ARTIFICIAL intelligence has yet to cause widespread job losses in the Philippine outsourcing industry, with services employment and exports continuing to grow despite rapid adoption of AI, according to HSBC Global Investment Research.
“There has been no ‘apocalypse’ in services jobs in the Philippines — if anything, employment has accelerated,” HSBC Global Investment Research chief Asia economist Frederic Neumann said in a commentary.
Neumann noted that employment in information technology and professional, scientific and technical services has increased since the release of ChatGPT 3.5 in November 2022, while Philippine services exports have continued to expand.
The trend runs counter to concerns that generative AI could significantly disrupt the country‘s business process outsourcing (BPO) industry by automating tasks traditionally performed by Filipino workers.
Neumann said exports of “other business services,” which include activities closely associated with the BPO industry, have risen steadily in recent years, with no sharp decline following the emergence of generative AI.
While growth since 2023 has been slower than before the pandemic, he said the sector “is still expanding at a healthy clip.”
Neumann added that the Philippines and India are particularly exposed to potential AI-related disruption because both have large outsourcing industries that contribute significantly to services exports.
So far, however, the data show no AI-driven collapse in the Philippine services sector.
HSBC cautioned, however, that continued employment growth does not mean AI has had no effect on workers. Some jobs have become obsolete while demand for others has increased, requiring workers to adapt to changing skills requirements.
Still, the overall employment trend does not support fears of an AI-driven “job apocalypse,” the research firm said.
Neumann said AI could even be contributing to the resilience of outsourcing destinations such as the Philippines as companies and workers adjust to the technology.
“There are changes beneath the surface: some jobs have become obsolete, others are in greater demand, but the outsourcing sector is adjusting,” he said.
For now, Neumann said, humans still need to remain “in the loop” for many tasks, sustaining demand for workers in major outsourcing markets such as the Philippines and India.
