In July 2023, Suumit Shah, CEO of the Indian e-commerce company Dukaan, made a decision that shook both the tech and business worlds. Facing increasing pressure to cut costs and boost efficiency, Shah announced that 90% of the company’s customer service staff would be replaced by AI-powered chatbots. The move was bold—and polarizing. While some hailed it as the future of innovation, others criticized it as inhumane, sparking debates about the ethical implications of automation.
One year later, Shah reflects on the results of his controversial decision, offering insights into the gains—and the costs—of embracing artificial intelligence at such a massive scale.
A Bold Leap Into Automation
Customer service is often a pain point for businesses, with long response times and unresolved issues frustrating users. Shah believed that AI held the key to streamlining operations, reducing costs, and improving the customer experience. The plan? Replace human agents with an AI chatbot capable of handling high volumes of queries, from simple troubleshooting to more complex questions.
The benefits were clear on paper. Unlike human employees, chatbots don’t need breaks, don’t experience burnout, and can operate 24/7. Using AI would theoretically improve efficiency, reduce error rates, and deliver consistent responses.
However, the announcement also brought backlash. Critics called out the lack of empathy toward laid-off employees and questioned whether a machine could truly replicate the human touch in customer interactions. The move also reignited a broader debate: in a world increasingly dominated by artificial intelligence, what happens to the human workforce?
One Year Later: Faster, Cheaper, but Not Without Controversy
According to Shah, the results have been impressive—at least from a business standpoint. Key customer service metrics have shown dramatic improvement:
- The average response time dropped from 1 minute and 44 seconds to near-instantaneous replies.
- The average resolution time for customer issues fell from over 2 hours to just 3 minutes and 12 seconds.
These changes didn’t just enhance customer satisfaction but also brought significant cost savings. The company has been able to redirect resources to other areas, bolstering its profitability and competitive edge. “This transformation has confirmed the potential of AI to optimize operations,” Shah said.
Yet, there’s another side to the story. The abrupt layoffs left a lasting mark on the company’s reputation. On social media, Dukaan faced accusations of prioritizing profit over people. Even within the organization, there’s ongoing debate about the balance between automation and maintaining a human workforce.
Are Workers Being Left Behind?
The Dukaan case reflects a broader trend in automation across industries. In March 2023, a Goldman Sachs report estimated that AI could replace 300 million full-time jobs worldwide in the coming years. While new roles may emerge in fields like AI training or oversight, the question remains: how do we prepare displaced workers for these opportunities?
The growing influence of generative AI tools, like ChatGPT and MidJourney, is already reshaping industries. These tools are celebrated for their ability to handle tasks ranging from creating marketing content to managing complex workflows. But they also stoke fears about the future of human labor.
Some companies are taking proactive steps to address these concerns. For example, a global consulting firm recently invested millions to train employees on how to use AI tools, aiming to eliminate repetitive tasks while enhancing productivity. This approach emphasizes collaboration between humans and machines, in stark contrast to Dukaan’s more radical decision to replace its workforce.
What’s Next for AI in Business?
For Shah, the success of this automation experiment is just the beginning. He plans to expand the use of AI-driven solutions into other areas of the business, hoping to further improve efficiency while allowing remaining employees to focus on high-value tasks like innovation and strategy.
This mindset aligns with a growing sentiment among tech leaders: let AI handle the repetitive, mundane jobs so humans can focus on what machines cannot—creativity, empathy, and complex problem-solving.
But with innovation comes responsibility. Companies must navigate the ethical challenges of automation, balancing the need for progress with their duty to the people who drive their success. Finding that equilibrium will be key as more industries adopt AI-powered systems.
A Cautionary Tale or a Visionary Move?
Dukaan’s story is a microcosm of the larger AI revolution. It demonstrates the undeniable benefits of automation—cost savings, efficiency, and enhanced customer experiences—but also highlights the potential downsides, particularly the impact on human workers.
As businesses increasingly integrate AI into their operations, they’ll need to answer tough questions: How can we ensure displaced employees are supported? What limits should be placed on automation to protect the human element of work? And perhaps most importantly, how can we build systems that prioritize not just profit, but also ethical responsibility?
In the end, the Dukaan experiment isn’t just about one company’s success. It’s a case study in what happens when innovation challenges traditional notions of work—and it serves as a wake-up call for businesses, governments, and workers alike to prepare for the future of a world reshaped by AI.
