AI adoption threatens jobs in Philippines' booming outsourcing sector

Content writers in the Philippines' BPO industry report layoffs after their firms used their work to train AI systems, highlighting growing automation risks.

In Manila's Cubao district, former BPO writers recount being let go after their companies used their editing work to teach generative AI, which then took over portions of their roles. The outsourcing industry, a pillar of the Philippine economy with roughly 1.9 million employees and $40 billion in revenue, is now confronting AI-driven automation, a shift the International Labour Organization says could affect over 12 million Filipino workers.

Industry head Jack Madrid notes that more than two-thirds of member firms are already testing AI, while firms like Teleperformance, Accenture and Concentrix stress plans to retrain staff and keep humans in supervisory loops. Critics, including academic Paul Quintos, warn that client pressure and cost-cutting motives may accelerate job losses, and point out that some redundancies are framed as AI-related despite broader market slowdowns.

The Philippines' non-unionised BPO sector lacks clear legal guidance on AI deployment, prompting the government to pledge upskilling for 300,000 workers and to consider nurturing home-grown AI firms. The transition underscores the challenge of preserving middle-class jobs while embracing new technology.