The relentless march of AI and automation is here, and it’s reshaping customer service across industries in the Philippines. From e-commerce to banking, businesses are leveraging AI-powered chatbots, virtual assistants, and machine learning to enhance efficiency, handle customer queries, and improve fraud detection. While private companies are adapting, the government remains alarmingly unprepared to guide this crucial transition. The Department of Information and Communications Technology (DICT), tasked with overseeing the digital transformation, seems content to sit idly by as the world moves forward. Their incompetence in addressing the needs of AI adoption is not just irresponsible—it’s dangerous.
GCash, a leading mobile wallet in the Philippines, is one of the few local companies leveraging AI effectively for fraud detection. Its AI systems daily analyze transaction patterns to catch anomalies, protecting millions of users. Meanwhile, banks like BDO and Metrobank have also started incorporating chatbots into their customer service operations, streamlining simple queries to reduce wait times. The private sector is moving quickly because it knows AI is a competitive edge. The same can’t be said for the government.
AI-powered customer service solutions save time, reduce human error, and improve response times. For private companies, the benefits are clear—automation cuts down on repetitive tasks and frees up human employees to focus on more complex issues. But what is the government doing to help facilitate these advancements? Despite being tasked with digital innovation, the DICT seems clueless about how to support AI adoption in both the private and public sectors.
The business process outsourcing (BPO) industry is the crown jewel of the Philippine economy, contributing billions annually and employing millions of Filipinos. However, AI and automation threaten to shake this foundation. AI-driven automation is already replacing entry-level BPO roles like customer support agents, and this is just the beginning. Chatbots and virtual assistants can now handle routine inquiries more efficiently than any human ever could. While private companies are adapting, there is no clear government strategy to deal with this shift.
The DICT should be at the forefront of upskilling the BPO workforce to prepare them for this inevitable transition. But where are the concrete plans for retraining displaced workers for more technical roles? Instead of creating job displacement safety nets or crafting AI transition policies, the government is twiddling its thumbs. How can we expect the BPO sector to survive in an AI-driven world when the DICT doesn’t even have a comprehensive national AI strategy?
The DICT’s failures are glaring. It should be leading efforts to create policies that both promote AI adoption and protect jobs. But the reality is far from this. Instead, businesses and workers are left to fend for themselves. What we need is a government that sees the future and acts on it. The DICT’s negligence leaves both the public and private sectors vulnerable to a chaotic AI-driven transition.
A prime example of this incompetence is the complete lack of AI-specific education programs. Advanced IT and AI courses should be readily accessible to current BPO workers to prepare them for more technical roles. Instead, the DICT offers outdated training programs that do little to address the current demands of the digital landscape. Why hasn’t the DICT partnered with leading tech companies to launch AI-specific training initiatives? Why isn’t there a national initiative to push AI research and development, as seen in countries like Singapore or China?
It’s not just about preparing the workforce—the government itself is lagging in its own adoption of AI for public services. Sure, we’ve seen a few feeble attempts, like chatbots on government websites for basic services, but these implementations are clunky and inefficient. In contrast, private sector companies are leaps ahead in their deployment of AI tools to streamline operations. The DICT should be leading by example, demonstrating how AI can make government services more accessible, efficient, and responsive. Instead, its efforts are disjointed and ineffective, reflecting a larger trend of government incompetence.
The government has a critical role in ensuring that AI and automation don’t widen the gap between the private sector and the workforce. AI can be a boon for productivity, but only if the workforce is equipped to manage, maintain, and develop these systems. We need policy frameworks, reskilling programs, and most importantly, strategic leadership from the DICT.
The BPO sector, already at risk from AI-driven automation, needs immediate government intervention. The DICT should be working alongside BPO companies to reskill employees, ensuring they are prepared for the shift to AI-driven customer service models. If the DICT continues to ignore this issue, the Philippines will face mass layoffs, job displacement, and a diminished role in the global BPO market.
It’s not just about retraining, either. The government must invest in tech infrastructure to support AI adoption. High-quality internet connectivity, cloud computing capabilities, and research and development in AI technologies should all be priorities. The government needs to incentivize companies to invest in these technologies while ensuring that workers aren’t left behind. If done correctly, AI could elevate the BPO industry to new heights—offering more specialized, higher-value services. But this won’t happen without a coordinated effort led by the DICT.
At this point, it’s clear that the government, and especially the DICT, has no idea how to handle the rise of AI in customer service. Private companies are moving ahead with AI-powered automation, while the government lags behind with no clear strategy, no workforce training, and no policies to guide the future of AI in the Philippines. The DICT is pretty much like the rest of the entire Government: clueless about what has to be done to push our nation forward. But should we expect anything better with a spoiled brat at the helm who prioritizes concerts and birthday parties over urgent national issues?
The DICT must stop being reactive and start taking proactive measures. AI and automation will continue to transform industries, and the government must ensure that the Philippines is ready to compete on a global scale. If the DICT doesn’t step up soon, we risk losing not only the competitive edge in industries like BPO but also the livelihoods of millions of Filipino workers.
The DICT needs to be a part of the solution, not part of the problem. If they don’t get their act together, AI will not just disrupt customer service—it will disrupt the entire Philippine economy. And that’s a future no one wants.
————————-
Rafael “Raffy” Gutierrez is a veteran Technology Trainer, boasting over 25 years of expertise in networking, administration, systems design, and diverse computer technologies.
