{
  "id": 14433899,
  "title": "‘Imagine the challenge for other firms’: Bengaluru CEO on Zoho’s AI costs and salary hike freeze",
  "url": "https://urgent.news/2026/10/14/imagine-the-challenge-for-other-firms-bengaluru-ceo-on-zohos-ai-costs",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-14T11:06:46.000Z",
  "source": {
    "name": "Live Mint",
    "slug": "live-mint",
    "url": "https://www.livemint.com/news/trends/imagine-the-challenge-for-other-firms-bengaluru-ceo-on-zoho-s-ai-costs-and-salary-hike-freeze-11791972704828.html"
  },
  "original_language": "en",
  "account": "Bengaluru-based CEO Pareekh Jain has expressed concerns about the financial pressures faced by software and SaaS companies due to rising artificial intelligence (AI) costs, following Zoho co-founder Sridhar Vembu's statements on the matter. Jain highlighted that more than 90% of Zoho's employees are based in India, including tier-3 towns and remote locations, which have relatively low operating costs compared to firms with a majority of their workforce in the US or Europe. Zoho co-founder Sridhar Vembu cited fourfold increases in server prices and rapidly growing AI usage as key contributors to the company's higher expenses. He also mentioned a challenging geopolitical backdrop and the uncertainty of the business outlook. Vembu stated that Zoho would avoid mass layoffs and work to keep costs in check, despite the grim outlook for software jobs. Jain emphasized the distinction between the cost of building software and the expense of running it after deployment, noting that while AI tools can help developers write and test code more efficiently, deploying AI-powered products requires additional computing infrastructure and ongoing spending on model usage. The financial implications of AI adoption vary across companies, depending on factors such as workforce distribution, technology infrastructure, AI adoption, and the ability to pass costs on to customers.",
  "summary": "Bengaluru-based CEO Pareekh Jain has flagged the potential pressure on software and SaaS companies following Zoho’s decision to withhold employee pay increases this year, citing rising AI costs. Jain pointed to Zoho’s India-heavy workforce and relatively low operating costs.",
  "key_points": [
    "Zoho CEO Pareekh Jain warns of AI costs burdening software firms",
    "90% of Zoho employees in India, benefiting from low operating costs",
    "CEO vows to avoid layoffs despite rising AI expenses"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}