Stories

Tue, 04 Aug 2026

Tue, 04 Aug 2026 'I feel like I dug my own grave': The workers caught in the AI transition

AI is reshaping the Philippines' outsourcing industry, raising questions over the future of the industry.
Employees who have trained AI systems before being laid off claim that their jobs were made redundant because of the technology. Some companies are using AI as a cost-cutting measure to compete with rivals in India and other countries for contracts from multinational corporations. Despite hundreds of billions of dollars invested globally in AI, there is limited evidence about its actual productivity benefits. Labour groups have expressed concern over existing employment laws that govern redundancy but offer little guidance on how companies should introduce AI into workplaces or consult employees over its use. The Philippine government has acknowledged the need to upskill workers and retrain them for new technologies, committing to upskill more than 300,000 outsourcing workers. However, it also recognizes the need to rethink the economic model that made the country an outsourcing centre, focusing on local talent and companies. Key statistics:
* Around 1.9 million people are employed in the Philippines' outsourcing industry.
* The sector generates billions of dollars in revenue each year.
* Hundreds of billions of dollars have been invested globally in AI research and development.
* Limited evidence exists about the actual productivity benefits of AI in workplaces. Some workers who have trained AI systems before being laid off claim that their jobs were made redundant because of the technology.