Regulators quiz banks amid climate-risk tussle

October 25, 2024 | 12:03 am

NEW YORK — Global banking regulators have asked lenders detailed questions about how they manage climate risks, three people familiar with the matter said, in the latest sign that authorities are trying to find broad consensus amid conflicting approaches to the topic.

In a survey that banks filled out over the summer and which has not been previously reported, the Basel Committee of 45 major supervisors asked banks around 60 questions, ranging from risk to operations across several departments, the sources said. The committee writes high-level rules, which act as a benchmark for countries to then adopt and implement.

The committee is expected to provide an update soon on a November 2023 proposal on climate risks, which sought to set a framework for requiring lenders to publish information such as accounts of their clients’ carbon footprints.

A warming climate and the policies governments use to respond could change ecosystems and consumer behavior, but disagreement persists over how that will manifest on different banks’ balance sheets, and what it would mean for financial stability.

Countries have taken vastly different views on climate risk management. European Central Bank (ECB) officials have said, for example, that banks should work with their counter-parties to make sure they meet “net zero” targets, while the US Federal Reserve sees pressure on it to expand its role related to climate change as a risk in itself.

“There is an undercurrent of divergence,” said Clifford Rossi, a former Citigroup consumer lending risk officer who is now a University of Maryland business professor. “For climate, there’s no real, accepted methodology or set of modelling tools yet to give us a level of comfort.”

Representatives for the Basel Committee, the Fed and the ECB declined to comment.

BASEL SURVEY
The optional survey referred to a list of principles the committee had published in 2022, the sources said, speaking on condition of anonymity as the committee’s work is confidential.

That list was intended to help guide banks and their regulators through how to obtain data from a vast array of clients and consider how risks would play out much further in the future than the two-to-three-year time horizon over which they plan how much capital to hold in case of a recession.

In the survey, banks were asked to describe how they are collecting data, and adapting information technology systems to process ballooning amounts of ever more complex information, the sources said.

They were also asked about their clients’ plans to adapt to future changes in environmental policy, how concentrated climate risk might be in their portfolios, and if they are using risk management tools like scenario analysis, the sources said.

The committee did not tell banks exactly how it will use the responses to the survey. Additional details about why exactly the committee had sent the survey were not immediately clear.

When regulators send this kind of questionnaire, “they want to see what the range of practices are, figure out who is leading, and then define a best practices standard for banks to adhere to,” said Greg Hopper, a senior fellow at trade association the Bank Policy Institute, which did not receive the survey. — Reuters

The global methane bomb is starting to detonate

October 25, 2024 | 12:03 am

FOR ALL THE DAMAGE that humanity is causing through our production of greenhouse gases, the numbers involved can seem impossibly slight.

Every year we release about 9.6 billion metric tons of carbon into the atmosphere as CO2, or carbon dioxide — but there’s about 58 trillion tons stored away in organic and fossil matter in the atmosphere, land, and oceans.

For decades, that has suggested an alarming prospect. By heating the planet, we risk changing the delicate conditions that ensure those trillions of tons stay locked up in soils, plants, and seawater. Tip the balance too far, and we might provide the catalyst for these immense natural reserves to start disgorging themselves, like a bottle of soda fizzing up when it’s opened. The result could be a “methane bomb” — a rapid and devastating release of greenhouse gases that could overwhelm our best efforts to hold back warming.

To date, there’s been hearteningly little evidence that such so-called climate feedbacks — where climate change triggers natural processes which then accelerate warming in a self-amplifying spiral — are occurring on a scale we should worry about.

The Intergovernmental Panel on Climate Change’s latest assessment in 2021 found warming and cooling feedback effects are essentially canceling each other out. As the temperature rises, more sea spray, dust, and other fine matter is lofted into the atmosphere, helping to reflect more of the sun’s warming rays back into space. A warmer planet also radiates more energy, thanks to a side effect of quantum mechanics.* That should be more than enough to counter the effects of any methane bombs.

That’s a highly tentative assumption, however, and there are worrying signs that the situation is changing.

Take the evidence presented by a team led by researchers at the University of Colorado, Boulder this week. They looked at the changing ratios of two isotopes of carbon in methane, a particularly potent greenhouse gas that’s responsible for about a quarter of the warming we’re seeing.

Methane, or CH4, can be released from leaking petroleum wells and coal mines, but it’s also generated by microbes in the guts of cows, the mud of rice paddies, and waste dumps, as well as through entirely natural processes in peat bogs and other wetlands. The ratio of the two isotopes in fossil-derived methane is measurably different to that from natural sources, so careful analysis of atmospheric gases captured at observatories such as Mauna Loa in Hawaii can tell us roughly where it’s coming from.

There’s no shortage of evidence that attempts to rein in fossil CH4 emissions are failing, but that’s not been the driver of increased emissions in recent years, according to the researchers. Atmospheric methane concentrations have grown at a record rate since 2020, and they found that processes in nature are to blame: “The post-2020 CH4 growth is almost entirely driven by increased microbial emissions.”

They weren’t able to say whether the microbes in question were living in farms and waste dumps for which humans are directly responsible, or in wetlands and other landscapes we have little control over. Still, other evidence points to the latter.

A study in 2022 noted that methane concentrations accelerated in 2020, despite the fact that most fossil fuels went through a once-in-a-generation decline due to the COVID-19 pandemic, while waste generation grew at normal rates. That points the finger at rainier weather (which will cause wetlands to spread over a greater area) and rising temperatures (which make the methane-producing microbes more productive). Another paper last year plugged recent weather observations into a model of how much CH4 swamps will produce. It estimated they were belching gas at rates consistent with some of the most hellish predictions for a warming climate.

Many of the scariest scenarios of these climate feedbacks relate to releases from exotic environments that few of us have ever seen: permafrost in the high Arctic or icy methane deposits buried deep below the ocean. But the evidence suggests that we should be paying quite as much attention to more quotidian wetland environments, from the Bengal’s Sundarban swamps to the Florida Everglades, Nigeria’s Niger Delta, and the UK’s Norfolk Broads.

For decades, we’ve depended on such natural environments to suck up the fossil carbon that we produce. There’s no reason they’ll continue doing that, though. Fires in the Amazon, combined with weaker carbon uptake from vegetation in the northern hemisphere, meant this so-called terrestrial carbon sink nearly ground to a halt last year. A hotter planet could be losing its ability to absorb our pollution.

Natural flows of carbon between soils, plants, oceans, and the atmosphere vastly exceed even the volumes generated by all the industry on Earth. With each passing year, however, our own relatively puny emissions are pushing these ancient cycles further out of balance. If they turn against us, the effects could be devastating. We have been dancing on the back of a sleeping monster. It may finally be stirring.

BLOOMBERG OPINION

*The discovery of this effect in 1900 by German physicist Max Planck was crucial in the development of quantum physics over the coming decades.

Harvey Weinstein has chronic myeloid leukemia, NBC reports

October 25, 2024 | 12:03 am

WALTDISNEY-LAWSUIT-MIRAMAX — HARVEY WEINSTEIN departs New York Criminal Court following another day of jury deliberations in his sexual assault trial in the Manhattan borough of New York City, New York, US, Feb. 21, 2020. — REUTERS

FORMER Hollywood producer Harvey Weinstein has chronic myeloid leukemia (CML), NBC News reported on Monday, citing sources.

Mr. Weinstein is currently undergoing treatment for CML, a type of bone marrow cancer, while in prison at Rikers Island in New York to face trial on rape charges, according to the NBC report.

Craig Rothfeld, Mr. Weinstein’s legal healthcare representative, declined comment when asked by Reuters on the status of his health, citing respect for Mr. Weinstein’s privacy. Mr. Weinstein, 72, has been beset with health problems, his lawyers had earlier said. He was rushed to the hospital from Rikers Island jail in September to undergo heart surgery.

Mr. Weinstein, who has denied having any non-consensual sexual encounters with anyone, was found guilty on rape charges in February 2020 in a case that provided impetus for the #MeToo movement. The New York Court of Appeals threw out the conviction in April, finding Mr. Weinstein did not get a fair trial because a judge improperly allowed testimony by accusers he was not formally charged with assaulting.

He is in prison awaiting a retrial.

Mr. Weinstein still faces two other criminal counts from an earlier indictment where he also pleaded not guilty, including another first-degree criminal sexual act charge and a third-degree rape charge. In September, he pleaded not guilty to an additional charge of sexual assault.

Mr. Weinstein suffers from diabetes, high blood pressure, spinal stenosis, fluid in his heart and lungs, his representatives have previously said. — Reuters

PHINMA to list stocks in rights offer on Nov. 27

October 25, 2024 | 12:03 am

PHINMA-Clubhouse-perspective — PHINMAPROPERTIES.COM

PHINMA Corp. has set Nov. 27 as the tentative listing date of its stocks rights offer worth as much as P1 billion recently approved by the regulator.

The Philippine Stock Exchange (PSE) approved the listing on Oct. 21 while the Securities and Exchange Commission (SEC) issued a notice on Oct. 16 confirming that the sale is exempt from registration requirements under the Securities Regulation Code, PHINMA said in a statement to the stock exchange on Thursday.

The offer’s final price will be set on Oct. 31, while the offer period is on Nov. 13 to 19, according to the company’s prospectus dated Oct. 17. The offer is made up of 51.49 million common shares priced at P19.42 to P21.55 apiece.

“This stock rights offer will fuel our growth, strengthen our balance sheet and empower us to make an even greater impact on Filipino families and communities,” PHINMA Chief Financial Officer Edmund Alan A. Qua Hiansen said in the statement.

The company will use the proceeds for PHINMA Solar’s green energy auction program and in building a P2-billion cement manufacturing plant in Davao del Norte.

The proceeds will also support PHINMA Properties’ projects in Bacolod, Cebu, Iloilo, and Davao as well as PHINMA Hospitality’s TRYP by Wyndham hotel at the recently launched Saludad township in Bacolod.

PHINMA will also use the proceeds of the stock sale for new ventures such as its insulated panel plant being built in Porac, Pampanga. It will also allocate part of the proceeds to other projects in socialized housing, food security, healthcare, green industry, and general corporate purposes.

AB Capital & Investment Corp. will serve as the issue manager, book runner and lead underwriter.

PHINMA stocks fell 3.38% or 70 centavos to close at P20 each. — Revin Mikhael D. Ochave

BSP, German gov’t banknotes printer to collaborate on currency production

October 25, 2024 | 12:02 am

THE BANGKO SENTRAL ng Pilipinas (BSP) will collaborate with a German government banknotes printer to improve currency production and share knowledge on payments management.

The central bank signed a memorandum of understanding (MoU) with Bundesdruckerei GmbH on Oct. 10, it said in a statement on Thursday.

“Under the MoU, BSP and Bundesdruckerei GmbH will collaborate on currency management and production; securities management and production; digital payments infrastructure; and research and development on digital payments and banknote substrate,” the BSP said.

BSP Governor Eli M. Remolona, Jr. said there is still a need for banknotes even as more people shift to the use of electronic payments.

“The BSP is proud to partner with Bundesdruckerei, a leader in providing modern currencies to the world, at a time when banknotes should be more secure, more durable, and even more sustainable,” he added.

The memorandum also covers technology exchange, staff exchange and training, information-sharing on legal aspects relevant to payments and currency management, and other areas to provide support, assistance, sharing of best practices and expertise, and capacity-building or technical assistance to each other, the central bank added.

“Effective for five years, the MoU highlighted the importance of cooperation in payments and currency management to enhance and strengthen the roles of government entities in the post-pandemic economic recovery and sustain the growth of both economies.” — L.M.J.C. Jocson

Knight Frank: Manila remains 3^rd cheapest for prime office rent in Q3

October 25, 2024 | 12:02 am

MANILA remained the third most affordable city for prime office rents in the Asia-Pacific region in the third quarter, according to real estate consultancy Knight Frank. Read the full story.

The challenging digital world of children: Ako Para Sa Bata 2024

October 25, 2024 | 12:02 am

“Children are vulnerable and if not guided properly, can fall prey to sexual offenders lurking in the web. It is our duty to equip and empower them,” said Katrina Legarda, Director of the National Network of Women and Children Protection Units (WCPUs).

“For children, there is no boundary between online and offline. It is up to us adults to be more understanding of this phenomenon and recognize that this is the world of children.

“Just like any world, there are challenges. I am really excited for you to learn from our speakers who will help us navigate this new world,” said Dr. Bernadette J. Madrid, Child Protection Network Executive Director.

“The recent decade has seen social media rapidly transform the world. The proliferation of platforms and increased accessibility, especially among children and young people, has revolutionized how individuals connect share and engage,” said Dr. Namnama Villarta-De Dios, Chair of the 16^th Ako Para Sa Bata (I am for the Child) Conference which highlights social media and the youth with the theme “Navigating Social Media Para sa Bata.”

The conference aims to:

1.) Recognize the impact of social media on children and adolescents;

2.) Discuss concepts, trends, and appropriate response related to risky online sexual behavior, online sexual abuse and exploitation of children; and,

3.) Explore ways to build online healthy media use habits and ensuring online safety among children and adolescents.

Conference Co-chair Dr. Soidemer Claire Grecia added, “While media connects young users like never before, offering unprecedented access to information and interaction, it also exposes them to serious risks, including online sexual abuse, exploitation, and harmful behavior.

“The rise of viral content amplifies these challenges, making it essential to address both the opportunities and dangers inherent in this digital landscape.

“In this digital world, children and youth face risks like sextortion. Some even engage in sexting because of peer pressure. It is very important for parents and guardians to know how to effectively communicate these situations to the children so they can avoid it.”

Sessions 5 and 6 of the conference will discuss sexting, sextortion, and the law on Online Sexual Abuse and Exploitation of Children.

“It is important to be aware of the legal provisions and one’s rights,” Ms. Legarda said, emphasizing that everyone should participate in the remaining Ako Para Sa Bata (APSB) sessions.

“We invite everyone to register at bit.ly/akoparasabata2024
and join us on Zoom, Facebook, or Kumu. We have prepared sessions for all, and everything is FREE,” she emphasized.

The APSB Conference started on Oct. 3 and runs until Nov. 21.

At the start, Professor Kara Constantino David, journalist and host, advised the audience, “Let’s pollute the internet with good things!” She said that we should fight false information “by putting the truth on the internet. We have a responsibility because we are all social media content creators.”

The APSB conference has grown to 10,000 registrants, with 2,500 live viewers during each online seminar.

Dr. Bernadette Madrid thanked UNICEF for its support in making the webinars available to all WCPU members and the APSB community by providing continuing knowledge to professionals caring and advocating for children. It is essential in improving care for vulnerable children and their families.

The remaining sessions are:

Session 5: Nov. 7, 10 to 11:30 a.m., #SendNoods, Unpacking Sexting and Sextortion

Session 6: Nov. 14, 10 to 11:30 a.m., #PeopleOf ThePhilippinesvsOSAEC, Putting Offenders Behind Bars

Session 7: Nov. 21, 9:30 a.m. to noon, #DigiChamps, From Clicks to Champions in the Digital Arena

Congratulations to the Child Protection Network Foundation and UNICEF as well as to the dedicated experts who are part of this year’s conference.

(For updates, please follow AKO PARA SA BATA Facebook Page @AkoParaSaBataConference)

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

DoLE urges employers to foster culture of ‘voluntary compliance’

October 25, 2024 | 12:02 am

THE Department of Labor and Employment (DoLE) said Thursday told employers to work towards a culture of voluntary compliance with labor standards, citing the ideal of zero worker complaints with regard to benefits they are due.

“(We hope for) them… to really have that culture of voluntary compliance on labor standards. The benefits that should be given to (workers) should be provided on time without any complaints,” Labor Secretary Bienvenido E. Laguesma told reporters on the sidelines of the Arangkada Forum in Pasay City.

He further urged employers to ensure inclusive social protections are extended to workers, especially vulnerable laborers.

“We’d like to see businesses continue to open up to their workers and have real joint problem-solving, consultation, and dialogue,” he added.

The labor chief, during his keynote speech in the Arangkada Forum, bared the efforts of the government to upskill and reskill workers to meet increasing demands.

DoLE, he said, is partnering with the private sector, including industry associations.

“Our interest is towards more quality, decent jobs, ensuring more for all, with the ultimate aim of increasing worker productivity, improving living standards, and skilling our workers so we can maintain the productivity and health of our labor force, and maintain the growth path of the economy,” he said.

The Philippine Chamber of Commerce and Industry (PCCI) on Wednesday at the 50^th Philippine Business Conference & Expo, urged the National Government to reform the education system and enhance workforce skills through upskilling and reskilling initiatives.

It added that consultations are necessary to ensure the alignment of education outcomes with labor market needs and benchmark the law against the qualification frameworks of members of the Association of Southeast Asian Nations.

Mr. Laguesma said DoLE is pursuing four strategies following the passage of the Trabaho Para sa Bayan Act: Strengthening the alignment of education and training programs, expanding employability, reducing the regulatory burden on micro, small, and medium enterprises, and ensuring compliance with labor standards.

He added that DoLE is concerned with ensuring social protections as the economy digitizes and becomes more automated.

He said DoLE’s upskilling and reskilling efforts include labor-management education initiatives, enterprise-level training, and comprehensive and full-cycle employment facilitation services through the Public Employment Services Offices.

Job skills mismatch continues to be a focus because 65% of graduates are not getting jobs in the industry of their choice, with 20% of workers with college degrees employed in jobs requiring only basic skills.

The school-to-work transition is also slow, Mr. Laguesma said.

In July, the Philippines posted its highest unemployment rate in a year with fresh graduates entering the workforce, with 2.38 million left jobless that month.

Mr. Laguesma said the Trabaho Para sa Bayan master plan will be submitted to President Ferdinand R. Marcos, Jr. in December. It is currently being circulated around the regions for consultation, he added. — Chloe Mari A. Hufana

Roblox to enact child-safety changes giving parents more control

October 25, 2024 | 12:02 am

Roblox Corp., the video-game platform popular with preteens, is instituting a number of reforms following widespread criticism of its child-safety policies and the arrests of alleged child abusers using the service.

Users under the age of 13 will need parental permission to access certain Roblox chat features, according to a copy of an e-mail the company sent to parents this week. Kids under nine will also need permission to play games with moderate violence or crude humor, according to the e-mail, which was reviewed by Bloomberg News.

The video-game company, based in San Mateo, California, is also introducing a new type of account that will let parents monitor their child’s online activity and friends.

A Roblox spokesperson declined to share more information about the changes, which the company plans to implement next month.

Roblox’s child-safety policies have come under scrutiny in recent months.

The moves “are part of Roblox’s commitment to making the platform one of the safest online environments for our users, particularly the youngest users,” the company said in an e-mailed statement.

The changes follow Roblox’s July announcement that it would label games based on the type of content they contain, rather than by age.

Roblox’s child-safety policies have come under scrutiny in recent months. Since 2018, US police have arrested at least two dozen people who were accused of abusing or abducting victims they met or groomed on Roblox, according to a July Bloomberg Businessweek investigation. Some of those predators were already on sex-offender registries or had been accused of abusing minors offline. Roughly 40% of Roblox’s 80 million daily active accounts are under age 13.

Unlike competitors, Roblox until recently let children of any age establish accounts and talk to strangers. Child-safety advocates have criticized the ease with which kids on Roblox can chat with people they don’t know — an issue the changes may address. As of September, Roblox no longer lets children under age five set up accounts.

Following the Businessweek investigation, short seller Hindenburg Research published a report saying Roblox doesn’t do enough to stop child predators from accessing the platform. The report also accused Roblox of inflating its user numbers and time played, although some industry observers questioned that claim. Days earlier, short seller the Bear Cave issued a similar report alleging Roblox facilitated “widespread child abuse.”

A Roblox spokesperson described the Hindenburg report as “misleading,” saying the authors “neglected to accurately report on the company’s public disclosures.”

“We firmly believe that Roblox is a safe and secure platform and in the financial metrics we report,” the spokesperson said at the time.

In an interview earlier this year, Roblox’s chief safety officer, Matt Kaufman, rejected the idea that Roblox has a systemic child safety problem and said the platform’s moderation systems scan all chat and digital content for inappropriate content. — Bloomberg

ACEN unit to invest up to $18 million in 70-MW Bangladesh solar project

October 25, 2024 | 12:02 am

ACEN Corp. said its unit plans to invest as much as $18 million (P1.04 billion) in the construction of a 70-megawatt (MW) solar project in Bangladesh.

ACEN Renewables International Pte. Ltd. is set to infuse capital in IBV ACEN Renewables Asia Pte. Ltd., its joint venture company with Singapore-based solar developer ib vogt (Singapore) Pte. Ltd., the company said in a stock exchange filing on Thursday.

“The infusion/investment will be used to acquire the relevant project holding company and funding for necessary capital expenditure,” ACEN said.

The investment is part of ACEN’s expected contribution of as much as $200-million equity investment to accelerate the deployment of renewable energy in Asia.

The joint venture will focus on shovel-ready projects in Bangladesh, Laos, Cambodia, Vietnam, Malaysia, and other countries in the Asia-Pacific region, with a minimum target operational capacity of 1,000 MW.

All regulatory approvals and conditions had been satisfied as of August 2023, making the shareholder’s agreement for the joint venture company effective.

Ib vogt Singapore is an affiliate of ib vogt GmbH, a German company that specializes in developing and delivering large-scale turn-key photovoltaic plants. The company has built or has projects under construction worth 4.3 gigawatts (GW), with a project pipeline of 55 GW.

ACEN, the listed energy platform of Ayala Corp., boasts a portfolio of about 4.8 GW of attributable renewable capacity in operation and under construction, as well as over one GW worth of signed agreements and competitive tenders it had won.

The company has presence in the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the US.

ACEN shares shed 3.2% to close at P4.84 each. — Sheldeen Joy Talavera

Practical applications of artificial intelligence

October 25, 2024 | 12:01 am

“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.

The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX.

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.

National Government fiscal performance

October 25, 2024 | 12:01 am

THE NATIONAL Government’s (NG) budget deficit widened to P273.3 billion in September, as revenues and expenditures posted double-digit growth, the Bureau of the Treasury (BTr) said on Thursday. Read the full story.