AI IMPACTS. Information Technology and Business Process Association of the Philippines (IBPAP) president Jack Madrid presents the industry report during the IT-Business Process Management Summit at Okada Manila in Parañaque City on Wednesday (Oct. 2, 2024). The IBPAP is optimistic to it the industry targets despite internal and external headwinds. (PNA photo by Kris M. Crismundo)
MANILA – The Information Technology and Business Process Association of the Philippines (IBPAP) reported on Wednesday that 8 percent of its surveyed members reported a headcount reduction due to artificial intelligence (AI), but said it is optimistic that the number will not rise in the coming years.
At the 16th IT-Business Process Management (BPM) Summit in Parañaque Wednesday, IBPAP president Jack Madrid said there are more companies that reported headcount gains, or 13 percent of IBPAP members accounting for over 800,000 full-time employment (FTE) in the industry.
Madrid told reporters on the sidelines of the event that the 8 percent that reported a reduction only comprised five companies out of the 60 surveyed firms.
The IBPAP chief said he expects that the number of companies that lose jobs to AI will not increase if ITBPM firms will continue to retrain and upskill their talent pool.
“So what should be done? Skills, skills, skills. That's it. That's all we should worry about. We should take personal responsibility to upskill ourselves,” he said.
In his presentation during the summit, Madrid identified talent and skills gap as the areas that presented the biggest challenges to the local ITBPM sector.
“The demand for more advanced digital skills, such as data analytics, programming, machine learning, and equally importantly, soft skills such as critical thinking and problem solving, and even domain-specific skills like accounting, healthcare, and banking, these are outpacing the current capabilities of our present workforce. This is not really new to us, but what is new is the need for the sheer urgency to address this more than ever before,” he said.
“The talent gap is indeed a critical threat to our industry."
Madrid said the industry group is working closely with the Department of Education, Commission on Higher Education, and Technical Education and Skills Development Authority to address the skills gap in the ITBPM sector amid the fast paced technology.
Moreover, Madrid said 67 percent of ITBPM companies in the country reported that they are implementing AI in their operations as it helps boost employee productivity and improves operational efficiency, as well as service quality and customer satisfaction.
On the other hand, firms said they are challenged in rolling out AI in their operations due to the cost of implementation, integration with the existing system, and data privacy.
Other key challenges that the local ITBPM sector is facing include increasing global competition, high operational cost, ease of doing business, and cybersecurity risks.
Meanwhile, Madrid said the IBPAP is optimistic to hit 2024 targets of 1.82 million FTE and USD38 billion in revenues. (PNA)
