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Philippine companies show more interest in AI use despite skill gap

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August 7, 2024
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Philippine companies show more interest in AI use despite skill gap
FREEPIK

THE PHILIPPINES shows promise in enabling industries with artificial intelligence (AI) amid a high level of curiosity about these technologies and despite the digital skills gap, experts said.

Erika Fille T. Legara, managing director and chief AI and data officer at the Department of Trade and Industry’s (DTI) Center for AI Research, said at a recent European Chamber of Commerce of the Philippines forum that the growing interest in AI among industries is encouraging.

“Through various digitization initiatives, we hope to empower businesses and consumers to fully leverage the benefits of a digitally ready and AI-ready future. These forces bring both opportunities and challenges, requiring innovative policies and strategies,” she said, reading the speech of DTI Undersecretary Rafaelita M. Aldaba.

This is despite challenges faced by firms on the adoption of new technologies. The Descartes Institute ranked the Philippines’ digital preparedness at 82nd out of 124 countries, with digital skills at zero, while Oxford Insight said the government’s AI readiness placed 65th out of 193 countries.

Meanwhile, Electronic Lab reported that the country ranked first globally in terms of AI interest measured by monthly search volumes per 100,000 people.

These reports and data help the government in identifying skills gaps for the development of strategic programs and initiatives.

“It’s also important from the perspective of education [and] government because it tells us, we’re lacking in this aspect, what we should do. It’s an indicator,” Ms. Legara said.

The DTI recently launched the National AI Strategy Roadmap 2.0, three years after the launch of the initial framework.

“This upgraded roadmap incorporates the latest technologies, particularly generative AI, recalibrates our strategic actions, and addresses emerging concerns such as ethics and governance of these AI systems,” she said.

Monchito B. Ibrahim, executive member of the National Innovation Council, said there is growing enthusiasm about and engagement with AI in the Philippines.

“The high levels of interest in using it indicate a potential growth that could overcome the current hurdles in digital readiness and human capital,” Mr. Ibrahim said at the same forum.

“AI’s potential to boost economic growth is undeniable,” he added. “But as AI automates tasks, repetitive jobs in manufacturing, data entry, and even transportation logistics, this raises concerns about unemployment and income inequality.”

He added that AI comes with risks, including biased algorithms and malicious actors using these technologies for cyberattacks or financial manipulation.

“It is therefore imperative that we invest in cybersecurity measures to safeguard our economy’s AI power defense,” Mr. Ibrahim said.

IMPACT ON JOBSMs. Legara said the rapid digitalization brought by the coronavirus pandemic has “revolutionized” job structures, introducing entirely new jobs and expanding skill sets among traditional roles.

Paul Vincent W. Añover, assistant secretary for Employment and Human Resources Cluster of the Department of Labor and Employment (DoLE), said as the digital economy expands amid advancements in AI, it opens doors to new jobs and roles in areas like digital marketing, data science, and other tech-driven fields.

He added that the agency is committed to preparing the workforce for both the challenges and opportunities presented by AI.

“However, concerns about job displacement are there. They are understandable, particularly in traditional sectors,” he said, adding continuous learning and skills acquisition are crucial.

He said there is growing demand for skills related to product design, development, and AI-specific competencies, making it imperative for our workforce to adapt.

DoLE is focused on generating job opportunities and providing the necessary support for skills development, including public-private partnerships, labor market information dissemination, and training programs, he added. — Aubrey Rose A. Inosante

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