Suumit Shah, the CEO of Bengaluru-based startup Dukaan, recently announced on Twitter that the company had replaced over 90% of its customer assistance employees with AI chatbots. The decision, which aimed to reduce expenses and enhance effectiveness, has generated controversy and criticism. Many disputed the CEO’s justifications and expressed concerns about its impact on employees.
Benefits of AI Chatbots in Customer Support according to Dukaan CEO
Shah emphasized the advantages of utilizing AI chatbots for customer assistance in a tweet. According to him, the time to first respond had decreased dramatically. The turnaround time dropped from 2 hours and 13 minutes to 3 minutes and 12 seconds, ranging from 1 minute and 44 seconds to immediate. Additionally, the business claimed a roughly 85% decrease in customer service expenses.
Professionals with technical and product knowledge shouldn’t continue working as support representatives. Shah argued in defense of the redundancies. He implied that their talents were being misused. He made an analogy to a professional player like Lionel Messi doing a full-time job at a sporting goods store. Shah asserts that transferring people’s skill sets to areas demanding critical thinking while using AI technology for automated repetitive operations could enhance the allocation of resources and boost productivity.
Misleading Claims
However, it is essential to stress that Shah’s allegation that the terminations were the result of just employees being “overqualified” and “fussy” is inaccurate. According to reports, Dukaan has previously eliminated employees from a number of divisions, including business operations and sales, indicating a more complicated scenario. The choice to switch to AI chatbots for customer service may be a part of a bigger organizational restructuring process.
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Incorporation of AI has led to Job Losses
The incorporation of AI in company operations is not exclusive to Dukaan. In accordance with news reports, the adoption of AI in the US has led to substantial layoffs. With over 80,000 people shedding their employment as a result of automated processes. While incorporating AI into work processes might boost efficiency, there are legitimate worries regarding job security and its effects on personnel.
Criticisms on Social Media
The majority of the public’s response to Shah’s revelation was conflicting. Some people slammed Shah on social media, saying that he was using AI as a smokescreen to cover up additional problems with the organization. Like poor performance or an abundance of financial services. Others disputed the measures employed in assessing the effectiveness of the AI chatbot, highlighting the significance of customer satisfaction levels as opposed to just resolution timeframes.
Shah’s post was additionally dismissed by some for being obnoxious and lacking empathy for the employees who were affected. They emphasized that workers are people with families and lives to support, not just machines achieving goals.
Even though the adoption of AI in work environments is still up for controversy, it is certain that developments in technology are going to keep changing industries and opportunities for employment. The use of AI chatbots, such as Lina from Dukaan, demonstrates the potential of automation to simplify procedures and cut costs. However, it is essential for company executives to think through the broader consequences of such choices and to maintain an emphasis on employee wellbeing.
