A year after replacing 90 % of employees with AI, this CEO reveals the outcome

By Brandon Lee

A year after replacing 90 % of employees with AI

When a year ago I spoke to a young entrepreneur at a tech meetup, he joked that human beings might soon be the scarce resource. Little did I know that, by July 2023, Suumit Shah—the founder of India’s Dukaan e-commerce platform—would put that theory to the test, cutting 90 % of his customer-service team in favour of an AI chatbot. Twelve months on, Shah says the move has been a bold experiment in automation and operational efficiency, but opinions remain sharply divided.

The context: a radical decision in a shifting industry

Startups everywhere face relentless pressure to trim costs and scale fast. At the time, Dukaan’s customer-service centre was handling thousands of queries daily, with an average first-response time of 1 minute 44 seconds and a resolution time exceeding two hours. Keen to improve the customer experience and slash overheads, Shah opted for an in-house AI solution. Within days, most human agents were out—and a chatbot powered by machine learning took over the queue.

A year on: boosted efficiency, but at what cost?

The headline figures are striking. Shah reports that response times are now effectively instantaneous, and average resolution has tumbled to just over three minutes. He proudly points to a surge in customer satisfaction scores and a noticeable drop in support costs.

Yet the human toll has been significant. Dozens of skilled agents lost their roles overnight, sparking criticism across social media. Many former employees found themselves scrambling to retrain or find work in a market already strained by global economic headwinds. While Dukaan enjoys sharper margins, its public image took a hit as commentators questioned whether such a blunt implementation of AI reflected healthy ethical considerations.

Looking ahead: deeper automation on the horizon?

Undeterred, Shah plans to roll out similar AI-driven tools across marketing, inventory control and even basic accounting. His vision is clear: let machines tackle repetitious tasks so that remaining staff can focus on innovation and strategic growth.

Analysts from Goldman Sachs estimate that up to 300 million full-time jobs worldwide could be susceptible to AI-driven displacement. Yet some firms, like the consulting group Forvis Mazars in France, have chosen a more measured path—investing over €1 million to train 5 000 employees on AI tools, striving for a symbiosis between human talent and intelligent systems.

Generative AI: transformation engine or looming threat?

Generative platforms such as ChatGPT and MidJourney are already reshaping workflows, from drafting marketing copy to generating design mock-ups. Companies that embrace these tools often report productivity gains, but others worry about creative jobs being devalued. The key challenge lies in maintaining human oversight and ensuring that AI remains a collaborator, not a replacement.

Conclusion: blueprint or cautionary tale?

Dukaan’s AI overhaul offers a vivid glimpse into the promises and pitfalls of large-scale automation. The gains in speed and cost savings are undeniable, but the social cost and reputational damage cannot be shrugged off. As businesses race to adopt AI, striking the right balance between digital transformation and social responsibility will be crucial—lest we find ourselves with systems that work perfectly, but without the people to use them.

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