Why is Zomato Cuts 600 Jobs?
The main reason behind the layoffs is the growing reliance of Zomato on AI-powered customer support. The company has introduced Nugget, a platform based on AI that now manages over 15 million conversations per month. Automation impacted the need for human intervention in customer support, and therefore the layoffs took place.
How AI Is Changing Customer Support
AI is revolutionizing the customer service profession for companies. Witness how Zomato’s AI-driven system is transforming all this:
Quick Response: AI can immediately answer repetitive questions from customers without delay.
24/7 Assistance: AI operates 24/7, unlike human agents, and provides round-the-clock assistance.
Cost Benefits: By reducing the need for a large workforce, companies save on operational costs.
Enhanced Accuracy: AI reduces human mistakes, thus resulting in increased customer satisfaction.
Effect on Employees
Though business is enhanced with AI efficiency, employment is the cost incurred. 600 employees who will be rendered jobless as a result of this change will have to reskill, maybe to AI and tech industries, so that they become employable in the labor market.
The Future of AI in Business
Zomato’s transition to AI is one of many such trends in the industry. Companies across the world are counting on automation to make things easy. But that raises a straightforward question: Will AI replace human work entirely?
Analysts are of the view that while AI will render certain mundane tasks useless, it will also generate new roles for job placement in AI development, data interpretation, and customer experience management.
Final Thoughts
Last Words Zomato laying off 600 employees in its AI push is a leap into the future of customer service. Automation is going to make it more efficient, but it does point to the need to adapt to newer technologies. As AI goes on to shake up the corporate world, adapting to newer skills will be the key to job security.
What are your thoughts on AI replacing human jobs? Let us know in the comments!
