ITBPM sector to harness Generative AI for competitiveness
The Information Technology and Business Process Association of the Philippines (IBPAP) expressed its commitment to “harness” the power of Generative Artificial Intelligence (GenAI) in maintaining competitiveness such as in the labor force of the business process outsourcing (BPO) industry amidst AI-driven challenges.
“IBPAP is dedicated to responsibly harnessing the power that AI holds. This dedication is reflected in the organization's commitment to collaboration, investment in training, promotion of innovation, and advocacy for supportive policies,” IBPAP President Jack Madrid said.
“Through these efforts, IBPAP aims to maintain the competitiveness of the Philippines in the Business Process Outsourcing (BPO) industry and its labor force amidst the challenges and opportunities presented by an AI-driven world,” he added.
As outlined in the Philippine IT-BPM Roadmap 2028, IBPAP aims to create 1.1 million new jobs by 2028. To achieve this goal, Madrid stressed that IBPAP is actively working towards developing talent strategies for companies to thrive in an AI-driven environment.
Madrid highlighted that the information technology and business process management (IT-BPM) industry is acknowledging both the potential opportunities and challenges that are being presented by GenAI.
He emphasized the significant influence of GenAI on jobs, highlighting its potential to enhance productivity, customer experiences, cost reduction, and revenue growth across various sectors.
Seeing its “transformative impact on customer service”, he cited the Massachusetts Institute of Technology’s (MIT) studies, which predicted an astounding increase in customer service productivity of 50 percent or more with the widespread usage of GenAI.
He also cited a McKinsey survey that showed 80 percent of tech sector respondents are familiar with GenAI, with 40 percent planning to increase their investments over the next two to three years after seeing improvement in productivity, cost optimization, and enhanced business continuity with GenAI utilization.
Similarly, MIT Sloan's study reported the transformative potential of GenAI, showing a 14-percent productivity boost for call center agents using conversational AI assistants, particularly for newer or less-skilled workers.
A LinkedIn survey also showed that over half of Filipinos are integrating AI into daily tasks, demonstrating rapid adoption of GenAI and optimism about its potential for rural job creation.
Meanwhile, Madrid stated that the IT-BPM industry is addressing GenAI's disruption through its AI Council, which collaborates with learning academies and industry associations to enhance the skills of the industry workforce through various upskilling and reskilling programs.
These programs, focusing on data analysis, machine learning, animation, cybersecurity, and AI ethics, are in collaboration with private and public sectors including Cirrolytix; LinkedIn; StackTrek; Analytics and Artificial Intelligence Association of the Philippines (AAP); the Department of Information and Communication Technology (DICT); Technical Education and Skills Development Authority (TESDA); Commission on Higher Education (CHED); and Department of Education (DepEd).
This private and public partnership aims to ensure “that individuals within the industry are well-equipped for lifelong learning, adeptly navigating and meeting the evolving demands of their professional landscape,” according to the IBPAP president.
“As the Philippines strides toward sustainable growth and global leadership, leveraging the transformative power of GenAI emerges as a pivotal strategy for continuous growth. By synergizing human potential with AI advancement, the Philippine IT-BPM industry is not merely adapting to change but leading it,” Madrid said.
“Through leading a strategic and proactive pathway into the future, the industry envisions a landscape where GenAI propels the Philippines further to unprecedented heights of excellence, reinforcing our position as a global leader in the IT-BPM sector,” he added.