Daijiworld Media Network - Mumbai
Mumbai, Oct 15: Artificial intelligence is rapidly reshaping India’s information technology landscape, with startups like LimeChat leading a new wave of automation that threatens to upend the country’s customer service and back-office industries.
At LimeChat’s Bengaluru office, developers are refining AI chatbots capable of handling thousands of customer interactions with human-like precision. The company claims its generative AI systems can reduce manpower requirements by up to 80%, significantly cutting operational costs for businesses.
“Once you hire a LimeChat agent, you never have to hire again,” said Nikhil Gupta, the company’s 28-year-old co-founder.
For decades, India’s low-cost labour and English-speaking workforce made it the world’s back office. But the rise of automation is now displacing jobs once considered secure. According to industry data, the business process management sector, which employs 1.65 million people, has seen a sharp slowdown in hiring due to increasing adoption of AI-driven tools.
Many employees, particularly in call centres and customer-support roles, are facing layoffs. Megha S., a former customer-service worker, said she lost her job last month after her company introduced AI tools to review calls. “I was told I am the first one replaced by AI,” she said.
Despite concerns, the Indian government remains optimistic. Prime Minister Narendra Modi has stated that technology will not eliminate work but change its nature. However, experts have urged the government to introduce social security measures, such as unemployment benefits, to support workers during this transition.
Industry projections suggest India’s call centre revenues could drop by 50% over the next five years due to AI adoption. Yet, this shift is also giving rise to new opportunities in AI engineering and automation deployment, potentially positioning India as a global AI hub.
Companies like LimeChat and Reliance-owned Haptik are already benefiting from this technological shift. LimeChat’s revenue surged from $79,000 in 2022 to $1.5 million in 2024, while Haptik recorded nearly $18 million in revenue last year.
Major Indian brands such as Mamaearth and Kapiva have integrated AI chatbots into their customer service systems, capable of answering complex queries, recommending products, and handling complaints — all without human intervention.
Meanwhile, in Hyderabad’s Ameerpet, traditional IT training institutes are introducing courses in AI data science and prompt engineering, as demand for skilled AI professionals continues to rise.
Industry veteran Pramod Bhasin, who pioneered India’s call centre revolution in the 1990s, said, “The biggest impact will be on young graduates, but in time, India could evolve from being the back office of the world to its AI powerhouse.”
As India accelerates into an AI-driven future, the nation stands at a defining moment — one that will determine whether automation becomes its greatest opportunity or its toughest challenge.