EDITORIAL - Are we ready for AI?

As early as 2017, some lawmakers have already expressed concern about the impact of the adoption of technology using artificial intelligence on the country’s workforce. Today AI is being used not only to run machines that clean floors but also to craft speeches, compose music and even produce virtual performers that can compete with real K-pop stars.

Such developments can render many skills obsolete. Experts have warned of massive job displacements around the world, but at the same time opportunities for new employment with upskilling and retooling.

Is the Philippines ready for AI?

The World Economic Forum, in a recent report, estimated that about 83 million jobs will be lost as a result of the adoption of AI-enabled technology across the globe. The shift will create new employment opportunities, but this is estimated at only 69 million by 2027, or a net loss of 14 million jobs – about two percent of current global employment. In record keeping and administrative work alone, the WEF projects 26 million in lost employment by 2027. Many countries are moving to confront the problem.

In the Philippines, a study released last September 2018 by tech giant Cisco and Oxford Economics projected millions of jobs disappearing by 2028. The study noted that the top areas of displacement are likely in low-skilled agricultural work with up to 1.2 million jobs lost, wholesale / retail with 880,000 and manufacturing with 380,000.

The country is a leader in business process outsourcing, but the BPO industry is one of the most likely to be heavily impacted by rapid advances in AI-enabled technology. Industry players, while acknowledging the potential job displacements, are also stressing their emphasis on upskilling and retooling of their workforces even as they adapt to rapidly evolving techology.

With proper adaptations to AI, the study by Cisco and Oxford Economics estimates that about 1.3 million new jobs can be created in wholesale / retail, 490,000 jobs in transportation and 460,000 in construction. Transitioning to an environment that will meet the skills requirements, however, will be a challenge in this country where even grade school reading comprehension is poor.

Crafting regulation governing AI technology can also be complicated for tech-challenged lawmakers, even with assistance from experts. Upskilling, retooling and lifelong learning for older workers will require close coordination among various sectors in both the government and private sector. The country has no choice but to be prepared for the future of the global economy.