With a thriving information technology and business process management (IT-BPM) sector, the Philippines is attracting the attention of American artificial intelligence (AI) firms due to revenues generated and the existing large employment base, according to a Manila Bulletin news report citing the United States Commercial Service (USCS).
To put things in perspective, posted below is the excerpt from the Manila Bulletin report. Some parts in boldface…
The Philippines’ information technology and business process management (IT-BPM) sector has emerged as the most viable investment destination for American artificial intelligence (AI) firms, according to the United States Commercial Service (USCS).
USCS Manila commercial specialist Easter Villanueva said the IT-BPM sector is a promising market for US-based AI companies given the revenues it generates and its large employment base.
“Given the size of this sector, AI could play an important role in modernization, productivity, and movement toward higher value services,” she said in a webinar organized by the USCS last week.
The IT-BPM sector generated more than $40 billion in revenues last year, up five percent from $38 billion in 2024, based on data from the IT and Business Process Association of the Philippines (IBPAP).
IBPAP said the industry employed 1.9 million workers last year, four percent higher than the previous year’s 1.82 million employees.
This year, the IT-BPM industry is expected to generate $42 billion in revenues and create 1.97 million jobs.
As AI threatens to disrupt the industry, Villanueva said the sector is increasingly becoming more open to integrating AI into its operations, especially when it comes to voice-based services.
“I would think that they would be very much willing to explore [AI], since it is also important for workforce development,” said Villanueva.
“They want to also protect the jobs here in this market, [so] they would want to upskill their agents to be able to integrate their daily operations with AI,” she added.
Aside from the IT-BPM sector, other promising industries for American AI companies include digital transformation, financial services, telecommunications, healthcare, energy, infrastructure, and the public sector.
Villanueva said there are also opportunities in cybersecurity, data governance, and responsible AI, especially as companies become more conscious of data privacy and security.
Based on USCS estimates, AI adoption in the country remains limited, with only about 14.9 percent of companies currently using AI tools.
“This is not yet a mature AI market, and many buyers are still learning what AI can do, what it cannot do, how much it will cost, and how results can be measured. For US companies, this means that the opportunity is not only to sell, but also to educate, build trust, and demonstrate practical value,” said Villanueva.
For AI companies looking to enter the market, she said it is critical to make their use case clear by helping address a specific problem with measurable outcomes while offering cost-effective solutions.
She also recommended that firms work with local partners for market access and implementation support, embed data privacy and AI governance measures early, and adopt a consultative approach with buyers.
“Buyers can be price-sensitive, and companies may face competition from lower-cost providers…So the opportunity is real, but it will require patience, education, and a clear business case,” Villanueva said.
Let me end this piece by asking you readers: What is your reaction to this development? Do you think several AI firms in the United States will proceed to tap the IT-BPM sector of the Philippines soon? What kind of business developments do you think will happen once American AI firms start investing in the Philippines’ IT-BPM sector? Do you think political scandals or government-related blunders of the Philippines might discourage American AI companies from investing?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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