AI and the Future of Outsourcing

In this episode, Chris Hague, SVP at Bill Gosling Outsourcing, discusses the role of AI in the BPO and collections industry. 

The conversation explores the evolution of AI from RPA-style automation to large language models, cultural and operational challenges in adoption, client risk concerns, and the balance between efficiency and customer experience. 

Key themes include the shift from cost-per-seat to cost-per-outcome, the future of ring-fenced models, the importance of risk management, and the broader societal impact of automation. 

The discussion positions AI as both a transformative enabler and a frontier filled with challenges requiring structured, controlled approaches. 

Find out more about Bill Gsoling -> Here.

Key Take Aways

  1. AI development is advancing rapidly, with large improvements seen even within six months.
  2. There remains confusion between AI, RPA, and workflow automation, with many implementations still closer to programmed processes than autonomous AI.
  3. Organisations need cultural readiness and dedicated transformation teams to adopt AI effectively.
  4. Some of the best automation ideas originate from frontline staff once they understand the direction of change.
  5. Risk management and customer data protection are critical client concerns in AI deployment.
  6. Generational differences shape acceptance, with younger users more comfortable using AI self-service tools.
  7. AI’s role is strongest in transactional and repetitive tasks, but human empathy remains essential for complex and vulnerable cases.
  8. Ethical questions persist around transparency—whether customers should always know if they are interacting with AI.
  9. The industry is experimenting with private/local models to address consistency, risk, and client-specific requirements.
  10. Prompt testing may emerge as a formal discipline, similar to penetration testing in cybersecurity.
  11. BPO models may shift from cost-per-seat to cost-per-outcome as AI changes operational economics.
  12. The BPO industry must continue evolving, balancing efficiency with customer experience and risk controls.
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Innovation

  • Use of narrow pilots and test-and-learn approaches before scaling AI adoption.
  • Exploration of multi-model “chunking” to reduce latency in chatbots.
  • Potential ring-fenced client-specific AI models to protect data and ensure consistency.
  • Development of prompt testing as a safeguard against misuse or prompt injection.
  • “Super agent” functionality, combining knowledge across multiple areas into one seamless customer interaction.

Key Statistics

  • Recruitment processes automated up to 18 months ago, narrowing thousands of CVs into manageable pools with human oversight.
  • Frontier for AGI seen as 5–10 years away, though progress is accelerating.

Key Discussion Points

  1. Definition and perception of AI vary widely, shaping adoption strategies.
  2. Transition from process automation to intelligent digital operations.
  3. Balancing operational efficiency with customer experience.
  4. Importance of cultural buy-in across all organisational layers.
  5. Evolution of customer trust and acceptance of AI.
  6. Risk of reputational damage if AI outputs are untrustworthy.
  7. Differentiation of transactional vs. empathetic use cases in customer contact.
  8. Ethical considerations on transparency of AI vs. human interaction.
  9. BPO industry transformation under AI pressures.
  10. Client risk appetites dictate AI deployment speed and model choices.
  11. Societal implications of automation on labour markets and job design.
  12. Frontier mindset—progress will be messy but necessary to capture value.

#BillGosling


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