CEO replaces 90% of support staff with AI chatbot, calls layoffs ‘necessary’

Dukaan, an Indian tech startup, has slashed its support staff by 90 per cent after integrating an artificial intelligence (AI) chatbot into its operations.

In a Twitter post, Suumit Shah, founder and CEO of the Bangalore-based e-commerce company, said the layoffs were “tough”, but “necessary.”

We had to layoff 90% of our support team because of this AI chatbot.

Tough? Yes. Necessary? Absolutely.

The results?

Time to first response went from 1m 44s to INSTANT!
Resolution time went from 2h 13m to 3m 12s
Customer support costs reduced by ~85%

Here’s how’s we did it 🧵

— Suumit Shah (@suumitshah) July 10, 2023

“Given the state of economy, startups are prioritizing ‘profitability’ over striving to become ‘unicorns,’ and so are we. It’s less magical, sure, but at least it pays the bills,” Shah said in a reply to his tweet.

“Customer support had been a struggle for us [and] fixing it felt like an opportunity to me.”

In response to backlash he received from other Twitter users, Shah noted that Dukaan is hiring for “multiple roles.”

According to the company’s website, the openings include positions in sales, marketing, and engineering.

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Dukaan’s LinkedIn page claims that the company employs a total workforce of more than 270 people.

With a growing number of businesses looking to integrate artificial intelligence into their operations, it’s important for non-unionized workers in Canada to understand their rights if their employer decides to replace them with AI.

Can I be fired and replaced with artificial intelligence?

Employers in Canada can fire non-unionized workers and fill their position with AI — even if they are effectively performing the duties of the job.

This is called a termination without cause. You can be let go for any reason, as long as:

• You are provided full severance, which can be as much as 24 months’ pay
• The reasons for your dismissal aren’t discriminatory

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

However, it’s very unlikely that your boss would be able to fire you for cause — meaning no severance package or access to Employment Insurance (EI) benefits.

Considered the harshest punishment in a company’s arsenal, it’s reserved for the worst kinds of workplace offences, such as blatant disobedience, theft, or assault.

To justify terminating you for cause, your employer would have to prove progressive disciplinary measures were applied and that a lesser penalty wouldn’t be suitable, which is very hard to do.

LEARN MORE
• How to calculate severance pay
• Severance for provincially regulated employees
• Rights to severance for federally regulated employees

How can I determine if reasons for my dismissal were discriminatory?

In Canada, reasons for terminating a non-unionized employee are considered discriminatory when they infringe on a protected ground under federal or provincial human rights legislation.

Examples of protected grounds include:

• Age
• Race
• Gender
• Religion
• Family status

While recent advancements in AI, such as ChatGPT, are providing companies with new ways to improve productivity, the implementation of technological solutions at work can’t violate the human rights of staff.

If you are fired or let go, and believe that a reason for your dismissal was discriminatory, contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

We can help you secure the compensation you are entitled to through a wrongful dismissal claim as well as a human rights complaint.

SEE ALSO
• Can I get my job back after I am fired?
• Former Vancouver Canucks staffer alleges discrimination, wrongful dismissal
• Alberta admin assistant awarded nearly $40K in discrimination case

Filing a human rights complaint

Non-unionized employees in Canada have the right to work in an environment that is free of harassment and discrimination.

If you do experience discrimination at work, you can file a human rights complaint.

The Human Rights Tribunal of Ontario, Alberta Human Rights Commission, and B.C. Human Rights Tribunal, are examples of organizations that are responsible for dealing with complaints pertaining to their province’s human rights legislation.

Successful complaints can result in compensation, and even reinstatement, for the individual who experienced discrimination.

My boss is pressuring me to quit so AI can do my job instead, what should I do?

No matter how badly your employer wants to replace you with artificial intelligence, the company can’t pressure or force you to resign.

If your boss is influencing you to step down, document their attempts. Keep any letters, emails, or text messages that show how your employer is pressuring you to quit your job.

Once you have gathered all of the relevant documents, don’t resign before contacting our firm. You might have grounds for a constructive dismissal claim.

If you were forced to resign for any reason, reach out to an experienced employment lawyer at Samfiru Tumarkin LLP.

In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.

SEE ALSO
• Severance pay in a recession
• Employment Law Show: Facts about forced resignations

Can my employer punish me if I refuse to resign from my position?

In Canada, employers can’t punish or threaten to punish non-unionized workers for asserting their workplace rights.

• Example: You are a content writer at a marketing agency. One day, your boss informs you that the company plans to use a new AI platform to produce content and asks you to resign. If you refuse to quit, the company can’t make substantial changes to your job as punishment. Major modifications, such as a demotion, workload increase, or reduction in pay, are illegal in Canada.

If your boss disciplines you or threatens to discipline you for asserting your rights, that is a reprisal and you should contact Samfiru Tumarkin LLP immediately.

ADDITIONAL RESOURCES
• Changes to your employment in Ontario
• Job changes in B.C.: Your rights
• Can my employer change my job in Alberta?

My employer offered me an alternate role working with the AI, what should I do?

Some jobs can’t be completely replaced by artificial intelligence. Instead of firing you, your employer might offer you a new job supervising or assisting the technology.

If you are offered an alternate role at the company, this will likely include:

• A new employment contract
• Something additional in exchange for taking the new job (i.e. greater work flexibility or a signing bonus)

When non-unionized employees in Canada have a good reason for rejecting a new job (i.e. reduced pay or unfavourable conditions in the contract), they can still receive full severance pay.

Even if an individual doesn’t have a good reason for refusing the alternate role, they can still pursue their minimum entitlements at the end of their employment.

LEARN MORE
• New job? How an employment contract could limit your rights
• Employment Law Show: 5 facts about employment contracts

Instead of accommodating my disability, my boss replaced me with AI, what should I do?

In Canada, employers are legally obligated to assist non-unionized workers who can’t perform their job duties due to a disability (either physical or psychological), religious reasons, or other constraints under federal or provincial human rights legislation.

As part of their duty to accommodate, companies may have to:

• Change your job requirements
• Provide someone to help you complete your tasks
• Make changes to the shift itself

The goal is to ensure that you can continue to perform your job duties, despite your disability. Your employer can’t get out of their duty to accommodate by having artificial intelligence do your job instead.

If you believe that your company hasn’t properly fulfilled their duty to accommodate, contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We can review your situation and help you secure the compensation that you are entitled to through a constructive dismissal claim.

LEARN MORE
• Employment Law Show: Duty to accommodate in Canada
• Disability in the workplace
• Long-term disability claims: Your rights

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason, or believe that your human rights have been violated, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.