Dukaan Implements AI Chatbot, Resulting in Layoffs of 90% of Support Staff
Bangalore, 3rd August 2023: Dukaan, a DIY e-commerce platform catering to non-tech-savvy merchants, has recently implemented an AI-powered chatbot for customer support. As a consequence of this move, the company laid off 90% of its support staff. The announcement was made by Suumit Shah, the Founder, and CEO of Dukaan, via a tweet.
Shah explained that the AI chatbot significantly improved query resolution time, reducing it from 2 hours and 13 minutes to an impressive 3 minutes and 12 seconds. The decision to introduce Dukaan’s AI assistant aimed at enhancing customer support efficiency and reducing response time.
While the reduction in query resolution time is an achievement for the company, it came at the cost of laying off a substantial number of support staff. Shah acknowledged that the decision was tough but necessary to optimize operations. He mentioned that the AI implementation led to an 85% reduction in customer support costs.
In response to concerns about the laid-off employees, Shah stated that he would provide further details in a LinkedIn post. He also remarked that on Twitter, the focus tends to be on profitability rather than sympathy, emphasizing that it was a challenging but essential decision for the company.
Despite the layoffs, Dukaan is currently hiring for multiple roles in the fields of AI, E-commerce, and Product Design. Shah extended an invitation to passionate individuals to join their team, even jokingly mentioning a spot open for football star Lionel Messi, should he be interested.
The use of AI chatbots has become increasingly common across various industries, helping companies streamline operations and improve customer experiences. However, businesses must strike a balance between technological advancements and employee well-being, ensuring a smooth transition to AI integration with empathy and care.
