Flor G. Tarriela l October 25, 2024 l Business World
“AI Practical Applications and the Philippine Development Goals” was the topic discussed at the recent FINEX Annual Conference held at the Aboitiz Tech Space, at the Asian Institute of Management (AIM). The guest speaker was AIM professor Dr. Christopher Monterola, executive managing director of ACCeSs and head of the Aboitiz School of Innovation, Technology and Entrepreneurship. He is also a member of the Philippine Development Plan Advisory Committee. The panelists were Sycip Salazar partner Atty. Rose Dominguez and Hungry Workhorse CEO Rey Lugtu.
The Philippine Development Plan 2023-2028 aims to reinvigorate job creation, accelerate poverty reduction and uplift our nation. Can artificial intelligence (AI) technologies be used to meet these goals? How can AI improve access to quality education? What role does it play in modernizing agriculture? How can it transform healthcare be efficient and inclusive?
The conference was impressive as Dr. Chris answered all these and more. He also discussed trends and the technologies with the greatest impact on disruption in 2019-2023: artificial intelligence was at 70%, cloud computing at 10% and blockchain was at 6%. According to Goldman Sachs, generative AI could substitute up to one quarter of current work in the US and Europe by 2030. Potential job loss due to AI is estimated to be at 85 million by 2030, with new jobs expected to be created at 97 million.
His demonstration of the practical applications of AI for process improvements was interesting. On fraud detection and risk mitigation, he provided actual cases such as the improvement of the current validation process at the Bangko Sentral ng Pilipinas. He also cited statistics showing 500 accounts with 2,000 items per account processed at 40 person hours per account, resulting in 20,000 person hours per month, which were reduced to just 11 minutes with AI. Can this efficiency be extended to job applications, loan applications? The answer is yes!
He then showed a case on automation and value assessment. A project done in collaboration with Unistar Credit and Finance Corp, and the Department of Science and Technology on repossessed motorcycles reduced the assessment time from one hour to less than five minutes. This can also be expanded to the assessment of vehicles, computers, and jewelry, among others, he said.
He added that people movement and wealth, emerging affluent cities, demographics, and climate change impact can also be predicted by AI in the next 20 years. “Cities are on the front lines of shaping the world that is prosperous, sustainable and inclusive,” he said. He cited Baguio as a case study for smart cities. Mayor Benjamin Magalong now has data available real time and knows when utilities and public services reach stress levels before they happen. Amazing!
Meanwhile, Atty. Rose reminded us of the risks and legal and ethical issues of the use of AI. Meaningful ideas and insights were also shared during the open forum. Does AI pose any risks for the business process outsourcing industry that employs 1.3 million Filipinos? What segments of a new AI-enabled service economy can the Philippines play in? Repetitive and routine tasks like customer support, data entry, and basic transcription services are at risk as AI-powered chatbots, voice recognition software, and machine learning algorithms can efficiently handle these tasks, potentially reducing the need for human agents. However, Rey Lugtu said the Philippines can leverage its strengths by moving into higher-value AI-enabled services. These include managing AI systems (like AI trainers, data annotators), providing specialized services like data analysis, and enhancing customer service, which requires empathy, cultural understanding, and problem-solving skills — all things that AI cannot easily replicate. We can also capitalize on AI-driven sectors like healthcare analytics, financial technology solutions, and digital content moderation, where human oversight is essential for ethical and effective implementation.
How can businesses not be vulnerable to replacement by emerging AI trends? Rey suggested focusing on value propositions that emphasize uniquely human qualities like creativity, emotional intelligence, and ethical decision-making. AI can enhance efficiency, but it cannot replicate human intuition, relationship-building, and nuanced understanding of complex situations. Additionally, businesses must stay agile and continuously evolve by integrating AI to enhance, rather than replace, their current value. Continuous innovation and investment in employee training to upskill in areas where AI complements their roles will also help businesses stay ahead of emerging trends.
AI is here to stay with its many benefits, including productivity, efficiency, 24/7 availability, and its practical applications.
The conference, which was sponsored by the FINEX Professional Development Committee co-chaired by Mai Bisnar and Paolo Azurin, with Ethics Committee Chair Wilma Miranda, was inspiring, productive and thought-provoking.
*** Flor G. Tarriela is PNB board advisor, independent director of LTG and Nickel Asia. She was formerly Chairman of PNB, the first Filipina vice-president of Citibank N.A, and former undersecretary of Finance. An environmentalist, she founded Flor’s Garden in Antipolo. The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX. Photo from Pinterest.