An Indian CEO made a drastic decision to cut costs and boost efficiency—90% of his workforce was replaced by AI chatbots. A year later, the first results are in, and he’s calling it a success.
Suumit Shah, Ceo Of DukaanA Year After Laying off Almost All His Staff and Replacing Them with an AI, This Indian Entrepreneur Shares an Unexpected Balance Sheet! – copyright Shutterstock
Artificial intelligence continues to take up more space in various industries, and businesses are increasingly integrating it to handle tasks that were once managed by human employees.
In India, Suumit Shah, CEO of Dukaan, an e-commerce company, decided to take automation to an extreme level. In the summer of 2023, he made a bold decision: laying off 90% of his workforce and replacing them with AI-powered chatbots.
This drastic move was aimed at cutting operational costs and improving efficiency, but it also sparked a heated ethical debate. A year later, Shah has released the first assessment of his decision, and he considers it a success.
Shah claims that the implementation of AI in his company has significantly improved customer service. He points out that response times have dropped from nearly two minutes to almost instantaneous replies.
Additionally, the resolution time for customer issues has been reduced dramatically, from over two hours to just a few minutes. These improvements, he asserts, have led to greater efficiency and a better customer experience.
However, critics argue that the human aspect of customer service is irreplaceable and that automation at this scale could set a dangerous precedent for the future of employment.
The replacement of human workers by AI is a topic that has fueled discussions for decades, often portrayed in science fiction as a future where machines dominate the workforce.
Today, this debate is becoming increasingly relevant as AI technology continues to evolve and expand its capabilities. Some view the rise of AI as a positive transformation, a tool that can enhance productivity by taking over repetitive and time-consuming tasks.
Others see it as a looming threat, warning that widespread automation will leave many unemployed and struggling to adapt to a new job market.
The case of Dukaan is a striking example of how AI is reshaping industries at an accelerated pace. While businesses benefit from cost reductions and increased efficiency, the mass layoffs raise concerns about the long-term impact on employment.
The balance between embracing AI-driven solutions and ensuring job security remains a pressing issue. Companies must decide whether to fully automate their operations or find a middle ground that allows for both technological advancements and human employment.
Dukaan’s transformation is just one instance of a much larger trend. Major corporations around the world, including Amazon, Google, and Tesla, are heavily investing in automation. The question is no longer whether AI will take over certain jobs, but how quickly and extensively it will happen.
As businesses increasingly shift toward AI-driven operations, society must confront the reality of what this means for millions of workers worldwide. For now, Suumit Shah is standing by his decision, calling it a success from a business standpoint.