5 Factors Driving Call Center Location Strategy in the AI Era

It is nearly impossible to make it through the day without hearing about artificial intelligence and the sweeping impact it is expected to have across industries. The call center sector is already feeling this shift. Much of the conversation centers on AI replacing human call center jobs, with many companies viewing AI as a way to reduce labor costs and improve service quality.

As a result, some organizations believe they no longer need to prioritize traditional site selection factors such as labor availability or real estate. However, this mindset can be shortsighted. Even as AI becomes more central to future operations, locational considerations remain critical for successful implementation.

Site Selection Group has identified five key factors that will continue to influence call center location decisions, even as AI adoption accelerates.

1. Legislation Can Restrict or Limit the Use of AI

AI is not universally available or uniformly regulated. Some countries impose strict rules on how AI can be used in call centers, particularly for customer interactions, employee monitoring, biometric data, or automated decision-making.

These regulations vary widely by region and can directly influence:

• Which AI tools can be deployed
• How data must be stored
• Whether automation can replace or augment human agents

Understanding local legal frameworks is essential before selecting a market.

2. Cybersecurity Risks Vary by Country

Cybersecurity maturity differs dramatically across the globe. Risk levels depend on:

• National cybersecurity policies
• Strength of digital infrastructure
• Presence of cybercrime networks
• Geopolitical instability

Countries with higher cyber risk often face:

• Stricter compliance requirements
• More limitations on cloud-based AI
• Increased operational constraints for industries like banking, healthcare, government, and telecom

Choosing the wrong market can increase exposure and reduce the effectiveness of AI tools.

3. Workforce Skill Levels Still Matter

Even with automation, call centers cannot eliminate the human element. AI is most effective when paired with a skilled workforce.

AI-ready markets still need:

• Strong digital literacy
• English proficiency for global support
• Experience with CRM, QA systems, and digital workflows
• Universities offering computer science and data programs
• A mature call center and tech ecosystem

Human–AI collaboration requires agents who can interpret AI suggestions, override automated decisions, and handle complex problem-solving. Talent remains a cornerstone of location strategy.

4. Cost Competitiveness

AI can significantly reduce operational costs—but only when the solution itself is cost-competitive.

Key cost considerations include:

• Local labor rates (AI must be cheaper than the human labor it replaces or augments)
• Licensing fees, which vary by country
• Cloud compute, integration, and ongoing maintenance costs

If AI is more expensive to operate in a given market, the business case for that location weakens.

5. Not All Countries Are AI-Ready

AI-readiness is uneven across global markets. A location must have the digital infrastructure and ecosystem required to support AI-driven operations.

AI-ready markets typically offer:

• High-speed, reliable internet
• Modern data centers and enterprise cloud access
• Strong telecom infrastructure
• Local talent capable of working with AI tools
• Clear regulatory frameworks
• Mature cybersecurity controls

Without these conditions, AI cannot operate reliably or securely.

Conclusion

AI is indeed a powerful disruptor, but its success in the call center sector still depends on thoughtful, strategic site selection. Despite technological evolution, the fundamentals of evaluating markets remain essential. Workforce quality, cost structure, regulatory environment, cybersecurity strength, and digital maturity will continue to shape operational outcomes, whether centers are staffed by human agents, AI-driven tools, or a hybrid model.

Let the experts at Site Selection Group guide you through these critical location decisions and help ensure your AI-enabled operations are positioned for long-term success.