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With 90% Cuts in Customer Service, the Company Reduced Costs by 85%, Accelerated Responses to Seconds, and Even Started Selling Its AI to the Market.
Have you ever imagined a company laying off almost an entire department and still improving its results? It sounds like something out of a futuristic movie, but it’s reality. Artificial intelligence (AI) is radically changing the way businesses operate, transforming costs and productivity. But is this revolution really as advantageous as it seems?
A Radical Example: The Company Dukaan and Mass Replacement
In December 2022, Suumit Shah, CEO of Dukaan, an Indian online commerce company, made a drastic decision: he replaced 90% of his customer service team with a chatbot named Lina. The goal? To reduce costs and provide faster and more efficient service. The choice sparked controversy, but the results were swift.
Responses to customers, which used to take nearly two minutes, became instantaneous. The time to resolve issues dropped from two hours to just three minutes. And, what stood out the most: the department’s cost was reduced by 85%.
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Although the change has been a success from an operational standpoint, it was a difficult decision. Laying off an entire team raises ethical and social questions. However, Shah believes AI can be a powerful ally in modern business. He even started marketing the chatbot Lina to other companies, reinforcing the idea that automation can be an efficient solution, but not always universal.
How the Swedish Fintech Innovated with AI
Another company that followed the example was Klarna, a Swedish fintech. They laid off 700 employees and replaced their roles with AI solutions. The company reduced its workforce even further over time, claiming that the results were superior.
Sebastian Siemiatkowski, CEO of Klarna, stated that AI not only replaced repetitive tasks but also brought agility to operations, something essential in competitive financial markets.
While the company hired a few engineers to maintain the infrastructure, the number of layoffs was significant. This approach raises the question: what will be the future of roles that can be automated?
AI as a Productivity Tool
Companies like Dukaan and Klarna demonstrate how AI can be used to drastically cut costs while simultaneously improving the quality of service. According to the World Economic Forum, sectors such as technology, finance, and customer service are the most susceptible to automation.
However, not everything can be automated. Some roles require empathy, creativity, and human judgment. As Shah pointed out, AI is highly specialized, meaning it cannot be applied indiscriminately across all areas.
The Future of the Job Market with AI
The replacement of people with machines raises legitimate concerns about the future of work. Less skilled professionals may struggle to adapt, increasing the need for mass reskilling.
Large tech companies like Amazon and Microsoft are heavily investing in AI, but typically as support, not as total replacements. This hybrid approach may be a more balanced solution, allowing humans and machines to work together to achieve better results.
The AI revolution is just beginning, and companies that know how to use it strategically will have a significant competitive advantage. However, it is essential to find a balance between innovation and social responsibility. After all, machines can be efficient, but it is the people who give soul to companies.
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