Timor-Leste President Ramos-Horta Urges Firms to Weigh AI's Impact on Jobs, Not Just Profits
Key Takeaways
- •Timor-Leste President José Manuel Ramos-Horta told Philippine business leaders at the MAP–SGV 7th NextGen Conference that companies should evaluate AI's impact on jobs instead of prioritizing efficiency or returns.
- •He argued innovation should be measured by whether it improves lives, strengthens resilience, and creates opportunities rather than by how quickly it generates profit.
- •While noting technology helps smaller firms access international markets, he warned AI could worsen inequality by displacing workers whose skills cannot keep pace with change.
- •International Monetary Fund analysis estimates AI will affect almost 40% of jobs globally, with exposure rising to about 60% in advanced economies.
- •Citing the Philippines' median age of 27 as a growth advantage amid aging neighbors like Japan, South Korea, and China, he urged preparing young people to use, question, and responsibly govern new technologies.
Companies must assess the impact of artificial intelligence (AI) on employment rather than focusing primarily on efficiencies or profit potential, Timor-Leste President José Manuel Ramos-Horta said on Monday.
"Businesses should not measure innovation exclusively by the speed at which it generates return," Mr. Ramos-Horta said at the Management Association of the Philippines (MAP)–SGV 7th NextGen Conference. "They should also consider whether it improves people's lives, strengthens resilience, and creates opportunities that aid you."
MAP is one of the Philippines' leading business management organizations, while SGV & Co. is the Philippine member firm of EY, one of the world's largest professional services networks. The two jointly organize the NextGen Conference series.
Mr. Ramos-Horta shared the 1996 Nobel Peace Prize with Bishop Carlos Filipe Ximenes Belo for their work toward a peaceful resolution of the conflict in East Timor. He has served as president of Timor-Leste since 2022, having previously held the post from 2007 to 2012. The Southeast Asian nation, which occupies the eastern half of Timor island, gained full independence in 2002 and became the 11th member of the Association of Southeast Asian Nations (ASEAN) in October 2025. His address to Philippine business leaders came roughly a year after that accession, placing Timor-Leste alongside the Philippines, one of the five founding members of the regional bloc in 1967.
In his remarks, Mr. Ramos-Horta noted that technology can help smaller firms access international markets and overcome physical constraints, particularly for younger workers.
"Technology can… allow entrepreneurs to develop solutions with few resources and give individuals access to knowledge that was once available only to a privileged minority," he said.
At the same time, he warned that AI could exacerbate inequality by displacing workers whose skills fall behind the pace of technological change. Global institutions have echoed such concerns: International Monetary Fund analysis estimates that AI will affect almost 40% of jobs worldwide, with exposure rising to about 60 in advanced economies.
The Philippines' young population, with a median age of 27, is viewed as an asset in driving economic growth, especially as neighboring economies such as Japan, South Korea, and China confront rapidly aging societies. That generational edge is the backdrop to his call to prepare young people for the technologies reshaping work.
"We must prepare young people not only to use the new technologies, but also to question them, govern them responsibly, and direct them to a human progress," Mr. Ramos-Horta said.
"With innovation being caused by accelerated technological change, human judgment, empathy, integrity and accountability become more important, not less," he added.
— Beatriz Marie D. Cruz, BusinessWorld
Original report: Timor-Leste leader calls for hard look at AI impact on jobs
