As artificial intelligence (AI) continues to reshape industries worldwide, the Philippine business process outsourcing (BPO) sector stands at a critical juncture.
A recent International Monetary Fund (IMF) report reveals that about one-third of jobs in the Philippines are highly exposed to AI, with the BPO sector at the greatest risk of displacement. To sustain growth and stay competitive, the industry remains resilient by embracing innovation and taking strategic steps to future-proof its workforce through upskilling and adaptation.
Future-proofing BPO jobs with AI
AI’s influence isn’t just about displacement—it also opens doors to new opportunities. Automation has shifted demand from routine, low-skilled tasks to specialized, higher-value roles. This has increased productivity and the need for workers with technical expertise, such as machine learning engineers and data scientists.
“Upskilling is one way to deal with the ‘creative destruction’ effect of AI,” UP Professor Benjamin B. Velasco told BusinessWorld. He added that to avoid getting replaced by AI, one needs to “learn to program AI or train AI.”
The IMF report highlights that 61% of these highly exposed jobs are “highly complementary,” meaning AI will “likely support rather than replace” employees, potentially boosting their productivity. Equipping BPO workers with digital literacy, AI-related competencies, and technical expertise helps mitigate job displacement and maintain the sector’s global competitiveness.
The IT and Business Process Association of the Philippines (IBPAP) collaborates with government educational agencies to address the industry’s skills gap. The newly launched Philippine Skills Framework guides educational institutions in developing technical and AI-related skills needed in the sector.
Meanwhile, the Philippine government has taken initiatives in this direction, including the National AI Strategy Roadmap and the Trabaho Para sa Bayan Act. Collaboration between the government, industry leaders, and educational institutions remains crucial in closing the skills gap and ensuring workforce readiness.
AI’s growing influence on the BPO landscape
The BPO industry has been a cornerstone of the Philippine economy for decades, contributing 7.4% to the nation’s GDP in 2023. However, AI-driven technologies such as chatbots, virtual assistants, and automated systems now take over routine tasks traditionally handled by BPO workers.
Data from the International Labor Organization (ILO) reveals that 89% of BPO jobs face a high risk of automation. Despite these risks, the BPO industry grows. According to IBPAP, the sector created around 135,000 new jobs in 2024 and could add 1.1 million more jobs and increase revenue by $29.5 billion by 2028.
BPO industry adapting to AI-powered innovations
Rather than resisting AI, many BPO firms are integrating AI-driven solutions to enhance productivity and efficiency. One standout innovation is AI-driven accent neutralization technology.
Teleperformance, a global BPO company, has invested $13 million in an accent neutralization tool developed by Sanas, a Palo Alto-based startup. This technology reduces language barriers by neutralizing speakers’ accents in real time, improving communication and customer experience.
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Nualla, J. M. (2025, March 3). AI threatens Philippine BPO workers, IMF report warns. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/ai-philippine-bpo-workers/
Barreiro Jr., V. (2024, December 4). Lacking job security, Filipino call center workers face AI threat. Rappler. Retrieved from https://www.rappler.com/technology/features/filipino-call-center-workers-face-artificial-intelligence-threat/
PS Engage. (2025, January 8). Future Proofing the Philippine BPO Industry in the Age of Artificial Intelligence (AI). Retrieved from https://ps-engage.com/future-proofing-the-philippine-bpo-industry-in-the-age-of-artificial-intelligence-ai/
