A LAWMAKER has warned that artificial intelligence (AI) and rising cybersecurity threats could undermine the Philippines’ position as a global hub for information technology and business process management (IT-BPM), as some firms
reported significant job losses linked to automation.
At a Senate Committee on Science and Technology hearing on Wednesday, Feb. 18, 2026, which he chairs, Sen. Bam Aquino called for closer coordination between government agencies and industry players to safeguard the sector’s competitiveness amid rapid technological shifts. He filed Senate Resolution No. 253 seeking a comprehensive review of the industry’s readiness for AI-driven disruption.
The IT-BPM industry remains a pillar of the economy, employing around 1.9 million Filipinos, contributing 8.2 percent to gross domestic product, and generating more than $40 billion in revenue in 2025. Aquino warned that inaction could erode gains built over the past decade.
Concerns over displacement surfaced during the hearing. Jarmie Bateson, managing director of cloud accounting firm Nimbl, which acquired Cebu-based iResponse Business Solutions Inc., said the company’s workforce shrank from over 300 employees at its peak to fewer than 100 today after losing clients to AI-driven automation. Revenue fell by about 70 percent, with most displaced workers coming from entry-level roles.
Industry leaders also flagged broader structural challenges. Celeste Ilagan, chief operating officer of the IT and Business Process Association of the Philippines, said the sector’s growth target of 2.5 million employees and $59 billion in revenue by 2028 could be hampered by regulatory inconsistencies, rising operating costs, cybersecurity incidents, and a shortage of qualified talent.
She cited issues involving ease of doing business at the local government level, varying employment requirements, and policies of the Department of Labor and Employment that affect workforce flexibility.
Aquino said he would convene relevant agencies and stakeholders to accelerate upskilling and reskilling programs for workers in vulnerable subsectors. He also stressed the need to address the country’s education crisis, warning that declining proficiency and literacy rates could further weaken the talent pipeline critical to sustaining IT-BPM growth.
“Kung hindi tayo gagalaw, posibleng maubos itong industriya,” Aquino said, underscoring the urgency of reforms to protect jobs and preserve the Philippines’ standing as a leading IT-BPM destination. / KOC