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A recent Microsoft survey proves the country’s active participation in the artificial intelligence (AI) revolution. According to the study, 86% of Filipino knowledge workers leverage AI in their workplace—a figure that’s above both the worldwide average of 75% and the regional average of 83%.
In a short amount of time, AI has emerged as a powerful catalyst for change, impacting industries, our work, and our lifestyle.
The status of AI in the PH
The country’s high adoption rate of AI is encouraging, with major businesses incorporating the technology into their systems. While the telecommunications and banking industries previously pioneered AI incorporation, other sectors like manufacturing and retail are following suit.
Because of AI’s rapid rise, House Bill 7396, or the “Artificial Intelligence Development and Regulation Act of the Philippines,” has been submitted to Congress. It calls for the creation of the Artificial Intelligence Development Authority (AIDA). The organization will supervise the advancement and implementation of AI technologies while monitoring their compliance with guidelines and ethical principles. This aims to safeguard the rights of everyone impacted by AI.
Pros of leveraging AI
Forward-thinking business leaders recognize the value of AI adoption to maintain their competitive edge. Forecasts suggest that the AI market could expand by trillions of dollars by 2030, highlighting AI’s immense potential on global economies via these benefits:
- Increased operational efficiency
As more businesses harness AI to reach their goals, the role of their digital infrastructure becomes critical. Establishing a versatile and robust network can support AI and other new tech tools. Through AI technologies, organizations can save time and money by streamlining processes, automating routine tasks, and providing data-driven insights, leading to smoother operations and improved resource allocation.
- Boosted productivity
Digitally-skilled employees who are AI power users can boost productivity by leveraging technology regularly, reducing daily workloads by 30 minutes. In the Philippines, 86% of these users start their day with AI and use it for planning, contributing to enhanced output and international competitiveness. Investing in digital skills training could add P809 billion annually to the country’s GDP by 2030.
- Achieving sustainability goals
AI can play an important role in obtaining workplace sustainability. Businesses can optimize power consumption and enhance energy efficiency through predictive analytics and automation. Through resource efficiency, waste management, and supply chain optimization, this proactive approach not only minimizes environmental impact but also lowers operational expenses. There’s no better time than now to use this strategy as the Philippine government focuses on climate change mitigation by updating its guidelines for sustainability reports submitted by publicly listed companies.
- Economic growth
The Philippine Development Plan 2023-2028 outlines its plans to allow the country to move from a lower-middle income to an upper-middle income economy. At the core of this transformation is the digital market’s crucial role. This study reports that technology offers significant opportunities for the country’s financial stability, forecasting $2.8 trillion in economic benefits for businesses by 2030 through the integration of AI-driven solutions and products.
Downsides of AI
While AI provides excellent benefits, it also has these advantages:
- Enhanced cyber risks
As technology advances, cyber threats also become more sophisticated. Innovation can create new opportunities for attackers to exploit vulnerabilities or weaknesses in the AI systems or the data they generate. While interconnected software and hardware can streamline operations, these also allow cybercriminals to attack multiple companies with just one successful breach. This is important in the Philippines, which has the highest incidence of cyberattacks in Southeast Asia.
- Potential skill gaps
AI can generate new jobs, but a digitally challenged workforce may struggle to adapt and fully participate in the changing economy. The Microsoft report indicates that 70% of Filipino leaders prefer hiring individuals with AI skills, a trend also observed among 66% of global leaders and 70% of regional leaders. Moreover, 68% of Filipino executives are more likely to hire a less experienced candidate with AI skills than a more seasoned applicant.
- Significant upfront costs
AI implementation often requires updating or building new infrastructure to support this technology’s computational and storage needs. Businesses may need to invest in high-performing computing resources, specialized hardware, and cloud services. Moreover, AI systems depend on huge volumes of high-quality data for training. Acquiring and preparing this data and tweaking AI algorithms may eat into resources.
- Ethical concerns
Job displacement has been a pressing concern in the light of automation, which AI is part of. This is the reason for filing an earlier house bill, the “Protection of Labor Against AI Automation Act.” Another potential issue is the possibility of inadvertently feeding biased data to AI, which may result in unfair or discriminatory outcomes.
Bottomline
How can we best leverage AI? Companies must keep pace with local and international guidelines as regulations continue to develop. By establishing internal protocols that protect data privacy and promote responsible AI use, we can maximize its benefits for Filipinos and the whole country.