'I dug my own grave': Workers caught in AI transition in Philippines

The Philippines' outsourcing industry, long a ladder to the middle class, is now confronting the arrival of artificial intelligence. Some workers say they were pushed aside by the very technology they were asked to help train.

Lisa, a single mother, spent 15 years writing content before joining a multinational firm. Eight months into the job — and a month before the post was to become permanent — she was let go. Months earlier, she and colleagues were asked to edit AI-generated material for a public relations agency. Their writing skills were used to teach the AI the company's style. "I feel like I dug my own grave," Lisa says. "We were the ones who trained the artificial intelligence that replaced us." She is one of several former employees who spoke anonymously, fearing the industry's small network would hurt their chances of re-employment.

The Philippines has built one of the world's largest outsourcing hubs. It employs about 1.9 million people and generates $40bn a year, roughly 10% of the economy. The International Labour Organization estimates that 12.7 million Filipinos — more than one in four workers — are in occupations exposed to generative AI, the highest share in Southeast Asia.

Jack Madrid, president of the IT and Business Process Association of the Philippines, says more than two-thirds of member firms are running AI pilots. Most affected workers have been redeployed, he says, but "we cannot do enough to be prepared" and reskilling is critical.

Another former content writer, Mary, says her employer encouraged AI use as a productivity tool. Instead, it meant more work. "We had to edit more, fact-check more because the data AI produced was inaccurate," she says. She too was later made redundant.

Major outsourcing companies such as Teleperformance, Accenture and Concentrix say they plan to retrain staff and keep humans in oversight roles. But analysts say companies face pressure from foreign clients to cut costs. Paul Quintos of the University of the Philippines-Diliman sees "tremendous pressure" to adopt AI, and warns of "AI washing" — layoffs blamed on technology when they really reflect weaker demand. Labour groups note that Philippine outsourcing is largely non-unionised, giving workers little say.

The government has pledged to skill up more than 300,000 outsourcing workers. Leandro Aguirre, from the Department of Information and Communications Technology, says the country may be slightly behind and must double its efforts. He also wants to build home-grown AI firms, and rejects new AI legislation in favour of adapting existing rules. "The benefits of AI have to trickle down to people," he says. "It can't just benefit employers."