World Bank flags AI threat to Philippine jobs
The World Bank has raised a red flag over the future of employment in the Philippines, warning that 35% to 37% of jobs are at risk of displacement due to artificial intelligence.
Gonzalo Varela, Lead Economist and Program Leader for the World Bank Group's Prosperity Unit in Brunei, Malaysia, and the Philippines, revealed this estimate while noting the rapid integration of generative AI in the country’s operations, particularly in the information technology and business process management sector.
The IT and Business Process Association of the Philippines, or IBPAP, reported in December that 67% of its surveyed member companies are already deploying AI in tasks such as customer service, data entry, and quality assurance.
However, the shift is not without consequence – 8% of those firms admitted to having trimmed their workforce due to AI-related automation.
Despite the potential job losses, the Philippines appears to be eagerly experimenting with the new tech frontier.
A World Bank report in August highlighted the country’s ranking as fourth globally in ChatGPT traffic as of March 2024 – a signal of widespread AI interest and experimentation.
The Philippines, alongside Brazil, India, Indonesia, and Mexico, showed disproportionately high AI usage compared to its traditional digital maturity indicators.
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From blue-collar to white-collar: AI’s expanding reach
While automation’s impact on blue-collar jobs has long been recognised, white-collar work is no longer immune. According to Bilal Khan Muhammad, a social sector economist at the Asian Development Bank, AI tools are now capable of completing tasks once considered safe in the domain of professionals, from formatting documents to drafting presentations.
“We are seeing a lot of tasks now can be performed by the AI itself,” he said.
Varela, however, prefers to frame AI’s role as a “productivity shock” or a game-changer that, if properly managed, could lift performance and open new opportunities for Filipino workers. But that’s contingent on how prepared the country is to ride the wave of digital transformation.
Read: Which industries will be most affected by AI?
Government gears up with a 10-year plan
To future-proof its workforce, the Philippine government has unveiled the Trabaho Para sa Bayan Plan 2025–2034, a cross-departmental initiative led by the Departments of Economy, Planning, and Development (DEPDev), Trade and Industry, and Labor and Employment.
The plan seeks to chart a proactive path forward by developing a research agenda that will map AI’s impact on job creation, skill demands, and industry dynamics. It aims to identify which occupations are most vulnerable and ensure workers are not left out in the cold.
Labor Secretary Bienvenido E. Laguesma was candid in acknowledging the absence of a firm national policy on AI, but said that foundations are being laid.
“We believe that AI can supplement, can complement, but cannot replace,” he said.
A critical step forward is the formation of a dedicated AI think tank, recently approved by the National Innovation Council, chaired by President Ferdinand R. Marcos, Jr. The Department of Science and Technology will take the lead in drafting a roadmap to guide AI integration, focusing not only on innovation but also on ethical governance.
“Protection does not mean retention,” Laguesma clarified. “It could mean upgrading, looking for another job, facilitating their employment, and the provision of social safety nets. That’s where we are.” His statement underscores a subtle but significant shift: from job protection to workforce transformation.
Bridging the tech adoption gap
The Philippines, however, faces an uphill climb. DEPDev Undersecretary Rosemarie G. Edillon pointed out that the country’s relatively low exposure to AI is a by-product of its generally low level of technological adoption.
Beyond workforce skilling, Edillon stressed the need for a robust policy framework that considers the ethical dimensions of AI usage, particularly in data handling and model development.
In short, while the Philippines may be dipping its toes into AI, the bigger challenge lies in learning how to ride the wave of change. The nation stands at a crossroad: it can either be swept away by the currents of disruption or navigate towards a smarter, more resilient future of work.
Strategy, policy, and people development will need to move in lockstep if the country is to turn risk into reward.