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Asia Labor AI is making Philippine call center work more efficient, for better and worse
Labor

AI is making Philippine call center work more efficient, for better and worse

BPO workers say AI tools are monitoring their calls, assisting them with customers, and scoring their performance.

Tim Lopez for Rest of World
Tim Lopez for Rest of World
  • 86% of white-collar workers in the Philippines already use AI.
  • Advanced language, emotional recognition, and generative AI tools have made work more demanding for BPO workers.
  • Outsourcing clients are requiring more automation and AI integration in workflows.

“Thank you for calling. … You’re speaking with Renzo. This call may be recorded for — uhm — this call may be re—” Renzo Bahala, a customer service agent for a U.S. credit card company, breaks his monologue. If he were at work, he would’ve earned a demerit.

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“I have to say it straight. If I stutter, I have to do it again,” he told Rest of World as he rehearsed the script he uses as a trainee at Concentrix Corporation, a business process outsourcing (BPO) firm that employs approximately 100,000 people in the Philippines.

Bahala says each of his calls at Concentrix is monitored by an artificial intelligence (AI) program that checks his performance. He says his volume of calls has increased under the AI’s watch. At his previous call center job, without an AI program, he answered at most 30 calls per eight-hour shift. Now, he gets through that many before lunchtime. He gets help from an AI “co-pilot,” an assistant that pulls up caller information and makes suggestions in real time.

“The co-pilot is helpful,” he says. “But I have to please the AI. The average handling time for each call is 5 to 7 minutes. I can’t go beyond that.” 

“It’s like we’ve become the robots,” he said. 

In the Philippines, advanced AI tools — including those with language recognition, emotion recognition, and generative intelligence — have made work more demanding, six BPO workers and a representative from a BPO worker’s association told Rest of World. They spoke of targets rising since 2022 and fears of industry layoffs and redundancies. 

The Philippines, the second-largest BPO market in the world after India, has 1.84 million BPO workers. Although there is no official data for job losses due to AI, the Philippines’ labor secretary, Bienvenido Laguesma, told local media in June that some workers are already losing their jobs to AI. Industry estimates suggest that while 300,000 Filipinos could be out of work due to AI in the next five years, 100,000 new jobs could be created in roles like data curation.

The Philippines leads the world in AI adoption, and 86% of Filipino white-collar workers already use AI to “boost productivity, efficiency and creativity,” according to the 2024 Work Trend Index created by LinkedIn and Microsoft. Two-thirds of BPO companies that are members of the IT & Business Process Association of the Philippines are already using AI or are piloting it, Dominic Ligot, the association’s head of AI and research told Rest of World

Even companies that prioritize a human touch are forced to use the tech to satisfy clients who are demanding greater automation, Alex Peña, director of special projects at Boldr, a BPO firm recognized by the nonprofit B Lab Global for its social impact, told Rest of World. 

The BPO Industry Employees Network, a worker’s association that has 4,000 members, has been consulting with members about the impacts of AI, Lean Porquia, the association’s founder, told Rest of World. He said members have complained of having fewer co-workers and more responsibilities.

“Ideally, AI would be helpful. But what’s happening is that companies are using it to justify adding more tasks,” Porquia said. “At once, one can do customer service, sales, and tech support.”

Porquia said Filipino BPO workers are at the lower end of the tech value chain, performing simple, repetitive tasks that can be automated. 

“AI is supposed to make our lives easier, but I just see it as my boss.”

Bahala, 21, began working at call centers in 2021 to pay for his education. But what he once viewed as a temp job became permanent in a nation with the second highest unemployment rate in Southeast Asia. Bahala doesn’t know how many years he’ll be answering calls. 

At his previous employer, calls were screened at random by human quality control associates. Bahala said he could make an occasional error or talk to a caller for longer without always being noticed. 

He moved to Concentrix in August to diversify his resume and get a small pay raise. Each call at this BPO is monitored by advanced AI programs that decide if the customer is satisfied and the worker is productive, Bahala and another Concentrix employee, who requested anonymity due to a nondisclosure agreement, told Rest of World. A manager sometimes double-checks the AI’s judgment. 

It works like this, the workers said: a sentiment analysis program could be deployed in real time to detect the mood of a conversation. It could also work retroactively, as part of an advanced speech analysis program that transcribes the conversation and judges the emotional state of the agent and caller. 

Bahala said the program scores him on his tone, his pitch, the mood of the call, his use of positive language, if he avoided interrupting or speaking over a caller, how long he put the caller on hold, and how quickly he resolved the issue. Bahala said he nudges customers toward high-scoring responses: “yes,” “perfect,” “great.” Every stutter, pause, mispronounced word, or deviation from a script earns him a demerit.  

The program grades Bahala, and, though his base pay remains fixed, continually underperforming could mean probation, no incentives, or even termination, he said.

“AI is supposed to make our lives easier, but I just see it as my boss,” he said.

Concentrix did not respond to requests for comment.

The BPO employees Rest of World spoke with said AI co-pilots made them more efficient. They said the program recognizes what is said, swiftly pulls up the customer’s past concerns, and suggests solutions and follow-up questions in real time. The Concentrix employee who requested anonymity said the co-pilot even “tells me if I need to slow down, speed up, or deliver a statement with empathy.”

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Paul Quintos, a political economist at the University of the Philippines who studies the BPO sector, told Rest of World that as AI technology develops, its benefits would accrue disproportionately to companies over workers.   

“AI increases workers’ productivity with little to no improvement in terms of wages. It even intensifies the pressure on workers to perform like machines,” he told Rest of World. 

Benjamin Velasco, a social scientist at the University of the Philippines, said AI is only the latest tool for the BPO industry to intensify the pace of work and cut costs. “Even before AI, BPO companies have been pushing their employees to be more productive,” he told Rest of World

“AI is not to replace people but to help people become more productive.”

Another BPO employee in Manila, who requested anonymity due to a nondisclosure agreement, said she had already lost a job once to generative AI. At a BPO industry news firm in Manila, she went from writing one original article a week to 20 articles per week in 2023 with the use of ChatGPT. The articles often had inaccuracies that the writers struggled to fix. 

“Backlogs would pile up, sometimes from the month before,” she told Rest of World. “Managers would keep reminding us to finish. It was never-ending.”

Eight of the 10-member team, including the employee, were laid off this March. 

The employee is now a trust and safety analyst at Accenture, where she checks the accuracy of AI-generated data for Facebook’s parent company, Meta. She said she is working on an upcoming feature wherein Meta AI recognizes photos posted to Facebook and Instagram and displays relevant prompts next to them for the user to explore. She said she cross-checks the Meta AI’s response for accuracy, with the help of a Microsoft AI assistant. Another employee, who requested anonymity due to a nondisclosure agreement, said she works on a similar program for Instagram reels. A Meta spokesperson declined to comment. 

The employee working on Facebook said that two months ago she was given 200 seconds per prompt.

This was revised to 170 seconds per prompt in October. 

“[The managers] check our errors and say we can’t drop below a 90% accuracy,” she said. “It’s getting really tough; hardly anyone can keep up consistently. You see others in your team scoring just 60% and worry for them.”

Accenture did not respond to requests for comment.

The BPO Association’s Ligot sees a potential benefit in AI investments and says they may shift “resources towards training and upskilling employees for roles that AI cannot automate easily.”

The Philippines’ Department of Trade and Industry undersecretary Rafaelita Aldaba said at an industry conference in October that AI “is more about augmentation than replacement.”

Peña at Boldr, which is a smaller BPO, said the company uses open-source tech to keep up with larger competitors who have in-house AI capabilities, even as “the demand for AI-enabled customer support increases and becomes the expectation.” 

“AI is not to replace people but to help people become more productive,” she said. “If you needed 10 team members before, maybe now you only need five.”

Labor

The Philippine army is recruiting young tech civilians to fight cyber attacks

The country is among the most vulnerable to online threats, many of them from China. To fight back, the army is recruiting IT professionals.

Photography by Iya Forbes for Rest of World
Photography by Iya Forbes for Rest of World
  • Cyber attacks hurt government, academic, and business establishments.
  • The Philippine Army is recruiting civilians to help stem cyber threats.
  • Young techies appreciate the opportunity to work for the country, despite lower pay.

Earlier this year, the Philippine Army put out an unusual call on Facebook, inviting civilian hackers to join its cybersecurity unit. “We have a greater enemy that wants to devour us. Do we want to let them?” Joey Fontiveros, founding commander of the Cyber Battalion, said in a Facebook Reel that has been viewed over 2 million times. “Why not join us?”

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The Philippines is among the countries most vulnerable to cyber attacks, with tens of thousands of cyber threats targeting its government agencies, academic institutions, and corporations in recent years. Cyber attacks on the email servers and websites of the Philippine Coast Guard and President Ferdinand Marcos Jr. this year were traced to China, authorities said. China has denied this.

In response to the threats, the Philippine government has adopted a new five-year national cybersecurity plan, formed a defense network with the U.S. and Japan, and asked the military to reinforce the security of its systems. The Cyber Battalion, which was set up in 2020, was initially staffed by soldiers. The army then decided to actively recruit civilians. It targets young IT professionals who may be open to lower wages for greater job security and the pride of working for the nation, Lieutenant Colonel Ariel Alejandro, the Cyber Battalion’s commander, told Rest of World.

Lt. Col. Ariel Alejandro, Commanding Officer of the Philippine Army’s Cyber Battalion, shows a poster summarizing the responsibilities of the Cyber Battalion in his office.

“The cyber practitioners in our military force are very limited. We need a lot more,” Alejandro said. “Our limitation is we cannot afford to offer the same benefits as private and multinational companies. [But] joining the Philippine Army through the Cyber Battalion is a way of helping the country for our young bloods.”

The Cyber Battalion currently has a staff of about 120. The unit has so far hired about 70 civilian experts in their 20s and 30s. Civilian recruits receive months-long training, including the basics of life in the military, such as morning calls, exercise drills, and some weapons training. The viral Facebook Reel, a part of this year’s recruitment drive, drew nearly 5,000 comments and inquiries. Several filed job applications, Alejandro said.

“We will recruit cyber warriors … this new breed of warriors does not have to be muscle strong.”

The job itself is “very taxing, very challenging,” said Fontiveros, who is now commander of the Armed Forces of the Philippines Cyber Group, a unit serving the military headquarters. “You look at your monitor without even the nerve to blink because you are seeing all the traffic that’s there,” he said.

It’s a very different kind of job from those in tech, financial services, telecoms, or insurance that Filipino IT graduates generally flock to. The IT industry employs around 1.5 million workers, according to the IT & Business Process Association of the Philippines. Some 850,000 fresh college graduates enter the industry every year; few are trained in cyber threats.

Worldwide, cybercrime cost companies an estimated $8 trillion in 2023, a number that is expected to triple by 2027. Last year in the Philippines, ransomware group Medusa broke into the systems of state insurer PhilHealth and leaked the personal data, including sensitive information such as government IDs and bank account details, of an estimated 42 million members when the government refused to pay the $300,000 ransom. Private health insurer Maxicare and fast food chain Jollibee have also reported data breaches that affected millions of customers.

Across Southeast Asia, Chinese state-sponsored threat groups have targeted government and private-sector organizations, according to a 2023 report from Microsoft and intelligence firm Recorded Future. These include malware, distributed denial of service (DDOS) attacks, data leaks, and compromised websites and reflect Beijing’s geopolitical ambitions in the region, analysts said. Tensions have been running high between Beijing and Manila, in particular, as both states assert their claim over the resource-rich waters of the disputed South China Sea.

A portrait of Ferdinand Lazarte, an instructor of the Philippine Army’s Cyber Battalion, wearing military uniform and taken through a glass, which reflects the sky and trees outside.

So “it’s not surprising that when there’s a flare-up in the South China Sea, then you would have a flare-up in cyberspace,” Miguel Gomez, a cybersecurity researcher at the Lee Kuan Yew School of Public Policy in Singapore, told Rest of World. The Philippine military “doesn’t have nearly enough skilled manpower to cover all their bases. That’s a big problem.”

The Chinese embassy in Manila earlier said accusations that it engaged in cyber attacks against the Philippines were “groundless.” China “firmly opposes and cracks down on all forms of cyber attack in accordance with law, allows no country or individual to engage in cyber attack and other illegal activities on Chinese soil or using Chinese infrastructure,” it said.

Simply hiring civilian hackers is not going to solve the cyber threat problem, Sherwin Ona, an associate professor of political science at the De La Salle University in Manila, told Rest of World. The government needs to set a baseline for cybersecurity and regularly conduct audits and risk assessments, he said.

“Cyber readiness initiatives are just now beginning to grow teeth,” Ona said. “However, it’s an uphill climb.”

Still, the efforts appear to be paying off. The Philippines has improved its ranking in the United Nations Global Cybersecurity Index this year. Authorities said the progress can be attributed to the focus on strengthening cybersecurity, building capacity, and collaborating with other countries. But they also noted that the constant brain drain, with IT professionals leaving the country, posed a “big challenge.”

Two military personnel are seated at a wooden table, working on laptops. One person uses a touchpad while the other operates a mouse. Various items, including notebooks and a book titled

The Armed Forces has set up a new entity called the Cyber Command to improve coordination among the military’s cybersecurity units. Civilians will be a part of this program too. “We will recruit cyber warriors,” General Romeo Brawner, chief of the Armed Forces of the Philippines, told reporters. “This new breed of warriors does not have to be muscle strong.”

The army hopes to recruit more civilians like Ferdinand Lazarte. The 31-year-old IT executive had always wanted to serve his country, like several of his family members who worked in the military and police force, he told Rest of World.

“My first goal was just to contribute, to be able to create a system and say, ‘I made this,’” he said. He began as a penetration tester in 2020, performing simulated cyber attacks to spot vulnerabilities, then became a forensic investigator and instructor at the Cyber Battalion. He also helped create a platform for cyber exercises and a virtual private network for the Philippine Army.

After four years, he has a bigger role than he would have had in a similar job in the private sector, he said, and is eyeing a promotion. “I enjoy the work, and I’ve learned a lot,” he said. “I see the importance of it.”

Regional Champions

The most popular payment app in the Philippines has a side bet: online gambling

The GCash app is ubiquitous in the Philippines, and is being blamed for rising gambling addiction in the country, particularly among women.

Ruwangi Amarasinghe for Rest of World
Ruwangi Amarasinghe for Rest of World
  • GCash can be used to place bets and collect winnings on gambling platforms.
  • The payment app’s ease of use is a factor in problem gambling, particularly among women, support groups say.
  • Checks and balances in the app are inadequate, gambling counselors say.

The first time that Ana, a Filipino housewife, visited a gambling platform on her mobile phone, she was only looking to unwind for a little while. Soon, she was spending hours on the games, placing bets through her GCash payment app, and losing more money than she won.

Ana, who asked to be identified by her nickname as she was embarrassed to be identified, told Rest of World she recently sought help from a gamblers’ support group.

“With GCash … it was so easy, you could access it anytime, anywhere,” the 46-year-old mother of three said. “After I won the first time, I thought the wins would continue.”

Online gambling in the Philippines surged during the pandemic, helped by the growing adoption of mobile payment apps such as GCash and Maya. With these apps, users could make instant deposits and withdrawals on popular betting websites that they previously could not access without credit cards. The mushrooming of online gambling platforms and lax regulations have encouraged a surge in gambling in the country.

A screenshot from the GCash app showing multiple payment and transfer options.
GCash

GCash, in particular, with more than 90 million active users — or more than three-fourths of the population — has helped drive an increase in the number of Filipinos getting addicted to gambling, according to gambling support groups. The app features a games section, which connects users to online gambling platforms such as Bingo Plus and Casino Plus, and sports betting sites like Arena Plus. GCash also has a microloan feature, GCredit, which lends users up to 50,000 pesos ($880).

This makes borrowing money for gambling very easy, Reagan Prafesora, director of a gamblers’ support group in Manila, told Rest of World.

“Accessibility is the number one cause,” he said. With GCash, “people can easily join any gambling app. Even small-time gamblers can cash in a small amount of money, say 100 pesos, and play right away.”

Before the pandemic, about 20% of callers to Prafesora’s gambling support hotline were women. Of the more than 2,000 callers so far this year, nearly two-thirds were women, he said. “Most people entering my support group are housewives.” 

GCash did not respond to requests for comment. 

GCash, owned by Globe Fintech Innovations, is a joint venture of Philippine companies Ayala Corporation and Globe Telecom with China’s Ant Group, which operates Alipay. In China, where Alipay is ubiquitous, authorities have found that its mobile payment app is widely used for illegal online gambling.

There are nearly 200 million active online gamblers worldwide, placing wagers on everything from sports to casino games to politics via their mobile phones and computers, according to the Gambling Industry News site. There is no official data for the Philippines, but the country has traditionally been quite tolerant of gambling, with widespread betting on local sports such as cockfighting. About three-fourths of Filipinos surveyed in 2022 by TGM Research said they had placed some sort of online bet in the previous 12 months, including on sports, card games and slots.

“We tell them to remove anything that they can use to easily access gambling sites. We tell them: First, delete GCash.”

Gross gambling revenues last year from registered entities rose to more than 285 billion pesos ($5 billion), compared to 214 billion pesos the previous year, according to the regulation agency Philippine Amusement and Gaming Corporation (Pagcor). The growing number of Filipino women who say they are addicted to gambling is in contrast to the global norm. Worldwide, only 1% of women with gambling problems seek support.

Gambling is “part of the Filipino culture,” Teresita Castillo, a gambling counselor, told Rest of World. Online gambling poses the risk of addiction, but is a “hidden addiction,” as it can be done in the privacy of the home and is hard to detect, she said. Women from low-income families may be particularly reluctant to seek help, she added.

Housewives such as Ana are drawn to online gambling primarily because they are bored or stressed, and can do it at home between chores, Wilman, leader of a Baguio-based gambling support group, told Rest of World. Many are also lured by popular social media influencers, like Pera University and MissJen Vlogs, who promote gambling sites and tips. “There are games on the GCash app: I earned 3,500 pesos instantly!!” Pera University, who has more than 1.2 million subscribers, says in one YouTube video.

A screenshot from the app CasinoPlus displaying multiple gaming options.
Casino Plus

Wilman, who did not give his last name because he did not wish to identify his gambling support group, has a rule for those who come to the group. “We tell them to remove anything that they can use to easily access gambling sites,” he said. “We tell them: First, delete GCash.”

Instead, Wilman asks them to entrust a family member with their finances — like he did with his wife —  so that they do not have to use the GCash app.

There is no way for GCash users to delete the games feature in the app. On the Reddit forum r/problemgambling, a Filipino posed the question: “How to block gambling on GCash?” The user said they had become addicted to gambling because of the app. One solution posted on the thread was to deactivate the GCash account, or move it to an old mobile phone that they do not use.

GCash’s in-app game partners come with some checks and balances. They are all registered with Pagcor, and are required to have responsible gambling measures such as deposit and loss limits, and self-exclusion options for vulnerable players. GCash also informs users of potential risks. 

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But users can also make payments via GCash to gambling sites that are not licensed by Pagcor. Unregistered gaming sites pose greater risks to users, as they do not follow the organization’s code of practice and measures that aim to minimize potential harm, Prafesora said.

“Since they’re connected with GCash, people presume that these are legit sites,” he said.

Some officials are sounding the alarm. In July, President Ferdinand Marcos Jr. ordered the shutdown of all offshore gambling operators. Senator Robinhood Padilla has called for punishing promoters of gambling-related content online with jail time and a fine. Senator Lito Lapid separately called for regulating “payment hubs like GCash, Maya, mobile banking apps, and the like to ensure that they are not being misused.”

Given how essential GCash is to Filipinos, it is impractical to do away with it entirely, Castillo said. “They can add pop-up messages on responsible gambling and spending limits, but people will always find a way around it,” she said. “At the end of the day, it is a business — a good business.”