Philippine organizations are increasingly recognizing the economic potential of Generative Artificial Intelligence (Gen AI), even as they grapple with its complexities and risks, according to IBM. The nation is poised to benefit from the region’s burgeoning AI adoption, with Generative AI spending in the Asia Pacific projected to reach US$26 billion by 2027.
The study reveals a strong appetite for Gen AI among Philippine CEOs. With a competitive edge in mind, 82% are willing to take calculated risks and adopt the technology before their competitors. They believe AI can be a transformative force, enhancing customer experience, improving decision-making, and accelerating growth. For instance, AI-powered chatbots can personalize customer interactions, while generative models can analyze vast amounts of data to provide data-driven insights for better decision-making.
However, the path to AI adoption is not without hurdles. CEOs cite a lack of expertise (52%) and limited financial resources (50%) as the primary barriers to innovation. Concerns about data privacy, lineage, and regulatory compliance also contribute to the hesitancy. Data privacy is a major concern, as Gen AI models are often trained on massive datasets. Organizations worry about the security of their data and the potential for misuse. In addition, the lineage of data, or its origin and history, can be difficult to track in complex AI systems. This lack of transparency can make it challenging to ensure that AI models are not biased or discriminatory. Regulatory compliance is another hurdle. As generative AI is a relatively new technology, there are still many unanswered questions about how it should be regulated. Organizations are concerned about the potential for new regulations to stifle innovation.
Workforce Implications
Generative AI’s impact on the workforce is another area of concern. While 64% of CEOs believe their teams have the necessary skills, few fully understand the implications for their organization’s culture and workforce. New AI-powered tools and automation may necessitate upskilling or reskilling current employees to adapt to these changes. In addition, some jobs may be displaced by automation, requiring proactive workforce planning and social safety nets to mitigate potential negative impacts. However, Gen AI is also likely to create new job opportunities in areas like AI development, data science, and cybersecurity. To thrive in the age of Generative AI, organizations will need to invest in training and development programs to equip their workforce with the necessary skills and ensure a smooth transition.
Despite this, Philippine CEOs are demonstrating a proactive approach to the changing workforce landscape. Recognizing the need to bridge the skills gap, 47% are already creating new job positions specifically focused on AI. These roles encompass a wide range of specialties, including AI engineers, data scientists, and machine learning experts. Around 33% of CEOs anticipate reskilling their existing workforce within the next three years to prepare them for the demands of the AI-powered future. This reskilling will likely involve training programs in areas such as data analysis, machine learning, and AI ethics. By proactively addressing workforce development, Philippine organizations can ensure a smooth transition to generative AI and maximize the technology’s potential to drive growth and innovation.
IBM, a pioneer in AI, has leveraged its own technology, watsonx, to transform its operations. The company’s AskHR intelligent AI assistant, powered by watsonx, automates HR tasks such as identifying criteria for employee promotions, job role-matching, fraud detection in expense data, development and retention of talent, and more. This not only saves IBM countless hours in HR processes but also frees up its HR team to focus on more strategic initiatives. AskHR exemplifies the potential of generative AI to streamline operations, improve efficiency, and empower employees to focus on higher-value work.
IBM is also helping Philippine organizations like Actimai harness AI to enhance customer service and operational efficiency. With the right strategies and partnerships, the Philippines is well-positioned to become a leader in the Generative AI revolution.
Access the IBM 2024 CEO Study here.