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August 2, 2023

5 Way AI is changing the norms of the Outsourcing Industry

5 Way AI is changing the norms of the Outsourcing Industry

What is A.I

Artificial Intelligence or AI can be defined as the unnatural intelligence that is demonstrated by the non-living specimens or machines. Unlike natural intelligence, artificial intelligence isn’t susceptible to consciousness and emotions. An AI model has the capability to analyse and reiki its environment and take certain actions that maximizes the chances of successfully achieving its goal.

With passing time, perseverance of AI and automation is increasing rapidly with time. And these trends are also visible in industries such as retail, corporates and BPO industry is no different either. And ever since the adverse effects of airborne disease and reduction of working force, many industries’ dependency has increased over AI with times. But how is AI changing the BPO industry?

How AI is changing the BPO norms?

how AI impacting BPO industry -

1. 24/7 Assistance

According to a research paper public by Harvard Business Review, the most suitable working hours to enhance the maximum productivity without jeopardising personal health is 6 hours workday, five days a week. This avoids distraction and improves focus. But what about the remaining hours? Industries such as a retailer or Customer Relationship Management are always upfront to deliver services to their customers.

Here AI comes into play. Industries get assistance through ChatBot over a webpage that can handle regular inquiries whenever needed. Unlike a human, AI doesn’t get tired or affected from overworking hours. Hence, having a chatbot helps achieve a quick response rate, and a better customer experience improves the firm’s image.

2. Analysing responses across channels

The study of the sentiment that runs through the text comments and the language processing. It’s impossible to read all of the conversations or go through a huge number of survey responses or social media comments. With a powerful text analysis, artificial intelligence can help you dive into those millions of words and develop a clear grasp of what your customers think and want. You don’t have to wait until you’ve gathered enough data to use AI. However, with AI, you can quickly examine a large pool of respondents, weeding out those who don’t fit your criteria and leaving only a shortlist of target applicants.

This will also help you add pre answered questions and queries that are being faced regularly. It improves the data handling and management from the backend and gives more accurate results for future improvement.

3. Saves time

According to a paper published by Lexology on AI in the BPO industry, AI has become a possible point of difference for the services provided by the BPO industry in the centre of banking and retail sectors. For example, Robotic Process Automation technologies might be used to process finance and accounting spreadsheets. Data analytics might be utilised to improve a supplier’s performance, and chatbots may replace humans at call centres and customer care centres.

But that’s when a human to play. No matter how advance or updated an AI can be, according to a survey report by Tele Performance, more than half of the crowd still prefers a human interaction over an AI bot. But the upcoming Gen – Z has seen a hike in the preference when it comes to using AI bots over different platforms. Hence, it can always be used in the backend to get the work done, but the front-end work is still susceptible to differences and prefers an amalgamation of human touch with AI.    

4. Improving retention rate of the members

Members of online communities aid the internal insights team in having regular communication with customers and ensuring that they are at the centre of your firm. AI assists you in maintaining engagement, reducing churn, and achieving high-quality outcomes. It is accomplished by using predictive modelling and the analysis of things like logins, which saves time and effort.

Remember the last time you visited a local store that knew your name, preference and had things just for you? AI is nothing different. It helps in holding up on people because of the ultimate customised holding capacity in the huge pool of data, which is only going to increase with time. It also helps remove the unwanted information over time and store the only relevant stuff that is important for the organisation or come in handy shortly.

5. Utilising live data to learn and update

Even though AI requires a huge initial investment, it is considered fruitful in the long run. But what makes it so special? AI is the only smart tool that trains with time over the given data. AI tools such as machine learning, deep learning, and NLP allow the software to automatically learn from patterns or features in the data by combining massive volumes of data with fast, repeated processing and intelligent algorithms.

Such learning helps develop advanced solutions and forecasting demand for the industries that save huge investments in terms of time, labour and capital. It can quickly release operational data, which may then be combined with experience data to yield helpful insights. Recent trends have found that industries are searching for backend integration tools that can help smart store and predict the depreciation time and cost for the operational machinery to avoid over or under stalking of the products.

Can AI be biased in segregation?

Every market researcher understands that one of the biggest threats to data integrity is bias. It doesn’t matter if it’s a leading survey question or a respondent who remembers some items but forgets others, skewness in statistics. AI creates high-quality data by eliminating prejudice and collecting all data on an equal footing. In basic terms, AI aids in analysing each question and providing real-time ideas for improving the survey and obtaining better data. It is one of the most effective methods in which AI aids market researchers in their work.

When it comes to human intervention, letting the biasness or preconceived notion is the biggest challenge in analysing subjective research. This has led to hind sighting the goals and ignoring the point of errors. Examples such as New Coke launched by Coca-Cola in 1985 or the Fall of Nokia shows how big brands with enough experience were still not able to make an adherend decision that could have benefitted the company or had a narrow scope due to their biasness towards certain market norms or trends. Such decisions have led companies to stumble upon huge losses in market share, size and revenue collection.

Industries that are using AI by outsourcing their services

Applications of AI -

Outsourcing has become a new norm where companies try to outsmart their competitors by outsourcing most services and focusing on their core competencies. It saves you cost and time and helps you bring a pool of high intellectuals who bring their expertise from different domains and helps smooth the running of processes.

1. FinTech

Financial sectors and banking sectors have started outsourcing their CRM and lead generation services to BPOs with AI assistance. AI assistance not only helps in finding the right set of accounts that should be targeted first, but it also gives a more optimised solution when it comes to improving the collection rate and choosing the most convenient channel for the customer.

Some firms also invite these companies to process the same model over the existing customers (or test market) to see the trend and optimise it with deployment over the whole firm.

2. E-Retail Stores

This does not surprise me since the level of competition is pretty touch in the E-Retail business, and the return is decent. With a huge pool of customers and business comes high average processing time due to human interaction, response turnaround time, low accuracy etc. This results in scoring low scores and bad reviews. Hence, firms resort to outsourcing their call centre to BPO companies that have AI assistance. It helps them build solutions for top, repeating queries, optimising record management with transaction database stored by the BPO company, adding customised and user-friendly audit forms with an auto note generator. This improves the customer experience and helps in retaining the customer as well as getting new ones via referrals and word of mouth marketing

Why is AI still unexplored?

AI is still limited to few markets and hasn’t reached its full potential due to the need for high resources, skilled labour and initial capital investment. Even though the long-term outcome has seen the positive impact, many industries are susceptible to making such huge investments for an artificial tool. BPO industries are always updated with the market trends and data due to the type of work they are into. This can be considered as one of the reasons BPO industries invested in ML & AI and grew many folds in unexplored markets. Book a free consultation today to discuss more about the services.

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