AK Azad Warns AI Adoption Could Cost 10,000 Jobs

Managing Director of Ha-Meem Group AK Azad has warned that his company may cut 10,000 jobs as global buyers increasingly demand the adoption of artificial intelligence (AI) while refusing to pay higher prices.

Speaking on the “Ekattor Business” programme hosted by Iqbal Ahsan on Sunday, Azad said Bangladesh is falling behind in adapting to rapid technological changes taking place worldwide.

“The world is becoming more dependent on artificial intelligence, but we are not advancing at the same pace,” he said. “Buyers have made it clear that they will not increase prices. Consequently, I will have to reduce manpower through the use of AI. We currently employ 75,000 workers, and my target is to reduce the workforce by 10,000.”

He expressed concern about the future of workers who could lose their jobs, noting that most of them are skilled employees.

“These 10,000 people are skilled workers who have been employed for years. Where will they go after losing their jobs?” he asked. “That is why the government needs to take a long-term, strategic view when formulating the budget.”

Azad also voiced concern over the increasing number of factory closures, attributing the trend to rising costs and declining competitiveness.

“Many companies are failing because they cannot meet buyers’ pricing expectations. Their efficiency is not improving, yet their costs continue to rise,” he said. “As a result, factories are shutting down every month—not only in the garment sector but across other industries as well.”

He cautioned that Bangladesh’s industries would struggle to survive unless they improve efficiency and keep pace with global market developments.

Referring to the government’s employment targets, Azad said the private sector would play the central role in generating new jobs.

“The Prime Minister often speaks about creating one crore jobs. Ultimately, those jobs will have to be created by businesses like ours,” he said.

Azad also called on Bangladesh Bank to lower lending rates, arguing that current borrowing costs are unsustainable for manufacturers.

“We have clearly told the governor of Bangladesh Bank that interest rates need to come down,” he said. “Industries cannot continue operating with lending rates of 13 to 14 percent.”

He further stressed the need to strengthen domestic economic activity alongside export-oriented industries.

“While exports remain important, more than 85 percent of our economy is driven by domestic demand,” he said. “To sustain growth and meet local needs, we must revitalise the internal economy as well.”