Generative AI and jobs in the Philippines: Labour market exposure and policy implications

Key points:

• Adoption of artificial intelligence (AI) is accelerating in the Philippines, particularly in the information technology–business process management (IT-BPM) sector. However, uptake overall remains uneven due to a number of structural barriers.
• Based on a global index of occupation-based exposure, more than one-quarter of employment (or 12.7 million) is exposed to generative artificial intelligence (GenAI) in the Philippines. This exposure rate is the highest among the ASEAN countries with recent and comparable data.
• However, exposure does not equate necessarily to full job replacement but rather the automation of tasks within occupations. Only 3.6 per cent of jobs fall into the highest GenAI exposure category with the elevated risk of job displacement. Rather than outright automation, the most significant impact of GenAI on the Philippine labour market is likely to be the transformation of jobs, potential gains in productivity and enhanced employment quality.
• GenAI vulnerability is not gender neutral. Women face double the rate of GenAI exposure compared to men, reflecting their greater concentration in high-exposure occupations. Women with an advanced education face
  particularly high potential of GenAI disruption.
• Geographically, the exposure to GenAI varies widely. In the National Capital Region, around two in five jobs are exposed to GenAI, reflecting the high concentration of IT-BPM and other professional services such as finance
  and administration. Likewise, GenAI exposure exceeds 30 per cent in both Region III (Central Luzon) and Region IV-A (Calabarzon).
• Overall, the GenAI exposure for youth is slightly lower than the rate for adults. However, young people are more likely to fill occupations at greater risk of GenAIinduced displacement, including service and sales and clerical support workers. Notably, the potential impact of GenAI disruption is greater for young women than for young men.
• Through social dialogue, targeted regional and sectoral policies are needed to effectively navigate the labour market transformations spurred by GenAI. Tripartite efforts should prioritize measures that ensure the
  benefits of GenAI are inclusive, prepare workers and especially youth for evolving occupational profiles, and enhance protections for those vulnerable to labour market adjustments.