Filipino business leaders show a significantly higher level of confidence in AI compared to their global counterparts.

The latest PwC Global CEO survey found that at least 75% of Filipino business leaders are confident about integrating AI into key business processes. The figure is higher than the global average of 67%.

Many of the CEOs featured in the survey said they are planning to embed AI “to a very large extent” into key business processes and workflows.

These leaders are also planning to leverage AI “to a moderate extent” into their technology platforms, workforce and skills, product development, and core business strategies.

Their confidence in AI is rooted in a belief that it can deliver tangible benefits to their businesses, seeing global leaders succeed in adopting smart technologies.

In fact, the same PwC survey showed that 56% of global CEOs reported increased employee efficiencies, while 34% reported increased profitability with the help of AI.

The Philippines continues to experience a surge in digital transformation, creating a fertile ground for the adoption of emerging technologies like AI.

High mobile penetration rates, expanding internet access, and a generally tech-savvy population are some of the key factors contributing to the rise of AI usage in business.

A 2024 report by Jobstreet by SEEK even found that nearly half (46%) of Filipinos use generative AI monthly in their work, exceeding the global average of 39%. The study also found that employees aged 18 to 24 are twice as likely to use Generative AI as older age groups, suggesting that younger workers are leading the charge in AI adoption.

Also Read: Singapore employees sceptical of leaders’ AI skills

Drivers of trust: What’s fuelling high AI confidence in the Philippines?

Several interconnected factors contribute to the high level of trust in AI among Filipino CEOs. Beyond the general tech-savviness of the population, there may be specific drivers shaping this confidence, including the following:

Government support

The Philippine government has been actively promoting digital transformation and recognising the importance of AI. In 2024, the Department of Trade and Industry already launched a national AI roadmap.

While specific national AI strategies may still be under development, existing initiatives from other agencies are focused on digitalisation, innovation, and technology development to provide a supportive environment for AI adoption.

Growing talent pool

While the PwC survey showed a gap in skills needed for modern business in the Philippines, there are many efforts to boost the country’s AI-literate talent pool.

Universities are increasingly offering courses in data science, machine learning, and AI, contributing to a growing pipeline of skilled professionals.

Furthermore, initiatives by forward-thinking organisations are focusing on developing data science skills and fostering a thriving AI ecosystem.

The growing pool of talent gives CEOs confidence that they can find the expertise needed to implement AI solutions effectively.

Regional economic growth

The World Economic Forum’s recent report on AI in Southeast Asia showed that the Philippines’ neighboring countries are also pouring significant investment in AI technologies and solutions.

In fact, the report showed that more than US$30 billion has been committed to building AI-ready data centers across Singapore, Thailand, and Malaysia just in the first half of 2024.

The broader Southeast Asian perspective on AI resonates strongly with Filipino CEOs, reinforcing their belief that AI is not a fleeting trend, but a fundamental driver of future economic prosperity.

Also Read: Rising IT job cuts signal how AI is taking over

Areas of concern and potential challenges

While the promise of economic growth and societal advancement is alluring, Filipino CEOs must be aware that navigating the AI frontier requires careful consideration of the risks and challenges that lie ahead.

Much like a complex financial instrument, AI offers high potential returns but also carries inherent risks that must be understood and mitigated.

One of the most pressing concerns is the impact on the labour market. While AI is expected to create jobs, it poses a significant threat to existing ones, particularly in sectors involving routine or repetitive tasks.

A 2024 IMF report said AI will likely impact 40% of jobs in the world in the coming years, replacing some while complementing others.

“In advanced economies, about 60% of jobs may be impacted by AI. Roughly half the exposed jobs may benefit from AI integration, enhancing productivity. For the other half, AI applications may execute key tasks currently performed by humans, which could lower labour demand, leading to lower wages and reduced hiring. In the most extreme cases, some of these jobs may disappear,” the report said.

Beyond job displacement, ethical considerations loom large.

AI systems are trained on data, and if that data reflects existing biases, the AI will perpetuate and even amplify those biases.

This can have serious consequences, particularly in areas like criminal justice, loan applications, and even hiring processes. The development of clear ethical guidelines and standards for AI development and deployment is crucial.

Data privacy is another critical concern. AI systems often require vast amounts of data to function effectively, raising questions about how that data is collected, stored, and used.

The Philippines’ Data Privacy Act of 2012 provides a framework for data protection, but its effectiveness in the age of AI remains to be seen.

The potential for misuse of personal data by AI systems, whether for surveillance, targeted advertising, or other purposes, necessitates robust safeguards and mechanisms for accountability.

Increasing reliance on AI also raises concerns about algorithmic transparency and accountability. Many AI systems operate as black boxes, making it difficult to understand how they arrive at their decisions.

This lack of transparency can erode trust in AI, particularly when those decisions have significant consequences.

For example, if an AI-powered loan application system denies someone a loan, they have a right to understand why. The challenge lies in developing AI systems that are both effective and transparent, allowing for human oversight and accountability.

Finally, the digital divide poses a significant obstacle to the equitable adoption of AI in the Philippines.

Access to technology and digital literacy are not evenly distributed across the country, which could lead to the further marginalisation of already disadvantaged communities.

If the benefits of AI are concentrated in the hands of a select few, it could exacerbate existing inequalities and create a two-tiered society.

Navigating the AI frontier requires a multi-faceted approach involving government regulation, industry best practices, academic research, and public dialogue.