How do AI Works?

● Artificial Intelligence (AI) refers to the skill to which a mechanical system can
perform tasks similar to what a human can do.
● AI works because of various methods, but machine learning is
● Predictive analytics is a core function of enterprise AI. The foundational purpose
of enterprise AI applications is to serve as “prediction engines,” providing
insights to drive actions that improve business operations and performance.

Intersections of AI in Economy
● AI is transforming economic trend analysis by processing vast real-time data
from diverse sources, offering insights beyond traditional methods.
● Machine learning algorithms enable AI to learn from past economic data,
providing predictive capabilities crucial in dynamic economic environments.
● AI's impartiality enhances the objectivity of economic trend analysis by
minimizing human biases and subjective judgments.
● Concerns arise regarding potential job displacement as AI takes over tasks
traditionally performed by economists and analysts.
● Ethical considerations include the possibility of biases in AI algorithms
perpetuating inequalities or discriminating against certain groups.
● Responsible and transparent development and deployment of AI are essential to
address ethical concerns and ensure societal benefits from AI-powered economic
trend analysis.

Generative AI in Philippines by
● The Analytics Association of the Philippines (AAP) is the Philippines’ National
Industry Board for Analytics and Artificial Intelligence formed to take the lead in
driving the growth and evolution of this sector in the country. AAP’s mission is to
build a healthy and vibrant Philippines ecosystem through the forging of
relations of trust with the government, academic and learning institutions, the
private sector, and individual practitioners utilizing analytics and artificial
intelligence for the good of society
● In summary, generative AI is like a creative mind that can produce something
entirely new, while other types of AI, often referred to as discriminative AI, are
more about recognizing and making decisions based on what they've seen before.
Generative AI is about creating, while other AI types are about understanding
and classifying.
● AI is experiencing rapid growth in the Philippines and is anticipated to
significantly contribute to the country's economy by 2030.
● The Philippines Development Plan for 2023-2028, signed by President Marcos in
January 2023, highlights AI as a key technology for achieving high-growth and
fostering economic and social transformation.
● AI, particularly generative AI, is identified as an essential technology at an
inflection point, with new models and applications emerging.
● Generative AI implementation in the Philippines could unlock USD
79.3 billion in productive capacity.
● Manufacturing and Wholesale and Retail Trade sectors are expected to
contribute more than half (54%) of the potential gains.
● Workers in Wholesale and Retail Trade and Agriculture sectors, representing a
significant portion of the local workforce, have the potential for transformative
experiences with the adoption of generative AI.
● Generative AI will change the focus within jobs, rather than replace them entirely
– and there is potential for most workers to use generative AI to some degree in
their work.
● While only a small share (1%) of the Philippines workforce would see generative
AI used in more than 20%
● of their work, more than half (56%) of workers in the Philippines will potentially
use generative AI for between 5-20% of their regular work activities.
● Generative AI is expected to shift the focus within jobs, rather than completely
replacing them.
● Most workers have the potential to use generative AI to some extent in their
work.More than half (56%) of workers could potentially use generative AI for
5-20% of their regular work activities.
● Widespread adoption of generative AI necessitates a coordinated effort involving
government, industry, academia, civil society, and the broader community.
● Increasing access and adoption: Ensuring the development of the necessary
AI-ready
● infrastructure with fit-for-purpose, enabling digital policies and regulations. This
includes supporting the AI-transition for businesses and having the right
workforce readiness policies.
● Mitigating risks: Recognizing that there are risks and this requires a coordinated
effort particularly on guiding responsible and ethical use of AI and establishing
the necessary organizational checks and balances when using AI.
● The World Economic Forum (WEF) offers a concise definition of generative AI.
● Public fascination with generative AI has been driven by consumer-based
examples rather than its technological sophistication.
● The analysis of the Future of Work is centered on the application of generative AI
to specific work tasks.
● Generative AI is expected to have broad-based effects, similar to the widespread
impact of the internet, as opposed to the more narrowly applied automation
technologies.
● Although consumer-based use cases have garnered attention, there is an
anticipation that generative AI will increasingly find relevance in business
settings.
● Businesses are likely to identify various work activities where generative AI can
enhance productivity, leading to a rise in adoption rates.
● Examples of enterprise use cases include Panasonic's large-scale deployment of
generative AI for tasks such as document drafting to improve productivity.
● Generative AI contributes to the creative process by reducing time and cost in
generating new ideas and producing outputs.
● While human innovation remains crucial, generative AI supports the creative
process, especially in occupations within the Arts, Design, Entertainment, Sports,
and Media sector.
● Deloitte's experiment with generative AI for coding showed a 20% improvement
in code development speed for relevant projects.
● Generative AI is widely used in content creation across knowledge and creative
industries, offering outputs in various formats (text, images, video, audio,
computer code, synthetic data).
● Workers, including those in creative roles, are optimistic about generative AI's
ability to enhance creativity, with 3 in 4 people believing it helps formulate ideas
for their work.
● Leveraging generative AI models in content creation facilitates the production of
higher quality content by learning from large input data and drawing from
diverse information sources.
● Generative AI can be used to produce synthetic data for self-driving car
companies, aiding in better preparation for real-world situations.
● The technology enables drafting new content and producing content in new
forms, allowing content creators to generate diverse and engaging content, as
seen in Coca-Cola's use of generative AI for personalized ad copy at scale.
● Generative AI contributes to workplace efficiency by aiding tasks involving the
parsing of large data sets and information sources.
● It enhances the usability of data and information, making them more
interpretable and valuable for decision-making.
● The applications of generative AI extend across all industries, with particularly
significant potential for those dealing with large data sets and complex tasks.
● Industries such as financial services, professional services, scientific research,
and information and communication technology (ICT) are highlighted as areas
where generative AI can have a more substantial impact.
 ● The technology is valuable for handling and extracting insights from extensive
data, improving overall workflow and decision support in various professional
fields.

On unemployment

● Generative AI will transform labor usage in production, impacting the workforce

across all industries.
● Implementation of generative AI is more likely to shift the focus within certain
jobs rather than completely replace them.
● Work activities such as team management and customer interactions will
continue to be largely person-to-person.
● The extent of generative AI use will vary based on the nature of work for specific
occupations, with nearly every worker having some potential for adoption.
● Short-term adoption rates by businesses will vary, but it is estimated that 56% of
the workforce could incorporate generative AI in 5-20% of their work activities.
● A small percentage (1%) of the workforce in the Philippines is expected to see
generative AI used for more than 20% of their work.
● The widespread demand for AI skills will be more pronounced among the portion
of the workforce expected to use generative AI more extensively in their work,
which has implications for policymakers and industry.
● High AI training costs have historically hindered widespread adoption, with 48%
of companies citing technology costs as a barrier to implementing AI-driven
solutions (Forrester Consulting Report, 2017). but…
● Recent developments indicate a rapid decline in AI training costs, especially in
language models like GPT-3, according to ARK Invest Big Ideas 2023 report.
● AI training costs have improved 50 times faster than Moore's Law, and the
expense associated with running AI inference systems has drastically reduced for
various use cases.
● AI has achieved remarkable milestones, leading to the perception that it is
outpacing traditional predictions based on Moore's Law.
● Moore's Law, which is like a rule that says every couple of years, computers
become about twice as powerful. So, if your computer is twice as fast this year, it
should be four times faster in a couple of years, and so on.
● It's like AI is getting better at learning much quicker than regular computers are
getting faster.
● So, the cost of training AI has improved 50 times more than how fast regular
computers are getting better. This means it's becoming much cheaper and easier
to teach computers to do really smart things, like understanding our language,
recognizing faces, or even playing complex games, fostering an avenue for
economic progress
 ● the practice of designing and developing artificial intelligence systems that
respect and represent the diversity of human values, cultures, identities, and
abilities.

Debate Motion:
This House values the inclusivity of AI technology in addressing socioeconomic
disparities over concerns about potential job displacement.

Inclusive AI
AI can create new economic opportunities, fostering entrepreneurship and empowering
individuals, especially those in marginalized communities.

Embracing AI can lead to upskilling and reskilling programs, equipping the workforce
with new, high-demand skills and increasing employability.

AI has the potential to boost overall economic productivity, leading to economic growth
that can benefit all segments of society.

Inclusive AI strategies can target specific areas of socioeconomic disparity, such as

healthcare accessibility, education, and financial inclusion.
Job Creation in New Industries:

AI can spur the creation of new industries and job opportunities that were previously
nonexistent, contributing to overall employment.

Negative Points (Against the Motion):

The rapid adoption of AI may lead to job displacement in traditional sectors, causing
unemployment and potentially exacerbating existing economic disparities.

There may be a widening skills gap, with certain segments of the population lacking
access to the necessary education and training needed to participate in the AI-driven
economy.

AI systems might inherit and perpetuate existing biases, potentially exacerbating social
and economic inequalities rather than addressing them.

The benefits of AI may disproportionately accrue to certain groups or industries, leading

to further concentration of wealth rather than inclusive economic development.
Overreliance on AI in the workforce may erode traditional job markets without adequate
measures in place to transition workers into new roles.

Macroeconomics

1. GDP
2. Inflation
3. Unemployment

Myth 1: AI will take everyone’s jobs

AI will transform jobs, not necessarily replace them.

Automation of tedious tasks by AI can free up time for more meaningful and creative
work.
Individuals are faced with the question of how to strategically use their time in the era of
AI.
Myth 2: AI is only for people who work in tech

AI is accessible to everyone, not just tech experts.

Many people already use AI in daily life, such as through search engines, product
recommendations, and predictive text in emails.
Exciting applications of AI extend beyond tech, such as in healthcare, enhancing human
capabilities.
Myth 3: AI is one thing

AI is not a single technology but a collection of diverse technologies found in everyday

applications.
It's important to understand the different ways AI can be utilized and choose the right
tools for specific tasks.
Myth 4: AI is inherently biased and should be avoided

AI can be biased, but informed consumers can mitigate this by understanding how AI
systems are built.
Developers should train AI on diverse and representative datasets and use fair and
unbiased algorithms Responsible AI practices, emphasizing fairness, reliability, and
transparency, are crucial for ethical AI use.