In today’s fast-paced business landscape, the adoption of Artificial Intelligence (AI) and Generative Artificial Intelligence (Gen AI) is reshaping various sectors, including India’s Business Process Management (BPM) industry, which accounts for nearly 40% of global sourcing spends. With its vast potential and ability to drive efficiency, innovation, and cost-effectiveness, AI and Gen AI are revolutionizing the way BPM businesses operate, offering unparalleled opportunities for growth and development.
Highlighting the growth of Indian BPM industry, Mr Partho Dasgupta says, “Over the past 25 years, India has built the strongest BPM base in the world, taking on more and more processes of the world’s largest companies. However, as the demands of clients evolve and technology advances, the industry must adapt to stay competitive”. He further adds “This is where AI and GenAI come into play, offering transformative solutions that redefine traditional business processes and enable BPM firms to deliver greater value to their clients”.
Mr. Partho Dasgupta underscores the remarkable expansion of the Indian BPM industry, noting that over the last 25 years, India has established itself as a global leader in BPM, undertaking an increasing array of processes for some of the world’s largest companies. However, he emphasizes that to remain competitive amidst evolving client demands and technological advancements, the industry must adapt. He emphasizes the pivotal role played by AI and GenAI, which offer transformative solutions capable of redefining traditional business processes and enabling BPM firms to provide enhanced value to their clients.
Gen AI Technology empowers BPM companies to consolidate data from disparate sources, analyze it comprehensively, and swiftly implement changes while also facilitating personalized products and services.
The Generative AI market is forecasted to reach a size of US$0.64 billion in 2024, with an expected annual growth rate (CAGR 2024-2030) of 46.32%, leading to a market volume of US$6.28 billion by 2030. Among global markets, the United States is anticipated to have the largest market size, projected to reach US$11.66 billion in 2024.
Mr. Partho Dasgupta provides a tangible example to illustrate this capability. Netflix collects extensive user data, including viewing history, ratings, and search activity, alongside details like viewing time, location, and device used. It also tracks interactions like pausing, rewinding, and fast-forwarding, even saving screenshots for analysis. By employing sophisticated algorithms, Netflix predicts user preferences and organizes content accordingly, with personalized rows prominently displayed. This recommendation system drives a remarkable 80% of content streamed on the platform.
Upon closer examination, it’s clear that AI profoundly influences key dimensions of the BPM industry: productivity, performance, prediction, and personalization. Generative AI, in particular, streamlines process automation, freeing resources for strategic endeavours. Additionally, it empowers decision-making through data analysis, enhancing process performance and customer experiences. Furthermore, Generative AI aids in predictive analytics, enabling businesses to anticipate trends and maintain competitiveness.
For instance, in e-commerce management, generative AI analyses historical sales data, market trends, and other pertinent factors to generate precise demand forecasts. For example, Amazon predicts what users will like through a sophisticated system that analyses various aspects of user behaviour. By examining your purchase history, browsing activity, and search queries, Amazon gains insights into your preferences and interests. It also considers the ratings and reviews you provide for products, as well as those of similar customers. Additionally, Amazon compares your behaviour with that of other users who share similar preferences to suggest products tailored to your tastes. Behind the scenes, advanced machine learning algorithms crunch vast amounts of data to generate personalized recommendations, aiming to enhance your shopping experience by showing you items that are most relevant and appealing to you.
Anticipating demand and identifying potential issues empower businesses to make proactive decisions and maintain a competitive edge. Consequently, this results in increased profitability and optimal utilization of human resources, facilitated by real-time monitoring.
As reported by the Times of India, EXL, one of India’s largest BPM companies, has developed a product capable of predicting, based on various attributes, individuals who are likely to become high net worth individuals. This enables the selling team to proactively reach out to these individuals, provide early service, and cultivate their loyalty before competitors do.
Generative AI revolutionizes customer engagement in the BPM industry by enabling personalized and contextually relevant experiences, addressing a significant challenge for companies. By analysing customer data, Generative AI algorithms generate tailored recommendations and offers, enhancing satisfaction and operational efficiency. For example, Generative AI-powered chatbots engage with customers in natural language, providing real-time support and reducing response times.
Moreover, Gen AI’s knowledge management capabilities benefit human agents, automating documentation tasks and enabling them to deliver superior service. The evolution of chatbots into conversational AI further enhances the customer experience by engaging in human-like conversations and catering to diverse language preferences. Indian BPM firms, such as Sutherland, leverage this technology to provide multilingual support, with voice-enabled capabilities on the horizon.
A Deloitte survey of 2,620 global businesses revealed that 94% of business executives view AI as essential for future success. Additionally, 44% of businesses use AI for cloud pricing optimization, while 41% leverage it for voice assistants, chatbots, and conversational AI applications.
Nevertheless, the integration of AI and GenAI in the BPM industry is accompanied by challenges. One of the primary concerns revolves around the potential impact on employment, as automation and AI-driven systems have the capacity to replace certain traditional human roles. However, offering a contrasting perspective, Mr. Partho Dasgupta suggests, “While this may result in some job displacement, it also presents opportunities for upskilling and reskilling the workforce to undertake more intricate and high-value tasks demanding human creativity, critical thinking, and emotional intelligence.” Furthermore, BPM firms must address issues concerning data privacy, security, and the ethical use of AI to instil confidence in their clients.
Despite the obstacles, the outlook for India’s BPM industry appears optimistic, thanks to the extensive integration of AI and GenAI technologies. By embracing innovation and harnessing the capabilities of these state-of-the-art technologies, BPM firms can achieve unprecedented levels of efficiency, agility, and competitiveness, solidifying their status as trusted partners in the global business arena. Through strategic investments in talent development, technology infrastructure, and collaborative ventures, India’s BPM industry is well-positioned to spearhead the utilization of AI and GenAI, paving the way for sustainable growth and prosperity in the years ahead.
Tags: Partho Dasgupta, India’s BPM industry, GenAI technologies
