Sridhar Vembu, the founder of Zoho Corp., announced on Monday that he is stepping down as the company's CEO. Moving forward, he will take on the role of Chief Scientist, focusing primarily on deep research and development (R&D) initiatives. This decision comes as Zoho faces various challenges and opportunities, particularly with the rise of artificial intelligence (AI), which Vembu believes will shape the future of the company.

In a post on the social media platform X, Vembu shared his excitement for his new role: “The future of our company entirely depends on how well we navigate the R&D challenge, and I am looking forward to my new assignment with energy and vigor.” He also expressed his happiness about returning to hands-on technical work.

With Vembu stepping down as CEO, Zoho Co-Founder Shailesh Kumar Davey will now serve as the new group CEO. Additionally, Co-Founder Tony Thomas will lead Zoho US operations. This leadership transition comes at a time when Zoho is putting increased emphasis on its research and development capabilities.

Zoho has been investing heavily in R&D, and last year, the company announced plans to set up an R&D center in eastern Uttar Pradesh to build world-class R&D capabilities. Vembu previously mentioned that scaling R&D teams is a complex task that requires careful management.

As Zoho continues to innovate, Vembu's new role is expected to help guide the company through the evolving tech landscape with a focus on cutting-edge research and AI advancements.