In an era marked by accelerating automation and workforce anxieties, Sridhar Vembu, Co-founder and CEO of Zoho Corporation, has offered a contrarian but reassuring stance on the role of Artificial Intelligence (AI) in the IT sector. During a recent public statement, Vembu emphasized that AI, rather than replacing engineers, is significantly enhancing their productivity — by as much as 20%.

This comment comes amid ongoing global debates around AI-induced job losses, especially in tech-centric industries. “AI is not replacing our IT engineers. It is making them more productive,” Vembu noted. “On average, we have seen a 20% improvement in productivity.” He added that this uplift is evident across tasks such as coding, testing, and debugging, with AI accelerating completion time and reducing repetitive workloads.

A Pragmatic Approach to AI Integration

Vembu's viewpoint reflects Zoho's practical, long-term philosophy when it comes to adopting disruptive technologies. Unlike many organizations that rush to integrate trending tools, Zoho has consistently advocated for measured implementation of AI across business processes. The company’s approach focuses on complementing human intelligence, not replacing it.

While acknowledging that AI holds immense potential for automation and transformation, Vembu emphasized the importance of retaining core engineering talent. According to him, engineers should view AI as a co-pilot rather than a competitor. This echoes a broader industry narrative that sees AI agents as productivity enhancers — tools to automate mundane tasks so humans can focus on innovation and higher-order problem-solving.

AI at Zoho: Augmentation, Not Displacement

Zoho has been actively integrating AI capabilities into its suite of business applications, from CRM to helpdesk and analytics. However, Vembu clarified that these integrations have not triggered job cuts. On the contrary, AI has helped the company maintain agility and scale operations without overburdening teams.

The Indian SaaS company, which serves over 100 million users globally, has developed its own proprietary AI platform, Zia, which powers many of its internal and customer-facing tools. Zia handles tasks such as anomaly detection in data, sentiment analysis in customer communication, and forecasting in business dashboards. But even with such advancements, Vembu insists that engineers remain at the center of product development.

“Technology should serve to elevate the capabilities of our people,” Vembu said. “We are investing in training our teams to use AI effectively and responsibly.”

Context Within the Indian Tech Landscape

Vembu’s comments arrive at a time when Indian IT companies are grappling with the impact of automation and global economic headwinds. Several firms have slowed hiring or initiated restructuring efforts as they pivot to AI-led strategies. In contrast, Zoho has maintained a relatively stable workforce and continued its rural expansion initiative — hiring from tier 2 and tier 3 cities and setting up talent hubs outside traditional metro areas.

By balancing innovation with human-centric policies, Zoho has positioned itself as a unique player in India’s fast-evolving software landscape. The company has also been vocal about reducing dependency on foreign software ecosystems and building sovereign technology stacks.

Industry Response and Broader Implications

Industry analysts say Vembu’s stance reflects a growing realization that AI, while powerful, is not a silver bullet. Human expertise, especially in complex domains such as software architecture, system design, and ethics in AI, remains indispensable. AI tools can write code, but they still lack the contextual awareness and domain knowledge to independently manage large-scale development pipelines.

“Zoho’s approach underscores a sustainable path forward,” said a senior analyst at a Bengaluru-based tech think tank. “It encourages upskilling rather than displacement and sets a template for responsible AI adoption in emerging markets.”

Final Word

As AI continues to permeate the global tech ecosystem, Sridhar Vembu’s remarks offer a grounded perspective. Rather than framing the rise of AI as a zero-sum game, Zoho is leveraging it to foster productivity and human-machine collaboration. At a time when many tech leaders are caught between innovation and workforce disruption, Zoho's example may prove instructive for companies navigating the future of work.