Navigating the AI Outsourcing Wave: Threats to Employment and the Imperative for Upskilling

Abstract

The rise of artificial intelligence (AI) outsourcing practices presents significant challenges to existing employees and the broader labour market. This chapter examines how the integration of AI in outsourced tasks threatens job security by automating roles traditionally held by human workers, particularly in industries such as IT, customer service, and data management. The ripple effects of these changes on the labour market are explored, including increased competition and displacement of low-skilled jobs. Recognizing the critical need for adaptability, this study emphasizes the importance of upskilling in AI-related technologies to remain competitive. It also proposes actionable strategies for mitigating the threats posed by AI outsourcing, including fostering education in AI, implementing supportive labour policies, and encouraging ethical outsourcing practices. By addressing these issues, the chapter aims to equip organizations, policymakers, and workers with tools to navigate the evolving landscape of AI-driven outsourcing.