AI Is Reshaping Philippines’ Outsourcing Jobs Rather Than Reducing Them, Study Says

The rise of artificial intelligence (AI) has not so far led to a decline in service-export revenue or employment in the Philippines, according to ING Bank N.V. The bank said AI appears to be changing the type of work being outsourced rather than reducing overall demand for outsourced services.

ING Asia-Pacific research head Deepali Bhargava said the Philippines and India are both seeing changes in the mix of service exports and employment as AI reshapes the sector.

In the Philippines, telecom and computer services have continued to grow alongside business-services exports. Together, these areas accounted for 7.1% of the country’s economy by mid-2026, compared with 6.3% before the pandemic.

The composition of service exports has also shifted toward faster-growing areas. Digitally delivered services exports have increased 24% since 2022, with financial and computer services becoming increasingly important contributors. Financial services exports have grown by about 25% annually over the same period, while computer services exports have also recorded strong growth.

At the same time, traditional business services have slowed following the surge in outsourcing demand after COVID-19. Bhargava said the Philippines appears to be responding by increasing its focus on faster-growing areas, particularly financial and computer services, with limited evidence so far of an overall decline in export revenues.

Employment trends also point toward changes in the nature of jobs rather than outright job losses. Combined employment in the information and communication, professional, scientific and technical services sectors rose by around 4.5% over the past year, with recent figures remaining near their long-term trends.

According to Bhargava, concerns about AI-driven disruption in the Philippines and India may be premature, with the larger shift involving greater concentration in higher-skilled and more technology-focused activities.