Cebu City's interest in AI-related investments worries BPO group

Local

AS artificial intelligence (AI) moves closer to becoming part of everyday business operations, a labor group warned that the technology could leave some workers behind if companies use it mainly to replace jobs.

The BPO Industry Employees Network (BIEN)-Cebu raised concerns over Cebu City Mayor Nestor Archival’s support for exploring AI-related investments, including the possibility of hosting a hub similar to the proposed Pax Silica project.

They said AI adoption in the business process outsourcing (BPO) industry is already affecting employment.

BIEN-Cebu president Kyle Enero said the issue is not the technology itself but how companies deploy it, particularly when automation reduces the need for human workers.

"Artificial intelligence itself is not the problem. The problem is how it is being used. Today, AI is increasingly being utilized by the IT-BPM industry to automate work and reduce jobs," he said.

"As foreign clients integrate AI into their operations, many customer service functions—the lower end of the global outsourcing supply chain—are being eliminated, leaving workers to bear the consequences," Enero added.

The group issued the statement after Archival said Cebu City is open to attracting AI-driven industries as part of efforts to prepare the city’s workforce for future technology investments.

The mayor said the city has partnered with the Department of Science and Technology (DOST) for smart technology and AI initiatives.

He added that Cebu City has started AI training programs for residents, including around 30 returning overseas Filipino workers from Dubai who received financial assistance and completed training through a Technical Education and Skills Development Authority (TESDA)-accredited institution.

City employees have also been encouraged to join AI seminars and government-supported digital skills programs, Archival said.

Archival’s remarks followed the Board of Investments (BOI) roadshow in Cebu, where officials presented the 2026-2028 Strategic Investment Priority Plan that identified artificial intelligence, semiconductors, electronics, and advanced research as priority investment areas.

BIEN-Cebu said AI-related projects should avoid replicating a development model that leaves workers vulnerable to decisions made by foreign companies.

The group warned against creating employment conditions similar to export processing zones, where jobs could be affected when investors move operations to areas with lower labor costs.

The labor group also raised concerns over the potential impact of large-scale AI infrastructure on electricity and water demand, noting that Cebu City continues to deal with challenges involving utility reliability and increasing costs.

"Sige na lang gani og brownout ug kakulang sa tubig, unya magduso pa gyud ta og AI hubs nga mas dako pa ang konsumo sa kuryente ug tubig? Dili ba mas angay unahon ang panginahanglan sa katawhan?" Enero said.

Pax Silica is a proposed 1,620-hectare AI and advanced manufacturing hub in New Clark City, Tarlac.

The national government estimates the project could attract between 70 billion in investments and generate 130,000 to 190,000 direct jobs.

However, the project has drawn criticism from environmental groups, scientists, lawmakers, and advocacy organizations over concerns about the resources needed to operate large-scale AI data centers.

Critics have questioned whether proposed water sources can meet the project’s requirements without affecting nearby rivers, dams, and communities, particularly during drought periods.

They have also raised concerns over the project’s electricity demand and the possibility of increased emissions if additional fossil fuel-based power generation is used.

Some groups have challenged employment projections, arguing that while construction may create thousands of jobs, large data center facilities typically require fewer permanent workers once operations begin.(MyTVCebu)