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PHL firms need to embrace AI to stay ahead in the digital era — experts

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By Revin Mikhael D. Ochave, Reporter

ADOPTING artificial intelligence (AI) is essential for companies to stay competitive and drive growth, as it enhances operational efficiency, customer engagement, and innovation, according to experts.

National Economic and Development Authority Secretary Arsenio M. Balisacan said in July that the Philippine economy stands to gain P2.6 trillion annually if local businesses adopt AI in their operations.

“I believe that we will see higher adoption of AI in the near future, as more and more companies realize the benefits and opportunities of AI, as well as the risks and challenges of not using AI,” Microsoft Philippines Chief Executive Officer Peter D. Maquera said in an e-mail interview.

He said that Microsoft Philippines uses various AI programs to automate tasks such as scheduling meetings, creating reports, and finding information.

The company also uses a cloud-based platform that provides access to AI models improving customer engagement, product development, and innovation, as well as a machine-learning platform addressing business needs such as demand forecasting, sentiment analysis, and fraud detection. The solutions can also be accessed by local businesses to support the growth of their operations.

“Our motivation in considering the use of AI for our business is to create more value for our customers, partners, and employees, and to contribute to the social and economic development of the Philippines,” he said.

Mr. Maquera said that Microsoft Philippines has seen improved profitability and reduced operating costs through AI solutions, which have enabled the company to create more value for customers and partners. These solutions have also attracted more customers and increased their satisfaction and loyalty.

INCREASED ADOPTION, INTERNAL APPLICATIONSLee Carlo B. Abadia, technology consulting principal at the professional services firm SyCip Gorres Velayo & Co. (SGV), said that increased AI adoption is expected among Philippine companies.

“We see better adoption in the next year or so, but more for internal tasks centered on boosting productivity related to reporting or facilitating the ease of decision-making for leaders,” he said in an e-mail interview.

He said that companies can use AI to foster better employee engagement, helping employees complete tasks more efficiently.

However, he noted that the largest barrier to adoption is the fear of jobs being replaced. He said that companies should promote a human-AI partnership in operations, focusing on making tasks more efficient rather than reducing labor costs.

Mr. Abadia also said that SGV’s AI assistant tool, EYQ, aids in ideating, researching, and consolidating information, allowing the firm to focus more on formulating client recommendations.

“The tool boosts productivity by augmenting the capabilities of our people in crafting and improving solutions, considering more information in less time,” he said. “It is not intended for rightsizing activities but to provide value faster.”

Sara Venturina, chief data officer of mobile wallet GCash, said in an e-mail interview that the company has been using AI to develop more relevant products and personalized services. Internally, GCash will launch an AI-powered work assistant to improve productivity and is testing a contact center AgentCopilot to enhance customer service.

She added that while GCash has used AI to streamline internal systems, it has not undergone any rightsizing of manpower, as the company continues to grow and scale up support.

She projected that more businesses will adopt AI to keep up with the fast-paced and data-driven market.

FUTURE PROSPECTS, CHALLENGESAlex A. Ustaris, chief technology officer of PHINMA Education Holdings, Inc., said that local companies and organizations will catch up on AI adoption soon.

Cloud-based platforms and mobile technology could push forward AI-enabled services in the Philippines, he noted.

He also said that PHINMA Education will use AI to transform how its students learn and how its employees work.

“AI will help us provide customized learning for each student and scale the learning process so that we can make more lives better through education,” he said.

PHINMA Education has already increased quality leads by 15% and reduced manpower costs for manual tasks through AI initiatives, according to the company.

Mr. Abadia said that universities and businesses should integrate AI into their curricula and on-the-job training programs to enhance local adoption.

Additionally, both the public and private sectors should identify areas where AI can be applied and pursue proof-of-concept projects to build momentum, he also said.

Microsoft’s Mr. Maquera stressed the need for investments in AI education and training, infrastructure, and partnerships to boost AI adoption in the Philippines.

“AI is the new electricity, the new internet, the new platform that will power the next wave of innovation and growth for businesses and society,” he said.

According to Microsoft’s latest AI Readiness Index, the Philippines ranks eighth out of 10 ASEAN countries in terms of AI readiness, with a score of 47 out of 100. The main challenges include a lack of skills, data, and infrastructure, as well as low awareness, trust, and regulation of AI.

Alex Takeda Lagata, Jr., global business director of Tokyo-based AI firm rinna Co., Ltd., said the government and private sector should push for increased AI awareness in the Philippines.

He noted that businesses may be hesitant to adopt AI due to public stigma but emphasized that inaction could lead to lost opportunities.

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