Thursday, March 12, 2026

Senate eyes safeguards for BPO sector amid AI, cyber threats

The Senate is set to examine policy, education, and workforce interventions to safeguard the country’s information technology and business process management (IT-BPM) sector amid rapid advances in artificial intelligence (AI) and rising cybersecurity threats, Sen. Bam Aquino said during a Senate Committee on Science and Technology hearing on Wednesday, Feb. 18.

Aquino highlighted the industry’s economic weight, noting that IT-BPM employs around 1.9 million Filipinos and contributes about 8.2% to the country’s gross domestic product.

“In 2025, the industry achieved a historic revenue of more than $40 billion,” Aquino said. “IT-BPM is a pillar of our economy. It has long been a pillar, and we want to ensure that it remains one.”

Aquino credited the sector with helping create a new Filipino middle class by providing stable employment opportunities domestically.

“Because of IT-BPM, a new middle class of Filipinos emerged — workers who found steady jobs without needing to go abroad, and who were able to uplift their lives and support their families,” he said.

Despite the Philippines’ standing as one of the world’s leading IT-BPM destinations, Aquino warned that the country’s position is under threat from fast-moving technological change.

“We know our position is at risk because of the rapid evolution of technology. We need to come together to address these issues so the industry can grow further and remain protected,” he said.

The hearing sought to determine what the industry needs to sustain growth while protecting workers and businesses that rely on it.

“We are here because we want to help Filipinos working in IT-BPM companies and the families who depend on them,” Aquino added.

A central focus of the inquiry is the impact of AI-driven automation on jobs, with Aquino stressing the urgency of reskilling initiatives.

“In recent years, we have seen the effects of AI and AI-driven automation on IT-BPM work. This shows how important it is to act quickly on reskilling programs for employees in the sector,” he said.

Aquino linked workforce preparedness to broader education challenges, warning that declining literacy and proficiency rates could undermine the talent pipeline.

“If we fail to address falling proficiency and literacy rates, our industry will be even more affected. Young Filipinos may struggle to find jobs in this sector,” he said, calling for a review of whether academic programs remain aligned with current and emerging IT-BPM requirements.

Cybersecurity Seen as Top Industry Threat

Aside from workforce transformation, Aquino identified cybersecurity as a leading concern raised during consultations.

“Cybersecurity is at the forefront of the threats facing our IT-BPM industry,” he said, citing the growing number of cybercrime incidents and breaches that could affect the country’s global reputation as a trusted outsourcing hub.

The Senate, he added, will examine whether existing laws and policies remain adequate and how its oversight function can ensure government processes support — rather than hinder — the sector’s growth and ease of doing business.

Aquino warned that unchecked technological disruption could erode the economic gains generated by the industry over the past decade.

“The rapid pace of technological change now puts our middle class at risk. If we cannot address the loss of business in IT-BPM, more workers could lose their jobs,” he said, urging stronger national government support for companies across the country.

He cited a recent viral commentary on AI developments to illustrate the scale of potential disruption, noting projections that a significant portion of white-collar jobs — including those in customer service, finance, software engineering, and content work — could be affected in the coming years.

“Whether or not we agree with that view, we can see that the science is there,” Aquino said. “If we do not act, this industry we want to strengthen — one that has helped so many Filipinos — could decline.”

Policy Review to Shape Legislative Response

The hearing assessed existing policies, programs, and legislation supporting IT-BPM with the goal of crafting responsive measures to future-proof the sector.

“We want to see what we can do to help the 1.9 million Filipinos working in IT-BPM — to help the industry grow further, expand, and respond to the threats we are already seeing,” Aquino said.

He emphasized that the discussion ultimately centers on Filipino workers.

“At the beginning, middle, and end of all this are Filipinos striving for their families’ progress — and we are here to help,” Aquino said.

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