AI Transformation in Digitally Delivered Services

This case study examines the impact of artificial intelligence (AI) on digitally delivered services (DDS) in the Philippines and Uzbekistan. It outlines how most workers and firms perceive AI tools as co-workers and coaches rather than competitors, emphasizing the role of AI in enhancing work efficiency, quality, and learning. The study highlights that while AI adoption is increasing, many firms, particularly smaller ones, are not fully utilizing the capabilities of AI tools due to factors such as limited availability of specialized tools, lack of awareness, and insufficient in-house skills. The report details various applications of AI in DDS, from automating simple tasks to enhancing complex processes. It also notes early signs of job displacement, primarily affecting lower-skilled and junior workers, raising concerns about potential inequalities exacerbated by AI adoption. The need for large-scale upskilling and reskilling initiatives is acknowledged, although such efforts have yet to be implemented effectively.