GenAI to lift Philippines IT-BPM jobs but skills gap looms: BSP report
MANILA, PHILIPPINES — Generative artificial intelligence (GenAI) is set to enhance rather than replace jobs in the Philippine information technology and business process management (IT-BPM) sector, according to a report by the Bangko Sentral ng Pilipinas (BSP).
The report highlights how AI is reshaping business operations while underscoring an urgent need for workforce reskilling and upskilling to meet evolving AI-driven demands.
GenAI seen as job partner for Philippines IT-BPM firms
The BSP emphasized that fears of job displacement should not overshadow the opportunities GenAI brings.
“Amid fears of job replacement and obsolescence, GenAI should be viewed as a tool and a partner that offers infinite potential in enhancing the efficiency of current systems and streamlining processes, providing opportunities for employees and businesses to move up the value chain,” the report said.
The IT-BPM industry remains a cornerstone of the Philippine economy. By the end of 2024, the country held the second-largest share of the global IT-BPM market at 18 percent, trailing only India’s 40 percent.
The sector generated US$32 billion in revenues last year, equivalent to 6.9 percent of GDP, and employed 1.8 million full-time workers, with 88.5 percent in contact center and business process services.
The widespread use of AI tools is slowly happening. An opinion poll conducted by the IT and Business Process Association of the Philippines (IBPAP) found that, through robotic process automation, AI analytics, interactive chatbots, and advanced voice systems that assist agents, 67 percent of IT-BPM companies have already embraced AI within their operations.
While some roles remain vulnerable, the overall impact has been job augmentation rather than displacement.
Philippines races to reskill IT-BPM workforce for GenAI
The forecast is counterbalanced by the difficulties that still exist. The BSP cited a shortage of competent personnel, particularly in GenAI and data analytics, high implementation costs, and regulatory uncertainties as the main hurdles.
The Technical Education and Skills Development Authority (TESDA) disclosed that the IT-BPM sector had more than one million vacant positions in May 2025, mainly for specialized roles such as web developers, programmers, call center agents, and virtual assistants.
The BSP noted that, despite full-scale GenAI adoption being a process that could take 3 years due to scaling and regulatory issues, investments in both technology and human resources will be crucial.
The IT-BPM sector can implement proper training and reskilling programs that move the entire business chain forward, making it more effective and creating roles for workers that are more valuable to the company.
While the Philippine IT-BPM sector navigates AI-driven change, it serves as a working model for the global outsourcing industry: blending tech with skills enhancement not only secures positions but also creates new opportunities.
By embracing GenAI as a partner, the industry will maintain its competitive edge and, at the same time, prepare workers for more complex and rewarding roles in an automated world.
