AI Customer Service: Klarna, Sierra, Decagon and BPOs — 2026-09-04
Klarna continues to adjust its hybrid AI-human customer service model, while the Philippine BPO industry revises its 2028 revenue targets downward due to AI automation pressures. In India, new reports highlight a shift in the BPO landscape, with low-paying AI data labeling jobs emerging in Gurugram and Noida, even as major IT firms like TCS continue to reduce headcount.
AI Customer Service: Klarna, Sierra, Decagon and BPOs — 2026-09-04
Top developments
Philippine BPO Industry Revises 2028 Revenue Targets Amid AI Concerns
The Business Process Association of the Philippines (IBPAP) has cut its 2028 revenue target to $50.5 billion, acknowledging that artificial intelligence is a "real but manageable" force reshaping the industry. This revision reflects a strategic pivot away from traditional voice-based services toward higher-value digital processes and AI-assisted workflows. The move signals that while AI is not an existential threat to the sector, it is fundamentally altering the employment mix and revenue potential for the country’s largest employer of entry-level workers.
India’s "New BPO": AI Data Labeling Jobs Surge in Gurugram and Noida
A new report from The Print reveals that AI is creating lakhs of low-paying jobs in Indian tech hubs like Gurugram and Noida, effectively becoming India’s "new BPO." This hidden workforce is tasked with training AI models to identify objects and patterns, replacing some traditional call center roles. This shift highlights how the impact of AI on Indian outsourcing is not just about job loss but also a transformation into different, often lower-paid, types of digital labor.
Genesys Launches New AI Tools for Customer Journey Orchestration
Contact center giant Genesys has unveiled new AI tools designed to orchestrate customer journeys more securely, adding governance and context across service queries. This launch is critical as companies seek to manage AI-driven interactions more effectively, ensuring that automated responses remain aligned with brand standards and regulatory requirements. For vendors like Sierra and Decagon, this raises the bar for integration and governance capabilities in enterprise contact centers.
Local view
In India, local media coverage emphasizes the dual reality of AI's impact on employment. While The Print details the rise of AI training jobs in NCR, other outlets like India Daily report on immediate job cuts, such as Zomato closing its Hyderabad customer support center, affecting approximately 250 employees. This juxtaposition illustrates the rapid restructuring of the Indian BPO sector, where displacement in traditional support roles is occurring simultaneously with the creation of new, albeit often lower-skilled, AI-related positions.
Context & numbers
- Philippines Revenue Target: The IBPAP has lowered its 2028 revenue projection to $50.5 billion, down from previous higher estimates, citing AI-driven efficiency gains and shifting client demands.
- Zomato Layoffs: Zomato closed its Hyderabad customer support center, resulting in the layoff of approximately 250 employees, highlighting the direct impact of AI automation on specific corporate support hubs in India.
On the radar
- Genesys Adoption: Watch for early case studies on how enterprise clients are implementing Genesys' new orchestration tools to balance AI automation with human oversight.
- IBPAP Strategy Updates: Further details on the Philippines' strategy to defend its IT-BPM lead through Global Capability Centers (GCCs) are expected, with a target of 170 GCCs.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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