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A CEO Laid Off 90% of Support Staff, Replacing Them With an AI Chatbot

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A CEO Laid Off 90% of Support Staff, Replacing Them With an AI Chatbot
  • Suumit Shah, the CEO of the e-commerce platform Dukaan, laid off 90% of his support staff, replacing them with an AI chatbot. 
  • He shared on Twitter that the new chatbot reduced customer support costs by 85%.
  • His posts sparked an online backlash, with one commentator summing it up as “how not to announce layoffs.”

The CEO of an e-commerce platform is getting absolutely roasted online for posting a Twitter thread saying the company laid off 90% of its customer support staff after an AI chatbot outperformed them.

Suumit Shah, the 31-year-old CEO of Duukan, a Bengaluru-based company that helps businesses set up their online storefrontsfirst shared the news on a Twitter thread on 11 July.

“We had to layoff 90% of our support team because of this AI chatbot. Tough? Yes. Necessary? Absolutely,” Shah wrote in a thread that’s been viewed over 1.5 million times since being posted. 

 

In the thread, Shah wrote that an AI chatbot took less than two minutes to respond to customer queries, while his human support staff took over two hours.

Replacing most of his customer support team with a chatbot reduced customer support costs by around 85%, he wrote.

Shah told Insider the layoffs occurred in September 2022 and resulted in Duukan — which currently employs 60 people — letting go of 23 of the 26 members of its customer support team. In a conversation on Wednesday, Shah said his “monthly budget” for customer support is now $100. Insider could not independently verify these figures.

But Twitter and Reddit users aren’t buying the explanation. As of press time, more than 600 Twitter users had quoted his tweet, with the vast majority being critical of Shah and Duukan.

Twitter user @adityarao310, whose tweet had accumulated more likes than Shah’s own, posted: “Make no mistake. The support team was laid off here because business is failing and funding is dry. Not because of AI.”

Another user, @samikshagoel20, shared Shah’s tweet, writing: “How not to announce layoffs.”

Meanwhile, Reddit user u/kakapoopoopeepeeshir commented in a thread on Tuesday: “I’m terrified of the future where we will never speak to a human again in customer support which means we will never get a problem solved, you’ll just be passed around between bots.”

Responding to the online backlash, Shah told Insider that he regretted kicking off a conversation about layoffs on Twitter but was adamant that his point still stands. “AI is taking our jobs,” he said.

“Over time, everybody will start doing this. It’s not just us. Maybe I’m just too straightforward to have put it on Twitter,” Shah added.

Dukaan is far from the first company to announce lay-offs as a result of AI, a trend which is likely to continue, according to a May report by human resources firm Challenger, Gray, and Christmas.

In May, Insider reported on another set of layoffs that sparked similar outrage when the US National Eating Disorder Association laid off its entire helpline staff and replaced them with a chatbot. Soon after, the chatbot was disabled for giving out harmful information on eating disorders.



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EU wants to know how Meta tackles child sex abuse

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The investigation is the first step in procedures launched under the EU's new online content law known as the Digital Services Act

The investigation is the first step in procedures launched under the EU’s new online content law known as the Digital Services Act – Copyright AFP Kirill KUDRYAVTSEV

The EU on Friday demanded Instagram-owner Meta provide more information about measures taken by the company to address child sexual abuse online.

The request for information focuses on Meta’s risk assessment and mitigation measures “linked to the protection of minors, including regarding the circulation of self-generated child sexual abuse material (SG-CSAM) on Instagram”, the European Commission said.

Meta must also give information about “Instagram’s recommender system and amplification of potentially harmful content”, it added.

The investigation is the first step in procedures launched under the EU’s Digital Services Act (DSA), but does not itself constitute an indication of legal violations or a move towards punishment.

Meta must respond by December 22.

A report by Stanford University and the Wall Street Journal in June this year said Instagram is the main platform used by paedophile networks to promote and sell content showing child sexual abuse.

Meta at the time said it worked “aggressively” to fight child exploitation.

The commission has already started a series of investigations against large digital platforms seeking information about how they are complying with the DSA.

It has sought more information from Meta in October about the spread of disinformation as well as a request for information last month about how the company protects children online.

The DSA is part of the European Union’s powerful regulatory armoury to bring big tech to heel, and requires digital giants take more aggressive action to counter the spread of illegal and harmful content as well as disinformation.

Platforms face fines that can go up to six percent of global turnover for violations.

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The North Face Delivered Jacket Via Helicopter After Viral TikTok Complaint

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The North Face Delivered Jacket Via Helicopter After Viral TikTok Complaint

  • Popular apparel brand The North Face posted a crazy marketing stunt on TikTok recently. 
  • In a video, they delivered a rain jacket to a woman at the top of a mountain in New Zealand via helicopter. 
  • The woman had complained in a viral TikTok that her waterproof jacket got soaked in the rain. 

The North Face pulled an elaborate marketing stunt on TikTok and delivered some rain gear via helicopter to a woman in New Zealand, whose complaint about the brand went viral on the platform. 

Jenn Jensen posted a TikTok video on November 17 showing herself on a hiking trail in the rain where she’s soaked whilst wearing a rain jacket sporting The North Face logo. 

“I’ve got a bone to pick with North Face,” Jensen says in the video which has racked up over 11 million views. “I bought this ‘rain jacket’ a couple of days ago and the tag for the advertising said that it’s waterproof. Well listen, I’m 100% sure that it’s raining outside and I’m soaking wet.” 

She added: “Listen… I don’t want a refund. I want you to redesign this rain coat to make it waterproof and express deliver it to the top of Hooker Valley Lake in New Zealand where I will be waiting.” 

She tagged The North Face’s TikTok page in her caption. In one comment a user named @timbrodini wrote: “*Northface has left the conversation.” 

The popular outdoor clothes brand made their own TikTok video in response to @timbrodini’s comment in which they said: “We were busy express delivering @Jenn her jacket at the top of mountain.”

In the TikTok video, a North Face employee can be seen grabbing a red jacket from one of its physical stores and then hopping onto a helicopter where he’s flown out to New Zealand. The man then jumps out of the helicopter at the top of the mountain and runs out to throw the jacket to Jensen who is waiting. 

She says “thank you” at the end of the video, which has also gone viral and gained 4.1 million views. 

Jensen then made a follow up video on her page explaining that The North Face’s marketing team saw her video and wanted to make “amends.” She said they flew her out by helicopter to the top of a mountain in New Zealand to give her new rain gear. 

“At this point the ultimate test will be if the new rain gear they gave me at the top of that mountain will hold up to the very high bar that North Face has now set for themselves,” she concluded at the end of the video. 

Some users speculated whether her original video was also a part of the marketing stunt but Jensen responded that she “turned down” the opportunity to be paid for the company’s follow up video. 

“I’m not an influencer, I was just a disappointed customer.” 

The marketing strategy appears to be a new way for brands to connect with customers by showing their care whilst also providing an entertaining video on social media. 

The North Face seems to be following the steps of the Stanley cup brand which recently went viral after gifting a woman a new car. The woman’s own car had burnt down, but in a TikTok video she showed that her insulated Stanley cup had survived the car fire and that the ice inside hadn’t even melted. 



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U.S. Judge Blocks Montana’s Effort to Ban TikTok in the State

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U.S. Judge Blocks Montana’s Effort to Ban TikTok in the State

TikTok has won another reprieve in the U.S., with a District Judge blocking Montana’s effort to ban the app for all users in the state.

Back in May, Montana Governor Greg Gianforte signed legislation to ban TikTok outright from operating in the state, in order to protect residents from alleged intelligence gathering by China. There’s no definitive evidence that TikTok is, or has participated in such, but Gianforte opted to move to a full ban, going further than the Government device bans issued in other regions.

As explained by Gianforte at the time:

The Chinese Communist Party using TikTok to spy on Americans, violate their privacy, and collect their personal, private, and sensitive information is well-documented. Today, Montana takes the most decisive action of any state to protect Montanans’ private data and sensitive personal information from being harvested by the Chinese Communist Party.”

In response, a collection of TikTok users challenged the proposed ban, arguing that it violated their first amendment rights, which led to this latest court challenge, and District Court Judge Donald Molloy’s decision to stop Montana’s ban effort.

Montana’s TikTok ban had been set to go into effect from January 1st 2024.

In issuing a preliminary injunction to stop Montana from imposing a full ban on the app, Molloy said that Montana’s legislation does indeed violate the Constitution, and “oversteps state power”.

Molloy’s judgment is primarily centered on the fact that Montana has essentially sought to exercise foreign policy authority in enacting a TikTok ban, which is only enforceable by federal authorities. Molloy also noted that there was apervasive undertone of anti-Chinese sentiment” within Montana’s proposed legislation.

TikTok has welcomed the ruling, issuing a brief statement in response:

Montana attorney general, meanwhile, has said that it’s considering next steps to advance its proposed TikTok ban.

It’s a win for TikTok, though the Biden Administration is still weighing a full TikTok ban in the U.S., which may still happen, even though the process has been delayed by legal and legislative challenges.

As I’ve noted previously, my sense here would be that TikTok won’t be banned in the U.S. unless there’s a significant shift in U.S.-China relations, and that relationship is always somewhat tense, and volatile to a degree.

If the U.S. Government has new reason to be concerned, it may well move to ban the app. But doing so would be a significant step, and would prompt further response from the C.C.P.

Which is why I suspect that the U.S. Government won’t act, unless it feels that it has to. And right now, there’s no clear impetus to implement a ban, and stop a Chinese-owned company from operating in the region, purely because of its origin.

Which is the real crux of the issue here. A TikTok ban is not just banning a social media company, it’s blocking cross-border commerce, because the company is owned by China, which will remain the logic unless clear evidence arises that TikTok has been used as a vector for gathering information on U.S. citizens.

Banning a Chinese-owned app because its Chinese-owned is a statement, beyond concerns about a social app, and the U.S. is right to tread carefully in considering how such a move might impact other industries.

So right now, TikTok is not going to be banned, in Montana, or anywhere else in the U.S. But that could still change, very quickly.



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