Artificial intelligence (AI) is revolutionising different industries worldwide. AI technologies are transforming business operations, from chatbots providing instant customer support to intelligent data analytics improving decision-making. In fact, 64% of business owners believe AI can enhance customer relationships.
A Look into AI in the BPO Industry
The business process outsourcing (BPO) industry is no exception. Globally, the market is projected to experience substantial growth, propelled mainly by integrating AI solutions.
In the first half of 2022, the BPO sector in the Philippines generated a revenue of US$30 billion, employing over 1.4 million full-time workers across 1,000+ companies. With these impressive numbers, call centre services in the country are embracing advanced AI-driven technologies to gain a competitive edge and offer clients the most innovative AI-enabled contact centre services.
Understanding the advantages and challenges associated with incorporating AI in the BPO industry is crucial if you’re looking to stay ahead of the curve. Read on as we delve into AI’s influence on the BPO landscape and explore real-world examples and best practices for a successful implementation.
Benefits and Risks of AI in Business Process Outsourcing
Common AI Tools Used in the BPO Industry
AI-powered tools and systems have become essential in streamlining operations, enhancing efficiency, and improving overall customer experiences. Here are some common AI tools for business, including their benefits and impact on various business processes.
Chatbots and Virtual Assistants (VA)
By harnessing the power of AI, BPO customer service has undergone a significant transformation, leveraging chatbots to elevate efficiency and enhance the customer experience while reducing expenses. A study can attest to this, with around 75% of companies saying they’re satisfied with chatbot integration.
In virtual assistance, AI technologies interpret queries, find information, and provide real-time support, resulting in time savings and improved responsiveness.
Natural Language Processing (NLP)
NLP is essential to the BPO sector because it lets organisations understand human language and deliver more tailored services, raising general customer satisfaction. By utilising NLP, companies can extract valuable data from unstructured sources like social media and customer reviews, acquiring insights into consumer demands and preferences.
Robotic Process Automation (RPA)
RPA automates repetitive tasks, which frees up more time for your employees to cater to complex tasks. They can now focus on tasks that will add value to the company, such as business and brand development. This not only saves you costs but also enhances overall process efficiency.
Machine Learning (ML)
ML algorithms can extract insights from massive data sets, fueling business decisions that cater to customer preferences and desires. It can help your organisation seize fresh possibilities, lower risks, and improve operational efficiency.
Answering Machine Detection (AMD)
Businesses know the struggle answering machines and voicemails cause. A study showed that customers prefer text messaging over leaving voice messages, partly because they dislike robotic-sounding interactions.
Answering machines need to stay in rhythm to have successful conversations. AMD distinguishes human and voicemail messages and significantly improves agent productivity, reduces voicemail interruptions, and boosts overall performance.
Notable Benefits of AI in BPO Operations
Integrating AI in BPO operations offers numerous advantages that enhance efficiency, productivity, and customer satisfaction. Get to know the benefits of artificial intelligence in business below.
Increased efficiency and productivity
AI-powered tools automate repetitive tasks like data entry and processing, freeing employees’ time for more complex tasks. In fact, employees with access to AI assistance experienced a 13.8% productivity increase compared to those without such technology.
These tools can identify data patterns, empowering BPO companies to enhance decision-making and optimise their day-to-day performance.
Improved accuracy and reduced human error
AI minimises mistakes by taking over tasks that require precise and consistent analysis. These tools and technologies can continually improve and learn, generating better outcomes and reducing the risk of human errors by adapting to new updates.
Enhanced customer experience
A report by Redpoint Global found that 73% of consumers see the potential of AI and ML technologies to upgrade customer experience (CX). When utilised correctly, these tools can refine the customer journey by providing instant responses and personalised assistance, improving customer satisfaction.
More proactive support
It’s important to address inquiries promptly and resolve issues before they arise. AI can analyse customer data to identify common questions or problems, facilitating proactive support by creating FAQs and other resources for quicker resolution.
Increased contact and conversion rates
Contact centre teams often struggle with low contact rates, hindering lead generation and sales efforts. However, you can leverage call centre AI tools to pre-qualify leads and increase the number of conversations for live agents, resulting in more productive engagements.
Qualified leads mean you avoid wasting time on unresponsive voicemails, hang-ups, and dropped calls. With AI matching leads, your agents can tailor their approach to each prospect, increasing conversion rates.
Challenges and Risks of AI in BPO Operations
AI integration in BPO operations brings its own challenges and risks that organisations need to address. Understanding and mitigating the risks of artificial intelligence in business is crucial to ensure AI’s successful implementation and utilisation.
Integration and system complexities
Implementing AI in BPO operations can encounter technological and process-related issues. For example, a financial institution may face compliance issues if its software fails to detect problems due to incomplete or outdated customer trade information in the data it relies on.
Model misbehaviour
AI models can introduce problems when producing biased results, instability, or conclusions without actionable solutions. Hidden risks arise when AI solutions are embedded in software-as-a-service (SaaS) offerings, potentially exposing organisations to vulnerabilities exploitable by hackers.
As such, you must know that you may still expose your enterprise to these risks without directly purchasing or building AI systems.
Data privacy issues
In the first quarter of 2023, 41.6 million accounts were leaked. Data security is a growing concern as fraudsters can exploit seemingly non-sensitive data companies collect for AI systems.
If your security measures are lacking, these data threads can create false identities, making you unwitting accomplices in potential fraud. It can have negative consequences, such as consumer backlash and regulatory repercussions.
Lack of personification
There’s no doubt that the human touch in customer service is unparalleled. According to a 2023 Euromonitor International report, 58% of consumers prefer engaging with a human for customer service concerns.
While AI can automate processes and provide quick responses, it may struggle with delivering the empathy, understanding, and personalisation that only human agents can offer.
Cost and maintenance
AI systems are complex and require knowledgeable staff for effective management. You will need employees or partners with specific skill sets to install, maximise, and maintain your tools. However, the expertise required, ongoing maintenance, and potential expenses of third-party services can be expensive.
Best Practices for Implementing AI in BPO
Implementing AI in your process requires careful planning and execution. Here are some best practices to successfully integrate AI technologies in the BPO industry.
Define clear goals and expectations for the AI integration
By identifying specific use cases, articulating problems, and understanding the purpose of AI, you can set clear expectations, prevent scope creep, and ensure optimal system performance. Thoroughly analysing facts and assumptions refine use cases and address the root causes of identified problems.
Choose the right AI partner and platform
Selecting an appropriate AI platform and partnering with the right provider ensures compatibility, scalability, and flexibility for future growth. Implementing the right tools and partners leverages effective AI utilisation, helping you stay competitive in a rapidly evolving technological landscape.
Train your staff on how to use the AI system
AI training raises employee skills and productivity, giving your business a competitive edge, fostering innovation, and generating new ideas. Offering various learning opportunities, such as online courses and workshops, keeps employees updated in the quickly changing digital world.
Test and evaluate the performance and impact of the AI system
Tracking and assessing results ensures that your AI system aligns with measurable goals and business objectives, helping you monitor progress at each implementation step.
Continuous performance assessment identifies issues early so that you can take corrective actions. Additionally, as these systems learn and evolve, testing and evaluation help executions become more stable.
Update and improve the AI system based on feedback and data
Continuous performance monitoring of AI applications identifies areas of customer satisfaction gaps, supporting necessary actions for improvement. It involves teaching the AI system to handle various interactions and adapt to changing business circumstances by providing relevant information.
Account for risks of implementation
You can create a contingency plan when you identify your AI implementation risks. Doing so puts you in a place where you can proactively mitigate any adverse effects that may arise during the integration. Some of these risks of artificial intelligence in business include:
- Decrease in customer satisfaction
- Negative employee reactions
- Undesired business impacts
- Changes in governance or regulatory requirements
Anticipating these challenges protects you from their unpleasant surprises, so you can respond effectively and minimise disruptions as soon as it happens.
Train and maintain your models
High-quality historical data allows AI and ML models to recognise patterns, understand language, analyse images, process videos, and interpret speech. Introducing your models enables your business to provide exceptional customer service through constant learning and problem-solving.
As a result, you streamline your processes, make accurate predictions, and deliver valuable insights that can enhance decision-making and improve various aspects of your business operations.
Embrace AI and Revolutionise Your Business
AI has emerged as a catalyst for success in the dynamic landscape of BPO services. Balanced and responsible adoption is crucial to harness the maximum power of these solutions and revolutionise industry processes. As highlighted throughout this discussion, AI empowers businesses to enhance customer experiences, optimise operational efficiency, and deliver exceptional support.
At Select VoiceCom, we utilise AI’s transformative potential in the BPO industry to drive customer satisfaction and business growth. Our experts integrate cutting-edge tools and technologies to deliver purpose-based solutions, including advanced call centre systems and excellent support services.
Contact Select VoiceCom today and explore how AI-powered solutions can elevate your daily operations and drive success. Visit our contact page and embark on your journey towards exceptional BPO experiences!