Zoho's Sridhar Vembu says companies use AI to justify layoffs
Zoho founder Sridhar Vembu isn't convinced that AI is the big game-changer everyone says it is.
He thinks companies are using AI as an easy excuse for layoffs that are really about rising costs and tough economic times.
In a post on May 19, 2026, he warned this kind of talk just makes people more suspicious of AI, even though it could have real benefits.
Sridhar Vembu highlights developer productivity paradox
Vembu points out what he calls a "developer productivity paradox;" even with billions spent on fancy AI tools, companies aren't seeing major jumps in efficiency.
He also describes the current AI boom as an "investment bubble," where tech giants pump up startups that rely on their cloud services, making growth look bigger than it really is.
Vembu's take echoes recent doubts from leaders like Sam Altman and Jeff Bezos, who have softened earlier warnings about AI replacing jobs.