Sridhar Vembu warns of AI job risks

Artificial intelligence (AI) is rapidly transforming workplaces, raising questions about productivity, employment and the future of traditional job roles. Zoho founder Sridhar Vembu has now warned that AI tools could allow a single skilled employee to perform tasks that previously required a team of 10 people.

However, Vembu believes this development does not necessarily mean that most employees will lose their jobs. Instead, he expects AI to reshape the employment landscape, creating opportunities in industries that previously could not afford to hire specialised professionals.

“Any job performed on the computer has this risk now: one smart person using AI can perform the work of 10 people,” Sridhar Vembu wrote on X. “The risk is getting ever more real.”

AI could open doors to new industries

While the prospect of AI replacing human effort has raised concerns among employees, Vembu has urged people not to interpret higher productivity as an automatic threat to 90% of computer-based jobs.

“This does not mean 90 per cent of people working on a computer will have no work at all,” Vembu explained. “Industries that previously could not afford to hire software engineers or digital marketers could afford them now, for example.”

According to the Zoho founder, the broader impact could involve a “rebalancing across the economy.” As AI reduces the cost and time required to complete certain tasks, businesses that previously lacked the resources to employ specialised workers may be able to bring them on board.

However, Vembu acknowledged that the transition could be difficult for many workers and businesses.

“(It will be) painful when we go through it,” the Zoho chief added. “The only thing we can do is to accept that it is coming and be prepared for it.”

Vembu has previously predicted that AI could deliver a “10x or 100x productivity leap”, highlighting the scale of change he expects the technology to bring to workplaces.

Zoho adjusts to rising AI costs

Vembu's latest remarks come as Zoho undergoes an internal “overhaul” in response to advances in AI and automation. The company has also faced increasing expenses related to server memory and AI infrastructure.

To manage these rising costs, the homegrown software company cancelled employee appraisals for the year and reduced its marketing budget. Vembu had earlier explained the decision to employees.

“We have also told our employees that we cannot have our usual pay increase this year,” Sridhar Vembu said earlier.

Despite these measures, Vembu has maintained that Zoho is trying to avoid mass layoffs.

Companies rethink work in the AI era

Zoho is not the only company adapting to the changing workplace. Amazon, which recently cut 250 jobs, has introduced new expectations for software engineers working in the age of AI. Gaming companies, including Epic Games, are also encouraging employees to use AI tools.

As businesses increasingly adopt automation, employees may need to adapt their skills and workflows. Vembu's message is that the transition is becoming difficult to ignore, making preparation and adaptability increasingly important for workers across industries.

ABOUT THE AUTHOR

Kahekashan

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Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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