IMF: AI may boost Philippine labor productivity

THE SHIFT to artificial intelligence (AI) technologies could increase labor productivity in the Philippine service sector, the International Monetary Fund (IMF) said.

“Because of the Philippine economy’s early structural transformation to a service-based economy, raising the level of service sector labor productivity through digital skills and portability will be essential,” IMF Resident Representative to the Philippines Ragnar Gudmundsson said in an e-mail.

“This will require upskilling of the labor force to leverage artificial intelligence tools and continue to move up value chains, as well as efforts to develop the country’s digital infrastructure especially outside urban centers,” he added.

Mr. Gudmundsson said the IMF is working on a study on how AI technologies could affect the Philippines.

Last week, the IMF said AI could affect nearly 40% of global employment. While it is seen to complement human work, it might replace other jobs and would likely worsen economic inequality.

It said about 60% of jobs in advanced economies are exposed to AI. About half of these jobs will benefit from AI integration by boosting labor productivity.

But the other half showed that AI could perform tasks done by humans, effectively lowering labor demand and leading to lower wages and reduced hiring, the IMF said.

In emerging markets and lowincome countries, AI exposure is expected at 4% and 26%, respectively.

“These findings suggest emerging market and developing economies face fewer immediate disruptions from AI,” IMF Managing Director Kristalina Georgieva earlier said.

“At the same time, many of these countries don’t have the infrastructure or skilled workforces to harness the benefits of AI, raising the risk that over time the technology could worsen inequality among nations,” she added. —