Responsible AI Adoption
in the BPO Industry
Automate the Ordinary, Humanize the Extraordinary
The rise in artificial intelligence.
With the rise in AI seemingly forever in the news cycle, it’s easy to be forgiven for thinking we are all one update away from Terminator’s “Skynet.” But as exciting, or perhaps terrifying this is, depending on which camp you are in, it’s easy to forget that we have been leveraging Artificial Intelligence for quite some time. Since 1956, when the term “Artificial Intelligence” was coined at the Dartmouth Conference by John McCarthy, Marvin Minsky, Nathaniel Rochester, and Claude Shannon, the evolution of AI has been hampered only by technical limitations and lack of computational power.
Fast-forward to the 2000s, and with the availability of vast amounts of data and the requisite computational power, AI has evolved from theoretical concepts to practical applications impacting many aspects of human life. Over the past few decades, AI-assisted technology has become integrated into our everyday lives. From the proliferation of virtual assistants like Siri and Alexa to the advent of self-driving cars, our acceptance and reliance on these technologies have become part of our norm. Today, the conversation has shifted from “What’s next?” to “What’s best?” as ethical consideration and governance of AI have become critical topics, and issues such as bias, transparency, and accountability have prompted the development of guidelines and regulations.
The global AI market in the call center segment is currently worth $1.6 billion but is expected to exceed $4 billion by 2027. (MarketsandMarkets)
What do people really want?
As AI continues to advance, choices need to be made about how and where AI is deployed to maximize its benefit for the task at hand. In the BPO landscape, the knee-jerk assumption was that these technologies would dispense the need for human agents altogether. The reality, of course, is far more nuanced. In the absence of sentience, and particularly genuine emotional empathy, which is a pre-requisite in most of the myriad of customer transactions in a contact center environment, augmentation rather than replacement has been the order of the day, as customers prefer human interactions for complex or sensitive issues where these soft skills are needed most.
This AI augmentation approach immensely benefits both the BPO provider and its clients’ customers. From efficiency and productivity improvements to enhanced customer experiences, data analysis and insights to training and support, AI can enhance every operational element within the agent and the customer journey. And given that technology is continually evolving, with ongoing improvements in natural language processing, machine learning, and autonomous systems, the future likely holds further advancements and integration into contact center operations, leading to more sophisticated hybrid models combining AI and human expertise.
Expect an increase in the adoption of AI-based voice assistants. More than 8 billion units of voice assistants will be in active use worldwide by 2024, which is double the number of voice assistants that were in use in 2020. (Statista)
So, what does responsible AI adoption in BPOs look like?
Responsible AI adoption in outsourcing requires a balanced approach that combines AI’s strengths with human control and intervention. First, it requires implementing transparent systems to ensure that decision-making processes are understandable to clients and stakeholders. Data privacy and security become paramount, necessitating stringent protocols to protect sensitive information. Ethical considerations must also be integrated into AI development and deployment, ensuring algorithms are free from biases that could lead to unfair treatment of individuals. Continuous monitoring and auditing of AI systems is required to help maintain compliance with regulatory standards and adapt to evolving legal requirements.
Additionally, upskilling employees to work alongside AI is crucial. Empowering human agents to leverage AI tools fosters a collaborative environment where technology enhances human capabilities, leading to more efficient and meaningful interactions, thus improving customer satisfaction and loyalty. By understanding how to use AI systems to their advantage, agents can focus on tasks that require human empathy, negotiation, critical thinking, and problem-solving skills, which AI cannot replicate. Overall, upskilling creates a more resilient and adaptable workforce capable of navigating the dynamic landscape of modern customer service.
By 2025, 80% of customer service and support organizations will be applying generative AI technology in some form to improve agent productivity and customer experience (CX). (Gartner)
The KM² approach to AI
For over two decades and consistently at the forefront of technological innovation and adoption, the KM² approach has been to harness available technology to uplift the human experience on both the agent and customer side. KM²’s technology team members are experts in the acquisition and application of cutting-edge technology and vet and scrutinize prospective technology partners and their products just as we would expect our partners to measure us. The mission is simple: to ensure technological applications make our people better, more efficient, and happier, so we are bringing the best human being to the customer equation through technology, and that these innovations enhance the customer experience and lead to more fulfilling customer transactions and interactions.
The KM² approach to AI is much the same. As we navigate the rapidly evolving AI landscape, mission-critical is the betterment of our workforce, the efficiency, and cost-effectiveness we can pass on to our clients, and the value add it can bring to customer interactions. However, given that regulatory compliance is also fundamental, a special emphasis must be placed on a risk-proportional approach to deliver AI value, ensuring that security and risk tolerance concerns are met as we strike the right balance between technology and compliance. With a hybrid approach bringing the best of both worlds, it is imperative that AI-backed processes are, in turn, backed up by human-decision making. In short, by responsibly leveraging the very best in AI, KM²’s approach is to securely automate the ordinary and humanize the extraordinary.
About KM² Solutions
KM² Solutions ( KM2 Solutions ) is an award-winning BPO with over two decades of experience operating an exclusive nearshore strategy throughout the Caribbean and Latin America. KM² provides outsourced inbound and outbound customer service contact services for voice, chat, email, and mobile to clients in financial services, multi-unit healthcare, insurance services, travel & hospitality, eCommerce, technology & telecommunications, home services, and other sectors. The company provides clients with a host of solutions, including customer support and care, telesales & retention, claims management & processing, appointment setting & schedule management, loan origination & verifications, back-office processing, and technical support. KM² Solutions maintains PCI DSS compliance, completes an annual SOC 2 audit, and has a Compliance Management System that meets the FDIC standards.
