the layoffs.

Some users raised concerns about the broader implications of AI chatbots replacing human workers. They voiced worries about a future where interactions would solely occur with machines, emphasising that human life was becoming increasingly entwined with technology.

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One user commented, "What about AI's replacing businesses itself? We will soon live in the era of talking with machines only and living for machines. Human life has become machines, and now machines will be life itself soon by ordering us. Pity the employees and wish them a great future."

Additionally, doubts were raised about the effectiveness of AI chatbots in providing satisfactory responses. Users questioned whether the focus on quick responses undermined the importance of quality responses and expressed concerns about the potential erosion of brand loyalty. A user stated, "How can anyone think AI chatbots give better responses? Quick response vs. Quality response. Profitability will be short-lived. No brand loyalty will be there."

CEO's response and public sentiment

When asked about the assistance provided to the laid-off staff, Shah's response garnered further criticism.

He dismissed concerns, suggesting that people on Twitter were primarily interested in "profitability" rather than "sympathy." This reply was met with disappointment and condemnation from users who felt that Shah was lacking empathy towards those affected by the layoffs. A Twitter user wrote, "Laying off is never a pleasant experience, why is the need to proclaim and be proud about it."

This incident reflects a growing trend in the use of generative AI tools, like ChatGPT, to increase productivity and cut costs.

Reports have indicated that these tools have made workers anxious about the potential loss of jobs to technology.

A Goldman Sachs report published in March highlighted the possibility of AI replacing the equivalent of 300 million full-time jobs, reported the BBC.

In India, several companies are investing in AI to develop products, sparking concerns about job losses in various sectors.

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