As the country observes National ICT Month this June 2026, the Institute for Labor Studies is highlighting how Artificial Intelligence (AI) is transforming the Philippine labor market by reshaping jobs, creating new opportunities, and driving demand for new skills across industries.

A 2024 ILS study titled “Impact of Artificial Intelligence (AI) on the Labor Market” provides insights into this ongoing digital shift. Focusing on highly employable sectors such as information technology and business process management (IT-BPM), banking, and manufacturing, the study examines how local businesses and workers are adopting and integrating AI into their daily work.

Results show that 51 percent of surveyed employers have already integrated AI tools into their operations, primarily through office productivity software, which helps improve worker productivity and eases work-related stress. At the same time, surveyed employers reported a 31 percent increase in demand for AI and machine learning specialists, reflecting the growing need for digital expertise across industries.

Workers are also preparing for this shift. According to the study, 64 percent of surveyed employees expressed interest in acquiring AI-related skills to improve their employability and expand their career opportunities.

Despite these gains, the study also identifies several challenges in AI integration. Employers cited difficulty finding AI-ready workers, concerns over data privacy, and the time required for employees to learn and adapt to new AI tools. While most surveyed employers provide training on new AI tools, the study notes that many of these initiatives remain limited, because most AI applications adopted by firms are built into existing office productivity tools.

To address these challenges, the study recommends closer collaboration among government, industry, and academe. It emphasizes the need for the Department of Labor and Employment (DOLE) to strengthen employment facilitation by linking graduates of government-funded upskilling and reskilling programs with emerging AI-related job opportunities.

The study likewise proposes establishing a national-level oversight mechanism to manage AI policies, monitor workforce transitions, and generate data-driven insights to guide future labor market interventions. It also highlighted the importance of strengthening industry-academe partnerships, internships, and workplace-based learning programs  to equip Filipino workforce with the skills needed in an increasingly AI-driven economy.

The full research paper is available on the ILS website at https://ils.dole.gov.ph/2024-research-papers/impact-of-artificial-intelligence-ai-on-the-labor-market 

For more information, visit the official ILS website at https://ils.dole.gov.ph 

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