Nearly one in three jobs in the Philippines is at high risk of automation due to artificial intelligence, with the country’s BPO sector standing on the edge of a major disruption.

A 2025 study by the International Monetary Fund warns that 89% of BPO roles are vulnerable to AI, while 14% of the entire Filipino workforce could face displacement.

At the same time, the local AI market is projected to hit US$1.025 billion by next year – reshaping not only tech, but also traditional sectors such as retail and agriculture.

The impact, however, is not purely negative. The same IMF report notes that 61% of these high-risk jobs are also highly “complementary” to AI.

The report signals the potential for job transformation and productivity gains if reskilling is prioritised​.

Now, as AI adoption accelerates worldwide, the Philippines must confront a critical question: which industries will rise, which ones will decline, and which workers will get left behind?

BPO: High exposure, higher pressure to evolve

The Philippines’ multibillion-dollar BPO sector, a major GDP contributor, sits on the front line of AI disruption.

The IMF estimates up to 36% of local jobs are highly exposed to AI technologies, with routine-based customer service roles most at risk​.

Yet while job losses dominate headlines, the shift is more complex. Rather than mass layoffs, experts predict a restructuring of the talent landscape.

AI will likely take over low-value, repetitive tasks, but demand will surge for workers who can manage AI tools, interpret data, and deliver more complex services.

Encouragingly, the IT and Business Process Association of the Philippines, or IBPAP, reported 135,000 new BPO jobs added in 2024, with a goal of reaching 1.1 million more by 2028​.

Productivity gains are already visible. In one study, Filipino contact centre agents who used AI tools resolved 13.8% more customer issues per hour​.

Still, a slower growth forecast for the industry highlights concerns over infrastructure and skills gaps that may hamper the sector’s ability to adapt quickly.

Upskilling is now a necessity. Roles will demand greater tech fluency, critical thinking, and the ability to work alongside intelligent systems.

This will shift the Philippines’ competitive advantage from low-cost labour to highly adaptive, AI-literate talent.

Retail and agriculture: Quiet transformation under way

AI is also steadily redefining traditional industries such as retail and agriculture, two sectors often overlooked in conversations about digital disruption.

The Philippine retail sector is forecast to grow by US$66.35 billion between 2024 and 2028, fuelled in part by AI applications in personalised marketing, inventory management, and seamless omnichannel shopping​.

Retailers are now using AI to analyse customer data in real time, forecast demand, and deliver product recommendations – an approach already common in developed markets.

Globally, over 90% of retailers are either using or assessing AI integration, a trend Filipino businesses are under pressure to follow​.

However, high implementation costs and data quality issues remain barriers to mass adoption.

Meanwhile, the agriculture sector could benefit significantly from AI innovations such as crop monitoring systems, predictive weather alerts, and smart pest control​.

Local AI-powered tools are already helping farmers make better decisions based on real-time data.

AI’s role in boosting crop yields, lowering input waste, and improving food security is a vital step for a country increasingly vulnerable to climate shocks.

That said, the digital divide remains a critical bottleneck. Many Filipino farmers still lack access to stable internet, smart devices, and the technical support needed to adopt these solutions.

Continued government investment and public-private partnerships will be crucial in making this transformation inclusive.

Finance and manufacturing: Cautious but deliberate AI uptake

AI’s impact on the financial and manufacturing sectors is less sensational but equally meaningful.

In banking, AI is driving fraud detection, alternative credit scoring, and personalised digital services.

The Bangko Sentral ng Pilipinas, or BSP, has begun exploring the implications of generative AI while crafting regulations to ensure ethical use and prevent algorithmic bias​.

By 2022, digital payments accounted for 42.1% of all retail transactions – a figure that AI-enabled fintech tools will likely increase​.

The finance sector’s shift to AI is being shaped by a human-centred lens, with a focus on inclusion, accuracy, and security.

Challenges remain around compliance and risk mitigation, but the tone from regulators is largely supportive.

In manufacturing, AI adoption is focused on automation, quality control, and supply chain optimisation. As of late 2024, the sector posted 3.1% growth, with AI offering further headroom for productivity​.

From predictive maintenance to robotic process automation, the tools exist but widespread implementation will depend on cost, talent availability, and alignment with broader industrial strategy.

Unlike in BPO or retail, job displacement is less urgent in manufacturing, yet the upside is significant.

According to one projection, generative AI could unlock up to US$79.3 billion in productive capacity by 2030 in the Philippine industry​.

Technology sector: From user to enabler of AI

The tech industry is both the driver and the biggest beneficiary of AI. The Philippine AI market is projected to hit US$1.025 billion by 2025, and the National AI Strategy Roadmap 2.0 is positioning the country as a regional leader in AI innovation​.

Government-backed initiatives such as the Center for AI Research, or CAIR, aim to accelerate R&D and provide direction on ethical and responsible development.

Subfields such as natural language processing, machine learning, and computer vision are gaining traction as is generative AI across creative industries.

Despite the momentum, the sector faces challenges: talent shortages, patchy infrastructure outside urban centres, and low AI readiness among small and medium enterprises​.

Studies indicate strong interest in AI adoption but limited capability to implement. Addressing these barriers is key to unleashing AI’s potential to lift the national GDP by up to 12% by 2030.

If the tech sector can scale AI responsibly, it can empower every other industry, from farming to finance, and help secure the Philippines’ place in the digital economy of Southeast Asia.

A window for transformation, not fear

The next 12 to 24 months will be critical. AI is no longer a speculative future but a fast-unfolding reality – one that will affect industries unequally.

The BPO sector faces the most immediate impact, with automation reshaping job structures. The tech industry is rapidly scaling up and offering long-term strategic advantage.

Meanwhile, retail and agriculture are already undergoing significant transformation, and finance and manufacturing are stepping into AI more deliberately, backed by regulatory support and productivity incentives.

What cuts across all sectors is the urgent need for reskilling, investment in infrastructure, and a national mindset shift: from reacting to AI to preparing for how it can be best used.

The window is narrow, but the opportunity is vast. If the Philippines plays its cards right, AI could fuel not just survival but also sustainable and inclusive growth.