AI could ‘completely destroy’ global BPO market, Stability AI chief warns
NEW DELHI, INDIA — British-Bangladeshi tech entrepreneur Emad Mostaque, founder of Stability AI, has issued a stark warning about the future of the business process outsourcing (BPO) industry.
Speaking on the Moonshots podcast with Peter Diamandis, Mostaque predicted that artificial intelligence (AI) will lead to the “complete destruction” of the BPO market by 2025.
“AI is better than any Indian programmer that’s outsourced right now,” Mostaque remarked, highlighting how generative AI tools are outpacing human capabilities in programming and other outsourced tasks. He cautioned that economies heavily reliant on outsourcing, such as India, will be among the first to experience significant disruptions.
Remote jobs face threat as AI advances
Mostaque emphasized that remote jobs are particularly vulnerable to automation.
“Being in person is going to be good for your job right now because anything remote will be the first to go,” he explained. The impact, he added, will extend beyond India and affect remote workers in developed economies like the United States.
Salim Ismail, a technology strategist and fellow guest on the podcast, supported Mostaque’s views. He outlined a two-phase transformation: an initial wave of job losses in areas like software maintenance and support systems, followed by increased productivity for elite programmers who can effectively harness AI tools.
India’s outsourcing industry at a crossroads
India’s IT outsourcing sector, valued at billions of dollars and led by giants like Tata Consultancy Services (TCS), Infosys, and Wipro, could face unprecedented challenges if Mostaque’s predictions come true. These companies are already investing in generative AI technologies to adapt to market changes.
However, the widespread adoption of AI could result in job losses for hundreds of thousands of workers, posing risks to India’s economy and workforce stability.
Tech visionary sparks debate over AI’s impact
Mostaque’s comments have reignited debates about the societal impact of AI on global industries. Known for his advocacy of open-source AI and ethical technology development, Mostaque has previously called for caution in training advanced AI systems. His warnings have drawn both support and criticism from industry leaders.
While some experts question the timeline of his predictions, Mostaque’s insights underscore the urgent need for governments and industries to prepare for an AI-dominated future. Whether his forecast materializes fully or partially, it highlights the transformative—and potentially disruptive—power of AI on global labor markets.
