ROBINSONS Land Corp. (RLC) expects artificial intelligence (AI) to reshape demand for office space, rather than significantly weaken the market, as business process outsourcing (BPO) companies shift toward higher-value functions.
RLC Chief Financial, Risk and Compliance Officer Kerwin Tan said more than 70 percent of the company’s office tenants were BPO firms, making changes in the sector important to its office business.
“We believe the office sector will continue to evolve rather than be displaced,” he said.
Tan said AI would likely automate more routine and repetitive functions over the next five to 10 years, but new roles involving analytics, judgment, creativity and client management could emerge.
He cited data annotators, data analysts, content moderators, AI coaches and trainers, AI quality assurance specialists and AI governance professionals among the roles that could support the evolving BPO industry.
The shift could also change how much office space companies need per employee.
Tan said BPO firms were currently using about six to seven square meters of office space per employee, which could increase as workplaces require larger monitors and more areas for collaboration.
“From what we hear from our tenants, in the future, they would want to require more spaces per BPO employee,” he said.
Robinsons Land therefore sees resilience in the office segment despite the potential displacement of some routine jobs by AI, he added.
“Definitely, I think we would expand more rather than fear that ... there’s [going to be] a contraction,” Tan said.
Robinsons Land’s office business is a major part of its recurring-income portfolio, with the company continuing to develop additional office buildings as it anticipates sustained demand from the Philippine BPO industry.
Tan said the company remained bullish on the sector, citing the country’s young workforce and its capacity to adapt to new technologies.
“We have to take advantage of our youth,” he said, adding that companies and the government should work together to upskill workers as the nature of BPO jobs changes.
The company’s first-half results also showed continued growth in its recurring-income businesses. Consolidated revenue rose 10 percent year on year to P25.42 billion while net income increased 12 percent to P9.02 billion.
The company is targeting further expansion of its office portfolio as part of its broader 2030 growth plan, alongside malls and logistics facilities.
Tan said RLC would continue allocating capital to businesses with stronger growth and profitability prospects.
“In terms of potential for growth, it’s our malls, offices, logistics, to some extent,” he said.
The company’s shares on Thursday closed up P0.16, or 0.92 percent, at P17.58 each.
