The World’s Call Center Capital Is Gripped by AI Fever – and Fear

The Philippines’ $38 billion outsourcing industry faces a seismic shift as AI tools threaten to displace hundreds of thousands of jobs. Major players are rapidly deploying AI “copilots” to handle tasks like summarizing customer interactions and providing real-time assistance to human agents, Bloomberg reports. Industry experts estimate up to 300,000 business process outsourcing (BPO) jobs could be lost to AI in the next five years, according to outsourcing advisory firm Avasant.

However, the firm also projects AI could create 100,000 new roles in areas like algorithm training and data curation. The BPO sector is crucial to the Philippine economy as the largest source of private-sector employment. The government has established an AI research center and launched training initiatives to boost workers’ skills.