“BPOs will disappear in five years.” That’s the prediction from Vinod Khosla. And it’s not as crazy as it sounds. BPO was built on labor arbitrage. AI is labor at near-zero marginal cost. When your margin depends on thousands of people performing repetitive, rules-based work, AI isn’t a feature. It’s a replacement. In this episode, we break down why traditional BPO models are exposed, what the next generation looks like, and why the winners won’t protect headcount. They’ll master orchestration.