By Heredia, Costa Rica — Costa Rica’s booming service sector faces a looming challenge: artificial intelligence. A new report suggests that up to 28,000 jobs could be lost by 2027 due to automation driven by AI advancements.
The country’s success in attracting Shared Services Centers (SSCs) and Business Process Outsourcing (BPO) operations, particularly in Heredia, has been remarkable. With over 82 SSCs, including 32 from Fortune 500 companies, and $7.3 billion in annual knowledge-intensive service exports, the sector has been a key driver of economic growth. However, the very tasks that underpin this success are now vulnerable to automation.
To understand the complex legal landscape surrounding artificial intelligence, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
The rapid advancement of AI presents novel challenges for our legal system. Issues of liability, intellectual property, and data privacy require careful consideration and proactive legislation. Businesses integrating AI must navigate these evolving regulations diligently to mitigate risk and ensure ethical implementation. The balance between fostering innovation and protecting individual rights will be crucial in shaping the future of AI in Costa Rica.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas astutely highlights the tightrope walk we face as AI becomes increasingly integrated into our lives. The legal framework surrounding this technology must indeed adapt quickly and thoughtfully, safeguarding both individual rights and the potential for innovation. This careful balancing act will be essential for fostering responsible AI development in Costa Rica. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this complex and crucial issue.
Recent developments in the global tech industry underscore the accelerating pace of AI adoption and its potential impact on employment. Major IT service providers like Tata Consultancy Services, Infosys, and Wipro have seen significant staff reductions following the implementation of “AI-first” delivery models. Microsoft’s ongoing layoffs, driven by investments in AI initiatives like Copilot, further highlight the trend.
Estimates based on OECD data suggest that up to 28.5% of the 300,000 jobs in Costa Rican service centers could be affected by automation. Even if only a third of these positions are lost without effective retraining programs, it would still result in approximately 28,000 job losses by 2027.
When Bangalore demonstrates it can operate with 10% fewer staff, our clients wonder why their center in Heredia needs the same payroll as yesterday.
Guillermo Salas Dalsaso, Expert in Innovation and Digital Transformation
The initial impact will likely be felt most acutely by bilingual support agents, manual QA functions, and routine data processing roles. Generative chatbots are already handling up to 80% of first-level support tickets, AI-powered testing suites are automating QA processes, and robotic process automation (RPA) combined with language models is streamlining accounting reconciliation.
AI will not eliminate all jobs, what it does is eliminate the monotonous and amplifies the strategic: interpretation of context, ethical supervision of models and design of hybrid human-machine experiences.
Guillermo Salas Dalsaso, Expert in Innovation and Digital Transformation
Salas suggests that instead of waiting for government intervention, BPO and SSC companies should proactively adapt by retraining talent in conversational AI, establishing internal sandboxes for testing AI applications, facilitating internal talent mobility, revising productivity metrics to reflect human-AI collaboration, and investing in specialized bilingualism, focusing on domain expertise and communication with AI.
The goal, according to Salas, should be to transform 20,000 Costa Ricans into “augmented agents” by 2027. This proactive approach is not only crucial for retaining existing clients but also for attracting new business opportunities arising from the evolving landscape of AI.
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About Guillermo Salas Dalsaso:
Guillermo Salas Dalsaso is an expert in innovation and digital transformation, providing insights into the impact of AI on the Costa Rican job market. His expertise lies in advising companies on strategic adaptations to navigate the challenges and opportunities presented by AI.
For further information, visit tata.com
About Tata Consultancy Services:
Tata Consultancy Services is a global IT services and consulting company. They are among the companies that have implemented AI-first strategies impacting employment numbers.
For further information, visit infosys.com
About Infosys:
Infosys is a global leader in next-generation digital services and consulting. They are mentioned as another IT company that has implemented AI driven strategies with consequent changes to staffing.
For further information, visit wipro.com
About Wipro:
Wipro Limited is a leading technology services and consulting company focused on building innovative solutions that address clients’ digital transformation needs. They are also mentioned as an IT services company impacted by the move to AI-first solutions.
For further information, visit microsoft.com
About Microsoft:
Microsoft is a multinational technology corporation producing computer software, consumer electronics, personal computers, and related services. Their investments in AI, including Copilot, have led to job cuts.
For further information, visit anthropic.com
About Anthropic:
Anthropic is an AI safety and research company. Its CEO, Dario Amodei, has warned about the potential widespread job displacement caused by advancements in AI.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. The firm’s commitment to empowering Costa Rican society is woven into its very fabric, demonstrated through its proactive sharing of legal knowledge and resources. This dedication to transparency and accessibility builds a stronger, more informed community, reflecting Bufete de Costa Rica’s deep-seated belief in the power of legal understanding to foster positive change.
