Artificial intelligence is unlikely to simply eliminate jobs in the Philippines, but it will reshape how millions of workers perform them, according to Khalid Hassan, Director of the International Labour Organization (ILO) Country Office for the Philippines.
Hassan said the country’s ability to turn AI and the clean-energy transition into opportunities for decent work will depend on how effectively it invests in skills, strengthens institutions and brings government, businesses and workers together.
The issue was also discussed at the 2026 Future of Work Forum organised by the European Chamber of Commerce of the Philippines, where concerns over AI’s impact on employment featured prominently.
AI more likely to transform jobs than eliminate them
Hassan pointed to the ILO’s 2025 global assessment, which found that one in four workers globally is in an occupation with some exposure to generative AI. However, only 3.3% of global employment falls into the highest exposure category.
This suggests that AI is more likely to transform jobs than eliminate them altogether.
While AI can increasingly perform routine tasks, skills such as judgement, accountability, communication and building trust remain difficult to automate. For employers, the challenge will therefore be to use AI to augment workers rather than simply replace them.
The Philippines faces significant exposure to these changes. ILO research estimates that 12.7 million jobs, or more than one-quarter of total employment, have some potential exposure to generative AI.
Women could face greater disruption because they are more heavily represented in clerical, administrative and service occupations that are more exposed to AI-driven changes.
However, Hassan stressed that exposure should not automatically be interpreted as job losses.
For Philippine businesses, AI could create an opportunity to move away from repetitive, transaction-based work towards higher-value services. Rather than competing primarily on lower labour costs, the country will increasingly need to compete through the skills, expertise and trusted services of Filipino workers.
Young workers need clearer pathways into emerging jobs
The transition could be particularly important for young Filipinos entering the labour market. According to the ILO’s Global Employment Trends for Youth 2026, 6.1% of jobs held by people aged 15 to 29 are in occupations highly exposed to AI-related change. Many of these are middle-skilled positions that traditionally provide young people with an entry point into employment.
At the same time, demand is growing in areas including science, engineering, healthcare and information technology.
Hassan argued that young people therefore need clearer pathways connecting education and training with occupations where demand is expanding.
This will require more than classroom-based learning. Apprenticeships, employment services and stronger links between training institutions and employers will be needed to help young workers transition into new roles.
Clean energy could create 161,000 jobs
AI is not the only major transformation reshaping the Philippine labour market. The country’s shift towards cleaner energy could also create significant employment opportunities.
The World Bank’s 2026 Philippines Economic Update estimates that a fully implemented, least-cost power transition could generate about 161,000 jobs by 2030 compared with a more constrained pathway.
But Hassan warned that investment alone will not guarantee that these jobs go to Filipino workers. Employers need people with the right skills, while workers need accessible routes into emerging occupations. Government, meanwhile, must establish appropriate standards, responsive training systems and measures to support workers through periods of transition.
“Skills policy is economic policy, and youth policy,” Hassan argued, highlighting the need to treat workforce development as a central part of the country’s economic strategy.
Stronger coordination needed
One of the Philippines’ biggest challenges is not a shortage of talent but a lack of sustained coordination between the organisations responsible for developing and employing that talent.
Businesses, government agencies, training institutions and workers’ organisations can often operate separately. As a result, training programmes may not keep pace with investment plans, while employers struggle to find workers with the skills they need.
The Philippines’ roadmap under the United Nations Global Accelerator on Jobs and Social Protection for Just Transitions aims to address this challenge by bringing stakeholders together around decent jobs and stronger social protection.
Hassan also highlighted the proposed Better Energy Alliance as a potential model for the clean-energy sector.
The proposed alliance would bring together companies, business organisations, government agencies, training institutions and workers’ organisations to identify emerging occupations, update training standards, develop apprenticeships and recognised certification, improve workplace safety and address barriers to investment and job creation.
The initiative would be led by the private sector, supported by government and shaped through social dialogue, with the ILO contributing technical expertise and international experience.
For Hassan, however, the alliance should go beyond another short-term training programme. It should create a lasting connection between clean-energy investment, the national skills system and decent employment.
The future of Filipino jobs, he said, is already being shaped. Whether AI and the clean-energy transition deepen inequality or generate better jobs and broader prosperity will ultimately depend on the choices made today and the ability of stakeholders to work together.