Philippines' IT-BPM Sector at Risk from AI and Cybersecurity Challenges, Senator Alerts
In a stark warning issued during a Senate Committee on Science and Technology hearing on February 18, 2026, Senator Bam Aquino highlighted that artificial intelligence (AI) and escalating cybersecurity threats pose significant risks to the Philippines' status as a global hub for information technology and business process management (IT-BPM). The hearing, chaired by Aquino, revealed alarming reports of job losses linked to automation, prompting calls for urgent action to protect the industry's competitiveness.
Economic Pillar Under Threat
The IT-BPM industry remains a cornerstone of the Philippine economy, employing approximately 1.9 million Filipinos, contributing 8.2 percent to the gross domestic product, and generating over $40 billion in revenue in 2025. Aquino emphasized that without proactive measures, these hard-won gains could be eroded, potentially reversing progress made over the past decade. He has filed Senate Resolution No. 253, advocating for a comprehensive review of the industry's preparedness for AI-driven disruptions.
Real-World Impacts of Automation
During the hearing, concerns over workforce displacement were brought to the forefront. Jarmie Bateson, managing director of cloud accounting firm Nimbl, which acquired Cebu-based iResponse Business Solutions Inc., shared a troubling account. The company's workforce has dwindled from more than 300 employees at its peak to fewer than 100 today, following client losses to AI-driven automation. Revenue plummeted by about 70 percent, with most affected workers holding entry-level positions, underscoring the vulnerability of certain job roles to technological advances.
Broader Structural Challenges Identified
Industry leaders also pointed to wider issues that could hinder growth. Celeste Ilagan, chief operating officer of the IT and Business Process Association of the Philippines, noted that the sector's ambitious targets of 2.5 million employees and $59 billion in revenue by 2028 are at risk due to several factors. These include regulatory inconsistencies, rising operating costs, cybersecurity incidents, and a shortage of qualified talent. She highlighted specific problems such as varying ease of doing business at local government levels, differing employment requirements, and policies from the Department of Labor and Employment that impact workforce flexibility.
Urgent Calls for Action and Reform
In response to these challenges, Senator Aquino announced plans to convene relevant government agencies and stakeholders to accelerate upskilling and reskilling programs for workers in vulnerable subsectors. He stressed the critical need to address the country's education crisis, warning that declining proficiency and literacy rates could further weaken the talent pipeline essential for sustaining IT-BPM growth. Aquino underscored the urgency of reforms, stating in Filipino, "If we do not act, this industry could disappear," emphasizing the importance of protecting jobs and maintaining the Philippines' position as a leading IT-BPM destination.
