Priyanka Tiwari
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Kunal Shah, the CEO of Cred, stated how AI impacts his firm by noting that its expansion and employee count remained constant for the past 2.5 to 3 years. “Our business has gone multi-fold but our headcount has remained flat for the last 2.5-3 years,” Shah remarked during the second Mumbai Tech Week.
Shah also said, “There simply isn’t enough work as an outcome everyone races to develop software, and then we end up infringing on each other’s markets, and our nation’s average income isn’t high enough to sustain this many organizations.” The company’s operational losses were brought down to Rs 609 crore this year from Rs 1,024 crore in the previous year – a 41% decrease. Cred has dramatically expended its revenue this fiscal year of 2023 by almost Rs 2,500 crores. Despite spending, Shah also stated that he expects AI will further reduce coding costs in the future.
Shah further explained, “Relatively speaking, being a new business is tough, since in FY21 Cred claimed to have less than Rs 100 crore in revenue.” Although Cred does not publicly disclose how many employees it has, LinkedIn reports they have roughly 2000 users claiming they work for the organization.
He further stated that while Cred continues to expand, they will start focusing on hiring “high-judgment people” instead of just people who can simply “work.” He elaborated that people have become more like robots nowadays who can reproduce automated work. And now, that AI is more prevalent, people who are taking the judgements no longer need lower level workers.
“We would like to focus more on high-judgement people in our company so that we can increase the workload assigned to them and the ideas we would want to implement when 2030 comes, we would like to think achieving those would be more feasible” Shah said.
Shah said there will be a huge impact on the job landscape as a consequence of AI. According to him, many jobs today, such as those in dermatology, customer service, and software engineering, may become obsolete because they can be easily replaced by AI.
As he puts it, the price of activities such as performing writing codes has significantly reduced from over 99% of the expenses. This means that professionals that are savvy enough to take advantage of AI will be 2-3x more productive and receive better pay.
There will be a favorable situation for upper-level professionals who already possess certain domain knowledge alongside proper judgment. A challenging situation will be faced by new entrants who are unwilling to quickly change their habits towards AI tools.
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