{
  "id": 4201152,
  "title": "The AI boom hasn’t stopped U.S. companies from hiring cheap offshore labor, and overseas call center employment is still skyrocketing",
  "url": "https://urgent.news/2026/08/29/the-ai-boom-hasnt-stopped-u-s-companies-from-hiring-cheap-offshore",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-29T13:08:48.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/article/why-hasnt-ai-boom-displaced-call-center-workers-employment-offshoring-india-philippines/"
  },
  "original_language": "en",
  "account": "In September 2025, Salesforce CEO Marc Benioff announced a reduction of 4,000 customer service roles citing the need for fewer employees. However, recent data suggests the opposite may be true for call center employment overseas. Apollo chief economist Torsten Slok pointed out that from 2016 to 2025, call center employment in the Philippines nearly doubled, reaching 2 million workers. Moreover, unemployment rates in the Philippines have decreased from 9% to 5%, and in India from around 7% to 6%, indicating AI has not displaced these offshore workers.\n\nSlok cites the IT & Business Process Association of the Philippines, noting AI adoption has made call center work cheaper and faster, leading companies to hire more. He explains this phenomenon as Jevons paradox in action, where increased efficiency causes more demand for the technology. Despite AI's potential to automate 86% of customer service representative tasks, companies are reportedly purchasing more call center services due to its cost-effectiveness and efficiency.\n\nLabor economists are observing evidence of AI increasing call center worker productivity, with a 2023 study revealing a 14% productivity increase per hour for over 5,000 customer support agents using AI tools. Additionally, radiology has seen a 10% increase in U.S. radiologists over the past decade despite predictions of automation. The future of call centers appears promising as labor economists believe AI's strengths can bolster productivity and subsequent employment.",
  "summary": "“The technology that was supposed to shrink the industry is fueling its expansion,” said Apollo chief economist Torsten Slok.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}