AI transforming Philippine call centers, impact on jobs looms
MANILA, PHILIPPINES — The Philippine call center industry, a crucial pillar of the nation’s economy, is undergoing a profound transformation due to the rapid adoption of artificial intelligence (AI) technologies.
According to a report from Bloomberg, this shift presents both opportunities and challenges for the sector and its workforce.
The AI revolution in call centers
The Philippine outsourcing industry is swiftly embracing AI tools to maintain competitiveness and safeguard business models. These AI “copilots” are employed to:
- Summarize customer interactions
- Analyze sentiments
- Provide contextual responses in real-time
The integration of AI has significantly enhanced efficiency and productivity in call centers. For instance, [24]7.ai’s CEO PV Kannan noted that AI training has reduced the time required for new staff to become proficient from 90 days to about a month.
Employment concerns amid AI adoption
While the industry continues to grow, there are concerns about potential job losses due to AI automation.
Avasant, an outsourcing advisory firm, estimates that up to 300,000 business process outsourcing (BPO) jobs could be lost in the Philippines to AI in the next five years.
But at the same time, the firm predicts that AI could create up to 100,000 new roles in areas such as algorithm training and data curation.
Government and industry initiatives
With these concerns, Bloomberg noted that the Philippine government and industry leaders are proactively addressing the challenges posed by AI through the following steps:
- Establishment of an AI research center
- Implementation of training initiatives to enhance workforce skills
- Focus on upskilling to prevent job displacement
Jack Madrid, president and CEO of the IT and Business Process Association of the Philippines, emphasizes the need to capitalize on the current window of opportunity, adding, “We need to grasp the one- to two-year window and get our workforce skilled.”
Future prospects for the industry
While AI presents challenges, many industry executives believe human workers will continue to play a vital role in call centers. The future may involve a redefined role for human agents, acting as “middleware” between AI systems and customers.
As the Philippine call center industry adapts to the AI revolution, the focus remains on balancing technological advancements with workforce development to maintain the country’s position as a global outsourcing leader. This approach is crucial to ensuring that the benefits of AI are widely shared and that the industry continues to provide meaningful employment opportunities for Filipinos.
