AI threatens job security in Philippine call centers, BPO industry: Reuters report
MANILA, PHILIPPINES — The Philippines, celebrated as the world’s call center capital since 2010, faces a new challenge as artificial intelligence (AI) threatens job security for its 1.3 million business process outsourcing (BPO) workers, according to a Reuters report.
This sector, crucial to the economy with an annual contribution of around $30 billion, is at risk of seeing low-skilled jobs displaced by AI advancements.
Mylene Cabalona, a seasoned call center worker and leader of the BPO Industry Employees’ Network (BIEN), expressed concerns over AI’s impact on customer care roles.
“Multinational companies came here because of our skill in customer care,” she told Reuters. “And that’s the first to be displaced by AI.”
Government and industry response to AI challenges
In response to these threats, the Philippine government plans to retrain workers for AI-integrated roles.
The IT and Business Process Association of the Philippines (IBPAP) reports that over half of surveyed companies are actively incorporating AI into their operations, with some already fully implementing it in customer service and data processing.
However, experts warn that while AI could reduce costs by automating entry-level roles, it also poses significant risks of job displacement.
Upskilling: A solution or a band-aid?
The push for upskilling is seen as a vital strategy to combat potential job losses. The government and private sector are investing in training programs to equip workers with the necessary skills for AI-augmented operations, including programming and data analytics.
However, Cabalona argues that upskilling should be paired with resolving deep-seated labor rights issues within the industry.
Unionization as a path to worker protection
Cabalona advocates for establishing labor unions to protect BPO workers’ rights, emphasizing wage increases and job security. Despite being a non-unionized industry, unionization is seen as crucial for safeguarding workers against arbitrary dismissals.
BIEN supports legislative efforts like House Bill 8189 or the BPO Workers Welfare Act, which aims to establish standard wages and improve working conditions.
Future opportunities in a tech-driven BPO landscape
The shift towards AI may transform the industry landscape, creating opportunities for roles requiring technical skills such as training chatbots and algorithms. While this transition could favor those with a tech mindset, it might leave others behind.
David Sudolsky, CEO of Boldr, highlights that the industry will no longer scale with “hundreds of thousands of jobs” for fresh graduates but may introduce roles requiring technical expertise.
As the Philippine BPO sector navigates these changes, balancing technological advancement with worker protection will be essential for sustaining its economic contribution and ensuring equitable growth in the face of AI-driven transformation.
