Zoho founder Sridhar Vembu says AI is making the risk of job losses more real; warns of painful economic transition

Zoho founder Sridhar Vembu has warned that artificial intelligence (AI) could significantly change the job market, saying one skilled person using AI could perform work that previously required 10 people. In a post on X (formerly Twitter), Sridhar Vembu said the risk was becoming increasingly real for people whose jobs involve working on computers, although he clarified that this does not mean 90% of such workers will become unemployed. “Any job performed on the computer has this risk now: one smart person using AI can perform the work of 10 people. The risk is getting ever more real,” Vembu wrote.In the post, he further stated that the growing capabilities of AI could lead to a major shift in how work is distributed across the economy. According to him, while some companies may need fewer employees to perform existing tasks, others could begin hiring for work they previously could not afford.However, Vembu clarified that higher productivity does not automatically mean that most workers will lose their jobs. He pointed out that the economic impact could be more complex, with changes in demand creating new opportunities alongside the risk of job losses.Why AI may not eliminate 90% of jobsExplaining his view, Sridhar Vembu said industries that previously could not afford to hire software engineers or digital marketers might now be able to do so because AI could make their work more affordable.For instance, a small business that could not justify the cost of hiring a dedicated software engineer might find it easier to invest in software development when AI-assisted work reduces the time and resources required.Similarly, businesses that previously lacked the budget for digital marketing services could begin hiring professionals to help them reach customers.“This does not mean 90% of people working on a computer will have no work at all,” he said adding “Industries that previously could not afford to hire software engineers or digital marketers could afford them now, for example”.Zoho founder urges workers to prepare for AI's impactSridhar Vembu described the likely outcome as a rebalancing across the economy, warning that the adjustment could be difficult for people whose jobs and skills are affected.As businesses adopt AI, the demand for certain tasks could decline while other skills and services become more valuable. Workers may need to adapt to changing job requirements, while companies could restructure teams and reconsider their hiring needs.The transition could also create challenges for people who need to learn new skills or move into different roles to remain competitive. Concluding his post, Vembu said accepting that the change is coming and preparing for it is the only way forward.“What it does mean is a rebalancing across the economy and that is painful when we go through it. The only thing we can do is to accept that it is coming and be prepared for it,” he wrote.You use AI every day. Now get your AI Quotient. Take the AIQ test.