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News Wire / technology

AI Threatens Philippines Outsourcing Industry

CNA938 Singapore Manila 13d11d Impact 5

The outsourcing industries in India and the Philippines are seeing signs of job displacement due to artificial intelligence. Estimates suggest two to three million jobs could be affected by the technology. The report notes ongoing discussions regarding AI replacing human labor in these sectors. Artificial intelligence is expected to cause job displacement within the business process outsourcing (BPO) sector. Workers in this industry face increasing risks of redundancy due to AI-driven automation. The impact of this disruption is growing as AI capabilities expand. One worker expressed emotional distress regarding the potential for AI to replace human roles. Back office services are among the most at risk of being replaced by artificial intelligence, according to reports from the IMF, OECD, and Bloomberg Intelligence.

The outsourcing industries in India and the Philippines are seeing signs of job displacement due to artificial intelligence. Estimates suggest two to three million jobs could be affected by the technology. The report notes ongoing discussions regarding AI replacing human labor in these sectors. Artificial intelligence is expected to cause job displacement within the business process outsourcing (BPO) sector. Workers in this industry face increasing risks of redundancy due to AI-driven automation. The impact of this disruption is growing as AI capabilities expand. One worker expressed emotional distress regarding the potential for AI to replace human roles. Back office services are among the most at risk of being replaced by artificial intelligence, according to reports from the IMF, OECD, and Bloomberg Intelligence. India currently leads the global outsourcing market with an estimated 50 to 55 percent share. The Philippines holds approximately 15 to 17 percent of the global market. The industry relies on 24/7 labor shifts to accommodate time differences between Western and Eastern markets.

Topics

AI outsourcing employment

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Sources · 7 independent

CNA938 Singapore

“In India's and the Philippines' outsourcing industry, are we already seeing signs of displacement? I see two to three million.”

CNA938 Singapore

“As the climber around AI-driven job losses grow, one sector stands in a firing line of disruption. Business process outsourcing, or BPO. BPO workers will be affected of job displacement in the future.”

CNA938 Singapore

“According to reports from the IMF, OECD, Bloomberg Intelligence and others, back office services are amongst the most at risk of being replaced by artificial intelligence.”

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