The Business Process Outsourcing (BPO) industry in the Philippines faces potential decline due to the increasing use of artificial intelligence (AI), according to Fitch Solutions’ BMI.
As AI adoption grows, companies may relocate call centers back to developed economies, potentially shrinking the Philippine BPO sector, a major source of foreign currency. BMI warns that this shift could undermine the country’s current economic strategy.
Despite expected BPO revenue growth of 9% this year, the Philippines is less likely to benefit from AI adoption compared to wealthier nations.
BMI also highlighted concerns over AI widening income inequality, both within and between countries, which could hinder international cooperation.
Source: PhilNews24 | October 19, 2024
