Will AI replace call center jobs in the Philippines?
The discussion surrounding the potential for AI to replace Philippine BPO jobs has been a topic of interest within the industry. Many question whether the BPO industry will face a revenue plateau within the next five years due to a decline in hires and business volume.
Notably, advancements in Artificial Intelligence, particularly in Generative AI, are anticipated to shape the future of offshoring and outsourcing. Generative AI-powered chatbots are expected to soon attain a level of sophistication that could greatly reduce the need fori ncoming customer service calls, which is a threat that many customer service focus businesses are trying to prepare for.
As these developments unfold, it remains to be seen how accurate these predictions will be, which explains the varying perspectives of different stakeholders in the customer service and CX space regarding the broader impact of artificial intelligence on the industry.
Fortune 500 companies see AI as a risk
Despite valid concerns about AI replacing humans in call centers, many businesses have expressed concerns and cautioned against over-reliance on AI.
In a recent report, Gartner, a tech research giant, warned organizations against relying too heavily on AI, warning that doing so could lead to legal complications.
As generative AI-powered solutions continue to rapidly expand, Gartner has published a report predicting that the EU may enact "the right to talk with a human" in its consumer protection regulations by 2028. This would require businesses to adopt a framework that balances AI with human interaction.
Gartner’s thoughts seem to be shared by the wider CX space, with the biggest US companies warning of growing AI risk. A new survey of corporate filings reveals that more than half of the US’s biggest companies, who outsource their business to the Philippines, see artificial intelligence as a potential risk to their businesses. A survey highlights how emerging technology could bring about sweeping industrial transformation.
According to a study by Arize AI, a platform that tracks public disclosures by large corporations, 56 percent of Fortune 500 companies have stated in their latest annual reports that they consider AI to be a "risk factor." This marks a substantial jump from the 9 percent reported in 2022.
Out of the 108 companies surveyed, only 33 viewed generative AI technology, which is capable of creating humanlike text and realistic imagery, as an opportunity. These 33 companies emphasized potential benefits, such as cost efficiencies, operational advantages, and accelerated innovation, in their annual reports. However, more than two-thirds of the surveyedcompanies, specifically 75 out of 108, identified generative AI as a potential risk.
AI is coming for low-level customer service jobs first
In five years, AI will take over call center jobs designed to handle initial customer interactions. These functions include appointment scheduling, account inquiries, basic account updates, basic account notification flags, and next-based interactions.
While artificial intelligence is expected to handle the initial, less complex tasks in customer service and offer solutions, human agents will continue to address more intricate issues that necessitate empathy and emotional intelligence, such as those that involve using humor or making genuine connections to ensure customers feel understood and supported. Industry experts predict that individuals who can successfully adapt to this evolving landscape will be well-positioned to thrive in the customer service environment of the future and could potentially take advantage of a pay upgrade.
The introduction of AI into the Philippine call center industry will revolutionize the services they offer. This shift will transform the traditional "may I help you" roles into technically advanced, higher-value positions, creating new opportunities and methods of operation within the industry. This will mark a significant change in the nature of services that the Philippine BPO industry offers the world and local employment landscape.
