by Jan Michael Carpo, Reporter
The Information Technology and Business Process Association of the Philippines (IBPAP) has announced recently the results of its study about artificial intelligence (AI) and its impact on employment in the country’s booming IT and Business Process Management (IT-BPM) sector.
According to the DICT, the IT-BPM sector saw an increase of 8.4% or 121,000 full-time employees (FTEs) in the Philippines in 2022, with 1.57 million in total headcount and a growth rate of 10.3% in revenues.
IBPAP president Jack Madrid
In a media briefing, the association revealed that contrary to fears that AI might lead to significant job losses, its survey findings have actually shown otherwise — AI’s impact remains minimal.
IBPAP sees widespread use of AI, but not much effect on the industry
At the International IT-BPM Summit 2024, IBPAP president Jack Madrid presented key insights from a survey conducted this year, showing that while 67% of IT-BPM companies in the Philippines have already integrated AI into their operations, only 8% have experienced a reduction in workforce as a result.
The survey highlights the widespread use of AI across the industry, with companies leveraging the technology in areas such as customer support, data entry and processing, workforce management, and sales and marketing.
Despite this growing adoption, fears of job displacement appear largely unfounded, with most businesses reporting no negative impact on employment.
“Only 8% of the respondents have reported a decrease in their workforce,” the IBPAP executive shared during his speech at the summit. “In fact, 13% of companies indicated that they’ve actually increased their headcount as a result of AI implementation.”
Madrid also emphasized that for the vast majority of surveyed companies, AI has not led to layoffs or job reductions. Instead, businesses are using AI to enhance efficiency and productivity in repetitive, routine tasks, freeing up human workers to focus on higher-value responsibilities. This shift has allowed companies to boost productivity and improve service quality without significantly altering the composition of their workforce.
At the just-concluded 8th ASEAN CIO Association (ACIOA) Forum, the discussions on digitalization and work productivity were closely linked with the growing emphasis on cybersecurity, especially in the Philippines. Jonathan C. Pineda, Senior Vice President and CIO of the Government Service Insurance System (GSIS), acknowledged the challenges that AI and robotics pose to the workforce, stressing the need to balance technological progress with sustainable practices.
AI’s positive impact on IT-BPM operations
A female worker from the IT-BPM industry taking advantage of AI in the workplace
Despite fears of job displacement due to the growing adoption of AI, the IBPAP has actually pointed to its positive impact. Rather than eliminating jobs, AI appears to be driving welcome changes in the Philippine IT-BPM sector, which remains one of the largest contributors to the country’s economy.
According to Madrid, companies that have adopted AI report benefits such as improved operational efficiency, higher productivity, and enhanced service quality.
“The majority of the effects of AI on operations have been positive,” Madrid explained.
“Businesses are seeing gains in productivity, operational efficiency, service quality, and even revenue generation. These improvements underscore the value of AI in today’s rapidly evolving business landscape,” the IBPAP executive further stated.
By automating repetitive tasks, AI allows companies to optimize their workflows, reduce human error, and enhance customer experiences. This is particularly important for the IT-BPM industry, which relies heavily on delivering consistent, high-quality services to global clients.
As AI takes on more routine functions, businesses can focus on innovation and provide more personalized, value-driven services.
A growing industry with a promising future
Despite the ongoing digital transformation, the IT-BPM sector in the Philippines continues to thrive. Madrid expressed optimism about the industry’s future, noting that it is on track to generate $38 billion in revenue by the end of 2024, with a workforce projected to reach 1.82 million people.
“This sector remains one of the key pillars of the Philippine economy, and we’re confident that AI will further bolster its growth,” he stated. “As we move forward, the integration of AI will allow us to remain competitive on the global stage, attract more clients, and create more high-value jobs.”
Looking ahead, Madrid believes that AI will play a crucial role in shaping the future of the IT-BPM sector, but he stressed that human workers will continue to be at the heart of the industry’s success. While some jobs—particularly those involving repetitive tasks — may be affected by AI, there is still a significant demand for skilled workers who can manage, oversee, and complement AI-driven processes.
“AI is not here to replace workers but to empower them,” Madrid concluded. “It’s about augmenting human capabilities, not eliminating them. As businesses become more efficient and productive, we expect to see more opportunities for growth and job creation, especially in higher-value functions that require creativity, problem-solving, and critical thinking.”
AI as a key driver of competitiveness
With the continued adoption of AI, the Philippines’ IT-BPM industry is poised to enhance its global competitiveness. The integration of AI is enabling businesses to meet the rising demand for faster, more efficient services while maintaining the high-quality standards that the sector is known for. This, in turn, strengthens the country’s position as a preferred outsourcing destination.
In the end, the integration of AI into the Philippine IT-BPM sector is proving to be a boon rather than a bane. While it may reshape some job roles, it is largely driving positive outcomes for businesses and employees alike. As the industry continues to evolve, AI will remain a key factor in sustaining growth, creating new opportunities, and ensuring the Philippines’ IT-BPM sector remains at the forefront of global innovation.