AI and tech adoption seen as both opportunity and threat

By Justine Irish D. Tabile, Reporter

THE ADOPTION of artificial intelligence (AI) and related technologies among businesses presents both a threat and an opportunity for employees and executives, an official of the local unit of KPMG International said.

“I think it depends on the perspective. If you are talking to executives and business owners, most of them will see this as an opportunity because they see the value of AI and how it can potentially transform their business and save on costs by automating a lot of processes and transforming their products to be more AI-enabled,” Jallain Marcel S. Manrique, head of technology consulting at KPMG R.G. Manabat & Co., said in an interview

However, although they can make processes cost-effective, new technologies like AI are still seen as a threat by both business owners and employees,  Mr. Manrique said.

“Some of these business executives also see it as a threat because the mentality is that if you don’t know a solution that much, you are going to focus more on what you hear, and most of these things that they hear are data security issues. But I think the net effect is still that most businesses see it as an opportunity,” he said.

For employees, Mr. Manrique said ] there is a fear that AI and other new technologies will lead to job displacement, especially in sectors such as the business process outsourcing (BPO) industry.

“In the point of view of employees, the workers, they certainly consider it a threat, especially the BPO sector, which will certainly be affected by AI and all of these technologies,” he said.

“Employees are starting to recognize the need to upskill — otherwise they could be replaced by AI and other technology,” he added.

Mr. Manrique said although the country as a whole is not as aggressive in adopting new technologies compared to other countries, the telecommunications, financial technology (fintech) and banking sectors are ahead in terms of exploring and tapping these.

“I think these are the sectors that have advanced in terms of not just replicating what other companies are doing, but more at the forefront in introducing and exploring new technology to be able to transform,” he said.

“A lot of the executives are still exploring and trying to educate themselves on what generative AI is and what AI can do and I think it is a phase,” he added. “Afterwards, they will plan to determine its application in their business because what they have been hearing right now is that it is disruptive, meaning it can essentially disrupt their business and how they do things normally.”