AI boom fuels offshore call center growth, not displacement

Despite AI's potential to automate customer service, offshore call center employment has grown, particularly in the Philippines and India. Apollo economist Torsten Slok attributes this to Jevons paradox, where increased efficiency leads to more demand. Unemployment rates in these countries have fallen, suggesting AI hasn't displaced these workers yet.

The Philippines has held the title of the world's largest call center employer for roughly 15 years, surpassing India. Filipino agents earn between $243 and $1,948 monthly, well below the U.S. average of about $2,866, making offshore operations financially attractive. Brookings Institution research indicates 86% of customer service tasks carry high automation potential, yet employment continues climbing.

The Jevons paradox, first observed with Watt's steam engine in 1865, explains this pattern: as AI lowers the cost per customer interaction, companies expand service channels and reach new markets rather than reducing headcount. A similar trend emerged in radiology, where the U.S. workforce grew 10% over the past decade despite predictions of AI replacement.