AI Threatens Job Security for Filipino Call Center Workers

Filipino call center workers, a backbone of the country’s business process outsourcing (BPO) industry, face growing fears of job displacement due to artificial intelligence (AI). Despite contributing $30 billion annually to the Philippine economy and employing 1.3 million people, the sector’s reliance on low-skilled roles is making it vulnerable to automation.

AI’s Impact on the BPO Industry

The rise of AI technology is already reshaping the BPO sector. Over half of the 60 companies surveyed by the IT and Business Process Association of the Philippines (IBPAP) this year reported actively integrating AI into their workflows. Ten percent have fully implemented AI, with roles like customer service, data entry, and quality assurance being most affected.

While automation promises cost savings, it also risks reducing entry-level jobs, which traditionally offered opportunities for fresh graduates. David Sudolsky, CEO of outsourcing firm Boldr, noted, “AI reduces the volume of entry-level roles, creating a significant risk of displacement.”

The Push for Upskilling

To address these changes, the government and private sector are focusing on upskilling BPO workers. Companies are training employees in AI-related skills such as programming, data analytics, and AI ethics to prepare them for augmented operations.

However, Mylene Cabalona, leader of the BPO Industry Employees’ Network (BIEN), argued that retraining alone is not enough. “Upskilling workers must go hand-in-hand with addressing long-standing labor issues, like job security and fair wages,” she said.

Challenges in a Non-Unionized Industry

Cabalona emphasized that the BPO industry remains largely non-unionized, leaving workers vulnerable to dismissal based on client demands. She highlighted the need for stronger labor protections, citing the proposed Magna Carta for BPO Workers (House Bill 8189), which aims to standardize entry-level wages and improve working conditions.

“Multinational companies often have unions in their home countries, but they come here to cut costs and maximize profits at the expense of workers’ rights,” Cabalona said.

A Shifting Job Landscape

Sudolsky noted that the BPO industry is evolving to favor workers with technical skills and a strong grasp of AI tools, potentially sidelining those with more traditional expertise. “Those who understand AI will thrive, but others may need to seek new jobs,” he warned.

Looking Ahead

As AI transforms the BPO landscape, stakeholders agree on the importance of balancing technological advancements with labor rights. Cabalona summed it up: “We deserve better. It’s not just about upskilling—it’s about ensuring that workers’ dignity and livelihoods are protected in this AI-driven future.”