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The Impact of Generative AI on the BPO Industry

Currently, we are living in a digitalized world where artificial intelligence (AI) consistently revolutionizes how we interact with computers, information retrieval, and operations across various industries.


McKinsey & Company's research highlights that Gen AI applications can automate a significant portion of activities that consume 60-70% of professionals' time. This showcases that this technological advancement can be the new productivity frontier for both business process outsourcing (BPO) providers and their clients.

But how exactly can generative AI (GenAI) transform the BPO industry and its services? In this article, we will delve into the details of this emerging technology and explore the possibilities it brings to the industry.


Understanding Generative AI

Most companies grapple with the challenge of effectively incorporating this new AI advancement into their business operations. 

A recent Harvard Business Review article about the impact of GenAI on the BPO industry suggests that companies shouldn't try to completely replace human jobs with automation, but they also shouldn't just sit back and wait for issues with GenAI to be fixed.

The key to addressing this challenge lies in understanding what GenAI is and how it differs from traditional AI applications in terms of capabilities.

Generative AI is a specialized branch of AI that focuses on generating novel outputs based on existing inputs, such as text, images, audio, or video.

Unlike traditional AI applications, which adhere to predefined rules and logic, generative AI models employ advanced neural network architectures, such as generative adversarial networks (GANs) and variational autoencoders (VAEs). These architectures enable the system to learn from data and generate outputs that are both innovative and realistic.

While traditional AI applications can only describe, predict, or prescribe based on existing data, generative AI systems can comprehend patterns, relationships, and contextual cues from user prompts.


What Are GenAI Tools and Applications for CX?

The recent surge of interest in GenAI can be largely attributed to the immense popularity of natural language processing (NLP) platforms and large language models (LLMs), such as ChatGPT, DALL-E, and Bard.

While these tools undoubtedly serve as invaluable resources for generating marketing content and crafting personalized messages, they merely scratch the surface of what GenAI has to offer.

By seamlessly integrating GenAI and machine learning technologies into software products, businesses can optimize operational efficiency, create engaging conversational chatbot experiences, and provide streamlined communication with AI-based translation.

To illustrate, let's consider Mplus's cutting-edge AI-powered customer interaction solution, Buzzeasy.

As the ultimate communication orchestrator that seamlessly connects agents with clients, Buzzeasy enables the understanding of the context of customer questions and automatically suggests suitable responses. Moreover, it incorporates AI-based automated translation and training features, enabling agents to proactively prepare for challenging situations.

Additionally, Buzzeasy provides AI-powered business support in three more dimensions:

  • AI Simulated Training & Onboarding: With its AI-enhanced training feature, Buzzeasy empowers agents to deliver optimal performance. The AI-based platform onboards agents in a week and supports them for improved performance through regular check-up cycles.
  • Omnichannel Contact History: Buzzeasy provides a comprehensive overview of the customer's contact history across all channels, allowing agents to gain a better understanding and serve the customer more effectively.
  • Real-Time Chat Translation: This AI-driven system detects the customer's language and then translates the conversation into the agent's chosen language, ensuring a smooth and efficient exchange of information.

Similar to Buzzeasy, Mplus's next-generation BPO platform, BIOM, utilizes AI to seamlessly blend digital customer care with real agent experiences. BIOM offers 100% digital customer interactions that deliver delightful experiences.

It is a self-learning platform that handles the majority of inquiries but can also route them to a human agent when necessary. At the core of BIOM lies a central nervous system known as the smart orchestrator, which serves as a mediator between customers and information systems.


The Possibilities GenAI Can Bring to BPOs and Their Clients 

For years, BPO providers have been diligently delivering solutions and services to optimize their clients' back and front office operations. From customer service to sales, these companies offer a diverse array of services that directly impact their customers' profitability.

Now, with the advent of AI-driven technologies and their remarkable contextual analysis capabilities, the BPO industry stands on the cusp of a transformative revolution.

By harnessing the power of these cutting-edge technologies, BPO companies can not only streamline and automate processes, like data entry and document processing but also take customer service and sales to unprecedented heights with improved personalization.

Let's delve into the exciting opportunities that these transformative technologies bring to both BPOs and their valued clients. 


Automating Repetitive Tasks 

Both back and front office operations include mundane, repetitive tasks that can be time-consuming and prone to human error.

Gen AI applications can be leveraged to automate these tasks efficiently and accurately. By utilizing techniques such as robotic automation (RPA) and computer vision, BPO providers and their clients can benefit from intelligent systems that can handle these tasks with minimal human intervention.

Take TOTTI, our software solution, as an example. It can mimic human actions and automate repetitive rule-based tasks by manipulating data and applications like a human. It can fill in forms, log into web apps, make calculations, scrape data from the web, and move files across various platforms.


Providing Personalized Customer Interactions 

Generative AI models can understand natural language inputs, and analyze customer preferences and feedback, turning communication channels into valuable sources of information for BPOs.

This enables BPOs to get actionable insights to optimize operations and deliver hyper-personalized and positive customer experiences.

Imagine a scenario where a customer contacts the customer service department with a query. Using AI, the system processes the customer's message, extracting key information and analyzing it alongside historical customer data and interactions.

The system generates personalized responses and recommendations tailored to the customer's specific needs and preferences. It provides targeted product suggestions and relevant information and even anticipates potential issues or concerns.

Furthermore, by identifying recurring pain points and areas for improvement, the system empowers customer service professionals to make informed decisions.


Non-Stop Operations 

Customer support, technical assistance, and helpdesk services can be limited by human constraints, such as working hours and breaks. However, AI applications, like chatbots and virtual assistants, offer round-the-clock availability.

Also, AI can overcome language barriers through automated translation and localization.  For example, these systems can rapidly and accurately translate queries into the desired language, providing real-time answers in the customer's native language via chat.

By implementing chatbots, businesses can effectively communicate with customers in multiple languages, enhancing customer experience and meeting the needs of a global customer base across various time zones.

This not only eliminates wait times but also ensures efficient and seamless communication across customer service interactions, websites, and social media platforms.


Streamlining Intelligent Call Routing 

Call routing plays a crucial role in optimizing customer experience operations. Traditional routing systems might rely on pre-defined rules or manual intervention, resulting in delays when connecting customers with the appropriate team members or departments.

GenAI has the power to revolutionize call routing by analyzing customer inquiries, historical data, and contextual cues to intelligently route calls to the most suitable human or virtual agents.

Plus, these smart call-routing systems learn from past interactions and adapt to changing patterns. This streamlined approach reduces call waiting times, improves first-call resolution rates, and ultimately enhances customer satisfaction.


Exploring the Path Forward 

"AI will not wipe out entire categories of jobs, such as those in customer service. Automation is ideally about unlocking human potential to do tasks differently and do different, higher-value tasks." - Tomislav Glavaš- CEO of Mplus

AI tools and applications are designed to enhance professionals' productivity rather than replace them. With the potential to improve customer service professionals' efficiency by 35%, it is crucial for BPO companies to intelligently leverage these technologies.

As we fully embrace generative AI, there are essential considerations for both BPO companies and their clients. While the impact of GenAI on the industry is significant, it is vital to approach its implementation thoughtfully and responsibly.

As Europe's fastest-growing BPO service provider, we take pride in leading the way toward AI-powered solutions in the industry. Our robust CX services, technology, and consultancy solutions not only comply with regulatory requirements but also transform every interaction into an opportunity.

Curious about how we can help you create seamless experiences across channels? Feel free to reach out to us anytime!

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