The global business process outsourcing sector is undergoing a fundamental transformation as generative and agentic AI automate routine customer service, chat support, and back-office tasks. Major players including Teleperformance plan to equip their entire half-million workforce with AI tools by early 2027, moving to hybrid human-AI models.Companies such as Uber, Microsoft, and Commonwealth Bank have already cut thousands of support roles, while Philippine and Indian BPO forecasts for job growth have been sharply revised downward amid automation.The traditional headcount-based FTE model is giving way to outcome-driven, AI-first delivery. Providers that integrate agentic systems and reskill talent for higher-value work are positioning to capture growth in a market still projected to expand, even as pure labor-arbitrage economics fade.