AI vs Humans: Indian Startup Dukaan Replaces 90% Of It’s Staff With AI Chatbot
By Dukaan, a Bangalore based startup that gained popularity for its e-commerce platform, is now facing severe backlash following its CEO and founder, Suumit Shah’s decision to lay off 90 percent of the company’s workforce. The move has sparked outrage in the community, raising concerns about the treatment of workers during difficult times.
He announced replacing the entire support staff with the AI chatbot to deal with customer queries.
“Tough? Yes. Necessary? Absolutely. The results? Time to first response went from 1 m 44s to INSTANT! Resolution time went from 2h 13m to 3m 12s Customer support costs reduced by (around) 85 per cent”, tweeted Suumit Shah.
Suumit Shah, known for his entrepreneurial spirit and innovative ideas, founded Dukaan with the vision of empowering local businesses by providing them with an online platform to sell their products. The startup quickly gained traction and became a go-to solution for small-scale merchants in India. However, the recent layoffs have tarnished the company’s reputation and its founder’s image.
In response to the growing backlash, Suumit Shah issued a public statement acknowledging the situation.
In his defense, he emphasized his intention was not to replace humans with AI, rather the decision is a strategic step to save time and reduce cost, also allowing the company to recruit people more effectively.
The fallout from this incident serves as a reminder of the importance of maintaining ethical practices, particularly when making tough decisions that impact employees’ livelihoods. As the story continues to unfold, all eyes will be on Dukaan and its leadership to see how they address this crisis and rebuild trust.
