In 2018, I had the privilege of delivering the keynote for a session titled “The rise of AI and the impact on BPO” on the final day of Bangladesh’s third BPO Summit. Back then, we explored the early potential of AI with cautious optimism, speculating on what it might mean for Bangladesh’s Business Process Outsourcing (BPO) sector. While staying up-to-date on AI’s breakneck developments, I’ve kept a side eye on Bangladesh’s BPO industry since that invitation to speak. AI's rapid evolution has been astonishing and the BPO industry can no longer afford to be passive in the face of such rapid change.
AI as a new operator
Anthropic recently unveiled a new feature of its Claude model where it can handle desktop tasks, executing mouse clicks and keystrokes with human-like precision. It can navigate software, complete workflows, and handle applications independently. We're no longer looking at AI as just an assistive tool -- it's now an active "operator," performing the very tasks that have long been the backbone of BPO services. The implications here are enormous.
A snapshot of Bangladesh’s BPO sector
Bangladesh's BPO sector has become a significant player in our IT industry, creating jobs for over 50,000 people. Thanks to a young and tech-savvy workforce, the industry has thrived by offering affordable solutions in a world that's going digital faster than ever. The sector primarily handles tasks like data entry, form processing, customer service, and other repetitive processes which require human intervention but not necessarily high-level decision-making.
The risks of standing still
Despite the sector’s growth, adopting Robotic Process Automation (RPA) and advanced AI in Bangladesh’s BPO industry remains modest, given concerns about the availability of skilled workers and the technical infrastructure. However, not moving forward may end up costing the industry. Any delay in adopting new technology in the fast-evolving global market will hurt the sector.
The power and pitfalls of advanced AI
AI models like the one demonstrated by Anthropic offer possibilities and challenges. The challenge? They can now automate precisely the kinds of tasks that Bangladesh’s BPO sector depends on -- data entry, form processing, customer support. The need to outsource diminishes if companies worldwide can deploy these models in-house to handle these tasks with greater speed, accuracy, and consistency. Why turn to offshore providers for work that AI can now perform around the clock, without error, and at a fraction of the cost?
Moving up the value chain
Adopting these AI models can help the Bangladesh BPO industry move up the value chain. They can move beyond simple transactional tasks to offering sophisticated and more efficient services. They can do this not by replacing their current workforce but by enhancing them with these new AI tools. Today’s BPO workforce mostly does low-value, repetitive, and rudimentary tasks at “body shops” throughout the country. Tomorrow, they can be freed to focus on roles that require creativity, critical thinking, and analytical ability, with AI doing the grunt work.
A call to action
The BPO industry cannot afford to wait -- the time to act is now. Without decisive steps, stagnation and obsolescence loom on the horizon. Here are three ways the industry must adapt to seize the opportunities AI brings:
Cultivate a culture of innovation that integrates AI-driven services alongside human expertise. By leveraging AI’s capabilities, BPO companies can create more valuable and harder-to-replicate service offerings, positioning Bangladesh’s BPO sector as both a cost-effective and innovation-forward partner on the global stage
Seizing the opportunity
The global BPO market is evolving rapidly. Today, clients are looking for more than cost savings -- they want innovation, scalability, and reliability. By integrating AI, Bangladesh’s BPO sector can step out of the follower’s role and become a leader. AI-powered solutions can open doors to new markets and previously inaccessible sectors, including financial services, healthcare information management, and advanced customer relationship management.
Act boldly, act now
AI isn’t a distant storm on the horizon. It is here and already reshaping the business landscape. The new capabilities of AI models like Claude pose a direct challenge to the traditional BPO business model. Bangladesh's BPO industry must be ready to weather the storm by proactively transforming itself with AI. Otherwise, the industry will be walking down the road to stagnation and eventual obsolescence.
But there is hope because there is still time. Reflecting on my journey since the 2018 summit, I’m convinced that the resilience and adaptability of the Bangladeshi IT sector, particularly the BPO sector, are strengths our industry can bank on. By embracing AI, investing in human potential, and cultivating a culture of innovation, Bangladesh’s BPO sector can survive the challenges ahead and thrive in a new era of technological advancement.
Now is the moment to act with boldness and vision, not to hesitate. The tools that threaten to disrupt the industry are the same ones that can propel it to new heights. The choice is ours to make.
Dr Zunaid Kazi is an AI exponent and entrepreneur with 30 years of experience. He is the Founder and CEO of Knowtomation, a company specializing in AI solutions.