Zoho CEO Sridhar Vembu explains why AI could bankrupt middle class, not just jobs

Sridhar Vembu, the founder of Zoho, has an interesting idea about what happens when robots start doing more jobs. He believes that even if robots take over some tasks, most people won’t end up jobless. In a post on X, Vembu rejected the widely held fear that machines are on the verge of replacing the entire human workforce.

“On the subject of AI and jobs: Hypothetically, if all software development were to be automated — I want to emphasise that we are nowhere close to that goal — and all software engineers such as myself are out of work, it is not like human beings will have nothing to do,” he wrote.

The main problem, Vembu explained, isn’t that people will be jobless. Instead, he argued, it’s about money and the economy. If robots and machines end up making almost everything, then how will ordinary people, who might not have regular jobs or steady incomes, be able to buy all those things? It’s a question of how people will earn enough to afford what’s being produced.

According to Vembu, automation will significantly lower the cost of products and services—a seemingly positive outcome. But he cautioned that the real concern lies in accessibility. Even if everything becomes more affordable, the bigger challenge remains: how to guarantee that people still have income, especially in a future where AI and robotics handle most of the work and companies require far fewer employees.

“The price of all the robot-made goods and all the AI-made and AI-supported software would drop massively and be close to zero or zero. Breathing air costs us zero and we don’t complain about it,” he wrote.

Vembu contends that the fundamental problem isn’t the displacement of workers by machines, but rather the inability of governments to create systems that ensure equitable distribution of wealth. At its heart, he says, this is an issue rooted in political and economic policy.

“This is fundamentally an economic distribution problem, a problem of political economy and not purely a technological problem. One key part is for governments to crack down on monopolies, particularly tech monopolies,” he said.

Sridhar Vembu has also called for a measured approach to the bold claims of massive job cuts and cost efficiency linked to AI. He stressed the need to separate the buzz from the reality, pointing out that although artificial intelligence is making notable strides, its real-world influence on employment trends is still relatively modest at this stage.

Vembu shared his views amid increasing discussions around AI’s potential to reshape the job market. Despite bold predictions from AI companies about widespread workforce disruption and major cost reductions, he noted that actual data tells a different story. Citing research by Anders Humlum and Emilie Vestergaard, Vembu highlighted that tangible effects of AI on productivity and job numbers remain limited for now.

The research, titled Large Language Models, Small Labor Market Effects, explored the integration of AI technologies—especially chatbots—within Denmark. Although there has been a surge in AI-related spending, the study concluded that these developments have yet to produce noticeable shifts in either workforce dynamics or overall productivity.