The Advent of AI

A new report by the International Monetary Fund (IMF) has painted a bleak picture of the future with the advent of artificial intelligence or AI, which refers to computer systems and models capable of performing tasks that usually require human intelligence.

- MARY ANN LL. REYES

According to the report, as much as 14 percent of the Filipino workforce could be replaced by AI as the technology continues to evolve.

It estimates that four out of 10 or 36 percent of jobs in the Philippines are highly exposed to AI. However, more than half of these highly exposed jobs fall under the highly complementary category meaning that AI could actually help workers perform tasks more efficiently rather than replace them altogether.

But the real concern lies in the remaining 14 percent which the IMF has classified as having low complementarity with AI.

One of the Philippines’ most vital industries, the business process outsourcing (BPO) sector, is among those having high exposure and low complementarity to AI, as advances in AI-powered chatbots and virtual assistants threaten to replace many customer service positions. Other roles that are at risk include sales and service jobs, many of which involve routine tasks that AI can perform efficiently.

Those with high exposure but high complementarity with AI include managers, professionals and technicians while those with high exposure but low complementarity include clerical support. Those with low exposure, meaning they are at less risk of being replaced by AI, are elementary occupations, skilled agriculture, craft and trades and machine operators.

The IMF also found that half of women’s jobs are highly exposed to AI, compared to only a quarter of men’s roles. It explained that it is due to the fact that more women are being employed as clerical support, service and sales workers, whereas men have a higher share in trades, agriculture, machine operations and elementary occupations, which are less likely to be impacted by AI at this stage.

The IMF said that to ensure that the gains from implementing AI are widely shared, authorities will need to invest in digital infrastructure and education and strengthen the social safety net.