Philippine Call Centers Navigate AI Revolution, Balancing Job Losses And New Opportunities

Bloomberg reported today how the rapid adoption of AI in the Philippines’ business process outsourcing (BPO) industry, a sector critical to the country’s economy, is sparking concerns over job losses.

The integration of AI is being driven by the same cost-cutting pressures that initially motivated companies to outsource jobs to the Philippines, says the report.

The introduction of AI has had mixed effects on the workforce. Some workers have found their jobs threatened or even eliminated as AI takes over more tasks.

For example, Christopher Bautista, 47, who spent nearly two decades in the call center industry, was suddenly placed on “floating status”—no work, no pay, but still officially employed.

Bloomberg reports that Bautista resigned six months later to take a sales position while waiting for reassignment. “AI will take over our jobs,” Bautista said. “It’s cheaper and more efficient.”

Despite potential job losses—estimated at up to 300,000 in the next five years within the country’s BPO industry—the industry is attempting to adapt by upskilling workers and embracing technological advancements, according to Bloomberg.

It’s not all doom, as AI is also expected to create new roles, such as training algorithms or managing data. Analysts predict AI could generate up to 100,000 new jobs.

Bloomberg reports that ChatGPT is being used to train customer service agents by simulating various customer personas during role-playing exercises. This approach helps new hires handle challenging interactions more effectively.

PV Kannan, CEO of a customer service company, told Bloomberg that this AI-driven training has reduced the time required for new staff to become proficient from 90 days to about one month.

The BPO sector, particularly call centers, is a huge part of the Philippine economy. As the largest private-sector employer and a significant contributor to the nation’s GDP, it is a vital part of the country’s economic landscape.

The government and industry leaders are working to mitigate these risks by investing in AI training and research. National Economic and Development Authority Secretary Arsenio Balisacan told Bloomberg “If you don’t upskill, obviously, AI will replace you.”

However, the government has not yet detailed its spending plans. Leading opposition senator Risa Hontiveros expresses concerns about the slow response. “Unfortunately, the Philippines is poorly prepared to shield our workers from the impact of the AI wave,” she told Bloomberg.