India’s AI Startups Reshape the Future of Customer Service
In a bustling startup office in Bengaluru, developers are perfecting artificial intelligence chatbots designed to communicate like humans. The company behind this innovation, LimeChat, has set its sights on transforming customer service. Its goal is bold — to make human support roles nearly redundant. According to the company, its generative AI agents can reduce the workforce needed to manage 10,000 monthly customer queries by up to 80%.
AI’s Expanding Role in India’s IT Sector
LimeChat’s co-founder, Nikhil Gupta, confidently told Reuters, “Once you hire a LimeChat agent, you never have to hire again.” His statement captures the spirit of India’s growing AI startup scene. For decades, India’s advantage in affordable labour and English fluency made it the world’s back office. Today, AI-powered tools are beginning to take over roles once filled by call centre staff and data specialists.
A Reuters investigation based on interviews with 30 industry figures — including executives, recruiters, and former officials — revealed how AI systems are transforming the country’s $283 billion IT sector. The study also included visits to two AI startups, where voice and text chatbots demonstrated their ability to manage complex, human-like conversations.
Balancing Progress and Job Security
Despite rising fears about automation, India is accelerating its adoption of AI technology. The government views it as a catalyst for growth rather than a threat to employment. Prime Minister Narendra Modi said earlier this year, “Work does not disappear due to technology. Its nature changes and new types of jobs are created.”
However, some experts remain sceptical. Santosh Mehrotra, a visiting professor at the University of Bath’s Centre for Development Studies, criticised the government for not addressing AI’s impact quickly enough. “There’s no gameplan,” he warned.
Business process management, which includes call centres, payroll, and data handling, employs 1.65 million workers. Yet, automation and digitalisation are slowing hiring rates. Neeti Sharma, CEO of staffing firm TeamLease Digital, noted that net job growth in the sector dropped sharply, from 177,000 in 2021–2022 to under 17,000 annually in the last two years.
Human Impact of Automation
For many workers, the shift is personal. Megha S., a 32-year-old former employee at a Bengaluru software firm, said she lost her job last month as her company adopted AI tools to monitor sales calls. “It happened just before the festive season,” she shared, highlighting the growing uncertainty facing India’s tech workforce.
As the global conversational AI market expands — expected to reach $41 billion by 2030 — India’s decision to embrace automation rather than resist it could define its economic future. Whether it becomes a success story or a cautionary example remains to be seen.
with inputs from Reuters
