By means of Luisa Maria Jacinta C. Jocson, Reporter
Some sectors in the Filipino labor market, such as the Business Process Outsourcing (BPO) industry, can run the risk of being displaced by Artificial Intelligence (AI), said the International Monetary Fund (IMF).
“As AI systems become more capable and immediately available, they will probably replace many functions or change considerably, especially those with routine and repetitive tasks,” said it in a working document.
“The Philippines, with its large BPO sector, stand for unique challenges and opportunities. The BPO industry, an important contribution to the economy of the country, can experience shifts because AI-driven chatbots and virtual assistants treat more customer service tasks. “
The newspaper said that about a third of the jobs in the Philippines are greatly exposed to AI, which means that AI can perform many of the tasks in these professions.
The IMF discovered that 61% of the highly exposed jobs are also considered very complementary.
This means that AI technologies “probably support the employee instead of replacing, which may increase their productivity.”
“The rest (14% of the total workforce) has low complementarity jobs, making them susceptible to displacement by AI,” it added.
Jobs with high exposure to AI and high complementarity include general and operational managers, first-line supervisors, teachers and teaching assistants, lawyers, civil engineers and counselors.
In the meantime, these include jobs with high exposure, but low complementarity includes representatives of customer service, telemarketers, accountants, auditors, secretaries and administrative clerks.
Although it is good for only about 3% of the workforce, the IMF said that BPO employees are considered highly exposed to low complementarity.
The IMF noted that the BPO sector of the Philippines is an important growth motor for the country.
“The BPO industry, which mainly focuses on routine-oriented tasks and low-skilled roles such as answering phone calls and dealing with questions, can be an advertisementCompare by AI, “said it.
The IMF retained data showing that the share of the Philippines in the worldwide market for outsourcing is 15%.
“The important contribution of the BPO sector to the Economy Good for 7.4% of GDP in 2023, comparable in size with transferring that changes in this industry are macro-critical and possibly have flooding effects on the broader economy. “
Data from the international labor organization showed that 89% of the BPO staff has a high risk of automation.
“In the past, the threat of automation was included in low -skilled blue jobs,” said the IMF.
“However, the capacities of generative AI are now a threat to jobs in white borders, in particular for information technology and employees of Business Process Management (IT-BPM) as customer service agents, technical support and non-non-supportUniversity -trained employees. “
In the meantime, it also appeared that the most exposed employees of AI “college-skilled, young, urban, female and well-paid employees are in the service sector.”
“It will be crucial for young employees to have the skills with which they can use AI to increase their productivity for the Philippines to take advantage of the approaching demographic dividend,” it added.
The IMF said that AI pearliness will also influence the approval of these emerging technologies.
“Despite these efforts, challenges remain, including legal gaps, inadequate infrastructure, employee needs and limited AI acceptance due to cost problems … Tackling these issues is crucial for the Philippines to fully utilize the economic and social benefits of AI,” said The IMF.
In 2024 the Philippines are at 56one Of the 188 countries on the AI Readiness Index government.
When it was used correctly, the IMF said that AI can be used to “create new opportunities, to promote growth in technology -driven industries and to make a workforce with advanced digital skills necessary.”
The National Economic and Development Authority (Neda) said earlier that the economy could win P2.6 trillion annually if domestic companies adopt AI solutions.
The government must strategize how job displacement can be minimized and maximize the benefits such as increased productivity and job creation, the IMF said.
“Investments in education and training programs focused on AI and digital skills are essential to prepare the workforce for the future.”
“Moreover, the development of a regulation framework that ensures the ethical use of AI and tackling issues with regard to labor market transitions is necessary, based on lessons from global best practices,” it added.
Analysts said the government should be proactive in the AI transition.
University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said AI can be used to generate more jobs.
“AI will replace some forms of work, but it can also create other types of jobs. Upskilling is a way to tackle the effect of ‘creative destruction’ of AI, “he said.
“It is understandable that the government and companies try to find some niche in which there are lifted jobs that supplement and benefit from AI. For example, if you do not want to be replaced by AI, learn to program AI or train AI. “
Federation of Free Workers President Jose Sonny G. Matula said that AI training should be tailored to development objectives.
“AI must be developed to help realize agro-industrial development, to assemble and digitize farms for greater productivity and to contribute to national food security,” he said.
Mr Matula also expressed his concern about the growing skills and pay gap.
“Promote honest wages and fair distribution of AI productivity gain. This will happen if there are free, independent collective negotiations between employers and employees through their trade unions, “he said.
Mr Matula also called for the expansion of vocational training and lifelong learning programs aimed at AI-adjacent skills.
“Although it is unlikely that AI replaces all human jobs, their impact on staff must be carefully managed. The key is to ensure that AI serves as an aid to improve human work, not as a means to move employees without a profession, “he added.