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News » AI risks triggering job crisis in Asian BPO industry

AI risks triggering job crisis in Asian BPO industry

AI risks job crisis in Asian BPO
Photo from Nikkei Asia/Yumi Kotani

NEW DELHI, INDIA and MANILA, PHILIPPINES — The rapid advancement of artificial intelligence (AI) threatens to disrupt the Business Process Outsourcing (BPO) industry across Asia, with thousands of jobs at risk. 

Ralf Ellspermann, co-CEO and CSO of Piton Global, predicts that AI could replace roughly 50% of customer service and back-office positions in the Philippines and India within five years. 

However, Ellspermann added, “For every 10 jobs lost in the BPO sector, AI might [only] create maybe one or two new opportunities.”

Despite potential job losses, some firms like Concentrix Philippines remain optimistic, arguing AI could assist in enhancing workforce skills and prioritizing more complex, human-essential tasks.

The potential impact of AI hasn’t escaped the attention of lawmakers. Philippine Senator Risa Hontiveros recently advocated for protections for BPO employees threatened by AI’s rise, highlighting the sector’s annual contribution of nearly US$30 billion to the country’s economy.

Simultaneously, the Indian government has initiated promotional schemes for its booming BPO industry, projected to reach a revenue of US$6.19 billion this year. 

Despite the looming AI challenge, the sector anticipates an annual growth rate of 10.94%, potentially achieving a market volume of $10.41 billion within five years.

Read more here.

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