Rising Threat of Automation to Kenya's BPO Expansion: Importance of AI Training Highlighted

Potential impacts on younger workers and women in the sector could escalate if no intervention takes place. The report underscores the immediate requirement for fair AI training programs that cater to upskilling and reskilling, safeguarding all demographics and helping them transition into...

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2025 August 27 . 4:23 PM

2 min read

The Growing Automation Threat to Kenya's BPO Sector Highlights the Urgent Need for AI Training

Rising Threat of Automation to Kenya's BPO Expansion: Importance of AI Training Highlighted

In the rapidly evolving Business Process Outsourcing (BPO) sector across Africa, a shift towards hybrid human-AI workforce models is gaining momentum. This transformation, aimed at ensuring sustainable employment and addressing gender inequalities, could have a significant impact on the continent's workforce, particularly young workers and women [1].

The BPO market in Kenya, currently valued at US $272.10 million, is projected to reach US $343.00 million by 2029, growing at an annual rate of 5.96% [2]. South Africa, contributing 42.5% of Africa's outsourcing revenue, serves as a major hub for these AI upskilling initiatives, offering a scalable model for the rest of the continent [4].

BPO companies and AI solution providers are collaborating to train workers to manage AI tools such as chatbots, virtual assistants, data processing automation, and predictive analytics. This training helps workers evolve alongside AI integration, maintaining employability in a digitized sector [1][5].

Firms are also applying Human-in-the-Loop (HITL) models, where AI handles routine tasks, and skilled humans provide oversight and handle complex issues. Examples in Africa include AfricaAI and Avala, which embody this intersection, generating resilient job opportunities grounded in human skills [2].

Demand-led managed service platforms are being embedded across all delivery layers, addressing the limitations of open gig markets and legacy outsourcing models. These platforms create a more sustainable and ethical digital labor ecosystem [2]. AI-powered HR tools are employed to support career development, personalized training recommendations, and succession planning, helping identify high-potential workers and providing targeted upskilling opportunities [5].

While explicit gender-specific programs were less detailed in the current data, the emphasis on ethical, accountable platforms and personalized development models implicitly supports addressing gender-based inequalities by creating fair, transparent, and accessible opportunities [6]. Ensuring that women can access the upskilling resources and digital work roles provided by organizations like AfricaAI and Avala is a key aspect.

However, the disparity in automation vulnerability between genders could worsen gender-based inequalities in the workforce. Women in the BPO sector perform tasks that are, on average, 10% more vulnerable to automation than those performed by men [3]. By 2030, 40% of tasks in Africa's tech outsourcing sector could be automated, making strategic investments in AI upskilling and training essential [7].

Finance and Accounting roles in the BPO sector have nearly two-thirds of junior-level tasks vulnerable to automation, while Customer Experience roles, which make up 44% of employment in the sector, are identified as highly vulnerable to automation [3][4]. Entry-level jobs, which account for 68% of the workforce, are particularly vulnerable [4].

The report emphasizes the urgent need for equitable AI upskilling and reskilling programs to ensure all demographics can transition into future-proof roles. The Kenyan government aims to create 1 million BPO/ITES jobs within the next five years, emphasizing the potential for these initiatives to transform the sector [8].

In conclusion, Africa's BPO sector is pursuing sustainable employment through hybrid human-AI workforce models, strategic investment in upskilling/reskilling, ethical digital labor platforms, and AI-powered HR tools that support personalized career development. These approaches collectively aim to address workforce sustainability and gender inequalities by enabling broader, higher-quality participation in AI-enhanced roles [1][2][3][5].

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