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Automation Threatens Kenya's BPO Growth: Importance of AI Training Highlighted

Potential consequences for inaction may disproportionately affect younger workers and females in the industry. To minimize these risks, the report highlights the immediate necessity for fair AI training and employment programs, ensuring a level playing field for everyone to adapt to evolving...

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Automation Threatens Kenya's BPO Expansion: Importance of AI Workforce Training Highlighted
Automation Threatens Kenya's BPO Expansion: Importance of AI Workforce Training Highlighted

Automation Threatens Kenya's BPO Growth: Importance of AI Training Highlighted

The Kenyan government has set an ambitious goal to create 1 million jobs in the Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) sectors over the next five years. However, a recent report highlights potential challenges that these industries could face due to automation.

The report indicates that roles in customer experience and finance and accounting, which make up a significant portion of employment in the BPO sector, are at risk of automation. Nearly half of the tasks in customer experience roles and two-thirds of junior-level tasks in finance and accounting roles are potentially automatable.

These changes could disproportionately impact the livelihoods of young workers and women in the sector if no intervention occurs. The report underlines the need for proactive measures to address the potential worsening of gender-based inequalities in the workforce due to automation.

Rodwell Mangisi, Director of Digital Economy Pan African Programs at the Mastercard Foundation, emphasizes the need for targeted upskilling programs, particularly for women and young professionals. Strategic investments in AI upskilling and training will be essential to unlock Africa's $35 billion BPO potential by 2028.

The market volume is projected to reach $343.00 million by 2029. The report stresses the importance of equitable AI upskilling and reskilling programs to ensure all demographics can transition into future-proof roles.

Current trends in AI-driven upskilling and reskilling programs for the BPO sector in Africa focus on blending AI with human skills through strategic, localized programs supported by AI assessments and continuous learning. However, significant challenges include job displacement risks from AI automation, limited formal protections for gig workers, and gaps in policy implementation around labour rights and algorithmic accountability.

Despite national AI and BPO policies aiming to bridge skills gaps, concrete measures for worker protections, social safety nets, and algorithmic accountability are still underdeveloped. Formal protections for gig workers, including many women and young professionals, remain weak, as ongoing labour law reforms strive to incorporate platform workers.

Inclusive business models and investments in technology preparedness are gaining attention, emphasizing the need to equip BPO sectors for AI integration responsibly, ensuring that reskilling strategies are not only about technological skills but also about broader socio-economic inclusion.

AI is already integrated into Africa's BPO and ITES sectors, driving efficiency and innovation. By 2030, 40% of tasks in Africa's tech outsourcing sector could be automated. AI-driven upskilling programs are crucial for workers to transition into higher-skilled, better-compensated roles in cybersecurity, AI management, and data services.

The report finds that tasks performed by women in the BPO sector are, on average, 10% more vulnerable to automation than those performed by men. Addressing these challenges requires collaborative efforts among governments, industry players, and training platform providers. East Africa, particularly Kenya, Uganda, and Rwanda, emerges as a next-generation BPO destination due to a highly educated and English-proficient workforce, government support for ICT infrastructure, and strategic time-zone advantages. Companies like Thrivin focus on AI-driven skill assessments and aligned upskilling programs to ensure job readiness from day one.

In conclusion, the Kenyan government's goal of creating 1 million jobs in the BPO/ITES sectors is ambitious, but it faces significant challenges due to automation. Strategic investments in AI upskilling and training, particularly for women and young professionals, are crucial to unlock the sector's potential and ensure equitable growth.

References:

  1. AfricaAI and Avala: Demand-led, Managed Digital Work Platforms
  2. East Africa as a Next-Generation BPO Destination
  3. Upskilling Programs Leveraging AI-driven Tools
  4. Risks from AI-driven Automation in Kenya's BPO Sector
  5. Formal Protections for Gig Workers and Inclusive Business Models
  6. Venture capital investments in AI upskilling and training programs for the Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) sectors in Africa, particularly focusing on women and young professionals, could be a strategic move towards unlocking the sector's $35 billion potential by 2028.
  7. The education-and-self-development sector has a significant role to play in preparing the workforce for the future, as tasks in the BPO sector, especially those performed by women, are more vulnerable to automation, requiring reskilling and upskilling initiatives that go beyond technical skills and address socio-economic inclusion.

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