Dukaan CEO cops backlash for post announcing layoffs: ‘Stunning lack of empathy

bnew

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Dukaan CEO cops backlash for post announcing layoffs: ‘Stunning lack of empathy’​

Dukaan founder and CEO Suumit Shah revealed that 90% of the company’s support staff has been laid off after the introduction of an AI chatbot to answer customer support queries.​

SANYA JAIN

JULY 11, 2023 / 04:06 PM IST

Suumit Shah

Suumit Shah, founder and CEO of Dukaan​



Dukaan, a DIY platform that allows merchants with zero programming experience to set up their own e-commerce store, has become the latest company to axe part of its human workforce due to AI.

Dukaan founder and CEO Suumit Shah revealed that 90% of the company’s support staff has been laid off after the introduction of an AI chatbot to answer customer support queries. In a Twitter thread shared Monday, Shah explained that resolution time went down to 3 minutes and 12 seconds from the previous 2 hours and 13 minutes after the introduction of Dukaan’s own AI assistant.


“We had to layoff 90% of our support team because of this AI chatbot,” Shah wrote, branding it a “tough” but “necessary decision.”

Asked if the laid-off staff were provided with any assistance, he brushed off the query saying further details on layoffs would be revealed in his upcoming LinkedIn post.

“As expected, 'someone' will get offended on behalf of 'someone else', so I had this reply ready: Assistance ke bare mein jab Linkedin pe post karunga tab dekh lena mere dost, yahaan Twitter pe log ‘profitability’ dekhte hai ‘sympathy’ nahi,” he wrote.

“Also – ‘it was tough decision’” he added with a heartbreak emoji – emphasis on “tough decision” was his own, not ours.



Instead of answering questions about the layoffs, Shah wrote a lengthy explanation of how the AI chatbot came into being and how it has helped Dukaan customers.

He said the company had long been struggling with customer support and the AI revolution seemed to him like an opportunity to fix the issue. The idea was to come up with “Dukaan's own AI assistant, which would answer customer queries instantly and precisely, anywhere,” he wrote.

Shah said that Dukaan Lead Data Scientist Ojasvi Yadav built a chatbot that could answer almost all common questions about Dukaan instantly and accurately. However, the bot struggled with answering account-specific questions like “why has my payout been pending for 2 days?”

“A day later, he came up with another demo and this time bot answered both generic as well as account-specific questions, instantly,” wrote the CEO of Dukaan.



The chatbot, named Lina, has marked over 1400 support tickets as resolved – but that was only the beginning of Dukaan’s AI revolution, says Shah.

Since then, the company has come up with a platform that gives each users their own AI assistant. “Imagine having your own AI assistant, who knows your business inside out & can answer customer queries instantly, 24/7. And not just generic queries but queries that are user/account specific,” the CEO wrote in describing this platform.

Nearing the end of his thread, Shah said that Dukaan is hiring for multiple roles in AI, product design and e-commerce.


However, the CEO of Dukaan has copped backlash for his thread which many criticised as “insensitive” – especially for his response to a Twitter user’s query aboout assistance provided to laid off employees.



“I pity the people who work with you. Also happy for people who got fired because they no longer have to work with you,” wrote one person. “Shameless. Insensitive. Toxic. Non-chalant reply,” another said.
 

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An e-commerce CEO is getting absolutely roasted online for laying off 90% of his support staff after an AI chatbot outperformed them​

Kai Xiang Teo
Jul 12, 2023, 4:46 AM EDT

man getting laid off and waving goodbye

An e-commerce CEO is getting absolutely roasted online for laying off 90% of his support staff, replacing them with an AI chatbot. andresr/Getty Images
  • Suumit Shah, the CEO of the e-commerce platform Dukaan, laid off 90% of his support staff, replacing them with an AI chatbot.
  • He shared on Twitter that the new chatbot reduced customer support costs by 85%.
  • His posts sparked an online backlash, with one commentator summing it up as "how not to announce layoffs."

The CEO of an e-commerce platform is getting absolutely roasted online for posting a Twitter thread saying the company laid off 90% of its customer support staff after an AI chatbot outperformed them.

Suumit Shah, the 31-year-old CEO of Duukan, a Bengaluru-based company that helps businesses set up their online storefronts, first shared the news on a Twitter thread on 11 July.

"We had to layoff 90% of our support team because of this AI chatbot. Tough? Yes. Necessary? Absolutely," Shah wrote in a thread that's been viewed over 1.5 million times since being posted.


{full twitter thread}
In the thread, Shah wrote that an AI chatbot took less than two minutes to respond to customer queries, while his human support staff took over two hours.

Replacing most of his customer support team with a chatbot reduced customer support costs by around 85%, he wrote.

Shah told Insider the layoffs occurred in September 2022 and resulted in Duukan — which currently employs 60 people — letting go of 23 of the 26 members of its customer support team. In a conversation on Wednesday, Shah said his "monthly budget" for customer support is now $100. Insider could not independently verify these figures.

But Twitter and Reddit users aren't buying the explanation. As of press time, more than 600 Twitter users had quoted his tweet, with the vast majority being critical of Shah and Duukan.

Twitter user @adityarao310, whose tweet had accumulated more likes than Shah's own, posted: "Make no mistake. The support team was laid off here because business is failing and funding is dry. Not because of AI."

Another user, @samikshagoel20, shared Shah's tweet, writing: "How not to announce layoffs."



Meanwhile, Reddit user u/kakapoopoopeepeeshir commented in a thread on Tuesday: "I'm terrified of the future where we will never speak to a human again in customer support which means we will never get a problem solved, you'll just be passed around between bots."

Responding to the online backlash, Shah told Insider that he regretted kicking off a conversation about layoffs on Twitter but was adamant that his point still stands. "AI is taking our jobs," he said.

"Over time, everybody will start doing this. It's not just us. Maybe I'm just too straightforward to have put it on Twitter," Shah added.

Dukaan is far from the first company to announce lay-offs as a result of AI, a trend which is likely to continue, according to a May report by human resources firm Challenger, Gray, and Christmas.

In May, Insider reported on another set of layoffs that sparked similar outrage when the US National Eating Disorder Association laid off its entire helpline staff and replaced them with a chatbot. Soon after, the chatbot was disabled for giving out harmful information on eating disorders.
 

KingTut

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Call center jobs about to get annihilated in the US within the next two years. Some US cities are going to end up looking like refugee camps with the amount of homelessness customer support job losses are going to cost :francis:
 
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