Your Workplace's Next Step Towards AI Adoption

The Philippines is witnessing a significant surge in AI adoption, with a remarkable 46% of Filipino workers utilizing AI tools monthly, surpassing the global average of 39%, according to JobStreet by SEEK Decoding Global Talent Report 2024. This widespread adoption is particularly evident in sectors like digitalization and IT. While this presents exciting opportunities for increased productivity and innovation, concerns about job displacement, particularly within sectors like BPO, are also prevalent.


However, the narrative of AI as a job-stealer is a limited one. When leveraged effectively, AI can augment human capabilities, freeing employees from mundane tasks and allowing them to focus on higher-value activities that require creativity, critical thinking, and human connection. A 2023 study conducted by researchers at Stanford University and the Massachusetts Institute of Technology found that customer support agents who used generative AI assistants experienced a 14% increase in productivity on average, particularly benefiting less experienced agents by streamlining routine tasks and enabling them to focus on building stronger customer relationships.


A crucial starting point for successfully integrating AI is a holistic and joint acknowledgment from leadership across all levels. Leaders must understand that while AI brings disruption, if not strategically integrated, it also offers substantial potential for innovation, efficiency, and growth. By embracing this change rather than resisting it, organizations can begin to harness AI’s full capabilities. Following this mindset, there is a need to develop a well-rounded AI adaptation strategy, ensuring they are well-prepared for AI integration. This strategy should include an assessment of the organization’s readiness in areas such as technological infrastructure, data security, employee skillsets, and ethical guidelines for AI utilization. Cybersecurity measures, including cyber insurance, should be revisited and strengthened as part of any AI adoption strategy to mitigate potential risks. The Philippines has experienced a sharp rise in cyberattacks, with more than five billion attacks reported daily in the first quarter of 2024, marking a 28% increase compared to the previous quarter. While this presents a challenge, this is a call to improve security within an increasingly digital landscape.


A key component of a successful AI adaptation strategy is the implementation of upskilling programs. Leaders must prioritize the continuous development of employees’ skills, ensuring they are well-equipped to work alongside AI and thrive in this evolving landscape. Providing access to relevant training—from foundational AI knowledge to advanced applications—empowers employees to embrace new technologies and allows them to grow their roles in innovative ways. Upskilling is essential in mitigating the risk of job displacement and minimizing legal exposure. By offering employees the tools to adapt, businesses reduce the likelihood of lawsuits associated with layoffs or wrongful termination. For example, under Article 294 of the Philippine Labor Code, employees can only be dismissed for just or authorized causes. Moreover, Article 297 addresses constructive dismissal, where actions by the employer create intolerable working conditions, forcing the employee to resign. This makes it essential for companies to provide reskilling programs to avoid claims of unfair treatment or wrongful termination.


A case in 2017 from the tech industry highlights the importance of reskilling. A company based in the United States, after automating certain operations, laid off a significant portion of its workforce without providing sufficient retraining opportunities. This led to claims of age discrimination and wrongful termination, highlighting the importance of offering reskilling programs to protect employees and reduce legal risks. This case underscores the need for companies to proactively manage workforce transitions by providing retraining options, ensuring both employee well-being and legal compliance.

By investing in employee development through a culture of continuous learning, businesses can ensure their workforce is equipped with the changing technological landscape. Implementing AI with ethical considerations, alongside proper cybersecurity measures, is essential to mitigate risks and ensure responsible adoption. This comprehensive approach, which combines human enhancement through AI, employee growth, and strategic planning, positions your business to thrive in a rapidly evolving environment, ensuring long-term growth and innovation. For inquiries on cyber insurance and overall compliance in this shifting landscape, contact info.philippines@lockton.com for more details.