The future of outsourcing in the age of artificial intelligence, with its promises and challenges, is a complex and unfolding story.

Date published : 2024/10/29 23:13

The use of artificial intelligence (AI) in outsourcing is a topic of much debate, with some predicting that it will revolutionize IT outsourcing and business process outsourcing, while others warn of its potential dangers and challenges.

While there are predictions that AI will upend outsourcing as we know it, particularly business process outsourcing (BPO), it's unclear whether these claims will come to fruition. The development and deployment of new-generation AI systems have been around for a while, but their impact on outsourcing is still uncertain.

The interaction between new-generation AI and existing laws and regulations, known as "shadow AI laws," creates an elevated level of unpredictability and potential risk. Compliance with these laws will be essential, especially in highly regulated sectors like healthcare and finance.

AI has the potential to transform outsourcing by integrating itself into business processes and operations, providing true process automation. However, this integration also means that humans will still have valuable roles to play, particularly in developing, implementing, and deploying AI systems.

The impact of AI on staffing levels is uncertain, with some predicting staff attrition at certain levels due to increased efficiency. New actors and roles may emerge in the outsourcing market, such as AI systems testing, assurance, and certification. Additionally, there will be new requirements for environmental compliance, testing, certification, monitoring, and reporting services.

The adoption of AI laws and regulations by countries outside of the EU will impact speed to market and adoption rates, affecting the outsourcing market. The integration of AI into business processes and operations will lead to changes in staffing levels, roles, and new requirements for environmental compliance and testing.