The rise of artificial intelligence (AI) is reshaping industries worldwide, and the Philippines’ business process outsourcing (BPO) sector is no exception. A recent International Monetary Fund (IMF) report warns that AI advancements could lead to mass job displacement in the BPO industry, a sector that accounts for 7.4% of the country’s GDP and employs millions of Filipinos.
How AI is Threatening BPO Jobs
As AI-powered chatbots and virtual assistants become more sophisticated, they are increasingly replacing routine and repetitive tasks, particularly in customer service, telemarketing, and administrative roles. The report highlights that 89% of the Filipino BPO workforce faces a high risk of automation, with one-third of all jobs in the country being highly exposed to AI disruption.
Jobs that are most vulnerable to AI replacement include:
- Customer service representatives
- Telemarketers
- Accountants and auditors
- Administrative clerks and secretaries
On the other hand, AI may complement rather than replace jobs in fields like teaching, law, civil engineering, and management, potentially increasing productivity rather than eliminating roles.
The BPO Industry at a Crossroads
The Philippines holds 15% of the global outsourcing market, making it a key player in the industry. However, the IMF report raises concerns that if the sector fails to adapt, it could face significant losses as businesses worldwide embrace AI-driven automation.
For years, automation mainly threatened low-skilled, blue-collar jobs, but AI’s rapid development is now impacting white-collar professionals in the IT and business process management (IT-BPM) industry. This shift presents both risks and opportunities for Filipino workers, businesses, and policymakers.
A Call for Reskilling and Adaptation
While the risk of displacement is high, reskilling and upskilling could help workers transition into AI-driven roles. Experts emphasize the importance of investing in digital skills, AI literacy, and tech-driven industries to remain competitive in the evolving job market.
Professor Benjamin B. Velasco of the University of the Philippines Diliman School of Labor and Industrial Relations argues that AI can also create new job opportunities. He suggests that rather than resisting AI, workers should focus on acquiring skills that enable them to develop, program, and manage AI systems.
Meanwhile, Federation of Free Workers President Jose Sonny G. Matula highlights the need for AI development to align with national economic growth, particularly in areas like agriculture, industrialization, and digitalization.
The Role of Government and Businesses
The IMF report stresses that the Philippine government must take a proactive stance in addressing AI-driven changes. This includes:
- Investing in AI and digital skills training
- Developing policies that protect workers from mass displacement
- Ensuring fair wages and equitable distribution of AI-driven productivity gains
The National Economic and Development Authority (NEDA) estimates that AI adoption could add ₱2.6 trillion annually to the economy—if the country successfully integrates AI technologies while mitigating job losses.
What’s Next for Filipino BPO Workers?
The message is clear: AI is transforming the workforce, and Filipino BPO workers must adapt to survive. While automation may replace some jobs, it also opens new opportunities for those willing to learn AI-driven skills and transition into emerging industries.
The future of the BPO industry depends on how well workers, businesses, and policymakers respond to the AI revolution. Will the Philippines capitalize on AI’s potential, or will it struggle to keep up? The time to act is now.
Via: BusinessWorldOnline
