Dukaan replaces 90% support staff with AI; CEO faces backlash
Dukaan, a DIY platform that helps merchants set up their own e-commerce stores, and its founder and CEO Suumit Shah are the objects of Twitter's wrath today. All because of a long thread by Shah on Twitter about how artificial intelligence (AI) led to job cuts. Twitterati even called him out for his lack of empathy. Let's see what led to such a reaction.
Why does this story matter?
Discussions on AI-forced job losses have been rife since ChatGPT made its historic debut. With more and more AI tools appearing every day, people are worried AI would replace them. According to a report released by Challenger, Gray & Christmas, around 4,000 people lost their jobs due to AI in May this year. Several companies have announced their plans to replace jobs with AI.
Dukaan developed an AI chatbot for customer support
Shah's post was about how Dukaan developed an AI chatbot for customer support. According to him, the chatbot named Lina improved Dukaan's customer query resolution time by around a minute and reduced customer support costs by 85%. The numbers look good. Especially at a time when start-ups are struggling with profitability. So why is Twitter angry?
The start-up laid off 90% of its support staff
It was what Shah said alongside the AI's achievements that triggered Twitter. "We had to lay off 90% of our support team because of this AI chatbot," he wrote. He added that it was tough but "absolutely" necessary. The rest of the thread is about how his team developed Lina from scratch and how the chatbot performed.
CEO brushed aside query about laid-off employees
Shah did not make any mention of the laid-off employees again. Twitter caught this. "As expected, didn't find any mention about the 90% staff that were laid off. What assistance were they provided?" a user wrote. Shah brushed aside the query saying details about assistance will be available in a LinkedIn post. "Also - 'it was tough decision,'" he added.
Shah had a reply ready for concerned Twitteratis
Twitter called Shah's thread 'insensitive' and 'heartless'
Twitter did not take kindly to Shah's attitude. Many criticized the thread as "insensitive." Some called his reply to the user who asked about assistance to fired staffers "toxic" and "heartless." Some users even attacked the chatbot. "It wasn't answering as I needed it to," wrote a user. A few others called out Shah's thread as a PR stunt.
Union Minister Rajeev Chandrasekhar had dismissed AI's impact on jobs
The Dukaan episode comes against the backdrop of Union Minister Rajeev Chandrasekhar dismissing claims about AI eliminating jobs in India as "nonsense, bakwas." It is unclear how many people Dukaan fired, but 90% isn't less. Meanwhile, in its 2023 Employee Outlook, the Organisation for Economic Co-operation and Development said AI will revolutionize the job market. The report said AI poses "significant risks" to jobs.
