AI transforming, not cutting PH outsourcing jobs – study
The artificial intelligence (AI) boom has not yet caused a decline in the Philippines’ service-export revenues or employment, ING Bank N.V. said, arguing that AI is so far changing what gets outsourced rather than reducing demand for outsourced work.
In a report, Deepali Bhargava, head of Asia-Pacific research at ING, said there was evidence that AI was reshaping the composition of service exports and employment in both the Philippines and India, another global outsourcing powerhouse.
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Telecom and computer services have continued to expand alongside business services exports, lifting their combined share of the Philippine economy to 7.1 percent by mid-2026 from 6.3 percent before the pandemic, Bhargava said.
The composition of those exports, however, has changed as demand moves toward faster-growing segments.
The bank said digitally delivered services exports have grown 24 percent since 2022, with financial and computer services increasingly driving growth. Financial services exports have expanded by about 25 percent a year over that period, while computer services exports have also posted strong gains.
Adjusting exposure
Meanwhile, traditional business services have moderated after the post-COVID surge in outsourcing demand.
“The Philippines appears to be adjusting by increasing its exposure to faster-growing segments such as financial and computer services,” Bhargava said, adding there’s “little evidence so far that it’s causing outright contraction in export revenues.”
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On employment, Bhargava said evidence so far points to job transformation rather than job destruction.
ING Bank said the combined employment data for the information and communication, professional, scientific and technical services sectors showed jobs had increased by around 4.5 percent over the past year, with the recent readings remaining close to their long-term trends.
“AI disruption fears look premature in India and the Philippines,” Bhargava said. “The bigger story is one of upgrading, with growth increasingly concentrated in higher-skilled, more technology-intensive activities.” /atm
