AI reshapes outsourcing jobs in the Philippines

AI is starting to unsettle the Philippines’ outsourcing industry, long one of the country’s biggest economic success stories. Former content writers described being asked to edit and refine AI-generated material before later being made redundant, with one worker saying her team helped train systems that replaced them.

The sector employs roughly 1.9 million people and generates $40bn (£30.1bn) in revenue every year, accounting for about 10% of the Philippines’ economy. The International Labour Organization estimates that 12.7 million Filipinos are in occupations exposed to generative AI, the highest share in South East Asia, though many roles are expected to change rather than disappear.

Major outsourcing companies including Teleperformance, Accenture and Concentrix say AI will augment workers, automate routine tasks and require retraining. Industry representatives acknowledge that some jobs are automatable, while also pointing to slower global demand and uncertainty over how clients will use the technology.

Labour groups say Philippine employment rules offer limited guidance on how AI should be introduced at work, while the largely non-unionised sector leaves employees with little formal influence. The government has committed to upskilling more than 300,000 outsourcing workers and says the country must build more local AI capability so the benefits do not flow only to employers.