Outlook Business Desk
AI chatbots are increasingly replacing customer-service roles in India. Startups like LimeChat automate routine tasks, helping businesses cut staffing costs by up to 80%, the company stated, as reported by Reuters, while still maintaining human-like interactions with customers.
AI-focused startups are seeing rapid growth. LimeChat’s revenue jumped from $79,000 in 2022 to $1.5 million in 2024, according to a Reuters report, integrating advanced language models to handle complex queries, showing growing demand for automated solutions in India’s IT and customer-service sectors.
Companies are now adopting AI agents to replace human staff. LimeChat stated that one AI agent costs roughly the same as three customer-support employees and can manage multiple tasks at once, allowing businesses to scale efficiently without extra hiring.
Automation is causing job insecurity for many workers. Current and former customer-service employees report being replaced by AI, including staff handling routine queries, call monitoring, and data management, reflecting a shift in employment patterns and the need for workforce reskilling.
India’s government remains optimistic about AI, highlighting productivity gains and new jobs. However, experts warn that limited planning and weak social security could leave workers in business process management and call centres vulnerable amid accelerating AI adoption.
Hyderabad-based institutes are pivoting to AI training. Previously teaching Java and Microsoft Office, they now offer courses in AI data science and prompt engineering, equipping students with skills for emerging automation and AI-driven job opportunities in India’s IT sector.
Despite AI adoption, human interactions remain preferred. An August 2024 EY survey found 78% of Indian consumers still value human support, though AI recommendations influence purchases. Businesses must balance automation efficiency with maintaining customer satisfaction.
India’s position as a global outsourcing hub faces disruption. AI adoption threatens revenue in call centres and back-office operations, potentially affecting young graduates entering the IT workforce, while creating new opportunities for AI engineers and automation specialists.
India is betting on becoming an “AI factory,” transitioning from traditional outsourcing to automation-led growth. Startups and large firms are leveraging AI to scale operations, signaling a major shift in the IT sector and a need for workforce adaptation to emerging AI-driven roles.