By Chloe Mari A. Hufana, A reporter
THE ADOPTION of artificial intelligence (AI) in the Philippines’ business process outsourcing (BPO) and business process management sectors is still in its early stages as managers show reluctance to increase workforces, leaving them vulnerable to job insecurity.
This has prompted labor groups to raise the alarm about inadequate labor protection laws, urging Congress to implement measures that ensure job security and provide opportunities for professional development.
“For now, AI is not disruptive [in the sector],” said Emmanuel D. David, organizer of the Alliance of Call Center Workers (ACW), in a videoconferencing call no. BusinessWorldhighlighting growing fears about AIs potentially disrupting job security.
Mr. David noted current AI tools used in the industry include call monitoring programs and a summary that automates interactive scripts. Despite these developments, he said that the work of the workers has not decreased as expected.
“Actually, what will happen is that we no longer need to record our calls. We just copy-paste and that’s it. Because, of course, writing calls still takes time. ”
“But the thing is, since the call summary has not been prepared, the management does not want us to copy-paste it yet. They still want us to make our own notes. So, there is a contradiction there.”
He said that while AI tools are constantly evolving, companies are failing to help employees prepare and adapt to AI integration. As the industry moves at a fast pace, managers rarely take workers out for training, “unless it’s absolutely necessary.”
“Since it is an industry that focuses on producing workers, they usually don’t release us because they want us to take calls,” he said, leaving workers unprepared to adapt to the developing technology.
The number of workers developing skills in the AI age has been declining over the years as companies gradually train their workers in the new technology, Mr.
“I have seen the changes [that] in the past they used to send agents out for training, to be updated. But as the years go by, this happens gradually because the focus is on handling more calls, which means more money for the company,” he added.
Ronald C. dela Cruz, national president of the Congress of Independent Organizations, said companies are not talking about switching to AI but its effects are felt as seen in the case of BPO. firm based in Bacolod, a southern province in the Philippines, downsized the company by laying off 120 workers as AI took their jobs.
“Managers are not talking about AI. They’re not necessarily saying they’re going to switch to AI. It is not discussed, but it is heard,” he said BusinessWorld on the phone, noting the main reason for this is that they don’t want to portray themselves as developing AI at the expense of human labor.
BRING YOUR OWN AI
As an effort to adapt to the rise of AI, employees are enrolling in AI training courses and boot camps. Instead of having their managers help them change, these workers pay for their training out of their own pockets.
“We believe that AI and humans can work together. AI should increase the effithings people do. But people should not be replaced,” he added.
There are 2,205 companies in the country that comprise the industry, according to the Philippine Statistics Authority (PSA) 2021 Annual Survey of Philippine Business and Industry – Information Technology – Business Process Management (IT-BPM) Industries published on Nov. 21, 2023.
An estimated 849,000 people are employed in this sector, with each company having an average of 385 employees. These workers earn approximately P440,000 per year.
The PSA data showed that the companies made about P848 billion in annual revenue, while e-commerce sales made more than P23 billion. The total revenue generated from transactions outside the Philippines reached more than P314 billion.
PSA defined BPO “as the delegation of one or more business processes of Information Technology to an external supplier, who, in turn, owns, manages, and manages the selected process or processes based on de.fined and measurable performance metrics.”
While IT-BPM services, in general, refer to the provision of an integrated service package that includes services that require information technology and work (manual or professional depending on the solution).
In June, Labor Secretary Bienvenido E. Laguesma admitted that Filipino workers have been losing jobs since the AI boom began. He said the Ministry of Labor and Employment and other agencies are working on plans to fix the workers.
Besides the job losses, the human resources chief noted that AI is also introducing new job opportunities, such as data collection.
The 2024 Work Trend Index, jointly released by Microsoft and LinkedIn in May 2024, highlighted the growing integration of AI in the workplace and its implications for workers and employers around the world, including in the Philippines. According to research, AI profiCiency is becoming a key factor in hiring decisions, with a significant increase in professionals around the world adding AI-related capabilities such as ChatGPT and Copilot to their expertise.fiLes. Despite this, only a small percentage of employees receive formal AI training, leaving many to develop skills independently.
Employees are increasingly using AI tools, even without organizational support, something called “bring your own AI”. While AI power users – those who make the most of AI at work – report significant time savings and improved productivity, businesses face challenges in developing integrated strategies for AI adoption.
Microsoft and LinkedIn have emphasized the importance of integrating AI and training to address concerns about job displacement and skills gaps. The findings underscore the need for companies and governments to invest in AI training programs, guide workforce strategies, and foster a culture of innovation to remain competitive in an AI-driven future.
FUTURE INSTALLERS
As industrial workers worry about possible job losses due to AI, Mr. Dela Cruz urged the legislature to pass measures to strengthen job security amid the rapid rise of AI, especially to make a just and humane transition.
“It is very important to have a legal framework because at the moment, only organized workers, unionized workers and collective bargaining can influence policies to deal with the influx of AI in the world,” he said, noting that there are no organized groups in the industry. .
Despite the lack of specific legislation protecting workers from losing their jobs to AI, Mr. Dela Cruz said Article 238 of the 1974 Philippine Labor Code still serves as a safety net for them, even though it has expired.
“Employers may terminate an employee due to the installation of labor-saving devices … to avoid the loss or closure … of operations,” the provision reads, as Mr. Dela Cruz said.
Mr. Dela Cruz, who has worked with industry workers since 2014, called the rise of AI the fourth and unstoppable industrial revolution.
“Congress must intervene because if it is not written into the law, the administration will still do what is convenient for them economically and operationally.”
Meanwhile, to Mr. David, the government should invest in training programs to equip workers with the necessary skills and knowledge to adapt to the changes brought about by the rise of AI.
“If at the end of the day, AI is going to take over our jobs, the government should do a massive training program so that workers, not just in the business processing industry, have the skills to be able to keep their jobs. jobs and even AI,” he said.
He mentioned that the government should also equip students with AI knowledge before they enter the workforce by revising educational curricula.
The rise of artificial intelligence in the business processing industry is not just a technological revolution – it is a call to action. It challenges participants to reimagine the workplace, where humans and AI work together instead of competing. For this vision to flourish, Congress must lay the groundwork for a future where workers are protected, empowered and ready to thrive alongside these new trends.
With bold policies, strong training programs, and an education system that embraces the AI era, the Philippines can turn uncertainty into opportunity. The story of AI in the business processing industry is still being written, and with thoughtful leadership, it can be one of sustainability, growth, and shared success.
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