AI revolution forces global call centers to adapt: experts

NEW YORK, UNITED STATES — The rapid development of artificial intelligence (AI) tools is reshaping industries globally, and the customer experience business process outsourcing (CX BPO) sector is no exception. 

In a recent webinar hosted by credit intelligence and data provider Octus, experts discussed the threats and opportunities AI presents for key players like Foundever and Transcom. The discussion revealed how operators are preparing to adapt to these changes in the CX BPO landscape.

50% of call center jobs at risk from AI technology

The CX BPO industry, historically reliant on outsourced customer service tasks such as call centers, faces disruption from generative AI. Companies like Klarna have already demonstrated that AI-powered solutions can reduce reliance on external BPO providers by handling customer service tasks in-house. 

Citing an interview with the head of Tata Consultancy Services in the Financial Times, Octus Managing Editor Robert Schach stated that “AI will result in minimal need for call centers in as soon as a year.” 

Schach further noted that estimates suggest up to 50% of call center operations could be replaced by AI in the coming years, sparking concerns across the credit markets about the future of traditional BPO services.

This shift has triggered a sell-off in the debt prices of key players like Foundever and Transcom, as investors fear these companies may lose significant business to AI-driven solutions. 

However, some experts believe these concerns may be overblown, with hybrid AI-human models emerging as a potential solution.

Leading BPO companies race to integrate AI solutions

Despite the challenges, AI also presents opportunities for CX BPO providers to reinvent their business models. 

Alex Baggallay, UK & Ireland Managed Services Leader at Salesforce, emphasized that many BPOs are embracing AI to enhance their services. 

“There’s a chance to deliver better services to their customers through combining the power of humans and the value that they bring with generative AI and the value that brings and optimizing and enhancing the services they deliver,” said Baggallay. 

He highlighted that AI can enable 24/7 multilingual support, something previously difficult for human-only teams.

Baggallay also noted that autonomous agents — AI tools capable of performing specific tasks — are already being deployed by companies like Salesforce. These tools are expected to drive productivity and improve customer and employee experiences.

Foundever and Transcom, specifically, are aware of the risks but are actively exploring ways to integrate AI into their operations. 

According to the experts, Foundever has estimated that 25% to 30% of its call center volume could be replaced by AI over the next five years. However, some industry experts believe this figure could be as high as 50%. 

Both companies are developing AI-driven solutions to capture some of the efficiency gains from this technological shift.

Octus Credit Analyst Nikhil Varsani pointed out that while there is uncertainty about AI’s full impact on the sector, BPOs have an opportunity to become integrators of AI solutions rather than being displaced by them entirely. 

He noted that Concentrix has already implemented an AI bot for one client’s infrastructure services, handling 40% of transactions autonomously in its first month.

The future of human-AI collaboration in customer service

As generative AI continues to evolve, CX BPO providers must adapt quickly to remain competitive in an increasingly automated world. The Octus webinar made it clear that those who can successfully integrate AI into their operations stand to benefit from new business models and enhanced service delivery capabilities. However, failure to adapt could result in significant disruptions across the sector.

While the rise of AI poses undeniable challenges for traditional CX BPO models, it also offers a path forward for companies willing to innovate and embrace hybrid solutions combining human expertise with cutting-edge technology. Those who can effectively manage this transition will likely thrive in an increasingly automated future.