Visa Warns AI Could Wipe Out Entry-Level BPO Jobs in the Philippines — Country Ranks 43rd Out of 47 in AI Readiness

Visa Warns AI Could Wipe Out Entry-Level BPO Jobs in the Philippines — Country Ranks 43rd Out of 47 in AI Readiness
Photo: Manila Bulletin

Here's a wake-up call for the Philippines: global financial giant Visa just released a report warning that artificial intelligence could seriously disrupt the country's BPO industry — the same sector that employs millions of Filipinos and has been one of the economy's biggest success stories.

In their February 24 Asia-Pacific consumer report, Visa economists Simon Baptist and Barsali Bhattacharyya noted that while Asian consumers are "getting richer and splurging," the Philippines and India face unique risks because AI threatens entry-level office jobs — exactly the kind of work that BPO centers handle. Both countries built massive outsourcing industries thanks to low labor costs and English-literate workforces, but that advantage is shrinking fast.

The numbers are sobering. Think tank Capital Economics ranked the Philippines 43rd out of 47 countries in its AI Economic Impact Index, scoring just 21 out of 100. That means we're not just behind — we're near the bottom globally when it comes to innovation, adoption, and adaptation of AI technology. Yikes.

It's not all doom and gloom, though. Visa also pointed out that AI could enhance the consumer experience, especially in e-commerce. They predict 2026 will be a breakthrough year for "agentic commerce" — AI-powered assistants that automate and personalize shopping. Filipino consumers, being among the most tech-savvy in the region, are actually well-positioned to embrace this shift.

The bottom line? The Philippines needs to move fast on AI readiness or risk losing one of its most important industries. The young population is an asset, but only if the country invests in upskilling workers before the robots — er, algorithms — take over. Hindi pa huli ang lahat, but the clock is definitely ticking.

Source: Manila Bulletin

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