India CEO Criticized for Choosing AI Bot Over Human Staff

Source: BBC News - Link to Article

The CEO of an Indian firm is facing criticism after announcing that his company had replaced 90% of its support staff with an artificial intelligence (AI) chatbot. Suumit Shah, the founder of Dukaan, claimed on Twitter that the chatbot had significantly improved response and resolution times for customer queries. However, his tweet triggered outrage online, particularly in light of concerns about AI’s impact on job loss, particularly in the services industry.

In a series of tweets that garnered over a million views, Mr. Shah discussed the company’s decision to implement a chatbot. He acknowledged that laying off staff was a difficult choice but deemed it necessary, citing the current state of the economy and the prioritization of profitability over becoming a unicorn company. Mr. Shah stated that customer support had long been a challenge for the company and that the chatbot was intended to address this issue. He highlighted the speed and accuracy with which the bot was handling various queries, emphasizing the growing accessibility of launching a business in the age of instant gratification.

Although Mr. Shah mentioned that the firm was hiring for multiple roles, his tweets faced backlash from users who accused him of making a heartless decision that disrupted the lives of his staff. Some users questioned the support provided to the laid-off employees and criticized the celebratory tone of the tweets. Mr. Shah responded, suggesting that he would share information about staff assistance on LinkedIn, as Twitter users were more focused on profitability than sympathy.

The increasing accessibility of generative AI tools, such as ChatGPT, has raised concerns among workers about the potential for job displacement. Reports have highlighted how organizations utilize these tools to boost productivity while cutting costs. A Goldman Sachs report from March indicated that AI could replace the equivalent of 300 million full-time jobs, further fueling concerns about job losses. In India, several companies are investing in AI development, which has amplified anxieties within the workforce.

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