For AI to be truly beneficial to national development, people need to be educated about how it works, its limitations, and its potential for ideation and empowerment.
The Philippines' vision, as enshrined in the Constitution, is “an improved standard of living and a better quality of life for all.” However, this national goal has yet to be achieved. Concentration of wealth and power in the hands of a few has resulted in one of the lowest rates of poverty reduction and middle-class growth in the region.
For the Philippines to achieve its desired national development, it needs to achieve at least 10 percent annual economic growth for several consecutive years. This will be particularly challenging because the country is barely achieving 6 percent growth in 2023 and has low achievement rates in reading, math and science among young students.
Although the challenges we face are daunting, we have one important resource to draw on: our rich cultural and social values. Pakikipagapwataoor deep relational concern for others, is a core Filipino value that is reflected in business practices.
By investing in the growth and development of all employees, business leaders can create a more motivated and productive workforce. This investment includes continuous learning opportunities and career development programs that are essential to adapt to a rapidly changing job market. At the heart of the country's growth strategy is the inclusive creation of productive jobs and the export of high-value products and services.
To reduce inequalities and support inclusive growth, the World Bank is proposing policies that support employment, improve education, promote inclusive rural development, strengthen social protection mechanisms, and address inequalities of opportunity.
Companies can contribute by adopting a humane approach to management, as advocated by the Philippine Management Association through its Pledge for Shared Prosperity, which calls on companies to take care of their employees by being fair and inclusive in hiring, offering fair compensation, promoting on a merit-based basis, providing training and development opportunities, and ensuring work-life balance.
Businesses like Boulder and Pandayan Bookstore embody a fair compensation strategy by implementing a minimum wage system. A minimum wage is compensation that meets the needs of a decent life for a worker's family. A minimum wage is a poverty wage because it does not meet the human development needs of a worker.
The Ministry of Labor's two-tier wage system, consisting of a fixed wage and a productivity wage, can encourage productivity while ensuring an adequate standard of living for workers. Furthermore, the profit-sharing system can align the interests of employees and employers, fostering a sense of shared prosperity and commitment to the company's success.
However, all of the above will not create the growth trajectory our country desperately needs. Fortunately, the Fourth Industrial Revolution is upon us and Artificial Intelligence (AI) is rapidly developing in ways that, if properly leveraged, can help achieve our national development goals. AI has the potential to revolutionize the Philippine economy by increasing productivity and creating new markets.
But this must be done with a human-centric approach. We must resist the temptation to use AI to increase efficiency, which would lead to huge job losses, something our large population cannot afford. Instead, we can use AI effectively to improve education for our youth and upskill our workers to optimize productivity. Crucially, we must use AI to help create high-value jobs by improving work processes and stimulating innovation that creates markets.
Market-creating innovations address poverty by creating new markets for products and services to previously underserved or non-consumers. These innovations transform what were once luxuries into accessible and affordable necessities, thereby creating economic opportunity and improving the quality of life for those at the base of the economic pyramid.
We have seen how technology has delivered market-creating innovations and created value-creating job opportunities for many previously marginalized people in the economy: ride-hailing apps, mobile payment systems, delivery services, online marketplaces, online microfinance and online microinsurance are just a few examples.
Importantly, for AI to be truly beneficial for national development, people need to be educated about how it works, its limitations, and its potential for ideation and empowerment. AI tools need to be designed to increase material individual sustainability and enable human flourishing. AI tools need to be certified for safety and harm prevention, with a focus on avoiding issues such as addiction, misinformation, and polarization.
By prioritizing user well-being and autonomy, companies can ensure that AI contributes positively to society. The Philippine Analytics and AI Association’s Responsible AI Council is a pioneer in promoting professional practices for developing and deploying safe, quality AI in the country.
Achieving humane national development in the Philippines requires a multi-pronged approach that integrates positive Filipino cultural values, inclusive business practices, supportive policies, and cutting-edge technologies such as AI.
By fostering a culture of human-centered innovation, ensuring fair compensation, and investing in employee development, the Philippines can create a more equitable and prosperous society. Human-centered AI combined with market-creating innovation has the potential to transform the Philippine economy and improve the quality of life for all Filipinos.
Through collective effort and commitment to humanitarian values, nations can realise their vision of improved living standards and quality of life for all. Rappler
Dr. Benito Teehankee is a professor in the Department of Management and Organization Studies at the Ramon V. del Rosario College of Business. He chairs the Management Association of the Philippines (MAP) Committee on Shared Prosperity and the Analytics and AI Association of the Philippines (AAP) Council on Responsible AI. benito.teehankee@dlsu.edu.ph
