As Philippine call centers weigh genAI, jobs hang in the balance

For the past six years, 31-year-old Christian Martir has spent most of his nights on the phone. Based in Manila, Philippines, Martir handles calls from both domestic and international customers seeking to change their air travel plans.

Most employees at Martir’s call center, which has about 100 workers performing the same tasks, are required to learn a North American accent.

Image credit: Timmy Loen

These days, Martir has a new concern: the stability of his job. Around the world, tech companies are racing to fine-tune AIs that are capable of handling chat and voice-based requests and preparing for a future of AI agents.

But are the workers ready? “AI [agents] won’t get tired, won’t need a meal break or Christmas bonuses. So we’re guessing it’s only a matter of time before my teammates and I are replaced by them,” Martir tells Tech in Asia.

A threat or a game-changer? 

Martir, who earns about 38,000 pesos (US$645) per month, is one of the 1.6 million workers currently employed in the Philippines’ business process outsourcing (BPO) sector. The US$38 billion industry hosts nearly 800 call centers, making it the second largest in the world after India.

Philippine lawmakers have raised concerns about the rapid adoption of genAI, which has put pressure on the country’s BPO industry to either adapt or face extinction. For instance, last year, a senator urged the Department of Trade and Industry to safeguard BPO workers from the rise of AI chatbots.

Jobs have already been affected. As of October 2024, a study of 60 Philippine BPOs revealed that AI has eliminated approximately 8% of jobs. Although job creation outpaced these losses, with the total headcount growing by about 13%, Philippine BPOs anticipate that AI-driven job cuts will persist.

Still, adopting genAI, which refers to artificial intelligence systems capable of creating content based on input prompts, could also mean massive productivity and cost-efficiency boosts for BPOs.

“It’s less about replacing jobs and more about transforming workflows—automating routine tasks, personalizing customer interactions, and enabling better decision-making,” says Jack Madrid, president of the IT and Business Process Association of the Philippines. GenAI is a powerful tool if “used correctly,” he says.

For example, Concentrix Philippines, which employs around 100,000 people, started using AI in 2023 to manage customer service operations for an airline. The company says that only 50% of customer complaints actually require call center agents to answer the phone. The firm also uses genAI to train its workers.

Concentrix building in Quezon City, Philippines / Photo credit: Shutterstock

The importance of upskilling