The intersection of AI and BPO Industry

Oct 18,2019 by Syed Owais
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Time has briskly changed the pace at which technology is progressing. The progression of technology has, in turn, challenged the verticals of human intelligence. Strategic intelligence has become the new culture and Artificial Intelligence has emerged as the new normal. The advent of Artificial Intelligence has invaded all sectors alike. The prominent one among them is the business process outsourcing industry. Let us explore it in detail.

Deep diving into Artificial Intelligence

Put in simple words, Artificial Intelligence is the intelligence shown by machines. If we deep dive into the neural schema of Artificial Intelligence, we find that machine learning and deep learning power the inner core of Artificial Intelligence. When we talk about machine learning, we are actually referring to a sequence of algorithms and other relative arrangements, which get created during the execution of a specific task. On the other hand, deep learning is all about the variety of permutations and combinations, which are possibly closest to the algorithm needed to execute the task. Thus, it can be concluded that it is machine learning and deep learning that form the basis of pedagogical theory lying underneath Artificial Intelligence.

Interface with Business Process Outsourcing Industry

A survey conducted with attendees of Intelligent Automation, Chicago, 2017 revealed the following figures:

  • 56% of attendees had confirmed that they plan to partially automate 21-40% of their business processes using AI.
  • Over 40% of attendees had confirmed that the major challenge in implementing AI is the Standardization of processes before implementation.
  • One more interesting finding is that 68% of attendees confirmed that the FTEs will be redeployed into more value-added work and 8% felt no impact on FTEs.

We may conclude the following from the above-mentioned survey;

  • Artificial intelligence and BPO industry has a strong correlation with each other in the domain of chatbot.
  • Chatbot can be called a mini AI robot which is at the intersecting point of both AI and the BPO industry.
  • A close interface of AI with the BPO industry would lead to the generation of huge revenues and act as a powerhouse for other startups.

The superposition principle of AI and BPO

Artificial Intelligence is fast invading various industries, so it is dictating upon business process outsourcing companies. To put it in a nutshell, Artificial Intelligence is transforming industries by researching in Big data and Cloud computing. As such, BPO is the one that is most affected as it is intimately related to both the former and the later. Moreover, it acts as an epicenter for numerous kinds of business process outsourcing companies. The centrality of the BPO industry also paves the way for meeting the growing customer expectations. Therefore, it would not be wrong to point out that a thriving BPO industry would flourish with AI intervention.

In the post-globalized world, businesses are eager to pile up their revenues. To make it happen, they want to cut down on unnecessary costs and further the scale of their operations especially in the untapped markets where favorable business conditions are present. Hence, they desire the outsourcing units to leverage the power of AI so that not only the subsidiary company is benefited but the parent company also becomes a partner in the road of rapid monetary progress.

BPO companies worldwide are now fast responding to this changing business climate. Using Big data and cloud computing they are mining large sets of data and generating a comprehensive graphical analysis from the raw and randomly stacked up data sets. These analytical data sets are not only useful for the scaling up of business operations in general but also tracking up customer satisfaction by review monitoring in particular.

Hence, when we are talking about the superposition principle in the case of AI and BPO, we are referring to the mutual benefits one can bring for the other. Put in simpler words, AI can make the BPO industry thrive in the form of revolutionizing the processes liked to chatbot. On the other hand, BPO industry can benefit AI by acting as a hotbed of research and a new genre for researchers interested in this field.

Read More: Is RPA the end of Business Process Outsourcing?

Mr. Chatbot!

The AI technology that powers the chatbot performing various functions would need to be taught various kinds of interactions. Few among them are mentioned here in brief.

  • How to interact with customers and identify various kinds of problem sets?
  • How to go ahead with using data and generate meaningful data sets?
  • How to analyze the performance of chatbot in detail?
  • How is chatbot being monitored and continuously improved over time from user inputs and human oversight?

 It is pertinent to note here that the “improvised” chatbot will not ponder over time and again what it is doing, as a human would. Instead, it would simply act in the way it has been programmed, learning continuously from the data it processes over a period of time. Let us now come to the primary question that arises here. How will the chatbot deal with emotional responses from consumers who are upset about a product? Will the chatbot generate an adverse reaction about a product? Would that lower the reputation of the company? Would a logical, algorithmic, sequential and dispassionate response lead to an increased level of consumer dissatisfaction or would rationality be able to prevail over emotion? And what would the circumstances be if the chatbot provides its clients with incorrect information or an incomplete date? Last but not least, who would take the liability of the adverse circumstances if they arise in the future?


Research is the science of optimists. This reminds us that after studying the various pros and cons of Artificial Intelligence vis-à-vis business process outsourcing, we have to conclude that positive prospects overweight the negative ones by a considerable margin. As such, the intervention of AI in the BPO industry would provide new pathways to this emerging sector. It would not only spin revenues but would also empower businesses. The time seems just ripe enough to promote the mutuality of the nascent BPO industry and the already prosperous AI sector.

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