#MINDANAO
Among the many executive orders and announcements coming from the White House, what I have reacted to the most is the one about pushing the development of artificial intelligence (AI). President Trump spoke about Stargate, a $500 billion investment consortium seeking to accelerate American AI development.
The first question I and — I am sure — many of you will have is how the AI push will affect the jobs of hundreds of thousands in the Philippine Business Process Outsourcing sector. When combined with advanced robotics, computers, Internet of Things (IOT) devices, electric vehicles, and smartphones, will accelerating AI have a significant effect on certain jobs or just specified tasks within that job?
Meanwhile, the Vatican released a groundbreaking 30-page document called Antiqua Non on artificial intelligence that serves to inform many, including non-Catholics who may be grappling with the ethical dimensions of the use of such technologies. I would advise all of you to read it.
Nonetheless, I believe that the massive development of AI and other technologies would spur the manufacture of more machines that use such technologies. I would advise many of you to read up on how AI and related new technologies are also being developed in other parts of the world, such as Europe. AI will shape the world as we know it, and play a big part in raising the Beta generation, which I wrote about last Jan. 7.
What will this mean for us in the Philippines? I believe this may spur investment interest in our biggest value export, which is the heart of many of these machines, the semiconductors. What we must realize is that this is an industry value chain we have long participated in, with companies such as Texas Instruments in Baguio in the 1970s and other companies in areas surrounding Metro Manila.
We must also understand the value of the volume we do and can produce. A Dec. 15, 2024 MB article pointed out that this sector is our top exporter at $50 million, employing three million workers in 2023. By comparison, our Tourism sector employs about four to five million Filipinos, while we have about 2.4 million rice farmers.
Imagine how much more export income this sector will bring, and how many more fixed-income jobs will be created when more semiconductors are produced in the race to build more machines for the combined demand from the AI revolution, the building of electric vehicles, and all other supplementary manufacturing processes by their subcontractors for these items. Moreover, the demand for in-country travel and food for these workers can create more local opportunities for other sectors.
As more industrialized countries aim to gain a foothold or compete in AI and related technological development, the Philippines, with its technologically literate, still relatively young, English-oriented workforce and long experience in semiconductor manufacturing, will make a good partner to host more of these facilities.
The previous administration’s tax and economic reforms will play a big part in creating the investment policy climate to attract these investments. The key now is to get the right infrastructure in. Being part of a complex supply chain means efficient, affordable logistics is required to fit the semiconductors into the just-in-time manufacturing processes of customers abroad. Often, these are shipped by air. Airport delays, therefore, are not acceptable.
In the end, the proper and ethical harnessing of technology, and building on our strengths in manufacturing the tools for these new technologies will be needed to meet national development goals.