AI-related disruptions could cause another downturn: Zoho Corp

Sridhar Vembu, the Co-founder and CEO of Software as a service (SaaS) firm Zoho Corporation has called on the government to formulate a national policy on artificial intelligence. Speaking to CNBC-TV18, Vembu mentioned that AI-related disruptions could cause another downturn.

"It is probably one of the most uncertain environments right now. We do live in this massive earthquake zone called the global economy. We have handled and gone through big downturns. However, there is another dimension now that whole AI-related disruptions, where I expect software productivity to go up tenfold," Vembu said.

He added, "When you have 10x productivity in a sector, if revenues grow 10x with it, then employment can be even because you produce 10x more per worker, but you also sell 10x more so the prices are the same, and you can pay the workers all of that. And you can pay the workers 10x actually with that. But if revenues start not growing at the same rate, your revenue grew only 3x, but productivity is 10x then you have a problem."