Academe Must Adapt to AI or Face Decline, IT Leader Warns

By Joseph Bernard A. Marzan

A leader in the country’s information technology-business process management (IT-BPM) sector has urged Iloilo’s academic institutions to adapt to artificial intelligence (AI) advancements or risk further declines in the sector’s already low recruitment rate.

Jessraf Palmares, president of the Iloilo Federation for Information Technology (IFIT) and the National ICT Confederation of the Philippines (NICP), said the region’s workforce and academic programs are not yet prepared for the shift to AI-driven industries.

He stressed that the challenge lies not with companies but with the availability of skilled manpower, despite industry trends pointing to AI and data analytics.

“[AI] requires a higher skill level, but our workforce and academic programs have not kept up. We are producing graduates who are not ready to adapt to AI, even if companies are willing to train them,” Palmares told Daily Guardian.

“In Iloilo, we don’t have basic courses on AI. We have many universities, yet we haven’t seen any offerings focused on fundamental AI knowledge,” he added.

INDUSTRY AT RISK

Palmares warned that the sector could face “dislocation” due to the rise of AI-powered technology, which could further reduce the current hiring rate of 10%.

“The industry has long said—even before AI—that the quality of graduates we produce does not meet industry requirements. Only one out of 10 job applicants qualify. How much more now that AI is here?” he said.

“If the skills requirement continues to rise and the academe sticks to traditional teaching methods, it will be even harder for our graduates to enter the industry,” he added.

He revealed that the IT sector had already developed a skills framework, but the Commission on Higher Education (CHED) and the Department of Education (DepEd) have yet to take action.

“The downside is that the academe’s adaptation is painfully slow. If we don’t act, the 10% hiring rate could drop to 5% or even 2%. If businesses can’t find skilled workers, they will simply invest in making AI more efficient,” he said.

“Our human resources will be left with only low-level, manual jobs, while AI and machine learning take over analytical and high-paying positions,” he added.

SLOW ACADEMIC PROGRESS

Despite concerns, Palmares acknowledged that some local institutions are making progress in integrating AI into their curricula.

Iloilo Science and Technology University (ISAT-U), where he serves as private sector regent, is converting its Information and Communications Technology department into a full-fledged college of data analytics and informatics, which will include AI-related subjects.

Meanwhile, West Visayas State University (WVSU) has already introduced some courses on AI and data analytics.

However, he said the overall response from the academe remains slow.

He noted that the IT-BPM industry in Iloilo has been discussing AI’s impact since 2022, but even industry leaders did not anticipate how quickly it would advance.

“Major players had business continuity plans and strategies in place. They invested in AI software and integrated AI into their existing processes. They are now looking for partners to further enhance their AI capabilities,” he said.

“The technology is advancing at an unprecedented pace. The industry did not expect it to be this fast. While some companies struggled to keep up, early adopters had already prepared for this shift,” he added.

IMPACT ON BPO SECTOR

Palmares admitted that the business process outsourcing (BPO) sector, particularly customer service roles, will be significantly affected by AI.

He cited the cost-saving benefits of AI as a major factor driving companies to automate customer support.

“The BPO industry will definitely take a hit. Voice-based customer support can now be handled by AI,” he said.

“We’ve interacted with companies offering AI-driven customer service that sounds almost human. Unlike human employees, AI doesn’t require 13th-month pay, sick leave, or maternity leave,” he added.

He noted that while this shift will improve company efficiency and reduce costs, it will also displace many workers.

The IT-BPM sector includes BPO, creatives, software development, AI, data analytics, healthcare, and finance, among others.

As of 2024, Iloilo City had 118 IT-BPM firms employing 47,200 full-time workers, with 188,800 indirect jobs generated, according to city government data.