ARTIFICIAL intelligence (AI) is transforming the Philippines’ service-driven economy, but it also poses risks to employment, the International Monetary Fund (IMF) said in a report.
In the paper, 2024 Article IV Consultation and Staff Report on the Philippines, the IMF outlined how advancements in AI are increasingly capable of performing tasks traditionally handled by human workers.
This shift, while promising efficiency-wise, could alter the structure of employment across industries that form the backbone of the Philippine economy, the report said, noting that the business process outsourcing (BPO) industry is expected to feel the brunt of AI adoption.
“The BPO industry might experience shifts as AI-driven chatbots and virtual assistants handle more customer service tasks,” said the report.
However, AI’s impact will vary among sectors. Of the 36 percent of jobs in the Philippines deemed “highly exposed” to AI, more than half are considered “highly complementary.” In these roles, AI is expected to support workers by handling routine tasks, allowing employees to focus on more complex issues.
Nonetheless, the IMF enumerated the challenges tied to the increasing automation of low-complementarity jobs — positions that are more likely to be fully replaced by AI.
This trend is seen to affect approximately 14 percent of the workforce, which could lead to job displacement in certain sectors such as customer service and clerical roles.
Women are more likely to be affected, with about half of all jobs they hold being highly exposed to AI, compared to a quarter of jobs held by men.
“To ensure that the gains from implementing AI are widely shared, the authorities will need to invest in digital infrastructure and education, and strengthen the social safety net,” the IMF said, adding that private sector partnerships are also playing an important role in supporting training programs for workers, with a focus on reskilling and upskilling in emerging fields such as AI and digital technology.
“Joint efforts between the private sector and government agencies to modernize education curriculums, along with greater training for teachers at all levels and use of digitalization, will improve education outcomes,” the report said.
Be the first to comment