AI and digital to power India’s CX industry growth to Rs 30.88 lakh cr by 2027: Report

Artificial intelligence and digital transformation are set to significantly expand the customer experience (CX) industry, with the total addressable market (TAM) projected to reach Rs 30.88 trillion by 2027, according to the Everest Report. While some industry voices, including tech billionaire Vinod Khosla, have predicted that traditional IT and BPO services could disappear within five years due to AI, leaders in the CX space see a more nuanced reality one where AI acts as both a disruptor and a growth catalyst.

As per the Everest Report, the rapid expansion of digital CX solutions and the integration of generative AI are fundamentally reshaping the industry. Rather than shrinking, the market remains resilient and substantial, evolving from cost-driven outsourcing to intelligence-led service delivery.

From headcount-led BPO to intelligence-led CX

Pankaj Dhanuka, Co-Founder and CEO of Fusion CX Limited, believes the shift is structural rather than destructive. “While operating models will evolve rapidly, history shows that technology cycles ultimately expand capability, productivity, and human potential,” he says. “The industry is moving from a headcount-led model to an intelligence-led delivery model, where AI enhances productivity, improves quality, and enables faster decision-making across customer journeys.”

Unlike traditional BPO models that prioritize cost efficiency and back-office functions, CX services focus on end-to-end engagement, personalization, and measurable value creation. This shift makes CX a more strategic and future-ready offering, particularly as enterprises demand integrated, omnichannel engagement.

Fusion CX operates 40 delivery centers across 15 countries, offering 24x7 multilingual support in 28 languages, including English, French, Spanish, Portuguese, German, Arabic, Mandarin, Italian, and Hindi. By approaching opportunities through a CX-focused lens, the company has secured business from 22 Fortune 1000 companies and works with clients across sectors such as finance, retail, hospitality, and digital commerce.

AI as augmentation, not replacement

Industry experts argue that AI represents the next technological wave — similar to the computer revolution or the dot-com era — reshaping how work is delivered rather than eliminating entire sectors. According to Dhanuka, enterprises are increasingly looking for partners who can operationalize AI responsibly at scale instead of replacing service providers.

“AI is automating repetitive processes, but it is simultaneously elevating uniquely human capabilities such as judgment, empathy, governance, and complex problem-solving,” he explains.

Fusion CX’s transition toward an AI-first CX strategy, powered by its Omind AI platform, reflects this hybrid model. The company views AI as both a disruption and an enabler of broader human progress — augmenting talent, creating higher-value roles, and delivering measurable business outcomes through smarter operations.

Rise of AI-powered, multi-channel engagement

AI-driven CX services are transforming how businesses engage customers by enabling proactive, personalized, and intelligent interactions. Predictive analytics, AI-powered chatbots, and automated decision systems help organizations anticipate customer needs and resolve issues before they escalate.

For instance, banks use machine learning to detect potential account irregularities, while e-commerce platforms rely on behavioral analytics to recommend relevant products and improve conversions. Natural Language Processing (NLP) and real-time translation tools further support seamless multilingual experiences at global scale.

A Harvard Business Review study of 46,000 shoppers found that 73% use multiple channels during their purchase journey, underscoring the importance of integrated CX strategies. Meanwhile, mobile dominates transactional behavior, with 76% of US adults making purchases via smartphones compared to 69% on desktops.

As global companies accelerate AI adoption, the opportunity for the CX sector lies in combining advanced technology with deep operational expertise. Every technological era has redefined work — AI will be no exception. Rather than diminishing human roles, it is poised to reshape how human intelligence and technology collaborate to deliver smarter, faster, and more meaningful customer experiences.