Why Call Center Workers in the Philippines Are Not Afraid of AI: Insights from the Ground

The AI Landscape and Job Security

While the release of ChatGPT in 2022 sparked excitement globally, Philippine call center employees faced a more cautious outlook. Concerns arose from consultancy reports predicting that generative AI could automate millions of jobs, particularly in customer service roles. A Goldman Sachs report estimated that 300 million jobs could be at risk, with 46% of those in office and administrative sectors.

The Current Reality of AI in the Workforce

Despite these fears, over two years later, the doomsday scenario has not materialized. Although some job losses have occurred, the industry continues to rely on human workers. AI is currently viewed as a tool that enhances productivity rather than a replacement for human jobs.

Renz Miguel Marquez, a call center trainer in Makati City, utilizes AI tools to improve workflow efficiency. His center employs an “agent assist” system that aids agents during calls, helping them resolve issues more quickly and focus on selling products. Similarly, Marianne Capitly, who handles after-sales support for an IT distributor, finds that AI streamlines her email-based work, allowing her to search for solutions more effectively.

Both Marquez and Capitly believe that while AI enhances efficiency, it is still “not quite there yet” to fully replace human jobs.

Economic Impact of AI on the BPO Sector

The potential impact of AI on service jobs remains uncertain, but it may not be as severe as initially thought. A report from Oxford Economics suggests that productivity gains from AI could favor the services sector, fostering growth in the business process outsourcing (BPO) industry. This sector employs approximately 1.8 million individuals in the Philippines, contributing about 8% of the nation’s GDP.

Historically, the BPO sector grew due to lower telecommunications costs, which made offshoring feasible. Today, 56% of back-office companies in the Philippines are integrating AI tools into their operations.

The Future of BPO and AI

AI is expected to reshape the BPO landscape, allowing workers to transition into more complex customer-facing roles. Laurent Junique, CEO of TDCX, notes that AI enables agents to tackle higher-level tasks, which could ultimately lead to increased service pricing. However, the automation of specific tasks may lead to job reductions, with estimates suggesting that 14% of the workforce could be at risk.

To mitigate these losses, the Philippine government is developing a National AI Strategy Roadmap aimed at preparing the workforce for future shifts in the job market. Junique anticipates that as AI becomes more integrated, the BPO sector will evolve, potentially offering tech support for emerging industries, such as self-driving cars.

This article appears in the February/March 2025 Asia issue of Fortune with the headline: “AI may not take our jobs after all.”