AI poses greater risk to Philippine BPO industry

The Philippine IT-BPM sector, valued at $38 billion and employing 1.82 million people, faces new challenges. While concerns about U.S. protectionist policies under President Trump persist, the primary threat now comes from the rise of artificial intelligence (AI) automating many routine tasks. AI technologies, such as chatbots and virtual assistants, are increasingly taking over customer support roles, which could lead to job losses in the BPO industry. This shift diminishes the Philippines' competitive edge as an English-speaking workforce. To adapt, the industry must invest in AI education and training. Collaboration between the government, schools, and private companies is essential to equip workers with skills in data analytics and machine learning. The IBPAP remains optimistic, projecting growth despite these challenges.