Rob Illidge, the 40-year-old founder of Vulse, an employee advocacy software platform for LinkedIn, has reduced his workforce by more than half over three years, replacing staff with artificial intelligence (AI) tools that he says save his company around £100,000 a year.
Illidge launched Vulse in 2019, before the recent surge in AI technology. As AI advanced, he decided to cut his marketing, sales and development teams, reducing his headcount from 14 employees to just five. He claims the move has been the smartest decision for his company, with AI tools costing £140 a month to operate.
AI's Role in Business Growth
Illidge, from Manchester, said: "The business wouldn't be where it is today without AI. It's allowed us to multiply each person in the business. It does around two to three times the amount of work an employee does, and it carries on working overnight while we sleep."
He added: "There's a lot of pressure on businesses. And staff costs are one of them. The money was better spent elsewhere. AI could do a better job. My business is my baby. No one else in the company is as passionate about it as I am, but AI can be."
Vulse initially launched as a side project in 2019, aiming to promote LinkedIn posting for companies through employee advocacy. After a year of development, Illidge secured funding to grow the business, hiring employees from various experience levels, including graduates and more senior staff.
Strategic Shift to AI
In 2023, Illidge decided to operate with a skeleton crew, relying heavily on AI. Over the subsequent three years, he made over 64% of his staff redundant, replacing nine employees with AI. He noted that graduate jobs were more likely to be cut due to the repetitive nature of the tasks.
Illidge said: "We managed to get VC [venture capital] funding and got excited. We used the money to hire lots of employees. But we had to be strategic. There's a lot of pressure on businesses. And staff costs are one of them. The money was better spent elsewhere. We were looking at repetitive tasks, so graduate jobs were more likely to go. AI could do a better job."
He acknowledged the conflict of interest as a founder, saying: "As a founder, you're responsible for livelihoods, but there's a conflict of interest - you have a business to develop at the same time. It's a balancing act. But it's something I'm becoming more comfortable with."
Financial Impact and Future Plans
Illidge reports significant cost reductions. He said: "Our AI tools cost £140 a month. Employing one person on an average salary costs more than £500 a month in National Insurance and pension alone, before you've paid them a penny. Staffing every role we've replaced with AI would cost around £250,000 a year at former staff's pay. Revenue per employee is up 25x in two years, from around £1,500 to over £38,000."
Vulse was valued at £750,000 in 2023, and its most recent valuation puts it at £5m. Monthly recurring revenue has surged by 76% year-on-year. Illidge said: "It's like David and Goliath. We're a small business fighting against giant enterprises, but we're winning because of AI. We win against traditional businesses with lots of employees because we don't have the overheads. It's a blessing in disguise for everyone. Those employees we let go will go on to find a better job for them."
Looking ahead, Illidge is keen to grow the venture further, stating: "Most businesses should take advantage of AI. We're looking to grow. AI has massively levelled the playing field, and it means that enquiries come from all over the world, not just UK, for our small business." He added: "I agree that AI development should slow down. But at the same time, it's helping UK business like mine. And when I go to universities to do talks, lots of students are studying AI topics. It's great to see. New roles are being created as a result of AI, so it's definitely a positive that they're taking it on board and being proactive because those are the jobs that are going to be available."
