AI Readiness in the Philippines: A Call for Comprehensive Investment and Strategy
Despite a modest increase in AI readiness among organizations in the Philippines, only 22% are fully equipped for implementation. Cisco’s latest study reveals a pressing need for strategic investment and infrastructure improvement to harness the full potential of AI technologies.
Current State of AI Readiness
The integration of artificial intelligence (AI) into business operations is no longer a future concept; it is a necessity for organizations aiming to thrive in a competitive landscape. However, a recent study by Cisco Philippines reveals that only 22% of organizations in the country are fully prepared to leverage AI-powered technology. This marks a slight improvement from 17% last year, indicating a growing awareness of AI’s importance but also highlighting persistent challenges in adoption.
Urgency for AI Solutions
According to the 2024 AI Readiness Index, conducted by Cisco, a staggering 98% of Filipino organizations have expressed an increased urgency to deploy AI solutions over the past year. This urgency is driven by the need to:
- Enhance efficiency
- Foster innovation
- Achieve greater profitability and market share
While many organizations recognize the benefits of AI, the gap between recognition and readiness remains significant.
Evaluation of AI Readiness
The AI Readiness Index evaluates organizations based on six key pillars:
- Strategy
- Infrastructure
- Data
- Governance
- Talent
- Culture
Among the organizations surveyed, about 65% allocated between 10-30% of their information technology (IT) budgets specifically for AI deployment. This investment reflects an awareness of the critical role AI can play in transforming business operations.
Areas of Concern
Nevertheless, the study highlights several areas of concern:
- Only 22% of organizations possess the necessary graphics processing units (GPUs) to meet current and future AI demands, indicating a pressing need for investment in hardware infrastructure.
- Only 45% of organizations are equipped with robust data protection measures for their AI models, underscoring the importance of cybersecurity in AI readiness.
Call for Comprehensive Approach
The managing director of Cisco Philippines, Zaza Soriano-Nicart, emphasized the necessity of a comprehensive approach to ensure AI readiness. She stated, “To fully leverage the potential of AI, companies need a modern digital infrastructure capable of meeting evolving power needs and network latency requirements from growing AI workloads.” This highlights the importance of not only investing in AI technologies but also ensuring that the underlying infrastructure is capable of supporting these advancements.
Future Investments in AI
Looking ahead, nearly half (48%) of the organizations surveyed plan to allocate more than 40% of their IT budgets to AI investments in the next four to five years. This shift indicates a recognition of AI’s transformative potential and a commitment to overcoming existing challenges.
In conclusion, while the Philippines is making strides toward AI readiness, significant work remains. Organizations must prioritize strategic investments in technology and infrastructure to unlock the full capabilities of AI. By addressing these gaps, Filipino organizations can position themselves at the forefront of the AI revolution, harnessing its potential to drive innovation, efficiency, and growth in a rapidly evolving digital landscape.
