The Philippine outsourcing industry may find new strength as rising artificial intelligence (AI) costs inhibit total automation. Experts from Jones Lang Lasalle (JLL) Philippines suggest that increased operational expenses may preserve human employment in the sector.
AI Costs Influence Corporate Decisions
Joey Radovan, JLL Philippines Country Head, highlighted the significant expenses associated with operating AI technology. He pointed to the price range for Claude Opus 5, which costs between $5 and $25 per million tokens as a growing concern for companies.
My new thesis is if it becomes more expensive, then we might just revert to human agents.
Joey Radovan, JLL Philippines Country Head
Radovan's comments indicate that as AI companies transition to public markets, the pressure for profitability might lead to a ceiling on operational costs, thus making human labor more appealing.
- Potential reduction in office space due to AI adoption.
- Call center jobs may remain relevant longer than expected.
Despite these dynamics, JLL remains cautious about the long-term impacts of automation on the workplace. Radovan warned that if AI takes over roles traditionally held by humans, it could lead to a significant reduction in office space requirements.
JLL Research Head Janlo de los Reyes noted that while AI is increasingly relevant in corporate real estate decisions, its full impact on office space has not yet materialized. His firm’s Future of Work 2026 survey revealed that 79% of organizations acknowledge the need to assess AI’s effects, but only a small fraction has acted.
It’s a consideration, but not a large driver in terms of office-based action.
Janlo de los Reyes, JLL Research Head
Currently, the market is influenced by a 'flight to quality' as companies seek premium office spaces at competitive rents. De los Reyes emphasized the importance of location and building quality in driving rental growth and occupancy.