AI as an enabler, not a replacement: Skill readiness in the next phase of India's BPM industry

“The BPM industry, today, is nowhere close to what it was 20-25 years ago. Every industry evolves, and the best ones embrace change. The shift towards artificial intelligence (AI) is not about replacing jobs but about reskilling and upskilling. Those who adapt will thrive,” said Diwakar Singhal, Global Business Leader at Genpact. Singhal was emphasising that technological evolution in BPM is not a threat but an opportunity at a recent webinar hosted by The Economic Times and Nasscom, featuring key industry leaders who shared their insights on the future of Business Process Management (BPM).

India’s BPM industry has long been a global leader, but industry veterans insist that what we see today is merely the tip of the iceberg. With rapid technological advancements, AI integration, and a workforce that must keep pace, the sector is on the brink of a transformative shift. The pressing question is: How are organisations preparing for this evolution, both from an employee and employer perspective?

It is in this light that Singhal suggested that the shift is not about choosing between humans and AI but about leveraging both to create greater business value. Essentially, companies that invest in upskilling, reskilling, and strategic hiring will be the ones driving the next chapter of India’s BPM industry. Singhal was joined by Gaurav Iyer, Senior Vice President and Head of Digital Engineering and AI Solutions at EXL, Avishek Chattopadhyay, Executive Vice President and Global Delivery Head for Digital Process Operations at HCLTech, and Naozer Dalal, CEO, Alldigi Technologies Ltd.

Working on AI and working with AI
Gaurav Iyer, Senior Vice President and Head of Digital Engineering and AI Solutions at EXL, acknowledged the industry’s preparedness but pointed out that AI adoption is progressing on two fronts. “If you think about it, there are two kinds of people in the BPM industry—those working on AI and those working with AI. We’ve invested heavily in data, analytics, and automation over the last decade, ensuring we are well-positioned for this shift.” Iyer stressed that while AI development is advancing rapidly, its true value lies in its ability to facilitate seamless integration across business workflows, and this is where BPM professionals play a crucial role.

Embracing change, not fearing it
Singhal reiterated that AI will augment human capabilities rather than replace them, making the industry more solutions-focused rather than just process-driven.

Seconding this view, Avishek Chattopadhyay, Executive Vice President and Global Delivery Head for Digital Process Operations at HCLTech, noted that AI’s role in BPM is still in its early stages. “What we see today is just the beginning. AI and GenAI have primarily been used for service acceleration—basic automation and rule-based workflows. The real value will emerge when AI moves beyond automation to co-create new products and services.” He highlighted the growing need for hybrid operating models, where human expertise complements AI-driven insights.

The rise of new roles and skills
With AI integration, organisations are reevaluating their workforce strategies. According to a recent Nasscom survey, 80% of BPM organisations are actively seeking professionals to meet the demands of this technological shift. This brings a crucial dilemma: Should companies focus on hiring new talent or reskilling existing employees?

Iyer explained, “For roles that require expertise in AI development—such as AI architects, machine learning (ML) engineers, and data scientists—we are hiring from the market. However, for employees working with AI, we are prioritising upskilling and reskilling.” He also highlighted that the curriculum for fresh engineering graduates is evolving, focusing more on AI literacy and coding methodologies aligned with industry needs.

Naozer Dalal, CEO, Alldigi Technologies Ltd., outlined five key areas of transformation in BPM: “First, automation penetration is increasing significantly. Second, organisations are moving away from traditional billing models towards value-based outcomes. Third, there’s a shift from siloed operations to a seamless man-machine collaboration. Fourth, AI is enhancing customer experience through predictive analytics. Lastly, there’s a need for greater explainability in AI decision-making to build trust and transparency.”

AI as an enabler, not a replacement
A recurring theme in the discussion was the co-existence of AI and human intelligence; how AI should be viewed as a “smart assistant, rather than just a tool.”

Dalal spoke about his company’s AI Center of Excellence (CoE), which provides hands-on experience for employees to interact with AI-powered tools, while Singhal talked about dedicated “AI Labs” where employees can experiment with new AI use cases in a sandbox environment. Such efforts help ease apprehensions and allow employees to see firsthand how AI can assist them rather than replace them.

Singhal also stressed how AI is not just about automation; it’s about augmentation. To truly drive AI-led transformation, organisations need to cultivate a mindset where employees see AI as a creative tool rather than just an efficiency tool. “Another critical aspect is leadership buy-in. When leaders actively promote AI-driven experimentation and reward innovative thinking, it sets a tone across the organisation,” Singhal said.

Chattopadhyay mentioned that success lies in balancing technology, talent, and transformation. “Organisations need to invest not only in AI tools but also in skilling their people to work effectively alongside AI. At the same time, they must rethink their operating models to truly integrate AI into their workflows. It’s a journey, and companies that take a structured, people-centric approach will see the most success.”

Dalal’s biggest takeaway is that AI should be seen as an enabler, not a disruptor. “Organisations must focus on building trust and transparency around AI adoption. That means clear communication, ethical AI governance, and a commitment to continuous learning. If employees see AI as a partner rather than a competitor, adoption becomes much smoother,” were Dalal’s parting words.

Singhal agreed, stressing that organisations must create an environment where employees feel empowered to explore AI rather than fear it. Iyer concluded that the future of work will be shaped by how well we integrate AI with human expertise.