The call center industry in the Philippines, the world’s second-largest outsourcing hub after India, is undergoing a radical transformation driven by the rapid adoption of artificial intelligence (AI). This shift is not only altering the nature of work within the industry but also sparking concerns about the future of jobs in the sector, both in the Philippines and globally.
In a recent episode of Bloomberg’s Big Take Asia podcast, host Rebecca Choong Wilkins explored the profound changes AI is bringing to the call center landscape in the Philippines. The episode highlighted how AI is blurring the lines between human agents and technology, fundamentally changing what it means to work in a call center.
Ghana has been making frantic efforts to become an African hub for Business Process Outsourcing centres, taking advantage of its English accent, geographical location and time zone. Some were set up in the middle of 2000s, with some shutting down and others still in operations but not as many as the nation wanted. With the introduction of AI into call centre business, the chances of Ghana becoming a hub can only get slimmer.
One of the key technologies discussed in the episode is the “accent translation” AI developed by Sanas, a company that is transforming the customer service experience. This technology modifies the voice and accent of call center agents, making them sound more like native English speakers. The aim is to reduce the likelihood of customers requesting to speak to a different agent, a common issue faced by non-native English speakers in the industry.
During the podcast, Wilkins demonstrated the Sanas app by speaking with Luzziel Garcia, a call centre agent in the Philippines. Garcia’s voice, altered by the AI, sounded distinctly different from her natural accent. According to Garcia, this technology has significantly improved her interactions with customers, reducing the number of requests for transfers to other agents. “When we answer the call, they actually look for a US representative right away, instead of trying to talk to us. There’s already a doubt if we are equipped or capable of answering their questions,” she said.
The introduction of AI tools like Sanas is part of a broader trend within the call center industry. AI is being used to assist agents during live calls, provide training, and even handle certain customer interactions autonomously. While these advancements have the potential to improve efficiency and customer satisfaction, they also pose a threat to jobs within the industry.
Saritha Rai, a Bloomberg journalist who covers AI in Asia, noted that the Philippines is at the forefront of this transformation. The country, which employs around 1.7 million people in its Business Process Outsourcing (BPO) sector, relies heavily on call centres as a source of employment and economic growth. The industry accounts for approximately 8% of the Philippines’ GDP, making any disruption a significant concern.
Rai pointed out that the cultural alignment between the Philippines and the United States has long been a key factor in the country’s dominance in the call center industry. Filipinos’ proficiency in English and their neutral accents have made the Philippines an attractive destination for companies outsourcing their customer service operations. However, the rise of AI could diminish this advantage, as technology increasingly allows companies to set up call centers anywhere in the world, regardless of language or accent.
The potential job losses due to AI are substantial. Estimates suggest that up to 300,000 call center jobs in the Philippines could be at risk over the next five years. This has raised alarms about the future of the industry and the livelihoods of millions of Filipinos who depend on these jobs.
With this AI technology, the accent no longer becomes an advantage for Ghana either.
