AI-Led Job Cuts in U.S.: What Can BPO Hubs Stand to Gain?

How AI-led layoffs impact BPO hubs, emerging markets

AI’s growing capacity to carry out jobs that humans have historically completed, such as data analysis and customer service, raises concerns about job security. 

“AI’s potential to replace human workers raises significant questions about its social, economic, and talent competitiveness implications,” said José Caballero, a senior economist at the Institute for Management Development (IMD). Caballero also voiced worries that AI leads to new kinds of prejudice, particularly with the use of AI in recruitment, promotions, and performance reviews. 

Meanwhile, Information Technology and Business Process Association of the Philippines (IBPAP) AI and Research Head Dominic Vincent D. Ligot highlighted that most reports about AI-related job losses are written from a Western perspective. Ligot noted these reports “often benefit outsourcing trends to countries like India and the Philippines.” 

Countries could focus on integrating AI technologies into workforce skills, making them more attractive outsourcing destinations. AI adoption opens new opportunities in emerging markets such as India, Vietnam, Indonesia, and the Philippines and positions them as AI development and implementation hubs. 

AI-proof strategies adopted by emerging markets

The Philippines is one example of an emerging market leveraging AI to become a BPO powerhouse. According to a recent World Bank report, the Philippines ranks fourth in AI traffic, adopting the technologies faster than the global average. 

The Asian country also launched the Philippine Skills Framework for Analytics and Artificial Intelligence (PSF-AAI) to address the challenges of AI-related job losses and provide a roadmap for individuals seeking AI and data analytics careers. 

Upskilling has also proven crucial in embracing AI-driven jobs. Emerging markets have tapped the following strategies to maximize the AI shift:  

• Investment in AI education and training. Countries such as India and Vietnam are heavily investing in AI education programs to equip their workforce with the skills needed for the AI-driven economy. These include training programs in data science, machine learning (ML), and AI development.
• Development of AI infrastructure. Building robust internet infrastructure and data centers is essential for attracting investment in AI research and development. Governments in emerging markets are prioritizing infrastructure development to support a thriving AI ecosystem.
• Promotion of innovation and startups. Fostering an environment conducive to AI innovation is vital. Funding AI research, creating tax breaks for AI startups, and establishing innovation hubs are ways to achieve this. For example, India is home to around 110 unicorns and 130,000 startups that help drive innovation.
• Focus on ethical AI development. Emerging markets can be at the forefront of ethically developing and using AI. They can create regulations and frameworks to ensure that AI is used responsibly and does not exacerbate social inequalities.

By proactively implementing these strategies, emerging markets can manage the initial challenges of AI-driven job losses and position themselves to become leaders in the future of AI technology.

Read more Unity Communications and industry news on our main BPO News page.