The rise of artificial intelligence (AI) is poised to reshape the Philippine labor market, with nearly four out of 10 jobs highly exposed to AI, according to a recent report by the International Monetary Fund (IMF). The Washington-based institution, in its country report published on Dec 20, highlighted both the potential for AI to displace workers and the opportunity to enhance productivity. The IMF estimates that 36% of jobs in the Philippines are “highly exposed” to AI.
While this technology may replace certain human roles, it also holds the potential to complement workers’ tasks. However, the risks are significant. The IMF warned that approximately 14% of the Philippine workforce is at risk of being replaced by AI, with the business process outsourcing (BPO) sector particularly vulnerable to disruption. Roles in technical support, sales, and clerical work face the highest exposure to automation, with many of these jobs at risk of being fully replaced by AI, given the low potential for AI to simply support these roles. Conversely, opportunities exist for AI to augment tasks for professionals, managers, and machine operators, while workers in craft and trade, agriculture, and elementary occupations are less likely to be impacted by technology. The report also noted gender disparities in AI exposure. Nearly half of women’s jobs are highly exposed to AI, compared to just a quarter of men’s jobs. This difference is largely due to the higher number of women employed in clerical support, service, and sales, while men are more likely to work in fields like trades, agriculture, and machine operations, which are less vulnerable to automation. The IMF’s findings come amid growing optimism about the Philippines’ vibrant IT and BPO sectors