In mid-2023, Suumit Shah, the CEO of Dukaan, an Indian e-commerce platform, made a bold and controversial decision—he laid off 90% of his employees and replaced them with AI-driven chatbots. His goal? Cut operational costs, improve efficiency, and revolutionize customer service.
At the time, the move sparked intense debate, with some hailing it as a forward-thinking business strategy while others condemned it as a reckless step toward job displacement and loss of human touch in customer interactions. Now, one year later, Shah has released his company’s financial and operational assessment—and the results are both impressive and unsettling.
AI-Powered Customer Service: A Game Changer?
According to Shah, AI has transformed Dukaan’s customer service operations. Before automation, the company struggled with slow response times and lengthy issue resolution. The introduction of AI-powered chatbots has:
Reduced response times from nearly two minutes to instant replies
Cut down issue resolution times from over two hours to just a few minutes
Lowered operational costs significantly, as AI tools require far less overhead than a human workforce
From a business perspective, these changes mark a massive success—customers get quicker assistance, and the company saves money. But while automation has streamlined processes, critics argue that it comes at a deeper human cost.
The Ethical Dilemma: What About the Workers?
The mass layoffs at Dukaan symbolize a growing global trend—the rapid shift towards AI replacing human jobs. Major corporations like Amazon, Google, and Tesla are investing heavily in automation, and Shah’s experiment provides a glimpse into a possible future where AI dominates the workforce.
However, this raises serious concerns about job security:
Can AI truly replace human intuition, empathy, and problem-solving?
What happens to employees who lose their jobs to automation?
Is it ethical for companies to prioritize AI efficiency over human livelihoods?
Many argue that customer service isn’t just about speed—it’s about connection. While AI can process requests efficiently, it lacks the emotional intelligence and nuanced understanding that human interactions provide.
The Bigger Picture: AI and the Future of Work
Dukaan’s transformation is just the beginning of a larger movement. As AI becomes more sophisticated, businesses face a crucial decision:
Fully embrace AI, eliminating traditional roles in pursuit of cost-effectiveness
Adopt a hybrid model, integrating AI while still maintaining a human workforce
For now, Suumit Shah stands by his decision, calling it a success from a financial and operational standpoint. But the bigger question remains: At what cost to society?
As automation continues to reshape industries, governments, businesses, and workers alike must prepare for a new reality where AI plays a dominant role. The debate isn’t just about efficiency—it’s about the future of human work itself.
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