The accelerated adoption of artificial intelligence (AI) has replaced jobs in 8% of Information Technology and Business Process Association of the Philippines (IBPAP) companies. However, the trend is still reversible through upskilling.
Speaking at the 16th IT-Business Process Management (BPM) Summit, IBPAP president Jack Madrid said that 8% of its surveyed members reported a headcount reduction due to AI.
“So what should be done? Skills, skills, skills. That’s it. That’s all we should worry about. We should take personal responsibility to upskill ourselves,” he said.
However, Madrid noted that more companies reported headcount gains, with 13% of IBPAP members accounting for over 800,000 full-time employment (FTE) in the industry.
The IBPAP chief said he expects that the number of companies that lose jobs to AI will remain the same if IT-BPM firms continue to retrain and upskill their talent pool.
In his presentation during the summit, Madrid identified talent and skills gaps as the areas that presented the most significant challenges to the local IT-BPM sector.
“The demand for more advanced digital skills, such as data analytics, programming, machine learning, and equally importantly, soft skills such as critical thinking and problem-solving, and even domain-specific skills like accounting, healthcare, and banking—these are outpacing the current capabilities of our present workforce. This is not new to us, but what is new is the need for the sheer urgency to address this more than ever before,” he said.
“The talent gap is indeed a critical threat to our industry.”
AI Threat to Job Security
Independent studies have pointed to a direct correlation between AI and job security.
A CNBC SurveyMonkey Workforce survey showed that 60% of employees who use AI regularly expressed concern about its impact on their jobs. A majority—72% of respondents who use the technology—recognize that automation significantly increases productivity.
A separate study by Goldman Sachs predicted that 300 million jobs could be lost or diminished by this fast-growing technology. The investment bank predicts that AI’s growth will mirror the trajectory of past computer and tech products.
Closing the Gap
Madrid said the industry group is working closely with the Department of Education, Commission on Higher Education, and Technical Education and Skills Development Authority to address the skills gap in the IT-BPM sector amid the fast-paced technology.
Moreover, Madrid said 67% of IT-BPM companies in the country reported that they are implementing AI in their operations, as it helps boost employee productivity and improves operational efficiency, service quality, and customer satisfaction.
On the other hand, firms reported challenges in rolling out AI in their operations due to the cost of implementation, integration with the existing system, and data privacy.
Other key challenges facing the local IT-BPM sector include increasing global competition, high operational costs, ease of doing business, and cybersecurity risks.
Meanwhile, Madrid said the IBPAP is optimistic about hitting its 2024 targets of 1.82 million FTEs and $38 billion in revenues.
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