AI job losses abroad may benefit Philippine BPO sector: IBPAP

MANILA, PHILIPPINES — The Philippines could experience a significant increase in business process outsourcing (BPO) opportunities as artificial intelligence (AI) leads to job losses in Western countries. Industry experts suggest this trend may enhance the country’s position as a preferred outsourcing hub.
Dominic Vincent Ligot, head of AI and research at the IT and Business Process Association of the Philippines (IBPAP), noted that most reports on AI-related job losses focus on Western nations like the United States, the United Kingdom, Canada, and Australia.
“We are usually the beneficiaries of these job losses abroad,” Ligot stated, emphasizing that the Philippines should leverage AI to boost workforce skills and attract more outsourcing work.
Global economic impacts of AI adoption
A report by the Institute for Management Development (IMD) World Competitiveness Center highlights that AI’s growing capability to perform tasks traditionally done by humans could disrupt job security worldwide.
José Caballero, a senior economist at IMD, pointed out that AI could significantly alter workforce dynamics, raising concerns about social and economic impacts.
“Incorporating AI into the workforce can introduce new forms of discrimination, such as biased algorithms, that may reinforce existing inequalities and have broader social impacts on marginalized communities,” he added.
The report also noted that while high-income countries might face greater disruptions during AI adoption, they are expected to gain more benefits in the long run. In contrast, only 0.4% of jobs in low-income countries like the Philippines are at risk of AI-led automation.
Addressing talent gaps in Philippine BPO
When evaluating the Philippines’ readiness for AI adoption, José Caballero pointed out a significant obstacle: the country’s limited pool of skilled talent. The Philippines was ranked 52nd out of 67 countries in terms of readiness based on the quality of its talent pool.
However, Caballero also noted the increasing number of graduates in fields like ICT, engineering, math, and natural sciences in the country, which could facilitate smoother AI integration in the future.
In contrast, IBPAP’s Ligot highlighted more positive findings. “The recent World Bank report puts the Philippines in 4th place in terms of AI traffic and corroborates reports by LinkedIn that say the Philippines is ahead of the global average in terms of AI adoption,” he stated.
He added that although data is mixed, it indicates a strong eagerness within the Philippine workforce to embrace AI. With appropriate investments from both the public and private sectors, the potential benefits of this technology can be realized.
Meanwhile, Jamil Paolo Francisco, executive director of the Asian Institute of Management Rizalino S. Navarro Policy Center for Competitiveness, stressed the need to enhance educational outcomes.
“The future workforce must learn to work with advanced digital technologies,” Francisco explained via email.
He also noted that while the full potential of the Fourth Industrial Revolution and digital automation remains untapped, the emerging Fifth Industrial Revolution will necessitate collaboration between humans and AI or machines.
Francisco emphasized that as a service-sector-driven and labor-abundant economy, the Philippines must invest in equipping both current and future workforces for human-machine collaboration to leverage potential productivity gains fully.
Future prospects: Harnessing AI for industry growth
Efforts are underway to address these challenges. Initiatives such as the Philippine Skills Framework for Analytics and Artificial Intelligence aim to align educational outcomes with industry demands, helping bridge the talent gap.
As global AI adoption rises, Filipino knowledge workers are already leading in leveraging AI for productivity and efficiency gains. This positions the Philippines as a potential leader in BPO services enhanced by AI technology.