The Philippines should diversify its economic base and reduce dependence on the business process outsourcing (BPO) sector, which faces growing threats from artificial intelligence, according to analysts cited by Philstar Biz.
The BPO industry has been a major driver of the Philippine economy and employment, but advances in AI-powered automation and chatbots could displace many jobs. Analysts warn that the country's heavy reliance on this sector makes it vulnerable to technological disruption.
To mitigate risks, experts suggest investing in higher-value industries such as information technology, manufacturing, and creative services. They also recommend upskilling the workforce to prepare for an AI-driven economy. The call for diversification comes as global companies increasingly adopt AI solutions.