• By quade
• 9 December 2024

Labor Risks With Increasing AI Automation In Philippine Call Ceneters

Business process outsourcing (BPO) has become one of the largest private-sector industries in the country, employing 1.3 million people. Among the most popular forms are call centers and like the rest of the sector, considering AI automation to increase efficiency. While the Philippines remains one of the most eager adopters of AI, there remain many serious issues that must be addressed.

The biggest issue is labor issues which range from workers’ rights to occupation hazards as increased AI automation may force many people out of a job. With such a massive employer, the decisions made by this sector can affect the livelihood of millions of Filipinos.

AI Automation In Call Centers

In a recent survey conducted by the IT and Business Process Association, more than half of the 60 companies they interviewed show that they are either working on or already have integrated AI into their workflows. 10% have already fully implemented AI automation in their systems. These are implemented specifically in customer support, data entry, and quality assurance.

The reason for this is while the tools are expensive, AI automation may result in significant cost savings down the line. However, these savings come at the cost of the lowest-skilled jobs as these people may be fully replaced by AI tools.

“If AI reduces the volume of entry-level roles that BPOs and call centers once provided, what’s next? I think there’s a significant risk of displacement.”

-David Sudolsky founder and CEO of Boldr.

This will reduce call centers’ role as a major employer as instead of gathering hundreds of thousands of fresh graduates, it will only hire a few technically skilled workers who understand chatbots and algorithms.

Lack of Union Protection

The risk to workers comes in large part because of a lack of workers’ protections. BPO companies have developed in the Philippines due to them cutting labor costs. Replacing staff with new and cheaper hires, and AI Automation will only speed up this process and increase the worst further.

However, some BPO workers are now lobbying to create labor unions to fight for better protections, wage increases, and more benefits at the workspace. However, at the moment the BPO sector remains non-unionised and the government has incentive to keep it that way to continue getting investors.

The problem with that is that clients and operators are able to drop workers with little to no protection and if they wish to challenge these claims, they must do it on their own. 

Upskilling Workers As A Solution to AI Automation

One solution proposed to reduce the impact of AI automation is upskilling and training workers to handle more tasks. One big gap between traditionally trained call center agents and Filipino workers is their attitude. Filipinos are trained to be empathetic and personable while AI workers rely on tools to answer questions. 

With increasing automation, those who understand how to use AI tools will leave other workers behind as it will favor their skills. 

“Is training BPO workers to use AI enough to secure their employment? It’s a minimum requirement, but those who really understand AI are the ones who’ll thrive. Those who don’t engage with it may need to find new jobs.”

-David Sudolsky founder and CEO of Boldr.

The IBPAP has encouraged BPO companies to begin proactively training their employees. This will give them the skills to keep up with the changing BPO industry. Among the skills they plan on training them in are programming, data science, data analytics, and AI ethics.

But beyond upskilling, some people urge that the labor rights of BPO workers must first be protected.

“Multinational BPO companies are here because they want to lower production costs and earn more profit and often, workers’ unions are present in their countries. One legislator even told us we’re in a better position than some overseas Filipino workers who suffer abuses. Why is it like that for BPO workers? We deserve better.”

Mylene Cabalona, BPO Worker.

BIEN supports the proposed House Bill 8189 or the Magna Carta for BPO Workers, which proposes a standard entry-level and living wage for the industry.