For Lisa, a dedicated content writer who spent 15 years in the outsourcing industry, the rise of artificial intelligence marked a swift and unexpected end to a career she had built from scratch. As a single mother, she relied on her work in content writing to support her family. She began her journey straight out of college, eventually landing a stable position in a multinational firm in the Philippines' thriving outsourcing sector. Her work involved producing high-quality content that clients across the world trusted. For years, Lisa found success through her hard work, meeting deadlines and maintaining her position as a skilled writer. However, she never saw the need to integrate AI into her work.
Just eight months into her latest role, and one month before her position was set to become permanent, Lisa was unexpectedly laid off. The months leading up to this had seen a gradual shift in the way work was being handled at her company. A public relations agency had started producing AI-generated content, which Lisa and her colleagues were tasked with editing. Over time, it became clear that their work was being used to train the AI on the company's writing style. This realization hit Lisa hard. 'We were the ones who trained the artificial intelligence that replaced us.' For Lisa and others in her situation, the outsourcing industry that had once offered stability and a path out of poverty now appeared to be turning against them.
Industry overview and AI risks
The Philippines has long been a global leader in business process outsourcing, or BPO. For decades, the country has attracted multinational companies eager to tap into a pool of English-proficient workers. Governments supported this growth by offering tax incentives and investing in infrastructure. As a result, areas like Cubao in Manila became bustling hubs for outsourcing operations. These business districts symbolized the country's economic success, with global companies like Accenture, Concentrix, and Teleperformance setting up large campuses and employing hundreds of thousands of Filipinos.
Today, the outsourcing industry remains a cornerstone of the Philippine economy. It supports around 1.9 million jobs and generates $40 billion in revenues annually, accounting for about 10% of the national GDP. However, the widespread adoption of generative AI is beginning to disrupt this sector in ways that few anticipated. Many jobs that once seemed secure are now at risk of being automated. The International Labour Organization estimates that 12.7 million Filipinos—over one in four workers—are in roles that are vulnerable to generative AI. This number is the highest in Southeast Asia.
He notes that more than two-thirds of IBPAP's members are already experimenting with AI pilots. 'Obviously, there's a layer of jobs that are automatable or have been automated.' While he acknowledges the challenges AI presents, Madrid argues that many workers are being redeployed within their companies rather than losing their jobs entirely. He also attributes some hiring difficulties to broader economic factors, such as slowed global demand and uncertainty about how companies will use AI in the long term.
Worker experiences and new responsibilities
Mary, another content writer whose identity we’ve changed for privacy, described how AI initially seemed like a tool that could enhance productivity. However, in practice, it created more work rather than making her job easier. 'Technically it was more work for us.' Like Lisa, Mary was eventually let go by her employer. Her experience reflects a growing trend among outsourced workers in the Philippines: the introduction of AI not only failed to ease their workload but also added layers of complexity. The pressure to deliver higher-quality content at the same pace intensified, ultimately leading to redundancy for many.
Outsourcing companies are feeling the pressure to adopt AI in order to cut costs and boost efficiency. Teleperformance, the world’s largest call center operator and one of the Philippines’ biggest employers, has publicly stated that AI presents an opportunity to augment—not replace—human labor. The company envisions AI handling routine tasks like customer service interactions, while human workers take on more complex roles. Teleperformance also plans to retrain its employees to adapt to this shift. Accenture, another major player in the outsourcing industry, has similarly stated that generative AI will reshape roles rather than eliminate them. The company is focusing on retraining initiatives to ensure workers are prepared for the changes ahead.
The challenge of reskilling
According to Jack Madrid, reskilling remains a critical priority in navigating the transition brought by AI. 'The importance of reskilling cannot be overstated,' he emphasized. However, for workers like Lisa and Mary, the path forward is far from clear. They were part of the very process that led to their redundancy, as their skills were used to train the AI that ultimately replaced them. Now, with the outsourcing industry at a crossroads, many are left wondering how they will remain competitive in a job market that is rapidly evolving.
Global economic uncertainty and fluctuating demand have added another layer of complexity to the situation. While companies like Teleperformance and Accenture speak of redeployment and adaptation, the immediate impact is being felt by those who helped build the industry. As AI continues to reshape the landscape, the challenge lies in ensuring that workers are not left behind. For now, the future remains uncertain for millions of Filipinos whose livelihoods depend on an industry that is changing faster than ever.