The nascent Artificial Intelligence (AI) in recent years has caused transformative shifts in the world of work, altering the way tasks are performed and redefining job roles to keep up with the demands of the 21st century. The Philippines is poised to benefit from AI-driven solutions by gaining PHP 2.6 trillion annually by 2030.1 The adoption of AIpowered systems, tools, and applications increasingly used to take advantage of economic gains. However, its immediate impact in the Philippine context is still underresearched. Through a mixed-method approach, the research aimed to determine the preparedness and responses of IT-BPM, banking and finance, and manufacturing sectors on AI adoption. The study also delves into the immediate and perceived impact of AI among employers and employees to assess the impact of AI on key drivers, approaches, knowledge skills, and work experiences. The study finds that the increase in productivity, cost efficiency, and quality assurance are the key drivers for AI adoption. However, adoption rates among employers are conservative. Meanwhile, workforce complement to use AI systems and ensuring data privacy and cybersecurity were found to be immediate challenges across all industries. The findings also suggest that job displacement has occurred, albeit at a minimal scale, but has positively increased the demand for AI and AI-related emerging occupations. A combination of government and enterprise-based support mechanisms was provided to displaced employees. Further, AI has positively affected mental well-being and aspirations for career advancement, while few respondents reportedly experienced income increases. At the policy level, without national-level regulatory measures, enterprises are practicing self-regulation, covering emerging challenges on the use of AI in the workplace, such as ethical and responsible use, data privacy, and cybersecurity, among others. Preparing the workforce for an increased transition toward an AI economy necessitates a coherent and coordinated whole-of-the-government approach to maximize potential gains and minimize labor market disruptions. Existing policies aimed toward skills development must be fast-tracked and flexible to accommodate rapid technological advancements. Benchmarking on the industry’s best practices and foreign counterparts in facilitating workforce transitions may also be pursued to suit human resource development plans and national development goals. With AI’s increased use in the workplace, calls for government policy addressing ethical and responsible use, cybersecurity, data privacy, and skilling programs among stakeholders are increasing momentum to safeguard human resources in a digitalized future of work. The use of AI in the workplace must be human-centric and anchored toward nation-building initiatives to attain national development goals.
Keywords: Artificial Intelligence, Digitization, Fourth Industrial Revolution, Future of work
RESEARCHERS: Pineda, Chelsea Nicole P. | Cabangunay, Marvin G. | Son, Athena Mari E. | Francisco, Joe Mari S.