The Economic Impact of Generative AI: The Future of Work in the Philippines

The Economic Impact of Generative AI: The Future of Work in the Philippines

Artificial Intelligence (AI) has been a rapidly growing field in the Philippines and is predicted to make a significant contribution to the Philippines Economy by 2030. In January 2023, President Marcos signed the Philippines Development Plan for 2023-2028 which aims to “bring back the country to a high-growth trajectory and, more importantly, enable economic and social transformation for a prosperous, inclusive, and resilient society” and underscores AI as one of the key technologies that will be instrumental in achieving this.

Against this background, technology industry leaders have noted that AI is at an inflection point, with powerful new models like generative AI being introduced, and innovative new applications increasingly being used across society and capturing the imaginations of consumers. Generative AI has opened the door to more possibilities and is expected to play a role in tasks requiring creativity, curiosity, and looking at information differently. Therefore, the potential of generative AI lies in its ability to enable people to achieve greater creativity, effectiveness, and efficiency in their work.

This report seeks to contribute to this discussion by providing early insights and raising awareness of the economic opportunities that generative AI can create, and what it means for local industries and workforce readiness.

This study estimates that generative AI can potentially unlock USD79.3 billion of productive capacity in the Philippines, equivalent to one-fifth of GDP in 2022. The Philippines has an opportunity to better position its businesses and workers to unlock the potential of generative AI, as well as manage emerging risks. Policymakers will need to ensure that they have a clear national vision for AI, and that it focuses on preparing its workforce and establishing an enabling policy environment for AI adoption, including to answer the question “what is required to achieve the aspirations of a brighter future enabled by generative AI?”

Download The Economic Impact of Generative AI: The Future of Work in the Philippines.

This report was developed in partnership with the Analytics Association of the Philippines, and sponsored by Microsoft.

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