Zoho’s Cautious Embrace of AI Tools
Sridhar Vembu, the CEO of Zoho, has announced that the Indian software giant is now utilizing AI coding tools throughout the company, resulting in significant productivity gains for its engineers. In a recent post on X, Vembu highlighted an impressive case: a seasoned engineer with two decades of experience is now able to accomplish in just one day what previously took three weeks.
However, Vembu stressed the importance of oversight, stating that all AI-generated code must be reviewed and approved by engineers, who are responsible for the final output. He noted, “We use AI coding tools, but it’s important that engineers review and take responsibility for all the code.” He emphasized that Zoho does not impose AI tools on its teams; rather, it allows experienced engineers to decide how best to implement them.
The results have been remarkable. For instance, Vembu shared that a senior engineer focused on performance-critical user interface work has dramatically reduced his workload, completing tasks that once required three weeks in a single day. AI assisted him by providing a framework, while he used his expertise to fill in the details.
Empowering Junior Developers with AI
The benefits of AI aren’t just limited to seasoned professionals. Vembu also mentioned that a junior team member successfully developed an internal tool with AI assistance, which is now being utilized across multiple teams. According to Vembu, this achievement would not have been possible without the support of AI.
When discussing UI development, Vembu expressed optimism about AI’s role, stating that it is particularly effective for creating interfaces that meet both functionality and performance needs.
A Unique Approach Amidst Industry Trends
Vembu’s statements come at a time when many tech companies are aggressively integrating AI into their processes. For example, Google’s CEO Sundar Pichai revealed that over 25% of new code at Google is now AI-generated, while Microsoft’s Satya Nadella stated that about 30% of Microsoft’s codebase relies on AI technologies. In contrast, Shopify has made AI usage a standard expectation for performance evaluations.
Zoho, however, is choosing a different route. “We don’t impose AI tools. Instead, we let experienced engineers decide how best to use them,” Vembu remarked. This cautious methodology aligns with his past warnings about the risks of technical debt and security concerns that can arise from relying too heavily on AI-generated code without adequate human supervision.
Vembu’s comments follow his recent disagreement with Y Combinator President Garry Tan, who suggested that companies like Zoho could struggle with “vibe coding,” where non-technical users create apps using AI. Vembu dismissed this notion, noting that Zoho’s customer base is growing by over 50% and warned that without proper oversight, AI-generated applications could accumulate unsustainable technical problems.
