Few firms ready for AI shift – study

MANILA, Philippines — Barely one in five Philippine organizations are ready to deploy technologies that utilize artificial intelligence, but nearly all of them understand the urgency to adopt AI as soon as possible.

A study conducted by Cisco reported that only 17 percent of Philippine companies are prepared to employ AI technologies in their operations in the age of automation.

Further, 61 percent of firms in the country believe that they have only a year to draft an AI strategy, or else they will start incurring losses as a consequence of lagging behind.

Likewise, nearly half of the respondents lamented that they lack the proper infrastructure right now to meet AI challenges. A majority said they have to invest in new graphics processing units to support AI workloads, thereby requiring the allocation of additional capital for adoption.

On the other hand, Cisco said almost all Philippine companies understand the urgency to adjust to the times. The survey found out that 98 percent want to employ AI technology to increase the efficiency in their workplace.

Cisco Philippines managing director Zaza Soriano-Nicart said the use of AI boosts the economic potential of companies, providing them with advanced computing that raises work efficiency.

“As companies in the Philippines rush to deploy AI solutions, they must assess where investment is needed across the different pillars of readiness, like infrastructure and data, to deliver on their business outcomes,” Nicart said.

“They also have to pay attention to how AI is being used to ensure a good return on investment, with security and responsibility in mind,” she said.

Worldwide, Cisco said 95 percent of organizations are aware that AI will increase infrastructure requirements, particularly for data. Apart from this, 87 percent believe that AI will play a crucial role in their operations, accepting that its adoption will affect data privacy and security as well.

In developing the AI report, Cisco gathered the insights of more than 8,000 private sector leaders globally. The index assessed AI readiness through six pillars: strategy, infrastructure, data, talent, governance and culture.

A separate study by the International Data Corp. reported that the Philippines places 12th in a list of 14 economies in Asia and the Pacific on progress in automation.

Recently, the world has seen a spike in the use of generative AI, programs that can create images, texts and videos based on available data.