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News » AI boosts efficiency, increases demands in the Philippine BPO industry

AI boosts efficiency, increases demands in the Philippine BPO industry

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MANILA, PHILIPPINES — The integration of artificial intelligence (AI) into the Philippine call center industry is reshaping the business process outsourcing (BPO) landscape. 

While AI tools enhance efficiency, they also increase demands on workers. Many BPO employees report that AI is central to their daily operations, monitoring calls, assisting with customer interactions, and evaluating performance.

Increased workload and performance pressure

Renzo Bahala, a customer service agent at Concentrix Corporation, exemplifies the changes brought by AI. In an interview with Rest of World, Bahala explained that AI supervision has significantly increased his call volume, allowing him to handle 30 calls by lunchtime — previously his total for an entire shift.

AI co-pilots support him by offering real-time information and suggestions, but they also enforce stringent performance standards. 

“I have to please the AI,” Bahala remarked, emphasizing the pressure to keep his average call handling time between 5 and 7 minutes.

Industry-wide implications of AI adoption

The Philippines is a global leader in AI adoption, with 86% of white-collar workers utilizing AI to boost productivity. The Information Technology and Business Process Association of the Philippines (IBPAP) previously reported that two-thirds of its member companies are already using or testing AI technologies. 

Despite these advancements, concerns about job security persist. Department of Labor and Employment (DOLE) Secretary Bienvenido Laguesma acknowledged that some workers have lost jobs to AI, with estimates suggesting up to 300,000 could be affected in the next five years.

Balancing efficiency with employment stability

While AI boosts efficiency, it challenges traditional employment structures. Lean Porquia of the BPO Industry Employees Network pointed out that workers now juggle multiple roles simultaneously. 

“Ideally, AI would be helpful,” Porquia told the Rest of World, “But what’s happening is that companies are using it to justify adding more tasks.”

Experts such as Paul Quintos, a political economist, and Benjamin Velasco, a social scientist, both from the University of the Philippines, contend that AI mainly advantages companies by boosting productivity without equivalent wage increases. They warn that this trend pressures workers to perform like machines.

Future prospects and workforce adaptation

Despite these challenges, there is potential for positive change. IBPAP Head of AI and Research Dominic Ligot said that investments in AI could lead to new training opportunities for roles less susceptible to automation. 

Department of Trade and Industry (DTI) Undersecretary Rafaelita Aldaba also emphasized that AI should augment rather than replace human workers.

As the demand for AI-enabled services grows, companies like Boldr are adapting by integrating open-source technologies to remain competitive. Director of Special Projects Alex Peña asserts that while fewer team members may be needed due to AI efficiencies, the focus should remain on enhancing productivity rather than replacing personnel.

Read more here.

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