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AI Automation Poses High Risk to Jobs in the Philippines, Especially in BPO and IT Sectors

Unique Times

A recent report highlights that 76% of jobs in the Philippines are vulnerable to automation by AI by 2030, with significant implications for workers in business process outsourcing and information technology industries.

The increasing adoption of artificial intelligence (AI) technologies is set to significantly impact the Philippine labor market, with a Tokyo-based Asian Development Bank Institute (ADBI) report projecting that 76% of Filipino jobs will be highly vulnerable to automation by 2030—the highest percentage in Southeast Asia. Among the sectors most affected will be business process outsourcing (BPO) and information technology (IT), key employment pillars for the country. The Information Technology and Business Process Association of the Philippines (IBPAP) has noted declining revenue forecasts for the sector—from an original target of $59 billion by 2028 lowered to between $43 billion and $50 billion as of mid-2026. Projected employment figures have similarly been revised downward, from 2.5 million to a range of 1.85 million to 2.14 million workers. IBPAP president Jack Madrid explained that while AI developments have impacted certain entry-level positions, affected employees have generally been redeployed within the industry. Despite automation, many workers transition to alternative roles rather than face outright job loss. The International Labour Organization warns that 12.7 million workers in the Philippines have been exposed to generative AI technologies capable of producing text, images, audio, video, and computer code. Although full job displacement is not immediate, jobs relying heavily on such AI use have increased displacement risk. Creative industries are also vulnerable, with the International Confederation of Societies of Authors and Composers estimating potential revenue drops of 24% in music and 21% in audiovisual sectors due to AI content generation. AI ethicist Carl Joe Javier expressed concern for Filipino creatives, highlighting how AI-driven cost-cutting measures may undervalue artistic work and cultural preservation. Javier advocates for hybrid approaches leveraging both human creativity and AI enhancements to maintain quality output. Experts, including voices from Harvard Business School, emphasize that AI lacks emotional intelligence and human connection capabilities, underscoring the indispensability of human roles in interpersonal and nuanced tasks. The ILO recommends targeted policies at regional and sectoral levels to prepare and protect workers against AI-driven market shifts, emphasizing the need for upskilling and regulatory frameworks. Javier calls for legislative action and public discourse to ensure socioeconomic adaptation to technological change, stressing the importance of envisioning the workforce and economy within an AI-influenced future. This evolving landscape calls for proactive measures to balance technological advancement with sustainable employment opportunities and cultural integrity in the Philippines.


Sources referenced:

  • https://www.gmanetwork.com/news/topstories/nation/1006619/explainer-which-jobs-are-most-vulnerable-to-ai-replacement/story
Unique Times

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