The Bangko Sentral ng Pilipinas (BSP) has issued a pointed warning about the Philippine BPO industry's near-term outlook, citing domestic constraints on artificial intelligence adoption as a key factor holding back revenue growth. According to the central bank's latest balance of payments report, BPO sector expansion is expected to remain in single digits through 2024 and 2025, a slowdown that analysts attribute directly to the country's lag in integrating AI into outsourcing operations.
The BPO sector is one of the Philippines' largest sources of foreign exchange, contributing billions of dollars annually to services export receipts. A slowdown in its growth trajectory carries real consequences for the broader economy, from employment in Metro Manila and the regions to the peso's external account position.
