BusinessMirror February 10, 2024

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AIn’t a BPO threat www.businessmirror.com.ph

A broader look at today’s business n

Saturday, February 10, 2024 Vol. 19 No. 118

P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK

Zoho exec allays fears that artificial intelligence will affect IT-BPM industry, replace human workers

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By Roderick L. Abad | Contributor

RTIFICIAL intelligence (AI) has continuously created a buzz, drawing mixed reactions across industries worldwide.

‘AInvasion’

DESPITE mounting concerns over AI, it has undeniably expanded its reach on Philippine shores. In fact, it’s “already being adopted by the outsourcing sector” in the country, according to Mathew. He cited as example a client, with more than 90 virtual assistants for customers across four continents, which uses Zoho People to automate processes and simplify the daily management of its remote workforce.

“AI will not replace Filipino talents in the outsourcing industry, but rather reinforce their abilities and improve their efficiency.“—Gibu Mathew, vice president and general manager for Asia-Pacific at Zoho Corp.

This platform enables the company’s Human Resources department to keep track of each cyber assistant’s work anniversary and birthday. This automation helps the unit celebrate these milestones, enhance employee morale, and improve workforce solidarity. Zoho People, likewise, provides a comprehensive system to handle employee attendance, track leaves, and automate attendance calculations. This channel streamlines the process and guarantees accurate record-keeping. It also lessens administrative workload and empowers workers to manage their HR-related activities via a self-service portal, where employees can access and update their personal information, view pay stubs, request leave, and perform other self-service tasks. In addition to process automation, Zoho People also aids the organization track attrition rates. By collecting and analyzing crucial data, it can determine which teams necessitate assistance and take appropriate measures to mitigate attrition.

Not worrisome

CHANGE is imminent in the international labor market. This holds true as the Future of Jobs Report 2023 of the World Economic Forum showed that 44 percent of workers’ core skills will become different in the next five years. On the other hand, the IBM Institute of Business Value study on the implications of AI in the global skills gap shows that its evolution, not to mention that of auto-

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Even if its impact on the information technology-business process management (IT-BPM) sector in the Philippines cannot be predicted with certainty, its significant disruptive effect on the country’s global leadership in this field is far-fetched. “While AI, like other groundbreaking technologies, brings a new set of challenges to users, it is likely to bring more positives than negatives to the industry,” Gibu Mathew, vice president and general manager for Asia-Pacific at Zoho Corp., told the BusinessMirror in an e-mail interview. AI enhances efficiency, accuracy and productivity in various business-process outsourcing (BPO) functions. Solutions powered by chatbots, data analytics tools, and process automation are already being used by many industry players. These tools help streamline operations, mitigate errors, and improve overall performance. Iterations of such have led to the emergence of the co-called generative AI, which is deemed greatly beneficial for outsourcing. For instance, processes can be enhanced to be more efficient. Also, it provides opportunities for better data analytics and insights and improved customer support engagement. What’s more, there are avenues to ensure quality control and compliance, as well as allow language translation—all leading to better outcomes for businesses and their customers. “The adoption of AI technology can enhance the Philippines’ position in the industry. By integrating AI into their operations, companies can improve their service offerings, increase productivity, and provide more innovative solutions to clients,” he said.

mation, will disrupt 85 million jobs between 2020 and 2025 and create 97 million new job roles. Amid fears that it will replace human workers or render their roles obsolete, Mathew gave assurances that local BPO workers need not worry. He affirmed: “AI will not replace Filipino talents in the outsourcing industry, but rather reinforce their abilities and improve their efficiency.” Globally, Filipinos are known to have a competitive edge over their foreign counterparts due to sought-after outsourcing skills that are not easy to substitute with or duplicate by AI. These include strong English communication skills and familiarity with the sensibilities of Western customers. AI technology can handle routine and repetitive tasks, but still lacks the human touch and nuanced understanding that is critical in serving clients face-to-face.

“Filipinos excel in providing personalized and empathetic customer experiences, which are difficult for AI to replicate,” said the top executive.

Sustaining growth, staying relevant

THERE’S no stopping AI being a big business game-changer. In fact, it is expected to unlock an astounding $16 trillion in value by 2030. PwC said that it can contribute up to $92 billion to the Philippine economy by 2030. Generative AI, in particular, can open $79.3 billion in productive capacity for the country, Department of Trade and Industry Undersecretary Rafaelita Aldaba previously reported. Such rosy figures give a hint that the sun will continue to shine on the local IT-BPM industry. In view of this, Filipino talents must continue to upskill to remain competitive in the global outsourcing arena.

As AI technology can automate many routine and repetitive tasks and improve efficiency and productivity, IT-BPM outfits need to focus more on “judgment-intensive” outsourcing services. These include roles in financial planning and analysis, after-sales support, and supply chain management. “The shift towards an AI-powered workforce demands a focus on enhancing their skills to handle more complex and value-added roles that require human creativity, empathy and critical thinking. This includes developing expertise in areas such as data analytics, problem-solving, and strategic decision-making,” Mathew said. “By embracing AI technology as a tool to enhance their capabilities, Filipino talents can elevate their value proposition to clients and offer a more comprehensive range of services. Rather than being threatened by AI, Filipinos can leverage it to their

advantage, ensuring their continued dominance in the outsourcing industry,” he added. To sustain the country’s position in the global IT-BPM industry, the government, for its part, must strengthen the academe’s role in upskilling and retooling the local workforce. Through comprehensive curriculum reviews and realignment of existing IT-related courses at the university and high-school levels, the government can ensure that students are equipped with the necessary soft skills (such as communication, problem-solving, and critical thinking) and technical expertise needed for the everchanging digital landscape and outsourcing sector. Mathew also advised government policymakers to support academia by crafting policies, plans, and programs crucial to the indusContinued on A2

PESO EXCHANGE RATES n US 56.0330 n JAPAN 0.3782 n UK 70.7641 n HK 7.1663 n CHINA 7.7870 n SINGAPORE 41.7129 n AUSTRALIA 36.5223 n EU 60.3756 n KOREA 0.0422 n SAUDI ARABIA 14.9413 Source: BSP (February 9, 2024)


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