MANILA, Philippines — The country’s information technology-business process management (IT-BPM) sector is working on the strategic integration of generative artificial intelligence (GenAI), banking on its potential to boost productivity, according to an industry group.
“The Philippine IT-BPM industry is embarking on an exciting journey of innovation, leveraging GenAI to revolutionize customer experiences and usher in a new era of productivity and efficiency. At the forefront of this technological evolution, the sector anticipates a transformative impact on customer service, supported by studies of MIT, projecting a remarkable 50 percent or more boost in productivity through full-scale GenAI implementation,” IT and Business Process Association of the Philippines (IBPAP) president and CEO Jack Madrid said.
Madrid cited recent findings from a McKinsey survey underscoring the growing importance of GenAI in business, with approximately 80 percent of the respondents, particularly in the tech sector, expressing familiarity with the technology.
He said that 40 percent of these businesses plan to increase their GenAI investments over the next two to three years, foreseeing benefits such as improved productivity, cost optimization and enhanced business continuity.
“The Philippine IT-BPM industry acknowledges the challenge and opportunity presented by GenAI. A study by MIT Sloan attests to the transformative potential of GenAI, revealing a 14 percent boost in productivity for contact center agents using conversational AI assistants, with a significant impact on newer or less-skilled workers,” Madrid said.
He explained that the impact of GenAI on jobs has been a widely discussed topic, with companies and various sectors exploring its potential to improve productivity, customer experiences, cost reduction and revenue growth.
“In this context, IBPAP is dedicated to responsibly harnessing the power that AI holds. This dedication is reflected in the organization’s commitment to collaboration, investment in training, promotion of innovation, and advocacy for supportive policies. Through these efforts, IBPAP aims to maintain the competitiveness of the Philippines in the business process outsourcing (BPO) industry and its labor force amid the challenges and opportunities presented by an AI-driven world,” Madrid said.
The IBPAP official said the BPM industry acknowledges the significant disruption that GenAI may bring, noting that the sector is actively addressing the challenges and opportunities posed by GenAI through the establishment of an AI Council.
He explained that the AI Council’s primary objective is to collaborate with learning academies and industry associations such as the Analytics and Artificial Intelligence Association of the Philippines.
“Together, they aim to enhance the workforce’s skills in programming, data science, data analytics and AI ethics, with the overarching goal to empower professionals with advanced capabilities, enabling them to take on higher-value tasks. This initiative reflects IBPAP’s commitment to continue driving the industry ahead in an AI-driven economy,” Madrid said.
Recognizing the imperative of evolving talent needs, IBPAP said the industry is implementing upskilling and reskilling programs through strategic partnerships with Cirrolytix, LinkedIn, StackTrek, and Analytics & Artificial Intelligence Association of the Philippines.
The industry is also collaborating with government agencies such the Department of Information and Communications Technology, Technical Education and Skills Development Authority, Commission on Higher Education and Department of Education.
It added that these programs aim to hone skills in data analysis, machine learning, animation and cybersecurity, alongside fostering a robust understanding of AI ethics and governance.
With the public and private sectors dynamically collaborating to actively create and implement talent programs and career roadmaps, the group said this ensures that people within the industry are well-equipped for lifelong learning, adeptly navigating and meeting the evolving demands of their professional landscape.