TL;DR:
- Senator Imee Marcos has called for a Senate inquiry into the impacts of AI on BPO and OEM workers.
- Marcos warns that AI is developing at an unprecedented pace, posing a severe threat to jobs and employment growth.
- The BPO industry grew by 10% to $29.5 billion during the Covid-19 pandemic.
- At least 1.1 million jobs in the Philippines will disappear by 2028 due to AI and automated machines, according to a study by Oxford Economics and Cisco.
- Marcos emphasizes the need for upskilling and training in specialized services that AI cannot easily replace.
- Marcos urges every company to include upskilling and training in their CSR.
- Congress must make the necessary amendments to the Intellectual Property Code, Revised Penal Code, and Cybercrime Prevention Act, according to Marcos.
Main AI News:
Senator Imee Marcos, Chairperson of the Senate Committee on Social Justice, Welfare and Rural Development, has called for a Senate inquiry into the effects of artificial intelligence (AI) on Business Process Outsourcing (BPO) and Original Equipment Manufacturing (OEM) workers. She warned that AI is developing at an unprecedented pace, posing a severe threat to the jobs of these workers and the employment growth of the country.
At the height of the Covid-19 pandemic in 2020 to 2021, the BPO industry grew by 10 percent to US$29.5 billion. However, Marcos cited a study conducted by Oxford Economics and US-based digital technology company Cisco, revealing that at least 1.1 million jobs in the Philippines will disappear by 2028 due to the adoption of AI and automated machines.
Marcos emphasized the urgent need for upskilling and training of workers in specialized services that AI cannot easily replace. She also stressed the importance of educating lawmakers about global developments in AI technology and formulating regulatory measures to prevent severe unemployment.
“Will call center agents and factory workers soon be treated as dispensable after propping up our economy during a global health crisis?” Marcos questioned. She also underscored the need for the legislative and executive branches of the government to address the “inevitable technological tsunami.”
As the adoption of AI and automated machines is projected to increase in the next three years by 50 percent to 100 percent, Marcos urged every company to include upskilling and training in their corporate social responsibility (CSR).
Furthermore, Congress must make the necessary amendments to the Intellectual Property Code, Revised Penal Code, and Cybercrime Prevention Act, according to Marcos. The call for a Senate inquiry is a critical step toward addressing the impacts of AI on the BPO and OEM industries and the workers who depend on them.
Conlcusion:
The increasing adoption of AI and automated machines poses a significant threat to the BPO and OEM industries in the Philippines, which have been significant contributors to the country’s economic growth. The displacement of workers due to AI can potentially result in severe unemployment, which could have adverse effects on the market.
However, the emphasis on upskilling and training in specialized services that AI cannot easily replace presents an opportunity for companies to invest in their CSR and their workforce, ensuring their long-term viability in the market. The need for regulatory measures and amendments to existing laws underscores the importance of anticipating and addressing the impacts of technological advancements on the market.
