Transforming the Outsourcing Model: Balancing AI Innovation with Human Expertise

AI’s explosive growth is going to continue to rise. According to Forbes, AI’s market size is expected to reach $407 billion by 2027 and is projected to reach a staggering $407 billion by 2027, experiencing substantial growth from its estimated $86.9 billion revenue in 2022.  

JDA TSG has been tracking the impact of AI heavily among other leaders who are at the forefront of defining the role of technology in enhancing the customer experience and employee journey.  

I’ve been examining how two competing trends – the rapid advancement of AI technology and the growing consumer demand for human involvement in customer experience — are reshaping the traditional outsourcing model.  

As AI continues to evolve, we are likely to see two distinct service models emerge within the outsourcing landscape. The first is an AI-driven self-service model, where AI tools can enable customers to independently complete tasks with minimal human intervention. The second is a full-service model, in which human experts, equipped with specialized expertise, handle complex tasks or provide strategic advisory services.  

The next 5-6 years are crucial. During this time: 

• Companies must focus on upskilling their workforce to prepare for a future where AI handles many routine tasks.  

• Employees need to develop skills that are difficult for AI to replicate, such as those requiring specialized knowledge, critical thinking, and human interaction. 

• And more..  

That is only the beginning – want to learn more? Reach out to me to discuss this topic.