Artificial intelligence is actively reshaping the workforce. In the Philippines, nearly half of working professionals now use generative AI in their daily routines. At the same time, unemployment figures have risen, with over 2 million Filipinos reported jobless as of January. Job losses have been most notable in sectors once seen as growth drivers, such as manufacturing, ICT, construction, and professional services.
Across industries, job roles are evolving more rapidly than many organizations are prepared for. The local BPO sector, a key contributor to the Philippine economy, sits at the forefront of this transformation. According to the IMF, up to 36% of jobs in the Philippines are highly exposed to AI, particularly those involving routine or transactional tasks such as customer service and administration. However, exposure does not automatically mean replacement. In many cases, AI is introduced to enhance productivity, not eliminate roles. For instance, AI-assisted contact center agents have been shown to resolve nearly 14% more customer issues per hour, signaling opportunities to improve service quality and operational efficiency.
Still, the shift is significant and demands a proactive response. Interestingly, the most exposed workers are often college-educated, young, urban, female, and well-compensated professionals in the service sector, not the traditionally “at-risk” demographic. For the Philippines to fully benefit from its demographic dividend, it will be critical for these workers to develop the digital and analytical skills needed to maximize AI as a tool for productivity.
This is where the concept of “creative destruction” comes into play. While some roles may change or decline, new opportunities are emerging in AI management, data interpretation, and advanced problem-solving. The path forward lies in upskilling and preparedness. As the IMF notes, AI readiness will directly influence effectively organizations can adopt and benefit from these technologies. The challenge now is for employers to recognize these shifts and help their workforce adapt — not later, but now.
This is no longer just a workforce issue, it is increasingly a business continuity concern. The risk lies not in AI itself, but in the absence of a coordinated response. Organizations that fail to proactively manage talent transitions face growing exposure: operational disruptions, skill gaps, rising internal friction, and inefficient use of workforce-related resources.
This shift must be viewed through a strategic risk lens, one that assesses how evolving job roles impact both innovation strategies and people policies. Are current workforce structures aligned with new demands? Are job functions evolving faster than your talent pipeline can deliver? Are your insurance, benefits, and wellness investments still reaching the right parts of your organization?
Without intervention, businesses risk overspending on outdated coverage models or under-supporting teams in transition. Reskilling efforts, if not clearly mapped and aligned, may lead to uneven adoption and lost momentum. Even well-meaning employers could unintentionally widen skills or wage gaps in the absence of a structured transition plan.
Organizations must understand which roles are vulnerable and how to support their people through these shifts while staying aligned with business goals. This calls for a workforce impact assessment: a clear, data-informed view of what’s happening now, paired with a structured plan for moving forward.
Employers don’t need all the answers right away. They a clear roadmap that balances innovation with resilience to protect both the workforce and the long-term strategy of the organization.