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By cutting customer service by 90%, the company reduced costs by 85%, accelerated responses to seconds, and even began 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 Dukaan company and mass replacement
In December 2022, Suumit Shah, CEO of Dukaan, an Indian e-commerce company, took a drastic decision: replaced 90% of its customer service team with a chatbot called Lina. The goal? To reduce costs and offer faster, more efficient service. The decision generated controversy, but the results were not long in coming.
Responses to customers, which previously took almost two minutes, became instantaneous. The time to resolve issues dropped from two hours to just three minutes. And, most notably, the department's costs were reduced by 85%.
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While the move was a success from an operational perspective, it was a difficult decision. Laying off an entire team raises ethical and social concerns. However, Shah believes AI can be a powerful ally in modern business. He has even started marketing the Lina chatbot to other companies, reinforcing the idea that automation can be an effective, but not universal, solution.
How Swedish fintech innovated with AI
Another company that followed suit was Klarna, a Swedish fintech. They laid off 700 employees and replaced their roles with AI solutions. The company further reduced its workforce over time, claiming that the results were superior.
Sebastian Siemiatkowski, CEO of Klarna, said that AI not only replaced repetitive tasks, but also brought agility to operations, something essential in competitive financial markets.
While the company has hired some engineers to maintain the infrastructure, the number of layoffs has been significant. This approach raises the question: what will the future hold for jobs that can be automated?
AI as a productivity tool
Companies like Dukaan and Klarna are showing how AI can be used to dramatically cut costs while improving service quality. According to the World Economic Forum, industries like 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, which means it cannot be applied indiscriminately in all areas.
The future of the job market with AI
Replacing people with machines raises legitimate concerns about the future of work. Less-skilled workers may struggle to adapt, increasing the need for mass reskilling.
Big tech companies like Amazon and Microsoft are investing heavily in AI, but usually as a support, not a total replacement. This hybrid approach could 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 they are the people who give soul to companies.
