Sen. Paolo ‘Bam’ Aquino warned that the Business Process Outsourcing sector might ‘reduce their workforce or set aside expansion plans’ in the Philippines.
Based on the information received by the office of Aquino, this is due to Artificial Intelligence and the effects of the Tax Reform for Acceleration and Inclusion Law.
According to Aquino, chairman of the Committee on Science and Technology, the hearing on March 12 will examine whether the government has a plan especially since there are thousands Filipinos working in the BPO sector.
Aquino explained that the TRAIN Law raised the cost of doing business in the Philippines which could possibly stop the entry of other BPOs.
Meanwhile, the Information Technology & Business Process Association of the Philippine foresees that the demand for low skilled jobs in the Information Technology BPO Industry will decrease by 2022 due to Artificial Intelligence.
About 43,000 workers are expected to be affected by the decline.