One AI user can do work of 10 people: Vembu
What's the story
Sridhar Vembu, the founder of enterprise software company Zoho, has raised concerns over the impact of artificial intelligence (AI) on computer-related jobs. In a post on X, Vembu suggested that one person using AI could eventually do the work of 10 people. However, he also emphasized that this technological advancement wouldn't leave the remaining workforce unemployed.
Job creation
New opportunities will emerge in different sectors
Vembu believes that while some jobs may be lost due to AI, new opportunities will emerge in different sectors.
He said, "Industries that previously could not afford to hire software engineers or digital marketers could afford them now."
This suggests that the technology could democratize access to specialized skills and open up new avenues for businesses with limited budgets for tech and digital services.
Business transformation
AI's impact on team structure and hiring
Vembu also highlighted how AI is changing the way businesses organize teams, hire employees, and distribute work.
He said, "Any job performed on the computer has this risk now: one smart person using AI can perform the work of 10 people."
This could lead to a reassessment of employee requirements for specific roles as smaller teams are able to handle more work with these tools.
Company response
Zoho's growth amid rising data-center costs
Despite the challenges posed by rising data center and AI costs, Vembu said Zoho's business is growing.
He also revealed that the company won't be giving its usual annual salary increases this year due to rising AI expenses, a fourfold increase in server prices, and an uncertain outlook for the software industry.
This highlights how tech companies are grappling with the dual pressures of high operational costs for AI systems and potential productivity gains from them.