AI disruption in Philippines outsourcing industry

The Philippines' outsourcing industry, employing about 1.9 million people and generating $40 billion annually, faces significant disruption from artificial intelligence. The International Labour Organization estimates over 12.7 million Filipinos work in roles exposed to generative AI, the highest share in Southeast Asia. Several former workers report being made redundant after training AI systems that replaced them. Industry leaders, including the IT & Business Process Association of the Philippines, acknowledge that over two-thirds of member companies run AI pilots, but emphasize redeployment and retraining. Major employers TP (company), Accenture, and Concentrix state they aim to augment rather than replace workers. The government, through the Philippines — Department of Information and Communications Technology, has committed to upskilling over 300,000 workers and exploring regulatory guidance rather than new legislation. Experts note pressure from foreign clients to adopt AI and caution about 'AI washing' where layoffs are attributed to AI despite weaker demand.