AI will affect 14% of PH workforce – IMF report

Artificial intelligence (AI) is transforming the Philippines’ service-based economy but 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 explained how advances in AI are increasingly capable of performing tasks traditionally performed by human workers.

While this shift promises efficiency, it could alter the employment structure across all sectors that form the backbone of the Philippine economy, the report said. The business process outsourcing (BPO) industry is expected to feel the brunt of AI adoption.

“The BPO industry could see changes as AI-driven chatbots and virtual assistants take on more customer service tasks,” the report said.

However, the impact of AI will vary depending on the sector. Of the 36 percent of jobs in the Philippines that are considered “highly exposed to AI,” more than half are considered “highly complementary.” In these roles, AI is expected to help employees complete routine tasks and allow them to focus on more complex issues.

Still, the IMF listed the challenges associated with increasing automation of low-complementarity jobs – positions that are more likely to be completely replaced by AI.

This trend is estimated to affect approximately 14 percent of the workforce, which could lead to job relocations in certain sectors such as customer service and office workers.

Women are more commonly affected, with about half of all jobs they hold heavily exposed to AI, compared to a quarter of jobs held by men.

“To ensure that the benefits of implementing AI are widespread, authorities must invest in digital infrastructure and education and strengthen the social safety net,” the IMF said, adding that partnerships with the private sector in support are also important Workforce training programs with a focus on reskilling and upskilling in emerging areas such as AI and digital technology play a role.

“Joint efforts by the private sector and government agencies to modernize curricula, as well as better training of teachers at all levels and the use of digitalization, will improve educational outcomes,” the report said.