According to research by Caribou and Genesis Analytics, 40% of tasks in Africa’s growing technology outsourcing sector could be automated by AI by 2030.
The BPO (Business Process Outsourcing) and ITES (IT-Enabled Services) industries in the continent are growing rapidly. In Kenya, the market is expected to reach $272.1 million by 2025, representing an annual growth of nearly 6%.
The Threat of Automation to Entry-Level Jobs
However, automation poses a threat to entry-level jobs, which make up 68% of the workforce in this sector. Customer Experience roles, which account for 44% of BPO employment, are particularly vulnerable to this threat.
Additionally, Finance and Accounting positions face similar risks, with nearly two-thirds of junior-level tasks in these positions at risk of being automated.
Current AI Integration and Its Impact on the Sector
Only 10% of tasks in the sector are fully resistant to automation. AI has already been integrated into Africa’s outsourcing sector, with tools like ChatGPT, Microsoft Copilot, and in-house AI chatbots increasing efficiency.
Workers are using AI for tasks like coding, content creation, and customer service, allowing them to focus on more strategic work.
How can difficulties be overcome?
To address the challenges posed by AI optimization in the sector, experts recommend several measures: First, AI-supported skill development and reskilling programs should be provided, especially for women and young professionals.
Second, proactive policies addressing gender inequality should be implemented, as tasks performed by women in this sector are 10% more vulnerable to automation than those performed by men.
Finally, redirecting workers into higher-paying roles such as cybersecurity, AI management, and data services could help mitigate the potential risks brought by automation.