Africa’s BPO industry enters AI era with 40% of jobs at risk

• Customer experience roles, which account for 44% of jobs in the BPO industry, are among the most affected, with half of tasks in these roles being automatable.
• Finance and accounting positions in the BPO sector face similar challenges, with nearly two-thirds of junior-level tasks at risk.
• Tasks performed by women in the BPO industry are on average 10% more susceptible to automation than those by men.

Kenya’s Business Process Outsourcing (BPO) market is undergoing tectonic shifts with revenues expected to reach $272.10 million in 2025 with an annual growth rate of 5.96 per cent. This change has resulted in a projected market volume of $343.00 million by 2029.

To harness the growth potential of this industry, policymakers in the government of Kenya plans to create one million BPO/ Information Technology Enabled Services (ITES) jobs in the next five years through supportive policies and incentives.

However, the rise of automation could slow down this growth. A new study by Caribou and Genesis Analytics, in partnership with the Mastercard Foundation identifies Customer Experience roles, which account for roughly 44 per cent of current employment in the African BPO industry, as particularly vulnerable, with half of the tasks at risk of automation.

The survey further identifies that 40 per cent of tasks in Africa’s tech outsourcing sector, including BPO (Business Process Outsourcing) and ITES (IT-Enabled Services), could be automated in just under five years, creating new pathways for workers to move into higher-skilled, and, therefore, higher-paying opportunities.

With just 10 percent of tasks fully resilient to automation, strategic investment in widespread Artificial Intelligence (AI) upskilling and training will be critical in unlocking Africa’s $35 billion BPO potential by 2028, the industry survey notes.

Why targeted upskilling programs are inevitable

According to Rodwell Mangisi, Director of Digital Economy Pan African Programs at the Mastercard Foundation, “Africa’s tech outsourcing industry is expanding rapidly, adding new jobs and opportunities each year. As AI transforms global business processes, Africa can lead by ensuring its workforce is AI-ready. By investing in targeted upskilling programs, especially for women and young professionals, we can ensure this 6 per cent annual growth translates into sustainable, high-value employment that benefits all demographics.”

At the moment, AI is already deeply integrated into Africa’s BPO and ITES industry, driving efficiency and innovation at scale. Workers are using emerging tools and technologies such as ChatGPT, Microsoft Copilot, and in-house chatbots to enhance productivity, creativity, and accuracy.

These AI-powered technologies assist with coding, debugging, content generation, and customer service, enabling employees to focus on strategic problem-solving, decision-making, and higher-value tasks. As a result, they see opportunities for career advancement and transitioning into higher-level roles.

Despite these opportunities, AI’s rapid rise could impact certain roles in the BPO industry, the survey reveals. For instance, entry-level jobs, which constitute 68 per cent of the workforce are particularly at high risk, with more than half of tasks being automatable.

To futureproof the industry, which is a vital employer of tech-savvy youth, AI-driven upskilling programs are needed to enable workers to shift into higher-skilled, better-paying roles in cybersecurity, AI management, and data services.

Charlene Migwe, Program Director at Caribou said: “Africa’s tech outsourcing sector is at a pivotal moment. With the right investments in skills development, ethical AI, and inclusive policies, we can transform the risks of automation into new opportunities for innovation and resilience.”

Read also: Kenya eyes $262Bn BPO market with labour law reforms

Challenges and opportunities posed by emergence of AI in BPO industry

While AI presents significant opportunities, it also poses challenges, particularly for women and youth who predominantly occupy entry-level roles. The report highlights tasks performed by women are on average 10 per cent more susceptible to automation than those by men in the industry. This disparity risks exacerbating gender-based inequalities in the sector’s workforce if not proactively addressed.

Additionally, customer experience roles, which account for 44 per cent of employment in the BPO industry, are among the most affected, with half of tasks in these roles being automatable. What’s more, finance and accounting positions in the BPO sector face similar challenges, with nearly two-thirds of junior-level tasks at risk.

Without intervention, these shifts could disproportionately impact the livelihoods of young workers and women in the sector. To mitigate these risks, the report stresses the urgency of equitable AI upskilling and reskilling efforts to ensure all demographics can transition into future-proof roles.