Zoho’s Sridhar Vembu Says AI’s Threat Is Economic Distribution, Not Job Loss
AI

As global discourse around artificial intelligence (AI) continues to focus on potential job displacement, Zoho Corporation co-founder and CEO Sridhar Vembu has offered a contrarian yet grounded perspective. Speaking to media on the evolving nature of work and technology, Vembu stated that the real risk posed by AI is not the loss of employment but the concentration of economic power and wealth that AI could potentially reinforce.

This outlook diverges from the mainstream narrative that increasingly frames AI as a disruptive force threatening mass job elimination. According to Vembu, while AI will change the way people work, it does not necessarily mean jobs will disappear. Instead, he emphasized that “equitable access to technology” and its benefits should be the central concern.

AI as a Tool for Augmentation, Not Replacement

Vembu, whose company Zoho is known for building a globally competitive suite of enterprise software from India, argued that automation and AI are largely augmentative tools. These technologies, he said, allow humans to shift their focus from repetitive tasks to more creative and strategic pursuits.

“The issue is not that AI will wipe out jobs,” Vembu said. “The deeper question is how the economic gains from AI are distributed. If a small number of companies or nations control this power, inequality will deepen.”

This concern reflects growing global apprehension that AI advancements could consolidate control within a limited group of corporations, thereby excluding smaller players and developing economies from its benefits.

Democratising AI Development

Vembu also reiterated Zoho’s commitment to in-house technology development, including AI models trained and optimized locally. He stated that the company is working to reduce dependency on third-party models and cloud infrastructure, allowing for more cost-effective and secure use cases—particularly for small and medium-sized enterprises (SMEs).

By building AI capabilities internally, Vembu believes Zoho can maintain data privacy, user control, and cost efficiency, which in turn supports a more inclusive digital ecosystem.

This strategy reflects a broader trend in India’s software industry, where companies are increasingly looking to localize AI capabilities rather than relying exclusively on global cloud-based APIs or platforms.

Emphasis on Rural Employment and Distributed Work

A longstanding advocate for rural empowerment, Vembu also spoke about the importance of decentralized workforces. He highlighted Zoho’s unique operational model, which includes rural development centers across Tamil Nadu and other parts of India.

“We don’t believe in centralizing our operations in metros,” he said. “We want to bring meaningful employment to places where it traditionally didn’t exist.”

Zoho has been employing and training talent in non-urban regions, thereby integrating economic opportunity with technological advancement. Vembu believes this approach is key to addressing the urban-rural divide that often accompanies digital transformation.

The Need for Policy Interventions

While optimistic about the potential of AI to enhance productivity, Vembu emphasized the need for thoughtful policy. He called on governments to create frameworks that ensure open access to technology, ethical use of AI, and the prevention of monopolistic behavior.

“There should be safeguards to ensure no single entity has unchecked control over AI infrastructure,” he added. “And governments must invest in public digital infrastructure that empowers smaller players.”

Vembu’s statements come at a time when global leaders are debating the ethical implications of AI and drafting regulatory policies to address fairness, transparency, and data protection.

Industry Context

The commentary arrives amid increasing focus on India’s AI readiness. With multiple government initiatives such as IndiaAI Mission and growing startup activity in the space, AI adoption is accelerating across sectors including education, healthcare, retail, and governance.

However, concerns remain around data access, affordability, and skill gaps. Vembu’s emphasis on inclusive development aligns with efforts to ensure that AI growth in India doesn’t mirror the concentration patterns seen in developed markets.

Conclusion

Sridhar Vembu’s perspective adds nuance to the ongoing conversation around AI’s role in the future of work. Rather than viewing AI as a purely disruptive force, he positions it as a catalyst that—if distributed equitably—can enhance productivity while supporting decentralized growth.

By advocating for democratized access, rural engagement, and policy safeguards, Vembu outlines a vision of AI development that is not only technologically advanced but also socially responsible.

As India continues to define its AI trajectory, such voices may shape how the country balances innovation with inclusion.