Business process outsourcing (BPO) services have depended on human labor to handle noncore business and IT capabilities like customer support, data entry, payroll, and IT operations. While the traditional outsourcing model successfully lowers costs, it struggles to meet the growing demand for agility, innovation, and enhanced customer experiences. BPO providers have started to compose AI-powered services to stay competitive, establish differentiation, and deliver enhanced value. This report helps business and tech leaders understand the state of AI-powered BPO services and provides best practices for choosing the right providers for their AI servicing needs.