Shifting BPOs to value-based services in PH

Artificial intelligence (AI) is driving a transformation within the business process outsourcing (BPO) industry - leading to new roles, increased productivity, and the delivery of more complex services.

- J. ALBERT GAMBOA

AI often works to augment human agents rather than completely replace them. It analyzes large amounts of data quickly, providing insights and real-time assistance the help human workers resolve complex and emotionally nuanced issues more efficiently.

As routine tasks are automated, the BPO workforce has shifted toward roles that require critical thinking, emotional intelligence, and specialization. The future involves a hybrid approach where AI handles transactional tasks while human agents focus on building relationships and solving difficult problems - resulting in improved customer satisfaction.

The Philippine BPO industry is undergoing a massive re-skilling phase marked by a shift from a labor-arbitrage model to a high-value, specialized-skills model. According to the IT and Business Process Association of the Philippines (IBPAP), it is projected to grow in revenues to $42 billion in 2026 and employ 1.97 million Filipinos. Almost 50 percent of BPO firms are already embedding AI, and over 70 percent are aiming for high AI maturity by 2028.