Why Now

Boards have cover. Draft rules will not wait.

Other countries face AI and labour pressure too. The Philippines leans harder on IT-BPM - about 8% of GDP - so the light is brighter here. Migrate with hybrid oversight. Design compliance before the vote.

Manila spotlight

IT-BPM is roughly 8% of Philippine GDP

8.2%

AMRO: in 2024 the Philippine IT-BPM industry generated about USD 38B in revenue - equivalent to 8.2% of GDP - and employed about 1.8M workers (3.8% of total employment). It was also about 64% of services exports.

IBPAP / press (2025): sector still described as about / more than 8% of GDP with export revenues topping ~USD 40B. Sources: AMRO Asia analysis; Inquirer / IBPAP reporting. Snapshot early Sep 2026.

~$40B

PH IT-BPM export revenue 2025

~1.9M

FTEs · 2025 headcount

$43.3-50.5B

2028 reset band · Jul 2026

50%

CREATE MORE telecommuting floor

01 · Industry reset

National targets already priced in AI disruption

IBPAP cut 2028 roadmap targets in July 2026. Downside roughly USD 43.3B / 1.85M AI-enabled workers; best case roughly USD 50.5B / 2.14M - versus a prior roadmap of USD 59B / 2.5M FTEs. Drivers cited: rapid AI adoption, buyer hesitation, global competition.

Urgency for operators: boards already have cover to buy productivity and hybrid floors - not only more seats.

IBPAP 2028 roadmap reset

Revenue (USD B) · FTEs (millions) · Jul 2026 refresh

Prior revenue
$59B
Downside
$43.3B
Best case
$50.5B
Prior FTEs
2.5M
Downside FTEs
1.85M
Best case FTEs
2.14M

Source: BusinessWorld / IBPAP, 15 Jul 2026. Cited.

PH IT-BPM revenue and headcount

USD billions · FTEs (millions) · 2025 actual / 2026-27 proj

2025 2026e 2027e 40B 42.3B 45.3B 1.9M 1.96M 1.99M

Source: BusinessWorld IBPAP reporting (Jan / Jul 2026). Cited. 2026-27 figures are projections.

02 · Legislation · excerpts

Proposed vs enacted - never blur the line

Short quotes from Philippine materials. ASCII hyphens only. Proposed text is not law.

Enacted Conditional / time-bound Proposed / committee

"It is the policy of the State to protect the fundamental human right of privacy, of communication while ensuring free flow of information to promote innovation and growth."

Enacted Data Privacy Act of 2012 · RA 10173 · Sec. 2

"The obligations of Personal Information Controllers (PIC), and their Personal Information Processors (PIP), under the DPA, its IRR, and the issuances of the Commission... apply insofar as AI systems involve the processing of personal data."

Enacted guidance NPC Advisory No. 2024-04 · Guidelines on DPA application to AI systems

"Additionally, no Filipino may be dismissed by an algorithm alone, and employers must give 60-day notice and retraining before any displacement caused by AI."

Proposed Artificial Intelligence Development and Regulation Act · House substitute consolidating ~26 bills · House Committee on ICT TWG · Philstar 14 Jul 2026 reporting - not enacted

The proposed AI Governance Act (HB 10362) would establish an Artificial Intelligence Bill of Rights covering transparency for high-impact AI, privacy safeguards, and protection from discriminatory AI decisions - plus multi-stakeholder advisory structures.

Proposed House Bill No. 10362 · AI Governance Act · Manila Bulletin Aug 2026 coverage - not enacted

Proposed vs enacted

Philippines policy timeline

Status labeled accurately as of early Sep 2026

2012 · Enacted

Data Privacy Act · RA 10173

Standing privacy floor for recording, CRM, transcripts, cross-border processing.

8 Nov 2024 · Enacted

CREATE MORE Act · RA 12066

Incentive regime; telecommuting up to 50% of workforce without losing incentives.

24 Aug 2025 · Enacted

Konektadong Pinoy Act · RA 12234

Data transmission provider registration with NTC; cybersecurity / privacy duties layered on.

Mar-Apr 2026 · Conditional / time-bound

Temporary 90% WFH window

EO 110 + FIRB Resolution 005-2026: up to 90% WFH for one year from 24 Mar 2026 unless lifted earlier. Plan facilities on the permanent 50% rule.

2026 · Proposed / committee

AI Development and Regulation Act

House substitute consolidating ~26 bills. Risk-based; draft labour language includes no dismissal by algorithm alone and 60 days notice + retraining. Not enacted.

Aug 2026 · Proposed

House Bill 10362 · AI Governance Act

Parallel proposal; reporting notes six months advance notice for high-impact AI affecting employees. Competing draft - not settled law.

Sources: Lawphil / FIRB; Philstar 14 Jul 2026; BPOAI tracker 6 Aug 2026; Manila Bulletin Aug 2026. Status cited.

Proposed - not law

Draft AI displacement notice regimes

Competing / parallel proposals · not enacted

Consolidated draft
60 days + retraining
HB 10362 reporting
6 months high-impact

Urgency is compliance design before the vote - not fake fines. Never claim the Philippines now requires these notice periods.

Sources: Philstar 14 Jul 2026; Manila Bulletin Aug 2026 coverage of HB 10362. Draft status.

WFH incentive ceiling

Telecommuting share of workforce · CREATE MORE vs emergency window

CREATE MORE floor
50% statutory
EO 110 window
90% temporary

Plan facilities and hybrid voice floors on the permanent 50% rule. The 90% window is time-bound from 24 Mar 2026.

Source: RA 12066 / FIRB IRR; EO 110 + FIRB Resolution 005-2026 via BPOAI tracker. Cited.

Commentary

Voice exposure vs non-voice shelter

Workforce share discussion · not official census

Voice ~half Non-voice ~half US disclosure / reshoring politics hit here Comparatively sheltered

Industry commentary (Philstar / Boo Chanco, 24 Jun 2026) on traditional voice-based share of ~2M IT-BPM workforce. Not an official IBPAP census table.

03 · Voice exposure

Voice is exposed. Non-voice is comparatively sheltered.

Industry commentary puts traditional voice-based services on the order of half of the ~2M IT-BPM workforce. Treat that split as commentary - not an official census - but the strategic point holds: US disclosure and reshoring politics hit voice harder.

Migrate voice with hybrid human oversight. Do not gamble the whole P&L on absolutist "AI replaces the floor next quarter" claims.

04 · International (short)

Same pressure abroad. Brighter lamp in Manila.

US voice transparency and call-centre reshoring ideas remain proposed / under discussion unless a final rule cite is added. Peer hubs compete. None of that changes the Manila fact: when IT-BPM is ~8% of GDP, AI labour drafts and buyer AI clauses land harder.

US disclosure / reshoring · proposed / discussion PH AI labour drafts · committee PH DPA + NPC AI advisory · in force

05 · Operator synthesis

Five reasons to migrate voice AI now

  1. 01

    ~8% GDP weight

    National dependence makes the AI labour light brighter than in peer hubs.

  2. 02

    Targets priced in disruption

    Boards can justify pilots against the lowered national roadmap.

  3. 03

    Draft labour cliff

    Design notice and retraining posture before drafts become votes.

  4. 04

    Voice under politics

    US transparency / reshoring pressure concentrates on voice queues.

  5. 05

    Buyer AI clauses

    Providers that can show a live Tier-1 pilot win renewals.

Framework

Why-now scorecard · Manila operator

Decision heatmap · illustrative framework, not data

Draft AI labour risk
US client AI clauses
Attrition / after-hours
Seat cost pressure
Compliance readiness
Hybrid floor design

Illustrative decision tool for ops / country MD conversations. Scoring is framework, not measured industry data.

Next

Turn urgency into a floor-led pilot.