AI Transforms Cebu from Contact Center Hub to Tech Services Center
AI Transforms Cebu into Tech Services Hub

Artificial intelligence (AI) is creating an opportunity for Cebu to evolve from one of the country’s largest contact center hubs into a center for higher-value technology and AI-enabled services, as companies shift toward more sophisticated customer experience solutions and demand new digital skills from workers.

AI Transforming Workforce Roles

Nicholas Kontopoulos, vice president for marketing in Asia Pacific and Japan at Twilio, said AI is not replacing the human workforce but transforming the type of work performed in the IT and business process management (IT-BPM) industry. He said Cebu, with its deep talent pool and established outsourcing ecosystem, is well-positioned to capture emerging AI-related opportunities beyond traditional customer support.

“AI is creating opportunities for talent hubs and emerging technology hubs like Cebu to develop expertise beyond customer support,” Kontopoulos said. “As new roles emerge, Cebu’s strong talent pool catches up and finds its way to higher-value AI roles, ensuring that the economic hub remains a strong pillar in AI-driven business transformation in the Philippines.”

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Modernizing Contact Center Operations

Kontopoulos said the next phase of growth for Cebu’s IT-BPM industry will depend not only on its workforce but also on the modernization of contact center operations. Cloud-based communications platforms, AI-powered customer insights, intelligent routing systems and omnichannel support will allow companies operating in Cebu to deliver faster and more personalized customer experiences while moving up the value chain, he said.

Kontopoulos noted that customer expectations have evolved beyond voice calls, with consumers expecting seamless interactions across messaging, chat and voice channels without having to repeat their concerns. “Today’s consumers demand instant, personalized responses on their preferred channels without any friction,” he said.

AI to Augment, Not Replace, Workers

Rather than eliminating jobs, AI is expected to augment workers by automating repetitive tasks and allowing employees to focus on solving more complex customer problems requiring empathy, judgment and critical thinking. He said businesses that use AI effectively can unlock previously unmet customer demand instead of simply reducing headcount.

“This is why we are seeing the local contact center and business process management sector take a measured but accelerated approach to AI,” he said, citing the industry’s addition of 60,000 jobs in 2025 as evidence that AI is creating new employment opportunities in areas such as marketing, supply chain, human resources and customer experience.

However, he said the Philippine workforce still faces challenges in becoming AI-ready. Many contact center employees continue to work with disconnected legacy systems, while training remains heavily focused on scripted conversations instead of analytical decision-making and problem-solving. Kontopoulos said companies must also improve the quality and integration of customer data because AI systems are only as effective as the information they receive.

He added that the role of Filipino professionals is shifting from handling routine inquiries to becoming strategic partners who generate customer insights and help global brands improve business outcomes.

Collaboration Needed for AI Readiness

To support the transition, he called for closer collaboration among industry, educational institutions and government agencies to accelerate AI upskilling initiatives. “The disruption brought about by AI is real, but so is the talent and the institutional knowledge to mobilize upskilling initiatives,” he said. “There’s a real opportunity and a positive outlook to come out with an AI-skilled workforce taking on global, higher-value roles in the new era.”

Looking ahead, Kontopoulos said the Philippine IT-BPM industry’s competitiveness will increasingly depend on developing workers who can design AI-enabled customer journeys, oversee AI systems, manage governance and build customer trust. For Cebu, long recognized as one of the country’s premier outsourcing destinations, the shift offers an opportunity to position itself not merely as a call center capital but as a regional hub for advanced AI capabilities and next-generation digital services.

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