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News » Philippine IT-BPM sector adapts to GenAI

Philippine IT-BPM sector adapts to GenAI

PH BPO photo by Nikkei Asia
Photo from Nikkei Asia

MANILA, PHILIPPINES — The rise of generative AI (GenAI) is bringing both opportunities and challenges for the Philippines’ IT and business process management (IT-BPM) sector, said Jack Madrid, CEO of the IT and Business Process Association of the Philippines (IBPAP).

The IT-BPM industry employs over 1.5 million in the Philippines, generating over $32 billion in annual revenue.

Madrid earlier cautioned that GenAI could lead to workforce reductions in specific industries. He expressed concerns about the impact of AI and low ratio of graduates to the Philippine BPO industry.

In a new interview with The Manila Times, Madrid highlighted the urgent need to upskill the workforce to adapt to new roles and demands created by AI. IBPAP has partnered with StackTrek to provide digital skills training to Filipino workers.

“In this new era, GenAI will not merely automate tasks, but also assist in equipping the workforce with new skills,” Madrid said.

GenAI’s ability to understand context and provide personalized responses is expected to enhance customer experiences significantly. 

“By leveraging customer data, GenAI provides personalized answers and suggestions, enhancing the customer experience with tailored solutions,” Madrid said.

A recent Stanford and MIT study found that AI-supported call center agents responded to 13.8% more customer inquiries per hour, benefiting less-skilled and less-experienced agents.

The Contact Center Association of the Philippines expressed optimism that GenAI would not hinder the industry’s 2.5 million jobs goal by 2028. They believe GenAI will enhance agents’ strengths and productivity.

Meeting the increased demand for AI-skilled professionals is essential. Skills like data analysis, machine learning, and AI ethics are crucial for IT-BPM employees to thrive digitally. 

“GenAI will also continue to need the workforce to possess human-centric skills such as creativity, design thinking, critical thinking, emotional intelligence, adaptability, and empathy,” Madrid added.

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