HSBC has emphasized that the Philippine business process outsourcing (BPO) sector remains robust despite fears of disruption from artificial intelligence (AI). In a recent report, Frederic Neumann, Chief Asia Economist at HSBC, pointed out that the BPO industry is not only maintaining its ground but is actually benefiting from the technological advancements.
AI's Role in BPO Resilience
There has also been no 'apocalypse' in services jobs in the Philippines — if anything, employment has accelerated. — Frederic Neumann, Chief Asia Economist, HSBC
- Philippine service exports rose 6.9% year-on-year in Q2 2026.
- BPO revenue projected to increase 2.5% to $34.3 billion by 2026.
Neumann noted that while there are expectations for AI to automate many services, the sector has shown no signs of collapse. He suggested that the productivity boosts provided by AI tools may actually enhance the capabilities of BPO workers rather than replace them.
The resilience of the BPO sector can be attributed to several factors, including the slow adoption of AI in the industry and the support that AI offers for existing operations. This dynamic has led to a steady increase in export revenues from other business services, particularly BPOs.
According to the Philippine Statistics Authority, service exports have continued to expand, achieving a significant 6.9% growth in the second quarter of 2026, which outpaced the 2.6% growth recorded in the first quarter.
The Bangko Sentral ng Pilipinas projects that service exports will grow 3% year-on-year, reaching $53 billion in 2026. With BPO revenue expected to rise, the sector is well-positioned to remain a cornerstone of the Philippine economy.