PHILIPPINES Law and Practice Contributed by: Kerwin K. Tan, Veronica S. Balbin and Jose Maria B. Buenagua, Tan Hassani and Counsels
contracts are having a big impact on how customer service is delivered by BPOs. On the one hand, these technologies improve efficien - cy and reduce costs by automating tasks and gener - ating valuable insights. Chatbots, for instance, can provide customers with instant support at any time of day. On the other hand, there are industry concerns that such technologies could eventually replace the need for human support and interaction, potentially leading to a decline in the BPO industry in the Philip - pines and resulting in job losses. In the short and even medium term, however, these technologies are more likely to complement rather than replace the services provided by BPO work - ers. They are expected to enhance customer service through the efficiencies they create. In the longer term, governance initiatives have begun signalling a shift towards a more structured, risk-based approach to integrating new technologies such as AI into opera - tions. At the time of writing, there are no comprehensive legal frameworks in the Philippines specifically reg - ulating the impact of emerging technologies on the workforce and the broader digital economy. Striking a careful balance between sustaining technological progress and avoiding overexposure to its attendant risks, current policy proposals have been measured and deliberate. Legislative initiatives in the 20th Con - gress of the Philippines have primarily focused on establishing regulatory principles and frameworks. In the Senate, several key proposals have been intro - duced: Senate Bill No 25 seeks to establish a National AI Commission; Senate Bill No 29, recognising the potential displacement caused by labour-saving technologies, mandates government-led upskilling programmes for the workforce; and Senate Bill No 182 proposes the creation of a National Task Force on Digital Economy Job Disruption to develop safety nets, financial assistance schemes, reskilling initia - tives, and career transition support within the private sector. In the House of Representatives, attention has turned towards addressing the identity and content risks
posed by AI-generated media. Various bills have been filed to protect image, voice, and likeness, as well as to regulate or penalise the creation and distribution of deepfakes. These proposals also introduce takedown procedures and remedies that could shape platform governance and content moderation policies in the Philippines. As much of the back-office or content moderation work for social media platforms is per - formed remotely by BPO agents in the country, such legislation could have significant implications for the operational strategies and compliance frameworks of affected IT-BPO service providers. 1.4 Outsourced Services The Philippines is a leading outsourcing destination, known for its skilled, English-proficient workforce and cost-effectiveness. The most commonly outsourced services include customer service and call centres, back-office functions like data entry and transcrip - tion, IT services such as software development and cybersecurity, and HR and recruitment. Finance and accounting, medical and healthcare services, con - tent creation and digital marketing, legal process outsourcing, engineering services, and e-commerce support are also significant. These services leverage the Philippines’ competitive advantages, making it a preferred choice for businesses seeking efficient and reliable outsourcing solutions. We have had the opportunity to assist with most of these activities and functions that are being outsourced or offshored to Philippine-based staff. The BPO sector in the Philippines remains on a steady growth trajectory. In 2024, the Information Technol - ogy and Business Process Association of the Phil - ippines reported that the industry had surpassed its revenue targets for the fiscal year and is poised for further expansion in 2025. With the rise of com - petitive outsourcing firms and the growth of the free - lance economy, client demand is increasingly shifting towards value-driven work and higher-quality outputs. The Financial Times has identified significant activity in areas such as finance, healthcare, legal operations, data and analytics, cybersecurity, and software sup - port. Equally noteworthy is the BPO sector’s expanding geographic footprint. While Metro Manila previously
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