Vineet Nayyar, founder of Sampark Foundation, criticised companies' approach to AI usage, arguing that layoffs were counterproductive to a firm's profitability.
The former HCL Technologies Ltd. chief executive officer (CEO) engaged in a conversation with NDTV about his book, 'Humans First, Machines Second', which argues that AI is better utilised to serve human innovation, rather than replace them entirely.
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"No revolution happened in the country without humans leading it, no innovations happened without humans leading it. Then why do leaders forget that humans are not a problem?," Nayyar said.
"Humans are not a commodity to be thrown to dogs. We have to understand the responsibility of being humans," he added.
He argued that AI will not be a differentiator for businesses, but become a commonly available commodity, comparing it to calculators and the internet. He stated that those who use AI to solve problems that have not been solved before would have an edge in their respective industries.
"What differentiates one business with another is how you can use AI to create something you haven't created before like Amazon and Facebook did with the internet," the former HCLTech exec said.
Nayyar also advocated for a change in corporate management principles with the advent of AI technology. He stated that knowledge was commoditised in the AI age, with companies now needing to prioritise the application of knowledge over its transference.
The author noted that Indian MSMEs can leverage AI to reimagine their businesses and use it to make possible things that would have otherwise not have been achievable. He also identified their ability to "move fast" in comparison to legacy companies.
"Most large companies in India are trapped in legacy business, transformation will take a lot of effort, skills, guts and money by the board. They are moving slow, you (MSMEs) can move fast," Nayyar stated.
He argued that MSMEs (medium and small enterprises) should not look at which AI skills to learn or buy but instead focus on using the technology to innovate in their enterprise.
"Focus on how you can reimagine customer delight, customer delivery, expand your market share because this technology is available. Technology will be commodity, trust me on that," he said.
He said that people were depressed and discouraged in these large companies, due to a pyramid structure of management, and were still not valued as innovators.
"If you can bring them in, create a culture of humans first, machine second. Inspire them, help them experiment, then you have an innovative organisation which is very difficult to catch up with," he stated.
Nayyar stated that the messaging around AI technology and the way corporations have used it has led to humans not believing in themselves. He also stated that corporates have stopped investing in people, and have started viewing them as problems.
"We all have to do something to retain that positivity of being an Indian, being a human and not losing it to the nonsense of AI," he stated.
The philanthropist recommended that companies should inspire and motivate their employees to innovate, rather than measuring their productivity, advocating for an inversion of the organisational pyramid.
"Human beings need to be inspired to climb Mount Everest everyday. Instead of measuring productivity, find ways to inspire them, motivate them, invert the organisation, have appraisal done by employees like in HCL, that's the magic trick, it's not AI, it's not a finance guy, or analyst," he said.
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