India's customer service sector at risk as AI bots replace human workforce

Fresh wave of AI is transforming India’s £230 billion IT sector, which contributes 7.5% to country’s economy
An undated image. — Adobe Stock
An undated image. — Adobe Stock

The notion that AI will soon replace human workers seems to have taken a real-life shape, as AI-assisted chatbots are replacing human staff at a startup in Bengaluru, where developers are teaching AI chatbots to chat and message just like humans.

By deploying chatbots, the primary objective of LimeChat, the Banglaru startup, is to make customer service roles nearly redundant.

LimeChat claimed that its AI can cut down the number of support staff by up to 80% for companies handling thousands of queries each month. “Once you hire a LimeChat agent, you never have to hire again,” said Nikhil Gupta, the co-founder of the company, Reuters reported.

While India has thrived as the world’s back office for years due to affordable labour and strong English skills, the rise of AI is now shaking things up. Voice assistants and chatbots are gradually taking over roles once held by headset-wearing graduates in call centres.

The disruptive development comes amid a huge boom in AI startups, offering businesses cheaper ways to scale, even though many customers still prefer speaking to real people.

Reuters spoke with dozens of insiders, from tech execs to former officials, and tested cutting-edge bots that handle customer service with surprising fluency.

The fresh wave of AI is transforming India’s £230 billion IT sector, which contributes 7.5% to the country’s economy.

Notwithstanding the replacement of the human workforce by AI bots, India continues to bet big on AI instead of slowing down, with hopes that it creates more jobs than it replaces.

However, critics are of the view that there’s no real plan to accommodate the millions of workers who could be left behind.